View a FREE sample

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

Multiple Choice Questions

1. The higher price of pencils results in all but the following:
(a) the firing of more workers to produce pencils
(b) higher wages for pencil production workers
(c) fewer pencils
(d) better worker condiciton for pencil prolduction workers

2. What action did the Fed take after England abandoned the gold standard?
(a) suspended open market operations
(b) began hoarding gold
(c) lowered the discount rate
(d) raised the discount rate

3. The Principle of Comparative Advantage states that a nation should specialize in:
(a) can get the highest price for
(b) all goods
(c) the production of goods in which it is relatively more efficient than the other nation
(d) has the most of

4. The command elements of every economy include things like:
(a) military conscription
(b) forbidding the purchase and sales of heroin
(c) court orders
(d) prices

5. When the Fed sells bonds:
(a) the economy experiences inflation
(b) the banks can make more loans
(c) the monetary reserves of the banking system decrease
(d) depositors see a decline in their bank accounts

Short Answer Questions

1. The economy functions on the basis of:

2. The economist that changed the way of economic thinking regarding depressions was:

3. A tariff implemented to raise employment in the domestic nation:

4. What interferes with the transmittal of information by prices?

5. The term human capital refers to the:

(see the answer key)

This section contains 263 words (approx. 1 page at 300 words per page) View a FREE sample