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This quiz consists of 5 multiple choice and 5 short answer questions through Chapter 3, The Anatomy of Crisis.

Multiple Choice Questions

1. A tariff implemented to raise employment in the domestic nation:
(a) benefits all consumers
(b) benefits all workers
(c) has no effect on employment
(d) lowers employment in the foreign nation

2. The term human capital refers to the:
(a) machinery in the factory
(b) kinds of inputs the worker uses
(c) output produced by a fasting
(d) personal productive capacity of an individual

3. The infant industry argument for protection says a:
(a) new industry should be given protection until it matures and can compete on its own
(b) only certain industries should receive protection
(c) no industries should receive protection
(d) all new industries should be given protection

4. Free markets lead to:
(a) bankruptcy
(b) economic tyrrany
(c) greater individual freedom
(d) less individual freedom

5. Some people support tariffs because they think that tariffs:
(a) create jobs
(b) offer protection for consumer
(c) lower prices
(d) result in increased efficiency

Short Answer Questions

1. A change in prices affects all but the following:

2. Which bank failure precipitated the banking crisis of 1930?

3. A run on a bank occurs when depositors:

4. Black Thursday, October 24, 1929, refers to the:

5. Free trade takes place when:

(see the answer key)

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