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1 | | As presented in "How Much for a Life? Try $3 Million to $5 Million," in the interests of safety, the airline industry must: |
| | A) | rely on increase government monitoring. |
| | B) | expect a return to the days of regulation. |
| | C) | expect to make substantial investments in safety. |
| | D) | buy new equipment even if it forces some companies into bankruptcy. |
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2 | | According to "How Much for a Life? Try $3 Million to $5 Million," the probability of dying in an airline accident: |
| | A) | has risen sharply in the past decade. |
| | B) | is high only on USAir. |
| | C) | is tiny. |
| | D) | is frighteningly high in propeller planes. |
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3 | | Commercial aviation is amazingly safe today, according to "How Much for a Life? Try $3 Million to $5 Million." |
| | A) | True |
| | B) | False |
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4 | | As explained in "More, Bigger, Faster," because of the "new-want machine" that the United States has developed over the last hundred years, the long-run prospects for its economy are: |
| | A) | bleak. |
| | B) | ambiguous. |
| | C) | excellent. |
| | D) | difficult to predict. |
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5 | | According to "More, Bigger, Faster," current discussions of productivity tend not to focus on the creation of new markets, but rather on: |
| | A) | increasing efficiency in existing markets. |
| | B) | reducing costs. |
| | C) | developing new technologies. |
| | D) | creative destruction of old markets. |
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6 | | As argued in "More, Bigger, Faster," apart from a few specific industries, far more jobs are lost to imports and outsourcing than to efficiency improvements in industries where demand has not changed. |
| | A) | True |
| | B) | False |
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7 | | As described in "Counter-Terrorism: The Private Cost of More Security," productivity shock can occur when: |
| | A) | there is a substitution of "protective" for "productive" capital, leading companies to spend more on security measures. |
| | B) | there is a substitution of "productive" for "protective" capital leading companies to spend more on tools of production. |
| | C) | terrorism fears shock workers, resulting in less productivity. |
| | D) | the stock market declines due to terrorism warnings. |
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8 | | As cited in "Counter-Terrorism: The Private Cost of More Security," some of the market mechanisms used to alleviate the "free-rider" problem are: |
| | A) | voluntary standards encouraged by tax cuts. |
| | B) | voluntary standards encouraged by tax increases. |
| | C) | pollution and emission credits as well as "smog markets." |
| | D) | restrictive federal regulations. |
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9 | | As illustrated in "Counter-Terrorism: The Private Cost of More Security," productivity increases as counter-terrorism protective measures are implemented by private industry. |
| | A) | True |
| | B) | False |
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10 | | After New Jersey doubled the tax on cigarettes, as reported in "Smoke Signals," cigarette sales: |
| | A) | increased only among upper-income smokers. |
| | B) | increased slightly among all smoker groups. |
| | C) | decreased slightly. |
| | D) | decreased dramatically. |
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11 | | The states with the highest cigarette taxes, as cited in "Smoke Signals," are: |
| | A) | Alaska and Hawaii. |
| | B) | New York and New Jersey. |
| | C) | California and Oregon. |
| | D) | Illinois and Indiana. |
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12 | | Smoking rates had been on the rise before New Jersey increased the tax on cigarettes, according to "Smoke Signals." |
| | A) | True |
| | B) | False |
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13 | | As listed in "Jousting for Television's Holy Grail," signs of progress towards the adoption of digital broadcasting include all of the following except: |
| | A) | the FCC has offered local broadcasters tax incentives to broadcast digital signals. |
| | B) | many broadcasters have already begun investing in digital-TV equipment. |
| | C) | TV-set makers are pushing down the price of digital TVs. |
| | D) | producers are more willing to show new movies on digital TV. |
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14 | | As outlined in "Jousting for Television's Holy Grail," the major problem facing producers of movies and television series in terms of this debate is: |
| | A) | exclusion from profitable digital advertising. |
| | B) | piracy. |
| | C) | "must-carry" rules. |
| | D) | censorship. |
