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. What refers to economy-wide fluctuations in production or economic activity over several months or years?
(a) Recession.
(b) Business cycle.
(c) Trade-off.
(d) Depression.

2. What country had a bad reputation so it's government created a currency board ensuring that each of its pesos was worth one United States dollar?
(a) Peru.
(b) Ecuador.
(c) Argentina.
(d) Brazil.

3. The author writes that trade helps the economy by doing what, in Chapter 12?
(a) Lowering the cost of goods for consumers.
(b) Making goods more abundant.
(c) Encouraging sales and special offers.
(d) Increasing the quality of goods.

4. In the Epilogue, the author discusses seven issues used to understand and improve the world. What is the third?
(a) Maximizing utility.
(b) The market.
(c) Productivity.
(d) The divide between the rich and the poor.

5. According to the author in Chapter 9, the average wage of an American in the year 2000 was over how much hourly?
(a) $9.
(b) $18.
(c) $15.
(d) $13.

Short Answer Questions

1. What is an economic principle that states "Bad money drives out good"?

2. Economists call the cycle of recession and recovery what, according to the author in Chapter 9?

3. The benefit of the HDI in comparison to the GDP is that the GDP does not measure what, according to the author in Chapter 9?

4. What, as defined by the International Labour Organization, occurs when people are without jobs and they have actively sought work within the past four weeks?

5. In order to get a true understanding of an economy, there are nine factors one should consider along with the GDP according to the author in Chapter 9. What is the first?

Short Essay Questions

1. What is the HDI? How is it described in Chapter 9?

2. How does the author describe public policy in Chapter 8? What problems do politicians face in this area?

3. How is the gold standard described in Chapter 11? What is the problem with the gold standard?

4. How is the Federal Reserve described in Chapter 10? What is the role of the Fed?

5. What did the French president propose in measuring economies, as described in Chapter 9? What criticism did he receive?

6. How does the author describe the relationship between the GDP and quality of life in India in Chapter 9?

7. How does the author illustrate time and price value in America in Chapter 9?

8. How does the author address the issues of outsourcing in Chapter 12?

9. How does the author describe the importance of monetary policy in concluding the book in Chapter 13?

10. How are the complications of international exchange rates described in Chapter 11?

(see the answer keys)

This section contains 955 words (approx. 4 pages at 300 words per page) View a FREE sample