Economics unit 2 review
What economic system did this book describe?
Capitalism
What is it called when we weigh the positives and negatives to help us make a sound economic decision?
Cost-benefit analysis
What were some of his important ideas described in his book?
Division of labor, specialization, use of technology, self interest, competition, limited government
Did Adam smith believe it was better for an economy to work for the society or to work for yourself?
For yourself
The next best thing one gives up when making a choice
Opportunity cost
The curve that tells us the maximum output of 2 products
Production possibilities frontier
What famous economics book did Adam smith write?
The Wealth of Nations
What did smith say man's sixth sense was?
The desire for material things or utility
Describe his invisible hand theory
We are always guided to make decisions that are best for ourselves
Giving up a little of one thing in order to get more of something else.
trade-off
Who is the father of economics?
Adam Smith