|Name: _________________________||Period: ___________________|
This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. The author states that most wars are started by countries with what?
(a) Restricted economies.
(b) Controlled economies.
(c) Restrained trade.
(d) Fair trade.
2. When the investors realize they have a problem and they all try to get out of the market, what results?
(a) Panic selling.
(b) Pulling capital.
(c) Staying put.
(d) Panic buying.
3. The author believes that unions serve a valuable service because they do what?
(a) Represent the worker to the employer.
(b) Prevent the employer from firing the worker.
(c) Raise the cost of production.
(d) Raise the benefits to the worker.
4. Money functions as a __________ in transactions.
(a) National linkage.
(b) Easy standard.
(c) Common denominator.
(d) Similar currency.
5. According to Rand, capitalism is based on what?
(a) Altruistic principles.
(b) Government interference.
(d) Open borders.
6. The government established by the Founding Fathers is based on theories that began with whom?
7. What is another word for statism?
8. The presence of regulation may make it harder to do what?
(a) Reward ethical behavior.
(b) Announce ethical behavior.
(c) Hide unethical behavior.
(d) Uncover unethical behavior.
9. What do patents and copyright protect?
(a) Intellectual property.
(b) Musical creations.
(c) Scientific knowledge.
(d) Private property.
10. According to classical economics, what is the basis of competition?
(a) Producing and selling as much as possible.
(b) Producing and selling for profit.
(c) Producing and selling in a down market.
(d) Producing and selling in a regulated system.
11. What is the abbreviation for the Aluminum Company of America?
12. The power of the railroads, according to the author, comes from where?
(a) The subsidies.
(b) The economy.
(c) The government.
(d) The market.
13. What is the first antitrust legislation?
(a) The Trump Act.
(b) The Taft Act.
(c) The Humphry Act.
(d) The Sherman Act.
14. The Federal Reserve System was created when the government thought that what was happening?
(a) A shortage of interest reserves.
(b) A recession.
(c) A shortage of bank reserves.
(d) A depression.
15. Competition, according to the author, is regulated by what market?
(a) Stock market.
(b) Growth market.
(c) Capital market.
(d) Securities market.
Short Answer Questions
1. How long do copyrights last in the United Kingdom?
2. How does government regulation, according to the author, try to protect the consumer?
3. The Aluminum Company of America is a monopoly in the sense that it has control over what?
4. The first labor laws aimed at children target those working as what?
5. What does the term "evils of monopoly" refer to?
This section contains 441 words
(approx. 2 pages at 300 words per page)