Exam 1

Question 1

What Greek word does economics come from?

Answer 1

Oikonomos

Question 2

What is the term used to describe economic effects external to the direct production of goods?

Answer 2

externalities

Question 3

What does GDP stand for?

Answer 3

gross domestic product

Question 4

What term is used to describe the analysis of how individual households and companies make decisions and how buyers and sellers interact in the market?

Answer 4

microeconomics

Question 5

In the United States, what is money used as?

Answer 5

a medium of exchange

Question 6

What forms did money once take?

Answer 6

gold, silver, and paper certificates?

Question 7

What was the prevailing economic philosophy at the time of publication of the wealth of nations?

Answer 7

mercantilism

Question 8

What book by Karl Marx and George F. W. Engel was a statement of revolutionary principles for a labor organization?

Answer 8

The Road to Serfdom

Question 9

Who wrote Principles of Economics?

Answer 9

Carl Menger

Question 10

What did the conference at Bretton Woods, New Hampshire lead to the creation?

Answer 10

1. the General Agreement on Tariffs and Trade
2. the International Monetary Fund
3. the World Bank

Question 11

In the Israelites year of jubilee, what happened to the land that a person had acquired since the previous year of jubilee?

Answer 11

It reverted to the family of the original owner

Question 12

Who owned all the land of Israel?

Answer 12

God

Question 13

Who conquered the southern kingdom of Judah and carried many of the people away to exile?

Answer 13

Babylon

Question 14

Proverbs 23:4-5 compares wealth to the fleeting nature of what?

Answer 14

an eagle

Question 15

According to Proverbs 22:2, the rich and the poor share what common bond?

Answer 15

the Lord made them all

Question 16

Why does the writer of Proverbs 30:7-9 not want riches?

Answer 16

so he will not deny the Lord

Question 17

Psalm 15 tells us that he who does not, among other things, take a bribe against the innocent will never what?

Answer 17

shaken

Question 18

Besides the kingdom of God, what subject did Jesus talk about the most?

Answer 18

money

Question 19

In Jesus parable about the rich fool, He said the fool had stored up tr3easeure for himself but he was not

Answer 19

rich toward God

Question 20

Paul commanded a change in the behavior of the believers in Thessalonica whom he had heard were living what kind of life?

Answer 20

undisciplined

Question 21

Who are two early Christians who are known to have been somewhat wealthy?

Answer 21

Cornelius and Lydia

Question 22

Monks committed themselves to living a life of voluntary poverty and devoted themselves to:

Answer 22

prayer and fasting

Question 23

As a result of their successful New England colonies, what group had significant influence in America and in the thinking of American Christians regarding faith and money?

Answer 23

Puritans

Question 24

Who wrote the Protestant Ethic and the Spirit of Capitalism?

Answer 24

Max Weber

Question 25

What part of the world in particular has developed liberation theology?

Answer 25

Latin America

Question 26

According to Scripture we will have plenty if we are:

Answer 26

generous

Question 27

In Luke 12:15, Jesus warned HIs listeners to be on their guard against every form of what?

Answer 27

greed

Question 28

To what did Paul compare greed in Colossians 3:5?

Answer 28

idolatry

Question 29

Paul said that godliness is a means of great gain when accompanied by what?

Answer 29

contentment

Question 30

The economic motivation behind the American colonies break with Great Britian included the colonists anger at the British policy of:

Answer 30

imposing taxes on the colonies

Question 31

Under the Articles of Confederation, the United States...

Answer 31

had no national currency

Question 32

What did the constitution give congress the power to do?

Answer 32

regulate interstate commerce

Question 33

What did the plan put forth by Alexander Hamilton include a proposal to do?

Answer 33

create a national bank

Question 34

What was one factor that brought about the War of 1812?

Answer 34

British interference with American shipping

Question 35

Afte3r Andrew Jackson vetoed the renewal of the Banke of the United States, where did the Federal funds go?

Answer 35

they were deposited to several state banks

Question 36

What was the first big business that developed after the Civil War?

Answer 36

railroads

Question 37

What was created by Congress in 1913 to serve as a central bank?

Answer 37

The Federal Reserve System

Question 38

What is generally credited with bringing the United States out of the Great Depression?

Answer 38

production related to World War 2

Question 39

What was a major economic issue during the 1970s?

