FREE Associate of Arts: Economics Theories Questions and Answers

Question 1

How does the iron law of wages explain the impact of population growth on wages?

Accepted Answer

A population surplus leads to lower wages

Answer

A population surplus lead to higher wages

Answer

A population surplus leads to a reduction in crime and sickness

Answer

A population surplus leads to an increase in job opportunities

Question 2

In what ways do the economic theories of Thomas Malthus and David Ricardo exhibit similarities?

Accepted Answer

Malthus and Ricardo both believed the plight of the working class was inevitable

Answer

Malthus and Ricardo both believed the governments should take a laissez faire approach to economics.

Answer

Malthus and Ricardo both believed that a lack of profit caused businesses to exploit workers

Answer

Malthus and Ricardo both believed poor working conditions and wages was the fault of the underclass being uneducated.

Question 3

What concept is most commonly linked to laissez-faire economics?

Accepted Answer

Free trade

Answer

Trade unionism

Answer

Subsistence agriculture

Answer

Communes

Question 4

Which statement would align with the views of Adam Smith?

Accepted Answer

Government should follow a laissez-faire policy.

Answer

All nations would benefit from an agricultural economy.

Answer

Revolution is the only solution to economic problems.

Answer

Five-year plans are necessary in order to industrialize.

Question 5

What was the main emphasis in Adam Smith's "Wealth of Nations"?

Accepted Answer

supply and demand

Answer

large corporations

Answer

government ownership

Answer

tradition

Question 6

Who is the individual credited with establishing and developing the principles of capitalism?

Accepted Answer

Adam Smith

Answer

Friedrich Engels

Answer

Bernie Sanders

Answer

Karl Marx

Question 7

Who are the individuals that make purchases of a product?

Accepted Answer

Consumers

Answer

Producers

Answer

Goods

Answer

Services

Question 8

What does the term "Malthusian catastrophe" refer to?

Accepted Answer

the population exceeds food supply

Answer

the population dances

Answer

the population is lower than food supply

Question 9

What are the two fundamental principles or laws of economics identified by Smith?

Accepted Answer

The Law of Supply and Demand and the Law of Competition

Answer

The Laws of Supply and Demand and the Laws of the local police force

Answer

The Law of Supply and Demand and the Law of Populations

Answer

The Law of Competition and the Laws of nature

Question 10

In Economics, what term refers to the amount or volume of a product or service that is accessible for purchase?

Accepted Answer

Demand

Answer

Import

Answer

Export

Answer

Bullion