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Economics Chapters 10-12 - Part 2

Total questions: 16

Worksheet time: 8mins

Name
Class
Date
1.

Who believed that government should pump money into an economy during recessions?

a)

Reagan

b)

Marx

c)

Keynes

d)

Roosevelt

2.

Who attempted to lift the American economy out of its slump by implementing policies based on supply-side economics?

a)

Reagan

b)

Marx

c)

Keynes

d)

Roosevelt

3.

Who increased governmental control of the economy during the Great Depression through the New Deal?

a)

Reagan

b)

Marx

c)

Keynes

d)

Roosevelt

4.

What is it called when demand becomes greater than the supply, creating shortages?

a)

cost-push inflation

b)

demand-pull inflation

c)

leading indicators

d)

stagflation

5.

What is it called when high inflation is combined with high unemployment?

a)

cost-push inflation

b)

demand-pull inflation

c)

leading indicators

d)

stagflation

6.

Who is considered the Father of Communism?

a)

Jefferson

b)

Smith

c)

Keynes

d)

Marx

7.

What divided city displayed the poverty and lack of freedom typically found in command economies?

a)

Berlin

b)

New York

c)

Moscow

d)

Paris

8.

What event in 1917 began the rise of Communism?

a)

Reign of Terror

b)

American Revolution

c)

Bolshevik Revolution

9.

What term refers to a perfect society under Marxist ideas?

a)

bureaucracy

b)

utopia

c)

Federal Reserve

d)

monopoly

10.

The Communist Manifesto was a pamphlet written to outline the Communist philosophy and describe the steps to establish Communism worldwide.

a)

True

b)

False

11.

A recession is unusually severe and long-lasting.

a)

True

b)

False

12.

According to Communism, the bourgeois must be overthrown.

a)

True

b)

False

13.

Who wrote that the state ought to confine its activity to "everything that is truly and properly public"?

a)

Edmund Burke

b)

Karl Marx

c)

Adam Smith

14.

The CPI compares prices to a base period, which is arbitrarily set to 100%.

a)

True

b)

False

15.

Communist governments forbid production in an effort to control distribution.

a)

True

b)

False

16.

What are problems inherent in socialism? Why do people continue to accept socialistic policies in spite of the dangers?

a)

Socialism is deceptive because its goals can sound noble and good; people often do not realize until too late that their political and economic freedoms have been taken away.

b)

People are taken in by the idea that they can get "something for nothing". In reality, private individuals and businesses pay high prices for the programs sponsored by a socialistic government.

c)

A government funds projects through raising taxes, increasing the money supply (and inflation), and going into debt - all of which are measures that harm an economy.

d)

Socialism erodes personal freedoms. As a government increases its regulation of an economy, it limits the freedom people have to make their own decisions.