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WorksheetsHow an Economy Grows: vocab and concepts-- chap. 13-15
Total questions: 20
Worksheet time: 10mins
What does word deriding mean?
the expression of contempt or ridicule
the expression of honor or reverence
the expression of fear and sadness
What does enhancing mean?
To develop a answer for an issue
To develop a concept into a working machine
intensify, increase, or further improve the quality,
decrease, or further disprove the quality,
Why does the author believe that president Slippery Dickson (Richard Nixon) ended the (fish) gold standard?
Because the president wanted to take all the gold for himself.
Because fed notes (US dollars) are the most stable form of money
Because there were too many gold reserves to back all the money they created.
Because there weren't enough gold reserves to back all the money they created.
Under president Roughy Redfish (Ronald Reagan) the US economy entered a period of unprecedented prosperity. How did the president make this happen?
He increased taxes and burdensome regulations.
He decreased taxes and burdensome regulations.
He went back to the gold standard
He US the US financial system on Bitcoin.
Why was real estate considered a low-risk loan for banks?
Banks like to buy a lot of property and sell it at much higher prices.
Because house loans (mortgages) are rarely paid off and the house is bad collateral.
Banks like to buy and sell houses to make profits
Because house loans (mortgages) are usually paid off and the house is good collateral.
Since the 1980s in the US, interest rates have...
Gone up
Gone down
Remained the same
Why does the author believe that rising real-estate prices is not a good measure of the economic well-being of a country?
Because it is merely deflation of prices and it decreases the productive capacity of the country.
Because it is merely inflation of prices and it doesn't increase the productive capacity of the country.
When real-estate prices go up, people can afford more leisure time.
When real-estate prices go down, people cannot afford more leisure time.
The government in the 1990s created the banks Fannie Mae and Freddie Mac to help banks give loans to those who would ordinarily be unable to afford their own house. Why does the author believe this was a terrible idea?
Because this would interfere with the free market. In this case, it would cause house prices to inflate.
Because the author believes that poor people should not be able to buy a house.
Because this would not interfere with the free market. In this case, it would cause house prices to deflate.
Because the author believes that poor people should be able to buy a house.
Why did many people start to default on their loans (2007-2009)?
People were no longer able to repay their loans
The government gave them too much money.
The government made people pay too much money for their houses.
The government spent all of its money on the Iraq war.
Why were students loans invented?
To help more people buy their own houses.
To help universities become richer
To help poorer people afford a university education.
To help richer people afford a university education.
According to Peter Schiff, as more money from student loans entered universities, what happened to the university tuition?
University was now free
There was no change.
It started to deflate.
It started to inflate.
From Peter Schiff's perspective (the author): If US students have a high debt load due to student loans, in the future, how with this affect the general economy?
It will be deflationary as people will have to use their money to pay down debt.
It will be inflationary as people will have to use their money to pay down debt.
It will be good for the economy as it will allow universities to become bigger.
It will be good for the economy as it will allow people to have more university degrees.
What does a plummeting market mean?
The market is going up quickly
The market is going up slowly.
The market is going down quickly.
The Market is going down slowly.
What is predatory lending?
A loan that is only made to the rich.
A loan that is made to children.
A lending practice that imposes fair and beneficial loan terms on borrowers
A lending practice that imposes unfair and abusive loan terms on borrowers
How does the government try to stimulate the economy?
They try to inject more money supply to stabilize assets prices and encourage people to spend once again.
They try to lessen the money supply to stabilize assets prices and encourage people to save once again.
They try to forgive all debt and let banks close so that people will have free money.
What is a government bond?
It is a way to enter a US university if you have too much money.
It is a way to enter a US university if you don't have enough money.
A bond is issued by a country's government, promising to repay borrowed money at a fixed rate of interest at a specified time.
A bond is issued by ordinary, promising to borrow more money at a fixed rate of interest at a specified time.
If a country has a large national debt, what will happen if they continue to borrow large sums of money?
The country will definitely repay the debt.
The country will likely not be able to pay the loan interest, and the country will default on the loan.
The country will likely be able to pay the loan interest, and the country will default on the loan.
The country will just have a trade imbalance.
Who is the author of this book?
Jim Jong Un
Michael J. Fox
Paul Schiffer
Peter Schiff
What caused the 2008 financial crisis and the recession that followed?
Tight government monetary policy.
Lose government monetary policy.
The dot com tech bubble.
The Evergrande real estate crash
Since 2008 has the US government tightened its monetary policy or loosened it more?
Loosened more
tightened more
The US has been friendly and nice to the poor.