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15 | | As asserted in "Jousting for Television's Holy Grail," the primary losers in the fight for the revenue generated by digital-TV are the television viewers. |
| | A) | True |
| | B) | False |
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16 | | As related in "Bruised in Bentonville," Wal-Mart founder Sam Walton felt that the press, publicists, and government relations were: |
| | A) | unnecessary, wasteful distractions. |
| | B) | necessary for the company's survival. |
| | C) | necessary evils to protect the company's image. |
| | D) | unnecessary because Wal-Mart's business practices were above reproach. |
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17 | | As highlighted in "Bruised in Bentonville," the largest civil rights class ever certified is comprised of Wal-Mart's: |
| | A) | unionized employees. |
| | B) | female employees. |
| | C) | immigrant employees. |
| | D) | African-American employees. |
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18 | | As pointed out in "Bruised in Bentonville," Wal-Mart's stock price has risen significantly since it hired legions of publicists, lobbyists, and lawyers to repair its image. |
| | A) | True |
| | B) | False |
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19 | | As noted in "Airlines," one region with a particularly high accident rate is: |
| | A) | Australia. |
| | B) | Africa. |
| | C) | North America. |
| | D) | Asia. |
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20 | | As explained in "Airlines," the low-cost airline model works most successfully on: |
| | A) | international trips. |
| | B) | intercontinental journeys. |
| | C) | flights between major hubs. |
| | D) | flights of less than three hours. |
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21 | | As asserted in "Airlines," governments never truly deregulated the airline industry. |
| | A) | True |
| | B) | False |
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22 | | As noted in "Modernizing U.S. Antitrust Law: The Role of Technology and Innovation," the Association for Competitive Technology recommended that the U.S. Antitrust Modernization Commission study the question of whether or not: |
| | A) | legislation should be enacted to create a new administrative procedure to allow post-grant review of and opposition to patents. |
| | B) | the appropriate decision-makers should consider possible harm to competition--along with other possible benefits and costs--before extending the definition of patentable subject matter. |
| | C) | compulsory licensing of intellectual property rights for the stated purpose of promoting competition should be an acceptable practice. |
| | D) | there should be a dedicated court for intellectual property. |
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23 | | As related in "Modernizing U.S. Antitrust Law: The Role of Technology and Innovation," throughout the 1990s, the federal antitrust agencies focused on the emerging public-policy objective of: |
| | A) | encouraging technological and market innovation. |
| | B) | protecting small businesses and local markets. |
| | C) | promoting globalization and the formation of multinational conglomerates. |
| | D) | fighting monopoly ownership of major utilities. |
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24 | | As pointed out in "Modernizing U.S. Antitrust Law: The Role of Technology and Innovation," competition in industries in which network effects are important and in which competing networks are not inter-operable, may be "winner-take-all." |
| | A) | True |
| | B) | False |
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25 | | As defined in "The Real Price of Gas," the most comprehensive term for describing the expenses that are not reflected in the retail price of gasoline would be: |
| | A) | tariffs. |
| | B) | external costs. |
| | C) | tax subsidies. |
| | D) | program subsidies. |
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26 | | As noted in "The Real Price of Gas," program subsidies that support U.S. petroleum producers include all of the following except: |
| | A) | spending on the transportation infrastructure. |
| | B) | funding research and development. |
| | C) | safeguarding the world's oil-rich regions by the Department of Defense. |
| | D) | support from the U.S. Army Corps of Engineers. |
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27 | | As cited in "The Real Price of Gas," the federal government has resisted providing the oil industry with tax breaks. |
| | A) | True |
| | B) | False |
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28 | | As pointed out in "The Truth About Oil," gas stations make the greatest profits when gas prices are: |
| | A) | stable. |
| | B) | high. |
| | C) | rising. |
| | D) | falling. |
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29 | | As asserted in "The Truth About Oil," the best thing the United States can do to bring down oil prices is: |
| | A) | nothing. |
| | B) | set controls on oil prices. |
| | C) | build government-owned refineries. |
