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. According to Friedman, the former Soviet economy was based on:
(a) free markets
(b) command
(c) voluntary cooperation
(d) none of the above

2. The first head of the Federal Reserve System was:
(a) Alan Greenspan
(b) Alexander Hamilton
(c) Benjamin Strong
(d) J.P. organ

3. Which of the following is not a public assistance program?
(a) Earned Income Credit
(b) Aid to Families with Dependent Children
(c) Medicaid
(d) food stamps

4. Equality is discussed in all but the following ways:
(a) opportunity
(b) in every way
(c) outcomes
(d) before God

5. Fair shares programs penalize the:
(a) poor
(b) all classes
(c) government
(d) wealthy

Short Answer Questions

1. Which of the following is not a function of the price system:

2. A market failure occurs when:

3. The command elements of every economy include things like:

4. What words did Thomas Jefferson write?

5. Government subsidies to industry are viewed as:

Short Essay Questions

1. What is meant by equality of outcome?

2. Why was the Federal Reserve System formed?

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

4. What are Open Market Operations?

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

6. How has the concept of equality changed over time?

7. What is a restriction of payments?

8. What is meant by equality of opportunity?

9. What is the concept of the invisible hand?

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

(see the answer keys)

This section contains 580 words (approx. 2 pages at 300 words per page) View a FREE sample