|Name: _________________________||Period: ___________________|
This test consists of 5 short answer questions, 10 short essay questions, and 1 (of 3) essay topics.
Short Answer Questions
1. With uniform rules and regulations, the cost of doing business in the private sector is what, according to the author in Chapter 3?
2. In what year did the French government try to address its unemployment rates with what the author calls the economic equivalent of fool's gold?
3. When was Douglas Ivester born?
4. According to the principles of a market economy, if it's raining, it's time to sell what?
5. What is a situation that involves losing one quality or aspect of something in return for gaining another quality or aspect?
Short Essay Questions
1. How does the health of the economy affect income inequality, according to the author in Chapter 6?
2. What example does the author give for the negative effect of incentives in Chapter 2?
3. How is branding described as an economic strategy in Chapter 5?
4. How do the resources of a country reflect its economic well-being, according to the author in Chapter 6?
5. How does human capital relate to productivity? How does this in turn reflect the economic well-being of a nation, according to the author in Chapter 6?
6. How does the author describe Douglas Ivester's marketing tactic in Chapter 1?
7. How does the author describe the concept of "trade-offs" in Chapter 1? How do trade-offs apply to individuals and to the economy?
8. Discuss the importance of information in economics. How does the author address the issue of information in Chapter 4?
9. How does the author describe the concept of maximizing profits in Chapter 1? What examples does he give?
10. How is adverse selection described in the example of Hope Scholarships in Chapter 4?
Write an essay for ONE of the following topics:
Essay Topic 1
Define human capital and discuss how this term applies to the biographies and careers of Bill Gates and Gary Becker. How is a person's human capital valuated? How is income inequality worsened by the recession that began in 2008? How has the divide between those working on Wall Street and those working in the Main Street sector grown bigger? Why?
Essay Topic 2
Describe and discuss the history and economies of Cuba and North Korea. How have these economies suffered from overregulation, according to the author? What are the differences between Communist and capitalist nations regarding regulation and trade?
Essay Topic 3
Describe and discuss the most recent Japanese and U.S. recessions. When, according to the author, did Japan's economic decline begin? What led to it? What do these recessions have in common? How do they differ? What are the different viewpoints regarding how to pull America from its current recession? What legislation has attempted to boost the economy? Has it been effective? Why or why not?
This section contains 956 words
(approx. 4 pages at 300 words per page)