1. Interested sophistry refers to:
(a) a new marketing tool
(b) the knowledge of consumers
(c) a new production technique
(d) buy cheap and selling high

2. 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) no industries should receive protection
(c) only certain industries should receive protection
(d) all new industries should be given protection

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

4. The only kind of capital:
(a) are human and physical capital
(b) is only physical capital
(c) is only human capital
(d) is only financial capital

5. The economist that changed the way of economic thinking regarding depressions was:
(a) Milton Friedman
(b) Adam Smith
(c) John Maynard Keynes
(d) David Ricardo

Short Answer Questions

1. The price system functions in such a way that each individual acting in his own best interests, makes everyone better off. This concept is known as the:

2. The Federal Reserve Act was legislated in:

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

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

5. What functions as the central bank for the United States?

(see the answer key)

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