Economics: Work and Prosperity Test 6

Match each definition with the correct term.

• socialism

• advocates massive public spending during recessions

• Communism

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

• Keynesianism

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

• mercantilism

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

Match each definition with the correct term.

• globalism

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

• 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

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

• Physiocracy

•  Thomas Robert Malthus

• Diamond-Water Paradox

• Carl Menger

• monetarism

• Pierre Samuel du Pont

• prophet of doom

• Milton Friedman