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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.
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.
3
Commercial aviation is amazingly safe today, according to "How Much for a Life? Try $3 Million to $5 Million."
A)True
B)False
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.
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.
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
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.
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.
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
10
According to “Gas Costs Squeeze Daily Life,” an example of “demand elasticity” is:
A)airlines adding flights in the face of aviation fuel costs skyrocketing.
B)reducing expenditures in order to keep driving the same amount as fuel costs rise.
C)Americans driving less as gas prices reach record highs.
D)consumers demanding less expensive gas.
11
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.
12
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.
13
As cited in "The Real Price of Gas," the federal government has resisted providing the oil industry with tax breaks.
A)True
B)False
14
As given in “Antitrust Inquiry Launched into Intel,” the Federal Trade Commission charged Intel with attempting to stifle its competitors by:
A)selling chips below their manufacturing cost.
B)offering inducements to computer makers to boycott or limit purchases from an Intel competitor.
C)launching a whispering campaign against competitor Advanced Micro Devices.
D)hiring lobbyists to advance Intel’s interests in Congress.
15
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.
16
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.
17
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
18
According to “Climate Change and the Economy,” the main contributor to the climate problem is:
A)sulfur dioxide.
B)methane
C)carbon dioxide.
D)CFCs.
19
As noted in “Climate Change and the Economy,” regions likely to be hurt most by climate change include:
A)Southeast Asia.
B)Russia.
C)North America.
D)China.
20
As pointed out in “Climate Change and the Economy,” the G-Cubed form of analysis provides a clear picture of the eventual benefits of mitigation policies.
A)True
B)False
21
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.
22
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.
23
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
24
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.
25
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.
26
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
27
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.
28
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.
29
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
30
As reported in “Outsized Offshore Outsourcing,” the occupation ranked highest in offshorability is:
A)sales manager.
B)bill and account collector.
C)machinist.
D)computer programmer.
31
As noted in “Outsized Offshore Outsourcing,” Alan Blinder, former Clinton economic advisor, contends that:
A)outsourcing will be impoverishing in the long run.
B)almost all manufacturing jobs are offshorable.
C)transition will be negligible in the outsourcing of American jobs.
D)only low-skill jobs can be profitably outsourced.
32
As stated in “Outsized Offshore Outsourcing,” American wages have not increased in proportion to increases in worker productivity.
A)True
B)False
33
According to “The New Suburban Poverty,” one of the main factors driving up rates of suburban poverty is:
A)the concentration of unskilled labor.
B)availability of low-income housing.
C)decentralization of low-wage employment.
D)expanding availability of mass transit.
34
As stated in “The New Suburban Poverty,” the purpose of the anti-soliciting laws introduced in some counties is to drive away:
A)immigrants.
B)telemarketers.
C)gang activity.
D)day laborers.
35
As reported in “The New Suburban Poverty,” suburban areas tend to be lacking in social service agencies to help the poor.
A)True
B)False
36
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.
37
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.
38
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
39
As reported in “New Floor Set for Wages,” the state with the lowest minimum wage when the federal minimum wage was raised was:
A)California.
B)Massachusetts.
C)Georgia.
D)Washington.
40
As pointed out in “New Floor Set for Wages,” the most likely workers to lose out with the increased minimum wage are those:
A)who work part time.
B)near retirement.
C)who work for small companies.
D)with no experience.
41
As stated in “New Floor Set for Wages,” labor accounts for more than half of business costs.
A)True
B)False
42
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.
43
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.
44
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
45
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.
46
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.
47
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
48
According to “How Obama Will Stoke the Economy,” economists including Goldman Sachs' Jan Hatzius contend that:
A)government stimulus packages are counterproductive.
B)a half trillion dollar stimulus package would not be enough.
C)a series of small stimulus packages would be more effective than one large one.
D)government stimulus is responsible for the current economic situation.
49
As reported in “How Obama Will Stoke the Economy,” the Bush Administration opposed the November 2008 stimulus because the White House believed that:
A)government spending was not the answer.
B)the incoming administration should make the decision.
C)the package would affect election results.
D)much of the money would go to pork.
50
As pointed out in “How Obama Will Stoke the Economy,” research suggests that the majority of the $168 billion tax rebate from Spring 2008 was spent in retail establishments.
