تاريخ علم الاقتصاد

True/False Statements

• Economics is a social science. True
• The needs of the poor are the same as the needs of the rich. False
• Human needs are variable. True
• Economics is the science of scarcity. True
• Means of satisfying needs are limited. True

Deductive vs. Inductive Reasoning

• Deductive reasoning is descending reasoning. True
• Inductive reasoning is ascending reasoning. True

Keynesian Economics

• Keynesian economics had a significant impact in overcoming economic stagnation. True

Macroeconomics

• Macroeconomics concerns itself with various areas such as interest rates, taxes, and inflation. True
• Macroeconomics includes multiple subjects such as interest rates, taxes and inflation. True
• There is a strong relationship between economics and history. True

Economic Systems

• Economic systems differ based on their perspective on economic problems and the proposed solutions. True
• An economic system (economic system) is a collection of economic, legal, and social relationships that govern economic life in a given society at a particular time. True
• The primitive communal system replaced the system of slavery or serfdom. False
• The system of slavery replaced the feudal system. False
• The outlines and relationships of the capitalist system emerged from the ruins of the feudal system. True
• The capitalist economy is based on collective ownership of the means of production. False
• The capitalist economy aims to meet social needs. False
• The socialist economy aims for no state intervention in the economy. False
• Characteristics of the capitalist system include private ownership of production factors. True
• Characteristics of the capitalist system include economic freedom. True
• Many experts have agreed on a definition of globalization. False
• Speculation is an investment tool close to general commerce. False
• Mixed economy aims for no state intervention in the economy. False
• Human needs are diverse. True
• The economic problem is a permanent, ongoing problem. True

Effective Demand

• Effective demand for a commodity is realized by the desire to purchase. False
• Effective demand for a commodity is realized by the desire to buy and the ability to pay. True
• Effective demand for a commodity is realized by the ability to pay. False

Supply and Demand Relationship

• The relationship between quantity demanded and price is inverse. True
• The relationship between quantity demanded and price is direct. False
• Demand is infinitely elastic, which is the situation where a change in the price of a commodity leads to an infinite change in the quantity demanded of that commodity. True
• Demand is inelastic, meaning that the quantity demanded is unresponsive to price changes. True
• Increasing taxes on production or sales reduces the quantity supplied. True
• Subsidies to producers reduce the quantity supplied. False
• A decrease in the prices of production factors increases the quantity supplied. True
• The law of supply represents the relationship between the quantity supplied of a good or service and the price of that good or service. True
• When the price changes by a certain percentage, the quantity supplied of the commodity also changes by the same percentage, the supply is elastic. False
• In the case of inelastic supply, the quantity supplied changes by a greater proportion than the price change. False
• The relationship between quantity supplied and price is inverse. False
• The relationship between quantity supplied and price is direct. True
• Government tax policy affects consumption. True
• Government tax policy affects savings. True
• Investing in inventories is a major part of investment. True
• The availability of a large stock of capital goods increases investments. True
• The marginal propensity to consume is higher for the poor than for the rich. False

Inflation

• Imported inflation: rising prices due to the influx of global inflation into them through imports. True
• Debtors do not benefit from inflation. False
• Inflation harms all segments of society. False

Unemployment

• Unemployment: is the idleness of the worker with the desire to work at the prevailing wage rate in the market. True
• Structural unemployment is that unemployment that arises from a decline in aggregate demand for goods and services, and thus employment, as a result of economic recession. False
• Capital is intangible and is represented by factories, machinery, tools, and buildings. False
• The marginal product of labor is the change in total output. True
• The change in the number of workers. True
• Tangible capital, represented by cash, stocks, and bonds. False
• Form utility refers to the utility generated by changing the shape of the material. True
• Economists have differed in defining production factors throughout history. True
• Central banks' most significant functions include issuing banknotes and coins according to economic needs. True
• In a barter system, it is possible to store goods for future use. False
• There is an inverse relationship between the amount of money in circulation and the general price level. False
• The central bank borrows from commercial banks, which in turn impose a specific interest rate called the discount rate. False
• The central bank buys and sells government bonds using open market operations. True
• John Stuart Mill's book is "The Wealth of Nations". False
• Adam Smith views economic development as a function of land, labor, and capital. False
• Schumpeter was influenced by the neoclassical school in considering the capitalist system as the general framework for economic growth. True
• Demand creates its own supply, according to Keynes. True
• According to Leibenstein, developing countries suffer from a vicious cycle of poverty. True
• Government tax policy affects supply. True
• Government tax policy affects equilibrium price. True
• Increasing the number of consumers for a commodity reduces demand for it. False
• Indifference curves have a positive slope. False
• Indifference curves do not intersect. True

Multiple Choice Questions

• The birth of economics is largely attributed to (Adam Smith - David Ricardo - Marx - Alfred Marshall). Adam Smith
• A book on the principles of economics and taxation was written by (Adam Smith - David Ricardo - Marx - Alfred Marshall). David Ricardo
• Defining Economics (as the study of human actions for the purpose of living) is credited to (Adam Smith - David Ricardo - Marx - Alfred Marshall). Alfred Marshall
• Focusing on aggregate output and employment is associated with (Adam Smith - David Ricardo - Keynes - Alfred Marshall). Keynes
• Traditional economists during the era of free capitalism defined economics as (the science of wealth, the science of exchange, the science of meeting human needs, the science of scarcity). the science of scarcity
• What is considered a bridge between classical and modern economics? Marginalism
• Inductive reasoning is considered ascending reasoning.
• Deductive reasoning is considered descending reasoning.
• The person most associated with overcoming stagnation is Keynes.

Other Economics Concepts

• Characteristics of Capitalism: Private ownership of production factors, economic freedom,

• Characteristics of Socialism: Collective ownership of production factors.

• Advantages of Capitalism: Increased production, improved living standards, efficient resource utilization,

• Disadvantages of Capitalism: Unequal wealth distribution, limited freedoms, potential for monopolies,

• Factors affecting negative impact on resources: War, natural disasters, environmental pollution.

• Functions of a Central Bank: Issuing currency, regulating commercial banks, managing monetary policy, managing government funds, clearinghouse operations, bank of commercial banks, providing assistance and guidance to commercial banks.

• Types of Capital: Fixed capital (machines, tools, buildings), circulating capital (raw materials, fuel, semi-finished goods), tangible capital, intangible capital, productive capital, and financial capital. 

• Effects of Inflation on Balance of Payments: A country with high prices will have a less competitive position for its goods compared to other countries with lower prices. This often leads to higher imports and lower exports, thereby affecting the balance of payments negatively (possibly by causing trade deficits).