|Name: _________________________||Period: ___________________|
This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. What does GDP stand for?
(a) Gems and Diamonds Per capita.
(b) Geographic Diversity Plot.
(c) Gross Domestic Product.
(d) Gain and Drain Portfolio.
2. What refers to economy-wide fluctuations in production or economic activity over several months or years?
(d) Business cycle.
3. In economics, what refers to a general slowdown in economic activity?
(c) Business cycle.
4. When did the United Nations Monetary and Financial Conference take place?
5. In the Epilogue, the author discusses seven issues used to understand and improve the world. What is the second?
(a) Maximizing utility.
(b) The divide between the rich and the poor.
(c) The market.
6. In lending agreements, what is a borrower's pledge of specific property to a lender, to secure repayment of a loan?
7. The United Nations Monetary and Financial Conference was a gathering of delegates from how many nations?
8. What term refers to currency with no international value?
(a) Monopoly money.
(c) Funny money.
(d) Fast cash.
9. What is an assistance paid to a business or economic sector?
10. 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?
(a) Current account surplus/deficit.
(c) National savings.
(d) Income inequality.
11. In many countries, the negative effects of the Great Depression lasted until the start of what?
(a) The Korean War.
(c) World War I.
(d) World War II.
12. What is a type of exchange rate regime wherein a currency's value is allowed to fluctuate according to the foreign exchange market?
(a) Inflationary exchange rate.
(b) Subsidized exchange rate.
(c) Interdependent exchange rate.
(d) Floating exchange rate.
13. What does FX stand for?
(a) Foreign Exchange Market.
(b) Futures Axiom.
(c) Finacial Extreme.
(d) Fiscal Axiom.
14. What is generally the principled guide to action taken by the administrative or executive branches of the state with regard to a class of issues in a manner consistent with law and institutional customs?
(a) Pork barrel.
(b) Perverse incentives.
(c) Deductive reasoning.
(d) Public policy.
15. What, as defined by the International Labour Organization, occurs when people are without jobs and they have actively sought work within the past four weeks?
Short Answer Questions
1. The U.S. Treasury began doing business only in gold or silver coin as part of the Independent Treasury Act of what year?
2. 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?
3. What is an economic principle that states "Bad money drives out good"?
4. 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 eighth?
5. What, in economics, refers to a globally traded currency that is expected to serve as a reliable and stable store of value?
This section contains 498 words
(approx. 2 pages at 300 words per page)