Chapter 1: What is Economics? Test Review
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Adam Smith
Adam Smith’s Invisible Hand was about:
Adam Smith’s Wealth of Nations was concerned with:
An economic model that illustrates the concept of scarcity & opportunity cost is called:
Capital good
Conspicuous consumption
Consumer goods
Consumers
Consumption
Division of labor
Durable goods
Economic interdependence
Economic products
Economics
Factor markets Factors of production
Free enterprise economy Free products
Good Human capital In a free enterprise economy, who decides the WHAT to produce?
Market
Mercantilism
Nation’s wealth
Need
Nondurable goods
Opportunity cost
Paradox of value
Product markets
Product markets are:
Production
Productivity
Scarcity
Service
Specialization
Standard of living
The factors of production used in production::
TINSTAAFL
Trade-offs Utility
Wealth
What do economists mean when they talk about costs?
Why are services excluded when the wealth of a nation is measured?
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