|Name: _________________________||Period: ___________________|
This test consists of 5 short answer questions, 10 short essay questions, and 1 (of 3) essay topics.
Short Answer Questions
1. North Korea is a single-party state under a united front led by what party?
2. What is the financial system consisting of institutions and regulators that act on the international level, as opposed to those that act on a national or regional level?
3. What is a collective investment scheme that aims to replicate the movements of an index of a specific financial market regardless of market conditions?
4. What country withdrew from OPEC in 2008 after it became a net importer of oil?
5. What does the author refer to as a situation where individuals work in their own best interest, leading to an improved standard of living for society in general?
Short Essay Questions
1. How is the Federal Reserve described in Chapter 10? What is the role of the Fed?
2. How is adverse selection described in the example of Hope Scholarships in Chapter 4?
3. How are fixed exchange rates defined and described in Chapter 11?
4. How does the author address the issues of outsourcing in Chapter 12?
5. How does the author describe the tactics used by OPEC in Chapter 1?
6. How is the gold standard described in Chapter 11? What is the problem with the gold standard?
7. How does the author illustrate time and price value in America in Chapter 9?
8. What example does the author give for the negative effect of incentives in Chapter 2?
9. What did the French president propose in measuring economies, as described in Chapter 9? What criticism did he receive?
10. What can be seen about the American economy by looking at the GDP, as illustrated in Chapter 9?
Write an essay for ONE of the following topics:
Essay Topic 1
Describe and discuss the circumstances and impacts of monopolies. What are examples of recent monopolies in the U.S.? How were these monopolies dealt with? What governmental regulations ensure against monopoly? What does the author say can be learned from monopolies?
Essay Topic 2
Describe and analyze the Hope Scholarship program and the Clinton Administration. When were Hope Scholarships introduced and when did they dissipate? How are Hope Scholarships used as an example of adverse selection in the book? What are other examples where adverse selection can be seen in recent history?
Essay Topic 3
Describe, analyze and discuss the public goods offered by the government in the U.S. What percentage of our nation's budget is dedicated to police and fire enforcement, roads, schools, etc.? What is the government's role in economic infrastructure, regulation, and finance?
This section contains 1,776 words
(approx. 6 pages at 300 words per page)