Economic Principles

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GED Social Studies › Economic Principles

Questions 1 - 10
1

New York State wishes to encourage new businesses to come and open in many small towns in Northern New York, so it plans to offer __________ to provide cheaper land and lower taxes for start-up companies.

incentives

moralizers

justifications

abstracts

edicts

Explanation

An "incentive" is some advantage (lower taxes, cheaper land, access to resources or market, etc.) that a government can offer to a business or a type of businesses to encourage the growth and spread of business in their area.

2

New York State wishes to encourage new businesses to come and open in many small towns in Northern New York, so it plans to offer __________ to provide cheaper land and lower taxes for start-up companies.

incentives

moralizers

justifications

abstracts

edicts

Explanation

An "incentive" is some advantage (lower taxes, cheaper land, access to resources or market, etc.) that a government can offer to a business or a type of businesses to encourage the growth and spread of business in their area.

3

New York State wishes to encourage new businesses to come and open in many small towns in Northern New York, so it plans to offer __________ to provide cheaper land and lower taxes for start-up companies.

incentives

moralizers

justifications

abstracts

edicts

Explanation

An "incentive" is some advantage (lower taxes, cheaper land, access to resources or market, etc.) that a government can offer to a business or a type of businesses to encourage the growth and spread of business in their area.

4

Adam Smith is most principally associated with __________

laissez-faire economics.

the social contract.

a system of checks and balances in government.

mercantilism.

freedom of religion.

Explanation

Adam Smith was an Enlightenment-era economic philosopher. He is most remembered for laying down the principle of free-market economics called laissez-faire economics. His theory stated that an economy would have the best success if the government does not intervene. His ideas were widely adopted in Europe and America over the next couple of centuries and were an important foundation of the spread of capitalism around the world.

5

Adam Smith is most principally associated with __________

laissez-faire economics.

the social contract.

a system of checks and balances in government.

mercantilism.

freedom of religion.

Explanation

Adam Smith was an Enlightenment-era economic philosopher. He is most remembered for laying down the principle of free-market economics called laissez-faire economics. His theory stated that an economy would have the best success if the government does not intervene. His ideas were widely adopted in Europe and America over the next couple of centuries and were an important foundation of the spread of capitalism around the world.

6

Adam Smith is most principally associated with __________

laissez-faire economics.

the social contract.

a system of checks and balances in government.

mercantilism.

freedom of religion.

Explanation

Adam Smith was an Enlightenment-era economic philosopher. He is most remembered for laying down the principle of free-market economics called laissez-faire economics. His theory stated that an economy would have the best success if the government does not intervene. His ideas were widely adopted in Europe and America over the next couple of centuries and were an important foundation of the spread of capitalism around the world.

7

The exchange or trade of goods or services, without exchanging money, is called __________.

bartering

gambling

wagering

commiserating

agitating

Explanation

To barter is to exchange goods or services with someone else without the use or exchange of money. Throughout human history, bartering has been a common means by which goods are exchanged between individuals or social groups.

8

The exchange or trade of goods or services, without exchanging money, is called __________.

bartering

gambling

wagering

commiserating

agitating

Explanation

To barter is to exchange goods or services with someone else without the use or exchange of money. Throughout human history, bartering has been a common means by which goods are exchanged between individuals or social groups.

9

The exchange or trade of goods or services, without exchanging money, is called __________.

bartering

gambling

wagering

commiserating

agitating

Explanation

To barter is to exchange goods or services with someone else without the use or exchange of money. Throughout human history, bartering has been a common means by which goods are exchanged between individuals or social groups.

10

The seminal economic text of capitalism, The Wealth of Nations, was written by __________.

Adam Smith

Thomas Malthus

John Locke

Oliver Cromwell

Nicholas Copernicus

Explanation

Adam Smith was a British economist and writer in the eighteenth century. He was a famous advocate of laissez-faire capitalism (the idea that the government should have minimal interference in the economy). His most famous work, The Wealth of Nations, remains influential to this day, and is something of a shrine to free-market capitalism.

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