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This test consists of 5 multiple choice questions, 5 short answer questions, and 10 short essay questions.

Multiple Choice Questions

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

2. The term human capital refers to the:
(a) output produced by a fasting
(b) personal productive capacity of an individual
(c) machinery in the factory
(d) kinds of inputs the worker uses

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

4. Originally, in the early days of the country, equality meant:
(a) equality in all aspects of life
(b) the basis for welfare legislation
(c) equality before God
(d) the end of slavery

5. What words did Thomas Jefferson write?
(a) equality is not important
(b) equality is not a part of freedom
(c) there is no such thing as equality
(d) all men are created equal

Short Answer Questions

1. A run on a bank occurs when depositors:

2. The Federal Reserve Act was legislated in:

3. Government measures to promote fair shares for all:

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

5. What kind of international trade is best?

Short Essay Questions

1. Why was the Federal Reserve System formed?

2. What were the New Deal programs?

3. What did Thomas Jefferson mean when he wrote of equality?

4. Why are subsidies considered to be a form of unfair competition?

5. What is the infant industry argument for protection?

6. What are the three functions of prices?

7. What happens if there in interference with prices?

8. Why weren't the New Deal programs carried to completion?

9. What is a market failure?

10. What is the concept of the invisible hand?

(see the answer keys)

This section contains 559 words (approx. 2 pages at 300 words per page) View a FREE sample