| | D) | discourage alternative-fuel development. |
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30 | | As warned in "The Truth About Oil," worldwide refining capacities outside the United States will not be able to keep up with U.S. demand for gas for much longer. |
| | A) | True |
| | B) | False |
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31 | | As asserted in "The Eco-Economic Revolution: Getting the Market in Sync with Nature," an economy is sustainable only if it: |
| | A) | respects the principles of ecology. |
| | B) | has access to enough fossil fuel. |
| | C) | can provide enough population growth to sustain it. |
| | D) | pays strict attention to market forces. |
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32 | | According to "The Eco-Economic Revolution: Getting the Market in Sync with Nature," an eco-economy would be one that satisfies the needs of the population without: |
| | A) | relying on fish as a protein source. |
| | B) | restricting the logging industry. |
| | C) | jeopardizing future generations. |
| | D) | damaging the current global marketplace. |
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33 | | As presented in "The Eco-Economic Revolution: Getting the Market in Sync with Nature," an eco-economy would use hydrogen, rather than carbon, as a basis for the auto industry. |
| | A) | True |
| | B) | False |
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34 | | As reported in "Congested Parks--A Pricing Dilemma," the best solution to counter the degradation of parks due to overuse is: |
| | A) | limiting the number of people allowed in at one time. |
| | B) | limiting use to specific periods of time. |
| | C) | raising entrance fees. |
| | D) | closing some parks for several years at a time. |
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35 | | According to "Congested Parks--A Pricing Dilemma," all of the following are means of reducing the demand for space in the public parks except: |
| | A) | closing the parks. |
| | B) | subsidizing private campgrounds. |
| | C) | increasing the number of park camping spaces. |
| | D) | increasing the price of park camping spaces. |
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36 | | Many state and local parks, as claimed in "Congested Parks--A Pricing Dilemma," are being strained to accommodate rapidly increasing attendance. |
| | A) | True |
| | B) | False |
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37 | | As outlined in "Building a More-Humane Economy," all of the following have been shown to suffer as a result of increased time devoted to work except: |
| | A) | income. |
| | B) | social capital. |
| | C) | time spent with children. |
| | D) | civic activity. |
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38 | | As asserted in "Building a More-Humane Economy," labor laws: |
| | A) | should continue to focus on traditional jobs. |
| | B) | offer excellent guidelines for home offices. |
| | C) | need to be modernized to reflect today's social and economic realities. |
| | D) | neglect protections for rigid hours, wages, work conditions, and management-labor bargaining. |
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39 | | As pointed out in "Building a More-Humane Economy," civil-society liberals and progressives argue that the relentless drive toward efficiency dampens the human spirit, fails to meet human needs, and spoils the environment. |
| | A) | True |
| | B) | False |
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40 | | As noted in "The Rich Get (Much) Richer," a common thread among those who deny the significance of the income gap is a fear of the: |
| | A) | competition from fast-growing economies in Europe and Asia. |
| | B) | catastrophic violence and widespread corruption of labor uprisings in Asia. |
| | C) | oppressive dominance of mega-conglomerate corporations. |
| | D) | redistributionist and suffocating slow-growth policies of Old Europe. |
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41 | | As described in "The Rich Get (Much) Richer," much of the recent commentary on the U.S. economy has focused on: |
| | A) | efficiency. |
| | B) | productivity. |
| | C) | equality. |
| | D) | class mobility. |
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42 | | As highlighted in "The Rich Get (Much) Richer," the share of income going to the richest members of society is still relatively slight. |
| | A) | True |
| | B) | False |
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43 | | According to "Outsourcing Jobs: The Myths and Realities," the debate over outsourcing is misplaced, because the issue is not globalization, but rather: |
| | A) | massive trade deficits. |
| | B) | the way nations allocate the benefits of economic integration. |
| | C) | the pace of innovation and technological change. |
| | D) | competitiveness. |
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44 | | As explained in "Outsourcing Jobs: The Myths and Realities," over the past 10 years, job growth in the United States: |
