|Name: _________________________||Period: ___________________|
This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. When did the Great Depression begin in the United States?
2. Economists call the cycle of recession and recovery what, according to the author in Chapter 9?
(a) Perverse incentives.
(b) Gresham's law.
(c) The business cycle.
3. After World War II, representatives of the Allied nations gathered together where to create a sustainable financial infrastructure for the world?
(a) New Hampshire.
(c) Rhode Island.
4. In 1900, the average wage was how much per hour according to the author in Chapter 9?
(a) 23.7 cents.
(b) 54.2 cents.
(c) 14.8 cents.
(d) 32.8 cents.
5. In finance, what between two currencies is the rate at which one currency will be exchanged for another?
(b) Exchange rate.
6. In lending agreements, what is a borrower's pledge of specific property to a lender, to secure repayment of a loan?
7. Mark Miringhoff is a social science professor at what institution?
(a) Harvard University.
(b) Fordham University.
(c) The University of Chicago.
(d) The University of Alaska.
8. What is the ninth factor one should consider along with the GDP to understand an economy, according to the author in Chapter 9?
(a) National savings.
(b) Current account surplus/deficit.
(c) Total national happiness.
(d) Income inequality.
9. Americans today are how many times as rich as an American in the 1940s according to the author in Chapter 9?
10. In Chapter 9, the author discusses how fifteen years ago what nation was on top of the world economically?
11. What is the process of contracting a business function to someone else?
12. What country had a bad reputation so it's government created a currency board ensuring that each of its pesos was worth one United States dollar?
13. In order to get a true understanding of an economy, there are nine factors one should consider along with the GDP according to the author in Chapter 9. What is the fourth?
(a) Size of the government.
(b) National savings.
(d) Income inequality.
14. What refers to economy-wide fluctuations in production or economic activity over several months or years?
(c) Business cycle.
15. According to the author in Chapter 13, some argue that high temperatures and heavy rainfall yield poor food production and and increase in what, therefore limiting a location's ability to create a thriving economy?
(b) Predator species.
Short Answer Questions
1. Nonperforming loans and bad investments caused the banks to suffer in Iceland, and by the fall of 2008, how many major banks in the country were defunct according to the author in Chapter 11?
2. In Chapter 12, the author states that statistics clearly show that the world is growing more economically what?
3. Who gave out free medication in order to help the fight against leprosy, according to the author in Chapter 9?
4. In Chapter 13, the author states that according to the United Nations Food and Agriculture Organization, over how many people in this world don't get enough to eat?
5. What does IMF stand for?
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