Answer 39

inflation

Question 40

Making choices is:

Answer 40

A necessity, responsibility and a blessing

Question 41

making bad choices now makes good choices later:

Answer 41

more difficult

Question 42

Why do we face economic choices?

Answer 42

because of limited resources

Question 43

What is Marginal benefit?

Answer 43

The change in total benefit that results from an action

Question 44

What are production resources?

Answer 44

the factors of production

Question 45

What is the production possibilities frontier?

Answer 45

the maximum production an economy can have given its production resources

Question 46

What is a rebate an example of?

Answer 46

an incentive

Question 47

What is consumer choice effected by?

Answer 47

what the consumer wants and what the consumer can afford

Question 48

Capitalism and socialism differ in terms of:

Answer 48

who makes economic decisions

Question 49

Public choice theory emphasizes the role of decision making that is played by:

Answer 49

self interest

Question 50

Who is often called the father of modern economics?

Answer 50

Adam Smith

Question 51

What country was Adam Smith born?

Answer 51

Scotland

Question 52

what book by Adam Smith was published in 1776?

Answer 52

The Wealth of the nations

Question 53

How did Smith challenge the prevailing view of how nations build and aquire wealth?

Answer 53

he said that the wealth came from the labor that the citizens provided

Question 54

What 2 circumstances does Smith say regulate the proportion of what a nation produces to the number of those who consume it?

Answer 54

The skill, dexterity, and judgment with which its labor is applied and the proportion between the number of those who are employed in useful labor and those who are not employed.

Question 55

What does Smith say brought about the biggest improvement in the productive powers of labor?

Answer 55

the division of labor

Question 56

Smith says that we obtain what we need not from the ___ of merchants, but from their regard to their own ___.

Answer 56

benevolence, interest

Question 57

Where was Karl Marx born?

Answer 57

Trier, Prussia

Question 58

What 2 classes of society did Marx acknowledge?

Answer 58

Proletariat (working class) and bourgeoisie (ownership class)

Question 59

Describe Marx's theory for the establishment of a socialist state.

Answer 59

The state would be run by the intellectually elite on behalf of the working class. The workers would own the means of production and share in the profit.

Question 60

Milton Friedman believed that the Great Depression was primarily caused by what?

Answer 60

failure of the Federal Reserve System to maintain an adequate supply of money to help the economy grow

Question 61

Who is considered the Father of the modern study of macroeconomics?

Answer 61

John Maynard Keynes

Question 62

What work popularized the term "conventional wisdom"?

Answer 62

The Affluent Society by John Kenneth Galbraith

Question 63

Economist and socialist Max Weber was from what country?

Answer 63

Germany

Question 64

How did Max Weber define capitalism?

Answer 64

Economic activity that expects a profit through peaceful, voluntary, and mutually beneficial exchanges

Question 65

What were the 3 main elements of Alexander Hamiltons fiscal plan?

Answer 65

1. the national government took the debts of the states and continental congress and government assistance for the creation of a manufacturing economy 2. to impose tariffs on imports and ban certain imports 3. the creation of a national bank

Question 66

What did the Federal government do to help pay off debt after the war of 1812?

Answer 66

sold western land

Question 67

What were some of the factors of the panic of 1819?

Answer 67

1. The bank of the United States was poorly run 2. they issued fewer loans 3. they demanded hard money of the State bank notes it received 4. demand for American cotton declined 5. slowdown in industrial output 6. many defaults on loans

Question 68

What was a major economic problem during the 1970?

Answer 68

inflation

Question 69

What is economic efficiency?

Answer 69

The goal of having the people in an economy being as productive as possible

Question 70

What is economic equity?

Answer 70

the goal of having goods and services shared as equally as possible among the people in a society

Question 71

What is economic stability?

Answer 71

protection from fluctuation in economic activity from serious loss

Question 72

What is economic security?

Answer 72

being sure that everyone has what they need (jobs, healthcare, necessities) and cannot fall too far

Question 73

What are production resources?

Answer 73

the elements that producers use to create goods and services

Question 74

What are 3 categories of production resources?

Answer 74

1. material resources 2. human resources 3. and capital

Question 75

what is economics?

Answer 75

a social science concerned chiefly with description and analysis of the production, distribution, and consumption of goods and services

Question 76

What are some types of economies?

Answer 76

1. barter economy - a economy with no money 2. market, free market, or capitalist economy - means of production is owned by private individuals 3. command economy/ socialist economy - authority dictates what is done