| | A) | was fastest among low-wage jobs. |
| | B) | has remained steady. |
| | C) | was fastest among high-wage jobs. |
| | D) | had fallen every year until 2005. |
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45 | | As asserted in "Outsourcing Jobs: The Myths and Realities," the fact that what is good for the economy as a whole may not be good for each individual does not weaken the case for free trade. |
| | A) | True |
| | B) | False |
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46 | | As pointed out in "Laid Off and Left Out," the majority of American workers who are laid off end up: |
| | A) | taking new jobs in high-tech industries. |
| | B) | making more money in their next jobs. |
| | C) | in new jobs that pay significantly less, or dropping out altogether. |
| | D) | moving to countries that have more jobs. |
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47 | | As noted in "Multiple Minimums," the minimum wage was first established under the administration of: |
| | A) | Franklin Roosevelt. |
| | B) | Jimmy Carter. |
| | C) | Dwight Eisenhower. |
| | D) | Ronald Reagan. |
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48 | | As recounted in "Multiple Minimums," efforts to increase the federal minimum wage have been: |
| | A) | opposed by organized labor. |
| | B) | opposed by the public. |
| | C) | supported by lawmakers. |
| | D) | supported by business groups. |
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49 | | As pointed out in "Multiple Minimums," with a minimum wage among the highest in the nation, Oregon has twice the rate of job growth as the rest of the country. |
| | A) | True |
| | B) | False |
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50 | | As stated in "The Gender Gyp," President Bush has argued for: |
| | A) | shoring up Social Security reserves. |
| | B) | eliminating Social Security. |
| | C) | increasing Social Security benefits for women. |
| | D) | encouraging private investment rather than putting more money into Social Security. |
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51 | | As argued in "The Gender Gyp," private investment accounts rather than Social Security would: |
| | A) | probably work for those who have considerable money to put into them. |
| | B) | not be affected by the stock market. |
| | C) | favor women when these accounts are converted to annuities. |
| | D) | protect people with low incomes. |
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52 | | As noted in "The Gender Gyp," women are less likely than men to need income for many years after their earning years are past. |
| | A) | True |
| | B) | False |
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53 | | As demonstrated in "The Health Care Crisis and What to Do About It," evidence shows that the key problem with the U.S. healthcare system is its: |
| | A) | insolvency. |
| | B) | fragmentation. |
| | C) | federal dominance. |
| | D) | independence. |
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54 | | As concluded in "The Health Care Crisis and What to Do About It," the obvious way to make the U.S. healthcare system more efficient is to make it: |
| | A) | less like the systems in other advanced countries. |
| | B) | more like the most efficient parts of the U.S. system. |
| | C) | more heavily privatized. |
| | D) | less reliant on government support. |
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55 | | According to "The Health Care Crisis and What to Do About It," a shift of political power from Republicans to Democrats would give Americans sensible healthcare reform. |
| | A) | True |
| | B) | False |
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56 | | In the fictional retrospective of the author of "Countdown to a Meltdown," the event that led to the Democratic victory in the election of 2008 was the: |
| | A) | collapse of the dollar in Asian market. |
| | B) | death of Fidel Castro. |
| | C) | defeat of U.S. forces in Iraq. |
| | D) | rise to power of Hugo Chavez. |
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57 | | According to "Countdown to a Meltdown," every Republican president has left office with the: |
| | A) | dollar higher. |
| | B) | American trade position stronger. |
| | C) | U.S. manufacturing work force smaller. |
| | D) | federal budget deficit lower. |
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58 | | As noted in "Countdown to a Meltdown," in 2005 the Congressional Budget Office contended that a large majority of the upcoming year's deficit resulted from the Bush Administration tax cuts. |
| | A) | True |
| | B) | False |
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59 | | As presented in "Seizing Intangibles for the G.D.P.," in shifting G.D.P. data so research and development costs and other items are calculated as capital investment rather than as expenses, labor's share of national income would: |
| | A) | rise sharply. |
