Economics: Work and Prosperity Test 6

Match each definition with the correct term.

• mercantilism

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

• Communism

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

• socialism

• advocates massive public spending during recessions

• Keynesianism

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

Match each definition with the correct term.

•  national sovereignty

• reducing taxes makes more money available for private investment, thereby increasing productivity

• supply-side economics

• the exclusive power of an independent state to rule and regulate internal affairs without foreign interference

• globalism

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

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

• prophet of doom

• Milton Friedman

• Diamond-Water Paradox

•  Thomas Robert Malthus

• monetarism

• Carl Menger

• Physiocracy

• Pierre Samuel du Pont