|Name: _________________________||Period: ___________________|
This test consists of 5 multiple choice questions, 5 short answer questions, and 10 short essay questions.
Multiple Choice Questions
1. The GDP does not consider economic activity that is what, according to the author in Chapter 9?
2. 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?
3. What is an economic principle that states "Bad money drives out good"?
(a) Gresham's law.
(b) The Juche Idea.
(c) Adverse selection.
(d) The uniform pay scale.
4. The benefit of the HDI in comparison to the GDP is that the GDP does not measure what, according to the author in Chapter 9?
(a) Political unrest.
5. In the year 2000, a pair of stockings on average would cost how much, according to the author in Chapter 9?
Short Answer Questions
1. In 1900, the average wage was how much per hour according to the author in Chapter 9?
2. 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?
3. According to the author in Chapter 13, when it comes to gaining economic power, it's best to avoid what, which depletes resources and limits education?
4. What term refers to currency with no international value?
5. The Chinese GDP has grown substantially over the past decade, yet its success is correlated to what, according to the author in Chapter 9?
Short Essay Questions
1. How is the decline of Iceland's economy described in Chapter 11?
2. What does the author assert nations need beyond natural resources in order to succeed in Chapter 13?
3. How is the Federal Reserve described in Chapter 10? What is the role of the Fed?
4. What are the motivations of those receiving subsidies, as described by the author in Chapter 8?
5. Discuss the growth rate of globalizing countries as discussed in Chapter 12. How did the globalizing countries benefit?
6. How does the author describe the results of the United Nations Monetary and Financial Conference in Chapter 11?
7. How do poor countries benefit by outsourcing and global trade, as described by the author in Chapter 12?
8. How are the complications of international exchange rates described in Chapter 11?
9. What did Mark Miringhoff propose as a measure for economies, as described in Chapter 9?
10. What is the HDI? How is it described in Chapter 9?
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