A)True
B)False
51
As explained in “Companies Slam on the Brakes,” recent shocks to American businesses include the near-collapse of the financial system and:
A)high tariffs on U.S. goods in China and Japan.
B)EU countries dumping consumer goods on the American market.
C)widespread strikes by union members.
D)surges in energy prices.
52
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.
53
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.
54
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
55
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.
56
As reported in “Fixing the Tax System,” reasons for the projected exponential growth in the number of taxpayers facing the Alternative Minimum Tax (AMT) include:
A)decreases in the size of families.
B)increased buying power of the dollar.
C)the AMT is not indexed for inflation.
D)permanent cuts in AMT rates.
57
The author of “Fixing the Tax System” contends that a national retail sales tax would:
A)be very difficult to evade.
B)reduce tax burdens minimally.
C)increase charitable contributions.
D)require substantial markups at the cash register.
58
As pointed out in “Fixing the Tax System,” the flat tax as a stand-alone system has never been tried anywhere in the world.
A)True
B)False
59
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.
60
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.
61
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
62
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.
63
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.
64
As described in "How Does Monetary Policy Affect the U.S. Economy?" monetary policy directly controls U.S. employment rates.
A)True
B)False
65
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.
66
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.
67
As stated in "Bank ATMs and ATM Surcharges," in 1996, the major ATM networks instituted a ban on ATM surcharges.
A)True
B)False
68
According to “A Quiet Revolution in Money,” the federal government first started printing paper money:
A)during the period of the Articles of Confederation.
B)during the Civil War.
C)solely for the purpose of paying taxes.
D)before the Louisiana Purchase.
69
In discussing electronic money, the author of “A Quiet Revolution in Money” points out that:
A)processing electronic payments is cheaper than paper ones.
B)its use tends to reduce wasteful spending.
C)it is not as convenient as paper money.
D)supermarkets prefer it to paper transactions.
70
As noted in “A Quiet Revolution in Money,” the majority of the money printed is to replace worn currency.
A)True
B)False
71
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.
72
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.
73
As proposed in "Toward a Cashless Society," electronic currency would replace credit cards and bank-checking systems.
A)True
B)False
74
As identified in “Record $482 Billion '09 Deficit Forecast,” among the driving forces in the increased federal budget deficit are all of the following except:
A)war costs.
B)tax rebates
C)new entitlement programs.
D)a slowing economy.
75
As reported in “Record $482 Billion '09 Deficit Forecast,” the federal budget deficit:
A)increased consistently throughout the Bush Administration.
B)was not as large, measured against the size of the economy in 2008, as during the Reagan Administration.
C)was predicted with consistent accuracy by the administration every year.
D)was a major issue in the 2008 presidential election.
76
As pointed out in “Record $482 Billion '09 Deficit Forecast,” Senator Kent Conrad contends that the large Bush budget deficit could be a boon to the next president.
A)True
B)False
77
According to Joseph Stiglitz Norton, as cited in "Greed Is Not Good," the main economic failure of the Clinton administration was that it:
A)did not put the right incentives into place to prevent a stock market bubble.
B)raised interest rates far too high for the market to bear.
C)did not encourage small business growth.
D)did not enact enough deregulation.
78
As part of banking deregulation, as detailed in "Greed Is Not Good," the repeal of 1933's Glass-Steagall Act served to:
A)lower ATM fees.
B)eliminate interest payments on savings accounts.
C)enable corrupt unions between banks and companies.
D)encourage shareholders to form unions with depositors.
79
As related in "Greed Is Not Good," during the 1990s the pay disparity decreased between American CEOs and the average American worker.
A)True
B)False
80
As noted in “Myths of Globalization,” a current illusion is that globalization will:
A)change humankind for the better.
B)benefit Asia more than Europe.
C)primarily enrich highly industrialized countries.
D)end racism.
81
As claimed in “Myths of Globalization,” the essence of globalization:
A)was present in the aftermath of World War II.
B)became a trademark of President Teddy Roosevelt’s approach to the world’s economy.
C)has its roots in England’s Industrial Revolution.
D)is at least 2,500 years old.
