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. What interferes with the transmittal of information by prices?
(a) actions of manufacturers
(b) actions of buyers
(c) Governmental control of prices
(d) actions of sellers

2. Free trade takes place when:
(a) all parties feel they can benefit
(b) when producers want to see a good
(c) when one party can benefit
(d) when consumers want a good

3. The economy functions on the basis of:
(a) command
(b) government direction
(c) orders
(d) voluntary cooperation

4. Government subsidies to industry are viewed as:
(a) a necessity
(b) good economic policy
(c) a way to increase efficiency
(d) unfair competition

5. Governments intervene in foreign currency markets:
(a) by refusing to release currency to the market
(b) by increasing imports
(c) by increasing exports
(d) by buying and selling domenstic and foreign currency

Short Answer Questions

1. A run on a bank occurs when depositors:

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

3. The Principle of Comparative Advantage states that a nation should specialize in:

4. An unfavorable balance of payments situation meant:

5. The Great Depression began in:

(see the answer key)

This section contains 233 words (approx. 1 page at 300 words per page) View a FREE sample