| | B) | decline. |
| | C) | stay the same. |
| | D) | become almost irrelevant. |
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60 | | As suggested in "The Elephant in the Room," one metaphor for economic growth and its global effects is: |
| | A) | farming. |
| | B) | medicine. |
| | C) | drug addiction. |
| | D) | illness. |
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61 | | According to "The Elephant in the Room," the pursuit of material abundance is assumed to be identical to the pursuit of: |
| | A) | self-expression. |
| | B) | life. |
| | C) | liberty. |
| | D) | happiness. |
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62 | | As argued in "The Elephant in the Room," the pursuit of economic growth facilitates greater global and regional equality. |
| | A) | True |
| | B) | False |
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63 | | As noted in "Social Spending and Economic Growth, Interview with Peter Lindert," societies that spend more on social programs generally experience: |
| | A) | lower growth rates than societies that spend less. |
| | B) | higher growth rates than societies that spend less. |
| | C) | virtually the same growth rates as societies that spend less. |
| | D) | negative growth rates. |
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64 | | As mentioned in "Social Spending and Economic Growth, Interview with Peter Lindert," the negative-income-tax experiments of the 1960s and 1970s tested different tax systems and showed that: |
| | A) | there was no significant effect on people's tendency to work. |
| | B) | as taxes rose, people worked less. |
| | C) | as taxes rose, people worked more. |
| | D) | greater unemployment benefits drove people to find work faster. |
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65 | | As shown in "Social Spending and Economic Growth, Interview with Peter Lindert," social transfers of wealth without exception inhibit productivity and GDP. |
| | A) | True |
| | B) | False |
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66 | | As noted in "Why Are Taxes So Complicated and What Can We Do About It?" the principal reason tax law is so complicated is that: |
| | A) | its goals are impossible to attain. |
| | B) | tax preparers make more money that way. |
| | C) | politicians are corrupt. |
| | D) | it has many complicated and sometimes inconsistent goals. |
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67 | | The most basic change in the U.S. revenue structure, as proposed in "The Tax Reform Revolution," would be to introduce a new federal tax based on: |
| | A) | income. |
| | B) | production. |
| | C) | consumption. |
| | D) | resources. |
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68 | | As noted in "The Tax Reform Revolution," the base of both expenditure taxes and and sales or value-added taxes is the value of: |
| | A) | goods and services purchased. |
| | B) | goods and services produced. |
| | C) | income saved. |
| | D) | interest earned. |
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69 | | As pointed out in "The Tax Reform Revolution," although the value-added tax remains a theoretical concept, the consumption tax is an existing tax in many countries. |
| | A) | True |
| | B) | False |
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70 | | According to "Tax Reform R.I.P.," "tax expenditures," the costs in forgone taxes, favor: |
| | A) | poor people. |
| | B) | immigrants. |
| | C) | blue-collar workers. |
| | D) | the middle and upper-middle classes. |
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71 | | As profiled in "Link Between Taxation, Unemployment Is Absent," when President Bush cut taxes in 2001 and 2003, unemployment rates: |
| | A) | plummeted. |
| | B) | increased. |
| | C) | stayed the same. |
| | D) | increased temporarily then declined. |
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72 | | As noted in "Link Between Taxation, Unemployment Is Absent," the correlation between tax levels and unemployment rates can be characterized as: |
| | A) | positive. |
| | B) | negative. |
| | C) | nonlinear. |
| | D) | nonexistent. |
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73 | | As maintained in "Link Between Taxation, Unemployment Is Absent," conservative economists argue that a consequence of higher taxes is a decrease in a desire to work. |
| | A) | True |
| | B) | False |
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74 | | According to "What Should Central Banks Do?" the overriding, long-term goal of monetary policy should be: |
| | A) | spurts of economic expansion. |
| | B) | communication. |
| | C) | price stability. |
| | D) | high economic output. |
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75 | | As stated in "What Should Central Banks Do?" it may be more difficult for the monetary authorities to pursue price stability if: |
| | A) | there are budget surpluses. |
| | B) | fiscal policy is irresponsible. |
| | C) | politics become part of the process. |
