#1
Which economic system relies on private ownership of property and the means of production?
Capitalism
ExplanationPrivate ownership and market-driven production characterize capitalism.
#2
Who is often considered the father of modern economics?
Adam Smith
ExplanationAdam Smith is credited as the pioneer of modern economics.
#3
In which economic system does the government own and control most of the resources and businesses?
Socialism
ExplanationSocialism entails significant government ownership and control of resources and industries.
#4
Who wrote the book 'The Wealth of Nations,' which laid the foundation for classical economics?
Adam Smith
ExplanationAdam Smith authored 'The Wealth of Nations,' a cornerstone of classical economics.
#5
Which economic system emphasizes the role of centralized planning and state ownership of the means of production?
Socialism
ExplanationSocialism centers on state-controlled planning and ownership of production.
#6
Which economic philosophy advocates for minimal government intervention in the economy?
Libertarianism
ExplanationLibertarianism promotes limited government involvement in economic affairs.
#7
What economic concept is based on the idea that individuals act in their own self-interest and that this behavior leads to overall societal benefit?
Rational choice theory
ExplanationRational choice theory posits that individual self-interest can benefit society collectively.
#8
Which economic system advocates for the collective ownership of resources and the means of production?
Socialism
ExplanationSocialism advocates for communal ownership of resources and production means.
#9
What term refers to the total value of all goods and services produced within a country's borders in a specific time period?
Gross Domestic Product (GDP)
ExplanationGDP measures the total economic output within a nation's borders over a period.
#10
Which economic philosophy focuses on the importance of demand-side policies, such as government spending and taxation, to manage the economy?
Keynesianism
ExplanationKeynesianism emphasizes government intervention through demand-side policies.
#11
Who coined the term 'invisible hand' to describe the self-regulating nature of a free market economy?
Adam Smith
ExplanationAdam Smith introduced the concept of the 'invisible hand' in economics.
#12
Which economist is known for his advocacy of supply-side economics and his role as an advisor to President Ronald Reagan?
Arthur Laffer
ExplanationArthur Laffer is famed for his advocacy of supply-side economics and advising Reagan.
#13
Who developed the theory of comparative advantage, which explains why countries engage in trade even if one country is more efficient in producing all goods?
David Ricardo
ExplanationDavid Ricardo formulated the theory of comparative advantage.
#14
Who is associated with the theory of the 'quantity theory of money,' which states that changes in the money supply directly affect prices?
Milton Friedman
ExplanationMilton Friedman is linked with the quantity theory of money, relating money supply changes to price shifts.
#15
Who proposed the theory of 'creative destruction,' suggesting that capitalism constantly revolutionizes the economic structure from within?
Joseph Schumpeter
ExplanationJoseph Schumpeter introduced the theory of 'creative destruction' in capitalism.