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This test consists of 5 multiple choice questions, 5 short answer questions, and 10 short essay questions.
Multiple Choice Questions
1. In Chapter 9, the author discusses how fifteen years ago what nation was on top of the world economically?
2. Americans today are how many times as rich as an American in the 1940s according to the author in Chapter 9?
3. 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) Interdependent exchange rate.
(c) Inflationary exchange rate.
(d) Subsidized exchange rate.
4. What does ERM stand for?
(a) Education Resource Mechanism.
(b) Environmental Rarity Market.
(c) European Exchange Rate Mechanism.
(d) Electronic Remanufacturing Market.
5. What is the appropriation of government spending for localized projects secured solely or primarily to bring money to a representative's district?
(a) Pork barrel.
(b) Deductive reasoning.
(c) Public policy.
(d) Perverse incentives.
Short Answer 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. 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?
3. The U.S. adopted a silver standard based on the Spanish milled dollar in what year?
4. What refers to law which has been enacted by a legislature or other governing body, or the process of making it?
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 do poor countries benefit by outsourcing and global trade, as described by the author in Chapter 12?
2. What is the cycle of recession and recovery called? How is GDP defined in Chapter 9?
3. How does the author address the issues of outsourcing in Chapter 12?
4. What can be seen about the American economy by looking at the GDP, as illustrated in Chapter 9?
5. What is the ERM? What is its role according to the author in Chapter 11?
6. What are the motivations of those receiving subsidies, as described by the author in Chapter 8?
7. What is the HDI? How is it described in Chapter 9?
8. Discuss the growth rate of globalizing countries as discussed in Chapter 12. How did the globalizing countries benefit?
9. How are fixed exchange rates defined and described in Chapter 11?
10. What did the French president propose in measuring economies, as described in Chapter 9? What criticism did he receive?
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