| | D) | neighboring countries have mature economies. |
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76 | | As concluded in "What Should Central Banks Do?" the Federal Reserve requires an institutional restructuring in order to keep pace with the world economy. |
| | A) | True |
| | B) | False |
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77 | | As explained in "How Does Monetary Policy Affect the U.S. Economy?" in order to influence the U.S. economy, the Federal Reserve Board implements its monetary policy via raising or lowering: |
| | A) | taxes. |
| | B) | the real interest rate. |
| | C) | the nominal interest rate. |
| | D) | the marginal interest rate. |
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78 | | As presented in "How Does Monetary Policy Affect the U.S. Economy?" if the interest rate on a loan is six percent and the inflation rate is two percent, then the real interest rate for this loan is: |
| | A) | four percent. |
| | B) | eight percent. |
| | C) | six percent. |
| | D) | two percent. |
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79 | | As described in "How Does Monetary Policy Affect the U.S. Economy?" monetary policy directly controls U.S. employment rates. |
| | A) | True |
| | B) | False |
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80 | | As pointed out in "It's His Economy Now--And Yours," economic issues over which new Federal Reserve chairman Ben Bernanke has direct control include: |
| | A) | the dysfunctional healthcare system. |
| | B) | job insecurity. |
| | C) | stagnant pay rates. |
| | D) | short-term interest rates. |
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81 | | As demonstrated in "It's His Economy Now--And Yours," all of the following are things that United States needs to do to thrive in a competitive world _except:_ |
| | A) | churn out better-prepared high-school graduates. |
| | B) | raise healthcare costs. |
| | C) | find a way to pay for the baby-boomers' retirements. |
| | D) | find a way to stop borrowing so much money from foreigners. |
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82 | | As described in "It's His Economy Now--And Yours," the "Great Moderation" that now characterizes the U.S. economy is a mixed blessing for everyone but central bankers. |
| | A) | True |
| | B) | False |
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83 | | As noted in "Banking Consolidation," most of the bank mergers in recent years have been market-expansion mergers, which means that: |
| | A) | the merging parties have few if any overlapping markets. |
| | B) | the merge involves a bank and another operation, such as an investment firm, to expand the variety of services offered by the bank. |
| | C) | a stronger, larger bank acquires a smaller, weaker bank. |
| | D) | banks in the same state consolidate operations. |
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84 | | As explained in "Banking Consolidation," since 1997 there has been a significant increase in the number of large bank mergers due to: |
| | A) | the failure of smaller banks. |
| | B) | the Riegle-Neal Act, which allows interstate banking. |
| | C) | the technology boom of the 1990s enabled many banks to consolidate. |
| | D) | a desire to present a strong, united front to foreign banks. |
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85 | | As claimed in "Banking Consolidation," there are now three megabanks that can boast of banking operations in all 50 U.S. states. |
| | A) | True |
| | B) | False |
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86 | | As discussed in "Bank ATMs and ATM Surcharges," customers' consideration of the size of a bank's ATM network in deciding where to bank: |
| | A) | has little effect on the amount of business most banks do. |
| | B) | favors larger banks over smaller ones. |
| | C) | favors local banks over national ones. |
| | D) | favors banks with better customer service. |
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87 | | As recounted in "Bank ATMs and ATM Surcharges," the first U.S. ATMs were deployed primarily to: |
| | A) | enhance customer service and reduce costs. |
| | B) | make a profit on customer and bank-to-bank fees. |
| | C) | draw customers to particular banks. |
| | D) | serve as an alternative to credit cards. |
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88 | | As stated in "Bank ATMs and ATM Surcharges," in 1996, the major ATM networks instituted a ban on ATM surcharges. |
| | A) | True |
| | B) | False |
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89 | | As pointed out in "Toward a Cashless Society," government officials: |
| | A) | would use electronic currency to establish totalitarian regimes. |
| | B) | are engaging in illicit electronic surveillance already. |
| | C) | do not invade our privacy because the law prevents it. |
| | D) | are in favor of adopting electronic currency. |
