Economic Catastrophes: Sample Quiz

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1. Which of the following would be hurt by unexpected inflation?

Businesses with large inventories
Businesses with large debts
Businesses with wages determined by long-term contracts
Businesses holding large amounts of financial assets with fixed interest rates

2. When did the Great Depression take place?

The 1920s
The 1930s
The 1940s
The 1950s

3. In 1933 the U.S. unemployment rate indicated how many people were unemployed?

Two of every three workers
One of every two workers
One of every four workers
One of every eight workers

4. Partial equilibrium analysis assumes that:

equilibrium is only partially achieved.
one can ignore effects in all markets except the one under study.
adjustment problems are more important than any equilibrium that exists.
markets can be consolidated by large-scale aggregation.

5. When did the German hyperinflation take place?

Shortly before the First World War, from 1909 until 1912
During the First World War, in 1915 and 1916
After the First World War, in 1922 and 1923
After Hitler came to power, from 1934 until 1937

6. If you are retired on a fixed pension, you will be:

helped by unexpected deflation and harmed by unexpected inflation.
harmed by unexpected deflation and helped by unexpected inflation.
helped by both unexpected deflation and unexpected inflation.
harmed by both unexpected deflation and unexpected inflation.

7. The shanty towns and camps of unemployed that sprang up in the United States during the Great Depression were called:


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Copyright Robert Schenk