Name: _________________________ | Period: ___________________ |
This quiz consists of 5 multiple choice and 5 short answer questions through Chapter 2, The Tyranny of Controls.
Multiple Choice Questions
1. Adam Smith says that voluntary exchange will not take place unless:
(a) one party can profits
(b) both parties benefit from it
(c) the government can tax the transaction
(d) it is commanded
2. The economy functions on the basis of:
(a) command
(b) orders
(c) voluntary cooperation
(d) government direction
3. Trade restrictions create:
(a) a good political situation
(b) friction between nations
(c) a more competitive environment
(d) increase levels of trade
4. Government subsidies to industry are viewed as:
(a) a necessity
(b) a way to increase efficiency
(c) good economic policy
(d) unfair competition
5. A change in prices affects all but the following:
(a) wages
(b) nothing
(c) incentrive to act on information
(d) procedures income
Short Answer Questions
1. According to Friedman, the former Soviet economy was based on:
2. Free international trade results in better relations between individuals who differ in all but:
3. An exchange rate is the:
4. What kind of international trade is best?
5. International trade theory is based on:
This section contains 200 words (approx. 1 page at 300 words per page) |