2. 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:
(a) invisible hand
(b) command
(c) visible hand
(d) voluntary nature

3. Prices function to transmit information to all but:
(a) buyers
(b) sellers
(c) manufacturerr
(d) no one in particular

4. Which New Deal programs were declared unconstitutional?
(a) Social Security
(b) WPA and NRA
(c) AAA and WPA
(d) NRA and AAA

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

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

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

8. Which of the following is not one of Adam Smith's duties of government?
(a) protect members from coercion
(b) correct for third party effects
(c) protection of members of society who are not responsible, such as children
(d) administration of justice

9. What functions as the central bank for the United States?
(a) the Bank of England
(b) the Bank of the United States
(c) Chase Bank
(d) the Federal Reserve System

10. Children from wealthy backgrounds have better chances in education and employment. This it not representative of:
(a) equality of opportunity
(b) equality before God
(c) equal rights
(d) equality of outcomes

11. Government measures to promote fair shares for all:
(a) have no affefct on liberty
(b) reduce liberty
(c) create harmony
(d) enhance liberty

12. After World War II there was a lot of interest in:
(a) central economic planning
(b) laissez-faire capitalism
(c) imperialism
(d) the price system

13. The Federal Deposit Insurance Corporation:
(a) guarantees the repayment of bank loans
(b) provides mortgage insurance for homeowners
(c) guarantees deposits against a loss up to a stated amount
(d) guarantees the full amount of all deposits against loss

14. In regard to equality and liberty:
(a) there is a slight relationship between the two
(b) they are two independent concepts
(c) there is no relationship betwen the two
(d) there is a relationship between the two

15. Regarding the depression, Roosevelt's adviser's believed in:
(a) waiting for the economy to heal itself
(b) no intervention in the economy
(c) aggressive intervention by government
(d) a balanced budget