|Name: _________________________||Period: ___________________|
This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. In 1900, a pair of stockings would cost how much money according to the author in Chapter 9?
2. India has a very low GDP per capita, and it also has over how many cases of leprosy according to the author in Chapter 9?
3. 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 second?
(a) National savings.
(d) Income inequality.
4. What is an economic principle that states "Bad money drives out good"?
(a) Adverse selection.
(b) The uniform pay scale.
(c) Gresham's law.
(d) The Juche Idea.
5. In Chapter 9, the author discusses how fifteen years ago what nation was on top of the world economically?
6. The Chinese GDP has grown substantially over the past decade, yet its success is correlated to what, according to the author in Chapter 9?
(a) Environmental degradation.
(b) Interest payments.
(c) Utility costs.
(d) Quality of life.
7. After World War II, representatives of the Allied nations gathered together where to create a sustainable financial infrastructure for the world?
(a) Rhode Island.
(d) New Hampshire.
8. The U.S. Treasury began doing business only in gold or silver coin as part of the Independent Treasury Act of what year?
9. When did the Great Depression begin in the United States?
10. In economics, what is a rise in the general level of prices of goods and services in an economy over a period of time?
11. What is the appropriation of government spending for localized projects secured solely or primarily to bring money to a representative's district?
(a) Perverse incentives.
(b) Public policy.
(c) Deductive reasoning.
(d) Pork barrel.
12. What is an assistance paid to a business or economic sector?
13. What is the ninth factor one should consider along with the GDP to understand an economy, according to the author in Chapter 9?
(a) Income inequality.
(b) National savings.
(c) Current account surplus/deficit.
(d) Total national happiness.
14. 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 first?
(c) Total national happiness.
(d) National savings.
15. According to the author in Chapter 11, the problem with this gold standard was the central bank could do what?
(a) Manipulate exchange rates.
(b) Devalue the currency.
(c) Charge interest.
(d) Require collateral.
Short Answer Questions
1. What term refers to currency with no international value?
2. The U.S. adopted a silver standard based on the Spanish milled dollar in what year?
3. In France, what president wanted to come up with a way to measure human happiness, as described in Chapter 9?
4. What refers to economy-wide fluctuations in production or economic activity over several months or years?
5. In economics, what refers to a general slowdown in economic activity?
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