CHAPTER ONE TEST - ECONOMICS

Adam Smith was one of the first people to consider the subject of ______.

• government

• economics

• biology

• microeconomics

What did Adam Smith think was the key to a healthy economy?

• money

• communism

• resources

• competition

What do you call a system used to manage limit resources for the production, distribution, and consumption of goods and services?

• communism

• government

• Economy

____________ is the study of how people use their limited resources to satisfy their unlimited wants.

• Government

• Economics

• Algebra

• Physics

The branch of economics that uses objective analysis is called _________ Economics.

• Positive

• Negative

• Normative

• Abnormative

The branch of economics that applies value judgements to data in order to recommend action or policies called ____________ Economics.

• recommendation

• positive

• normative

• all of these

A ______________ is the exchange of one benefit or advantage that is thought to be better.

• bargain

• economic choice

• barter

• tradeoff

Sometimes a cost-benefit analysis can help a person compare the costs of an action with the ____________ of that action.

• problems

• headaches

• benefits

A/an _______________________ is any factor that encourages or motivates a person to do something.

• disincentive

• incentive

• cash bonus

An economic enigma is a ____________________ or a riddle that might be explained through economic analysis.

• song

• tv show

• puzzle