View a FREE sample

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

Multiple Choice Questions

1. International trade theory is based on:
(a) the principle of absolute advantage
(b) inflows and outflows
(c) the principle of comparative advantage
(d) geography

2. Trade restrictions create:
(a) increase levels of trade
(b) friction between nations
(c) a good political situation
(d) a more competitive environment

3. Free international trade results in better relations between individuals who differ in all but:
(a) interests
(b) beliefs
(c) attitudes
(d) nationalities

4. Policies based on fair shares or 'to each according to his needs' have resulted in severe lack of liberties in all but the following:
(a) United States
(b) Russia
(c) China
(d) Cambodia

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

Short Answer Questions

1. A change in prices affects all but the following:

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

3. Equality before the law refers to all but:

4. According to Friedman, the former Soviet economy was based on:

5. Open Market Operations refers to:

Short Essay Questions

1. What is an exchange rate?

2. What were the New Deal programs?

3. What happens when a nation imposes tariffs to protect domestic jobs?

4. What is the Principle of Comparative Advantage?

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

6. Why was the Federal Reserve System formed?

7. England has a successful National Health Service that many people think the United States should have. What are the problems with the British program?

8. Which of the three kinds of equality causes a conflict with liberty?

9. What is meant by equality of outcome?

10. What did Jefferson mean by unalienable rights?

(see the answer keys)

This section contains 592 words (approx. 2 pages at 300 words per page) View a FREE sample