|Name: _________________________||Period: ___________________|
This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. What does Greenspan claim is the best protection for the consumer?
(a) The profits of businessmen.
(b) Government regulation.
(c) Independent agencies.
(d) A controlled economy.
2. The author believes that businessmen take the blame for what?
(b) Government actions.
3. Which British civil servant says the U.S. antitrust laws cannot be understood?
(a) A.D. Gershwin.
(b) A.D. Brookings.
(c) A.D. Foster.
(d) A.D. Neale.
4. What does the author believe is the basic tool of business?
5. The results of intellectual property may be ______, but the intellectual property itself may not be.
6. According to Rand, capitalism is based on what?
(b) Open borders.
(c) Altruistic principles.
(d) Government interference.
7. How, according to the author, does the concept of private property come into existence?
(a) From Karl Marx.
(b) Through the Cultural Revolution.
(c) During feudalism.
(d) With capitalism.
8. When the investors realize they have a problem and they all try to get out of the market, what results?
(a) Panic buying.
(b) Staying put.
(c) Panic selling.
(d) Pulling capital.
9. Railroads are built using government money, and what happens to many of them?
(a) They abuse their workers.
(b) They go bankrupt.
(c) They prosper.
(d) They repay the investors.
10. According to the author, what is the cause of the Great Depression?
(a) Government intervention.
(b) Isolationist policies.
11. What is the goal of the creation of the Federal Reserve System?
(a) To create a national savings account.
(b) To ease temporary reserve shortages.
(c) To limit the amount of currency in circulation.
(d) To create a spending account for the military.
12. During the Industrial Revolution, how do women earn income?
(a) In the streets.
(b) In the brothels.
(c) In the factories.
(d) By working from home.
13. What are the two most common metals used as a medium of exchange?
(a) Gold and silver.
(b) Gold and iron.
(c) Gold and bronze.
(d) Gold and tin.
14. The existence of money allows people to avoid the problems of ______.
15. Instead of reading the antitrust laws to decide if something is legal, people must read what?
(a) Delaware corporations code.
(b) Case law.
(c) Supreme Court decisions.
Short Answer Questions
1. Who is J.J. Hill?
2. What is the position held by the man who brings the airwaves under U.S. government control?
3. What do patents and copyright protect?
4. To function as a medium of exchange, an item must be durable and what?
5. According to classical economics, what is the basis of competition?
This section contains 447 words
(approx. 2 pages at 300 words per page)