Untitled Quiz

<p>Higher profits lead to increased demand for money (D)</p> Signup and view all the answers

<p>Smith believed higher wages improve productivity unlike Mercantilists (C)</p> Signup and view all the answers

<p>Total wages in an economy are predetermined (B)</p> Signup and view all the answers

<p>Natural price reflects the true cost of production (D)</p> Signup and view all the answers

<p>Labor turnover (D)</p> Signup and view all the answers

<p>Wages vary according to job risks and benefits (C)</p> Signup and view all the answers

<p>It increases output through specialized tasks. (A)</p> Signup and view all the answers

<p>It leads to the allocation of resources to their highest valued uses. (B)</p> Signup and view all the answers

<p>It has a significant role in maintaining efficiency. (D)</p> Signup and view all the answers

<p>They guide conduct to restrain selfish actions. (A)</p> Signup and view all the answers

<p>They fear self-condemnation and seek to avoid shame. (D)</p> Signup and view all the answers

<p>It causes self-condemnation and inward shame. (C)</p> Signup and view all the answers

<p>Unregulated markets naturally lead to improvements. (A)</p> Signup and view all the answers

<p>Uniform wages for all job roles. (D)</p> Signup and view all the answers

<p>Quantity of labor and costs of production (B)</p> Signup and view all the answers

<p>Wages fund divided by quantity of labor (D)</p> Signup and view all the answers

<p>The price below which firms cannot sustain production (D)</p> Signup and view all the answers

<p>They are considered free goods (C)</p> Signup and view all the answers

<p>It does not increase a good's command over labor if wages also double (B)</p> Signup and view all the answers

<p>The costs of production (D)</p> Signup and view all the answers

<p>A wage enabling survival for workers and their families (C)</p> Signup and view all the answers

<p>Value is dependent on production costs primarily (A)</p> Signup and view all the answers

Higher wages lead to healthier, stronger workers, increasing productivity.

Explanations for frictional and cyclical unemployment, focusing on wages.

Wages vary based on job characteristics (pleasantness, difficulty, responsibility).

The surplus remaining after covering costs and risks for a business.

Changes in wages over time.

Profits attract more borrowing, driving up interest rates.

A payment for the use of land, and linked to the prices of the products it facilitates.

Unemployment while waiting for a suitable job, often related to skill gaps or location mismatch.

The value of a good is determined by the amount of labor needed to produce it. This theory applies in a simple society where land and capital are scarce or free.

The long-run price at which a good can be sold while covering all costs of production, including wages, rent, and profits.

The actual price at which a good is sold in the market, which can fluctuate based on supply and demand.

A theory stating that wages are paid from a fixed pool of capital, implying that wage growth is limited by the size of the fund.

Labor is seen as both a source of value (through production costs) and a measure of value (through the labor commanded by the good).

Smith believed that capital accumulation is key to economic growth as it drives up wages and overall economic output.

Smith opposed mercantilist policies (such as trade restrictions) as they hindered economic growth. He favored free trade and open markets.

The lowest wage that workers should earn, ensuring that they can support their families and continue working.

People work not to fulfill basic needs but for social status and to fulfill their vanity.

Humans can only exist in society as they rely on each other for survival and well-being.

A justice system is necessary to prevent harm and ensure fairness in society due to inherent conflicts and selfishness.

Internal rules of conduct that guide behavior and restrain selfishness, promoting social harmony.

The pursuit of self-interest among individuals, guided by moral faculties, promotes societal good through market forces.

Assigning specific tasks to individuals increases production by improving skill, saving time, and facilitating mechanization.

In a free market, the pursuit of self-interest by individuals leads to a balance of supply and demand, maximizing overall societal benefit.

Limited government intervention in the economy is preferred as it promotes efficiency and avoids corruption and waste.