ECON 1100 – Global Economics (Section 03) Exam #3 – Fall 2008 (Version D) Multiple Choice Questions (212 points each): 1. __________ refers to a situation where government revenues are greater than government spending. a. A Deadweight-Loss b. A deficit c. A surplus d. Monetary Policy 2. The Federal Communications Commission was created in order to a. regulate the behavior of railroads. b. police bigness, restrict restraint of trade, and prevent unfair business practices. c. regulate non-governmental use of the radio spectrum. d. None of the above answers is correct. 3. Totalitarianism refers to a. an economic system in which the government plays no role whatsoever. b. a political system in which government has a primary goal of respecting individual liberties and places minimal restrictions on the behavior of people in both public and private matters. c. the idea that the most effective way to manipulate macroeconomic outcomes is by way of fiscal policy. d. a regime in which the state regulates nearly all aspects of both public and private behavior. 4. ______________ was elected Prime Minister of the United Kingdom in a landslide victory in 1945, right before the end of World War II. a. Keith Joseph b. John Maynard Keynes c. Winston Churchill d. Clement Atlee 5. “Black Tuesday” refers to the a. domestic programs initiated by Franklin Roosevelt in the 1930’s (signed into law on Tuesday, 5/10/1932) with the goal of providing “relief, recovery, and reform” during the Great Depression. b. U.S. stock market crash which occurred on Tuesday, 10/29/1929, at the start of what would become the Great Depression. c. the economic panic that began in the U.S. on Tuesday, 9/10/1901, shortly after the assassination of President McKinley. d. None of the above answers are correct.6. In most industrialized countries, the role of government in the economy ____________ during the first part of the twentieth century and _____________ during the last part of the twentieth century. a. increased; then continued to increase. b. decreased; then continued to decrease. c. increased; then decreased. d. decreased; then increased. 7. From 1983-2008, Inflation Rates in the United States a. have been relatively low, exceeding a value of 4.83% in only 1 of these 26 years. b. have been relatively high, exceeding a value of 7.29% in 24 of these 26 years. c. have fluctuated tremendously from year to year, evidenced by the observation that the rate was below 2% in 12 of these years and over 10% in 11 of these years. d. None of the above answers are correct. 8. Farmers in the United States chose to drown baby chickens a. in protest of the Oil embargo imposed by the Arab members of OPEC during the 1973 Yom Kippur War. b. as a show of their support for businesses participating with the “codes of fair competition” established by the National Recovery Administration during the Great Depression. c. in protest of the lack of economic assistance provided by President Hoover (whose 1928 campaign slogan was “A chicken in every pot and a car in every garage.”) during the early years of the Great Depression. d. in response to the wage and price controls implemented as part of Richard Nixon’s New Economic Policy (since at the controlled prices it was no longer worthwhile for them to raise the chickens for meat). 9. The “mixed economy consensus” that emerged in Europe following World War II resulted from: a. prestige of and respect for the Soviet system of central planning. b. the economic prosperity that much of the world experienced during the 1930’s. c. the tremendous devastation, misery, and disruption of economic activity which was experienced throughout Europe as a result of World War II. d. More than one of the above answers is correct. 10. From the mid 1950’s through the mid 1970’s, many countries throughout Europe (such as France and Germany) experienced a. historically high levels of both inflation and unemployment b. relatively low levels of both inflation and unemployment. c. economic growth rates near 0% (and in some cases negative growth rates). d. More than one of the above answers is correct.11. The Phillips Curve illustrates a. how the unemployment rate in an economy changes over time. b. the tradeoff between unemployment and inflation that an economy faces. c. why total tax revenue can only be increased by increasing the marginal tax rates of the wealthy. d. the different combinations of output that an economy can produce with their available resources. 12. Nationalization refers to a. the sale of a government owned enterprise by the national government to members of the general public. b. the acquisition of ownership and control of a privately owned enterprise by the national government, either with or without compensation to the original owners. c. intense patriotic devotion and loyalty to one’s own country. d. None of the above answers are correct. 13. The per capita GDP of Israel increased by roughly 5% in 2007. By the “Rule of 70” we can infer that if Israel were to experience this rate of growth for the next 20 years, then the value of per capita GDP in 2027 would be a. more than twice as large as per capita GDP in 2007. b. exactly twice as large as per capita GDP in 2007. c. larger than per capita GDP in 2007, but less than twice as large. d. about the same as per capita GDP in 2007. 14. Under a “Fixed Exchange Rate” system a. it is illegal for foreigners to own the currency in question. b. the value of a currency is allowed to fluctuate and is determined within the “foreign exchange market.” c. the value of a currency is set equal to the value of another single currency. d. More than one of the above answers is correct. 15. The financial crises which spread through Asia in 1997-1998 were referred to as a. Malaise. b. Malaria. c. Contagion. d. The Two Disastrous Years. 16. Which of the following was one of the common techniques used for privatizing government owned enterprises when Margaret Thatcher was Prime Minister? a. Auctioning of the enterprise to a single buyer in the general public. b. Initial Public Offerings (IPOs) of stock to the general public. c. granting the entire ownership of an enterprise to a single citizen of Great Britain (chosen by “random lottery”) at zero cost. d. More than one of the above answers is
View Full Document
Unlocking...