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90 | | As described in "Toward a Cashless Society," crimes that are conducted almost entirely with cash include: |
| | A) | identity theft. |
| | B) | fraud. |
| | C) | hacking into private computers. |
| | D) | tax evasion. |
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91 | | As proposed in "Toward a Cashless Society," electronic currency would replace credit cards and bank-checking systems. |
| | A) | True |
| | B) | False |
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92 | | As predicted in "Update on the State of the Future," by the year 2100 the world population will have: |
| | A) | leveled off and will thereafter remain fixed. |
| | B) | started to fall. |
| | C) | skyrocketed, most likely doubling between now and then. |
| | D) | continued to slowly and steadily increase. |
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93 | | As noted in "Update on the State of the Future," a feature of modern life that was once seen as a problem and is now seen as part of the solution to poverty, ignorance, disease, and malnutrition is: |
| | A) | industrialization. |
| | B) | urbanization. |
| | C) | segregation. |
| | D) | nationalization. |
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94 | | As lauded in "Update on the State of the Future," the World Health Organization and national governments around the world have been successful in stopping the spread of HIV. |
| | A) | True |
| | B) | False |
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95 | | As detailed in "As Job Exports Rise, Some Economists Rethink the Mathematics of Free Trade," job destruction carries all of the following costs for workers except: |
| | A) | unemployment. |
| | B) | job-search costs. |
| | C) | retraining costs. |
| | D) | the same type of jobs, with higher pay. |
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96 | | According to "Is the Current Account Deficit Sustainable?" the bulk of the short-run pressure for dollar depreciation is driven by the need to get: |
| | A) | U.S. residents to consume more tradable goods of all types. |
| | B) | foreigners to consume fewer tradable goods of all types. |
| | C) | U.S. residents to produce more tradable goods of all types. |
| | D) | foreigners to produce more tradable goods of all types. |
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97 | | As cited in "Is the Current Account Deficit Sustainable?" National Bureau of Economic Research research associates Maurice Obstfeld and Kenneth Rogoff show that an exchange-rate change alone will: |
| | A) | have only a relatively limited impact on the current account. |
| | B) | drastically increase the current-account deficit. |
| | C) | result in equilibrium. |
| | D) | be absolutely necessary if rebalancing of the account is to occur. |
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98 | | As highlighted in "Is the Current Account Deficit Sustainable?" Obstfeld and Rogoff note that global account rebalancing could turn out to be relatively benign. |
| | A) | True |
| | B) | False |
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99 | | As maintained in "The High-Tech Threat from China," China's advances in technology are: |
| | A) | being accelerated by Western companies establishing huge R&D facilities there. |
| | B) | kept secret from the West by the Chinese government. |
| | C) | are dependent on the expansion of Chinese technical schools. |
| | D) | already ahead of those in Western countries. |
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100 | | As explained in "Building Blocks," the East Asian Summit is the first time that the key players in this region have: |
| | A) | made attempts to develop economic relationships with one another. |
| | B) | met peacefully to discuss the resolution of regional conflicts. |
| | C) | come together for the explicit purpose of deepening political integration. |
| | D) | discussed the adoption of a single Asian currency. |
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101 | | As given in "Building Blocks," Eisuke Sakakibara, a former senior Finance Ministry official in Japan, holds that trade among the countries of East Asia has: |
| | A) | decreased dramatically. |
| | B) | increased dramatically. |
| | C) | ceased altogether. |
| | D) | become stagnant. |
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102 | | As noted in "Building Blocks," the richest countries in East Asia are about 10 times more prosperous than the poorest ones. |
| | A) | True |
| | B) | False |
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103 | | According to "Where the Money Went," the most pivotal factor missing from the official story about the global development crisis is: |
| | A) | unexpected climatic and geographic events. |
| | B) | the role of banks and multinationals. |
| | C) | indigenous corruption. |
| | D) | the human suffering that it causes. |
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104 | | Among governments identified in "Where the Money Went" as kleptocracies are those of all of the following leaders except that of: |
