Economics: Work and Prosperity Test 6

Match each definition with the correct term.

• Communism

• advocates massive public spending during recessions

• Keynesianism

• advocates the stockpiling of gold and silver in the state's treasury

• mercantilism

• can seep into an economy without the majority of people realizing that their foundational freedoms are being dissolved away

• socialism

• based upon public and governmental control of the production and distribution of nearly all national resources

Match each definition with the correct term.

• supply-side economics

• reducing taxes makes more money available for private investment, thereby increasing productivity

•  national sovereignty

• the exclusive power of an independent state to rule and regulate internal affairs without foreign interference

• globalism

• regards the entire world as one giant community that should be unified politically and economically

What was designed to require nations to buy allowances of

"carbon credits" to decrease CO, and reduce greenhouse emissions?

What was established at the end of World War II to provide capital needed to rebuild war-torn Japan and Western Europe?

During which phase of the business cycle do industries increase the amount of goods they produce?

What is the American system of mandatory social insurance?

What German city was divided during the Cold War?

What is the official currency of the European Union?

What is the highest point of the business cycle?

Match each economist with the correct description

• Diamond-Water Paradox

•  Thomas Robert Malthus

• monetarism

• Milton Friedman

• prophet of doom

• Carl Menger

• Physiocracy

• Pierre Samuel du Pont