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This test consists of 5 short answer questions, 10 short essay questions, and 1 (of 3) essay topics.

Short Answer Questions

1. The programs of the Roosevelt administration designed to deal with the Depression are called the:

2. The economist that changed the way of economic thinking regarding depressions was:

3. The legislation for the Federal Reserve System came into being as a result of:

4. Prices function to transmit information to all but:

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

Short Essay Questions

1. What is an exchange rate?

2. What were the New Deal programs?

3. What is a run on a bank?

4. What is the concept of the invisible hand?

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

6. What are the characteristics of the Great Depression of 1929?

7. What is a market failure?

8. Why was the Federal Reserve System formed?

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

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

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

What is the relationship between economic freedom and human freedom? How is this manifest in the kind of economic and political system that a nation has? Use different nations as an example.

Essay Topic 2

Why does an economy need money? What items have functioned as money over the course of history? What characteristics does an item need to function as money?

Essay Topic 3

Friedman believes that government spending is less damaging than other forms of government controls. What are these other forms of government controls and why are they damaging? Do you agree with Friedman?

(see the answer keys)

This section contains 533 words (approx. 2 pages at 300 words per page) View a FREE sample