1. Which statement is true?
A) A depression followed both World War I and World War II.
B) A depression followed neither World War I nor World War II.
C) A depression followed World War I, but not World War II.
D) A depression followed World War II but not World War I.
2. There was full employment in:
A) 1929 and 1942
B) neither 1929 nor 1942.
C) 1929 only.
D) 1942 only
3. Between 1939 and 1944 our national output:
A) Rose by 50%
B) Nearly doubled
C) Rose by 150%
D) Nearly tripled
4. The early 1930s was a period of
A) Inflation and deflation
B) Neither inflation nor deflation
C) Inflation
D) Deflation
5. The name of Andrew Carnegie is most closely associated with the ______ industry.
A) Steel
B) Rubber
C) Meatpacking
D) Chemical
6. The transcontinental railroads were completed in the 25 years:
A) Before the civil war
B) After the civil war
C) After 1890
D) After the 20th century began
7. The term "the affluent society" was coined by:
A) Michael Harrington
B) John Kenneth Galbraith
C) Karl Marx
D) Adam Smith
8. In order to raise our rate of economic growth we would need to:
A) Increase the level of labor or capital.
B) Reduce the level of labor.
C) Spend more on military goods.
D) Spend more on consumer goods.
9. Human wants are:
A) Relatively limited
B) Relatively unlimited
C) Easily satisfied
D) About equal to out productive capacity
10. Whom of the following is NOT an entrepreneur?
A) Henry Ford (Ford Motor Company)
B) Tim Berners-Lee (creator of the World Wide Web)
C) John David Rockefeller (Standard Oil)
D) Bill Gates (Microsoft)
11. Which of the following is an example of capital?
A) Money in a Swiss bank account
B) A bulldozer
C) A CD by Metallica
D) A Dracula costume for Halloween
12. Tommy spends most of his monthly budget on $3 video game rentals or $6 packets of Pokemon cards. The opportunity cost to Tommy of an extra packet of Pokemon cards is:
A) One video game rental.
B) Two video game rentals.
C) The cost of the Pokemon cards.
D) Zero
13. The invisible hand is:
A) Perfect competition
B) The profit motive
C) Government direction
D) The mixed economy
14. Hitler's Germany was an example of a __________ economic system.
A) Capitalist
B) Fascist
C) Communist
D) Socialist
15. Karl Marx said that
A) Whoever controls a society's capital controls that society.
B) In the long run capitalism would survive
C) The U.S.S.R.'s communist system was "state capitalism."
D) Capitalists and workers generally have the same economic interests.
16. Private ownership of most of the means of production is common to:
A) Capitalism and communism
B) Capitalism and fascism
C) Capitalism and socialism
D) Fascism and communism
17. Sweden and Norway would best be described as __________ countries.
A) Capitalist
B) Fascist
C) Communist
D) Socialist
18. At equilibrium, quantity demanded __________ equals quantity supplied.
A) Always
B) Usually
C) Sometimes
D) Never
19. When the market price is higher than the equilibrium price, there is:
A) A surplus.
B) A shortage.
C) Both a shortage and a surplus.
D) Neither a shortage nor a surplus.
20. A decrease in demand means that quantity demanded falls:
A) At least one price
B) At a few prices
C) At most prices
D) At all prices