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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. An unfavorable balance of payments situation meant:
(a) nothing
(b) equality of inflows and outflows
(c) a deficit
(d) a surplus

2. Black Thursday, October 24, 1929, refers to the:
(a) collapse of the stock market
(b) end of government payments
(c) collapse of the banking system
(d) end of the gold standard

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

4. What kind of international trade is best?
(a) free trade
(b) partically free trade
(c) no trade
(d) trade with restrictions

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

Short Answer Questions

1. Some people support tariffs because they think that tariffs:

2. A run on a bank occurs when depositors:

3. The economy functions on the basis of:

4. The distribution of income is determined by all but the following:

5. An exchange rate is the:

(see the answer key)

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