82
The author of “Myths of Globalization” points out that historical eras of relative peace came about because competing cultures agreed to cooperate.
A)True
B)False
83
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.
84
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.
85
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
86
According to “Consumer Trends in Three Different 'Worlds',” the fastest growing type of household in the United States is:
A)unmarried couples.
B)traditional families.
C)multigenerational families.
D)single persons.
87
As reported in “Consumer Trends in Three Different 'Worlds',” countries classified as W-1 nations include:
A)South Korea.
B)Bangladesh.
C)China.
D)India.
88
As noted in “Consumer Trends in Three Different 'Worlds',” the world's standard of living is rising.
A)True
B)False
89
As reported in “Refighting NAFTA,” among the claims by proponents of NAFTA in the early 1990s were that it would do all of the following except::
A)reduce drug smuggling.
B)create hundreds of thousands of U.S. jobs.
C)lead to a huge trade surplus with Mexico.
D)eliminate illegal immigration.
90
In assessing the impact of NAFTA on the U.S. economy, the author of “Refighting NAFTA” notes that the treaty has:
A)caused long-term damage to the labor movement in the United States.
B)caused record-setting unemployment.
C)had a miniscule affect on U.S. gross domestic product.
D)had a deleterious affect on currency values.
91
As pointed out in “Refighting NAFTA,” Hillary Clinton contends that she has always opposed NAFTA.
A)True
B)False
92
According to “Fighting the Global Slump: Less is Dangerous,” the greatest risk in the current economic crisis is that:
A)the supply of capital will dry up entirely.
B)consumers will move to an underground economy.
C)governments will overreact.
D)governments will do too little.
93
As reported in “Fighting the Global Slump: Less is Dangerous,” members of the British government are reluctant to spend too much on stimulus because they:
A)do not believe government spending will put people to work.
B)fear public reaction against it.
C)fear it could invite a speculative attack on their currency.
D)believe doing so might lead to trade imbalances.
94
As stated in “Fighting the Global Slump: Less is Dangerous,” Bush Administration Treasury Secretary Henry Paulson contended that the Troubled Asset Relief Program was intended to be an economic stimulus.
A)True
B)False
95
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.
96
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.
97
As pointed out in "Eliminating Child Labor," the vast majority of children who work do so in agriculture.
A)True
B)False
98
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.
99
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.
100
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
101
As presented in “Puzzling over Globalisation,” after factory operations, a business should next search for world-class performance in:
A)currency fluctuations.
B)sales margins.
C)the supply chain.
D)raw materials acquisition.
102
As described in “Puzzling over Globalisation,” because so much is spent on it, the part of the supply chain that is often scrutinized is:
A)design.
B)purchasing.
C)service.
D)advertising.
103
As defined in “Puzzling over Globalisation,” every manufacturing business small and large has a supply chain.
A)True
B)False
104
As reported in “Half a Tank,” the world’s people will know oil production has passed its peak when:
A)price and production increase.
B)price and production decrease.
C)price rises and production does not increase.
D)price falls and production does not increase.
105
As stated in “Half a Tank,” Robert Hirsch's report on oil production:
A)suggests that the Saudis have consistently underestimated their oil reserves.
B)predicts a world oil-production peak sometime in the twenty-second century.
C)was financed by the departments of Defense and Transportation.
D)notes that economic effects will be less severe if people prepare for the post-peak in advance.
106
As noted in “Half a Tank,” United States oil production has not yet reached its peak.
A)True
B)False
107
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.
108
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.
109
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
110
According to “A Broad Asian FTA Will Bring Big Gains,” the passage of a comprehensive free trade agreement in East Asia:
A)was made possible by the completion of the World Trade Organization's Doha deal.
B)will prevent discrimination against non-members.
C)will exclude issues not covered by the World Trade Organization.
D)could make dynamic gains by generating greater trade.
111
As noted in “A Broad Asian FTA Will Bring Big Gains,” among the benefits of foreign direct investment in Asia are all of the following except:
A)external funding.
B)improved accountability.
C)better production technology.
D)better management know-how.
112
As stated in “A Broad Asian FTA Will Bring Big Gains,” surveys show that small enterprises consider free trade agreements costly.
A)True
B)False





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