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This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. In economics, what is a rise in the general level of prices of goods and services in an economy over a period of time?
2. According to the author in Chapter 9, the average wage of an American in the year 2000 was over how much hourly?
3. The delegates at the United Nations Monetary and Financial Conference created the World Bank, which is owned by how many member countries?
4. Americans today are how many times as rich as an American in the 1940s according to the author in Chapter 9?
5. What is a type of exchange rate regime wherein a currency's value is allowed to fluctuate according to the foreign exchange market?
(a) Floating exchange rate.
(b) Subsidized exchange rate.
(c) Interdependent exchange rate.
(d) Inflationary exchange rate.
6. In 1900, the average wage was how much per hour according to the author in Chapter 9?
(a) 54.2 cents.
(b) 14.8 cents.
(c) 23.7 cents.
(d) 32.8 cents.
7. 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?
8. What does FX stand for?
(a) Finacial Extreme.
(b) Fiscal Axiom.
(c) Foreign Exchange Market.
(d) Futures Axiom.
9. What is the appropriation of government spending for localized projects secured solely or primarily to bring money to a representative's district?
(a) Public policy.
(b) Deductive reasoning.
(c) Perverse incentives.
(d) Pork barrel.
10. According to the author in Chapter 12, studies show that globalizing countries had what percentage higher growth rate than other countries that were less integrated in the world economy?
(a) 10% to 20%.
(b) 50% to 75%.
(c) 15% to 25%.
(d) 30% to 50%.
11. In the Epilogue, the author discusses seven issues used to understand and improve the world. What is the third?
(a) Maximizing utility.
(b) The divide between the rich and the poor.
(d) The market.
12. The United Nations Monetary and Financial Conference was a gathering of how many delegates?
13. What is an economic principle that states "Bad money drives out good"?
(a) Adverse selection.
(b) The Juche Idea.
(c) Gresham's law.
(d) The uniform pay scale.
14. Incomes rose between 1970 and 1999, yet those who described themselves as as "very happy" decreased from 36% to what?
15. What is the sixth factor one should consider along with the GDP according to the author in Chapter 9?
(a) Total national happiness.
(b) Income inequality.
(c) Current account surplus/deficit.
(d) National savings.
Short Answer Questions
1. 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 third?
2. What is the ninth factor one should consider along with the GDP to understand an economy, according to the author in Chapter 9?
3. Mark Miringhoff is a social science professor at what institution?
4. The author writes that trade helps the economy by doing what, in Chapter 12?
5. According to the author in Chapter 9, to ensure accuracy, the real GDP is a figure that has been adjusted to account for what?
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