| | A) | Ferdinand Marcos. |
| | B) | Slobadan Milosevic. |
| | C) | Andres Perez. |
| | D) | Vincente Fox. |
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105 | | As reported in "Where the Money Went," the cost of servicing their debt is higher than what Third World countries spend on health or education. |
| | A) | True |
| | B) | False |
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106 | | As identified in "Asymmetric Globalization: Global Markets Require Good Global Politics," one contention of the opponents of globalization that is correct is that: |
| | A) | globalization causes corruption in government. |
| | B) | world poverty has been doubled during the process of globalization. |
| | C) | countries that compete in the global market suffer. |
| | D) | opportunities in the global market are not equal for all countries. |
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107 | | As pointed out in "Asymmetric Globalization: Global Markets Require Good Global Politics," in the the better-off emerging-market economies: |
| | A) | global trade has passed them by. |
| | B) | participation in global financial markets has had negative consequences. |
| | C) | globalization has been an unqualified success. |
| | D) | resistance to the forces of globalization has stymied growth. |
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108 | | As reported in "Asymmetric Globalization: Global Markets Require Good Global Politics," liberalizing financial markets in the absence of adequate regulatory institutions and banking standards invites corruption. |
| | A) | True |
| | B) | False |
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109 | | Over the coming decades, as maintained in "Will the World Run Dry? Global Water and Food Security," the area of land devoted to cultivating food crops will grow only slowly as a result of all of the following factors except: |
| | A) | greater use of alternative techniques such as hydroculture. |
| | B) | increased urbanization. |
| | C) | slow growth in irrigation investment. |
| | D) | widespread soil degradation. |
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110 | | The greatest percentage of water use, as explained in "Will the World Run Dry? Global Water and Food Security," is consumed by: |
| | A) | industry. |
| | B) | domestic requirements. |
| | C) | irrigation. |
| | D) | environmental protection. |
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111 | | Although the successes of agricultural irrigation are significant, as pointed out in "Will the World Run Dry? Global Water and Food Security," poor irrigation management has damaged soil and reduced water quality in many regions of the world. |
| | A) | True |
| | B) | False |
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112 | | As reported in "Do Global Attitudes and Behaviors Support Sustainable Development?" a 2002 survey of the United States found that Americans strongly agreed that humans: |
| | A) | have moral duties and obligations to nature. |
| | B) | should master nature. |
| | C) | have the right to alter nature to satisfy wants and desires. |
| | D) | are not a part of nature. |
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113 | | As noted in "Do Global Attitudes and Behaviors Support Sustainable Development?" the only nations in which a significant proportion of respondents said that their governments were doing too much to help the poor were: |
| | A) | China and Portugal. |
| | B) | Great Britain and Spain. |
| | C) | Egypt and Japan. |
| | D) | the Philippines and the United States. |
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114 | | As explained in "Do Global Attitudes and Behaviors Support Sustainable Development?" survey results indicate that more people globally prefer an egalitarian society, where the gap between rich and poor is small, regardless of achievement, to a competitive society, where wealth is distributed according to one's achievement. |
| | A) | True |
| | B) | False |
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115 | | As discussed in "Eliminating Child Labor," the practice of employing child labor: |
| | A) | remains prevalent all over the world. |
| | B) | can be eliminated everywhere by the more careful monitoring of exports. |
| | C) | was never common in the United States. |
| | D) | cannot be ended by applying one solution to various nations around the world. |
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116 | | According to "Eliminating Child Labor," the state that first placed restrictions on the employment of children was: |
| | A) | Wisconsin. |
| | B) | Virginia. |
| | C) | Massachusetts. |
| | D) | Delaware. |
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117 | | As pointed out in "Eliminating Child Labor," the vast majority of children who work do so in agriculture. |
| | A) | True |
| | B) | False |
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