Which of the following statements is correct?

Which of the following statements is correct?

1. Europe has always been much wealthier than Africa.
2. Life expectancies have not changed a great deal in the last 1000 years.
3. The Industrial Revolution initially started in China.
4. Average incomes hardly changed between 1 A.D. and 1000 A.D.


Answer: 4. Average incomes hardly changed between 1 A.D. and 1000 A.D.

Many of the reforms of the 1980s and early 1990s were designed to

Many of the reforms of the 1980s and early 1990s were designed to

1. ensure that a greater share of national income went to workers.
2. increase tax revenue so that social programmes could be funded.
3. introduce competition into markets to lower prices for consumers.
4. make financial markets more robust to avoid a 1930s style depression.


Answer: 3. introduce competition into markets to lower prices for consumers.

The response of many western governments to the oil price spike of the 1970s was to

The response of many western governments to the oil price spike of the 1970s was to

1. lower interest rates.
2. fix exchange rates to stabilise them.
3. borrow to increase government spending.
4. reduce taxes so consumers could continue to spend.


Answer: 3. borrow to increase government spending.

Whose writings provided the intellectual basis for communism as a form of government?

Whose writings provided the intellectual basis for communism as a form of government?

1. Adam Smith.
2. Thomas Malthus.
3. David Ricardo.
4. Karl Marx.


Answer: 4. Karl Marx.

The Industrial Revolution was made possible by

The Industrial Revolution was made possible by

1. vastly improved energy extraction methods such as steam engines.
2. a rapidly expanding population that needed to find work.
3. a shift to democratic government in European nations.
4. the discovery by Europeans of the continent of America.


Answer: 1. vastly improved energy extraction methods such as steam engines.

The consequence of Vasco De Gama rounding the Cape of Good Hope and opening up a sea route from Europe to the East was that

The consequence of Vasco De Gama rounding the Cape of Good Hope and opening up a sea route from Europe to the East was that

1. migration from Europe to the Americas could then take place.
2. Asian consumers could now purchase European spices.
3. goods such as silk and spices became cheaper in Europe.
4. the practice of domesticating animals spread across the world.


Answer: 3. goods such as silk and spices became cheaper in Europe.

During the reforms of the 1980s the New Zealand Government sold off a number of state enterprises. The intention of this was to

During the reforms of the 1980s the New Zealand Government sold off a number of state enterprises. The intention of this was to

1. reduce the number of people that the state employed.
2. broaden the tax base as state owned enterprises don't pay tax.
3. provide goods and services more efficiently to New Zealanders.
4. reduce the risk of a foreign currency crisis.


Answer: 3. provide goods and services more efficiently to New Zealanders.

In 1982, in an attempt to bring inflation under control, the Prime Minister, Robert Muldoon, introduced

In 1982, in an attempt to bring inflation under control, the Prime Minister, Robert Muldoon, introduced

1. the Reserve Bank Act.
2. the "Think Big" projects.
3. a wage/price freeze.
4. restrictions on petrol sales and car usage.


Answer: 3. a wage/price freeze.

Immediately following the First World War, developed countries attempted to

Immediately following the First World War, developed countries attempted to

1. devalue their currencies to boost exports.
2. return to the Gold Standard exchange rate system.
3. adopt the ideas of Keynes and raised government spending to promote employment.
4. introduce a single European currency.


Answer: 2. return to the Gold Standard exchange rate system.

Which of the following is correct?

Which of the following is correct?

1. Worldwide GDP per head has grown steadily since the year 1000 A.D.
2. Economic growth since 1800 has been higher than at any other time.
3. Europe has always been relatively wealthy compared to Africa.
4. Life expectancy is little different now than what it was in 1500.


Answer: 2. Economic growth since 1800 has been higher than at any other time.

The Mercantilist school of thought held the idea that

The Mercantilist school of thought held the idea that

1. countries should specialise and then trade.
2. the government should own the means of production.
3. the goal of trade was to accumulate gold and silver.
4. the population would be kept in check by famine and war.


Answer: 3. the goal of trade was to accumulate gold and silver.

Many of the New Zealand economic reforms of the 1980's were designed to

Many of the New Zealand economic reforms of the 1980's were designed to

1. centralise decision making in the economy.
2. reduce New Zealand's dependence on imported oil.
3. introduce competition into markets.
4. increase tax revenues.



Answer: 3. introduce competition into markets.

The New Zealand economy of the 1970's could broadly be described as

The New Zealand economy of the 1970's could broadly be described as

1. open and deregulated.
2. regulated and controlled.
3. closed and pre-industrial.
4. democratic.


Answer: 2. regulated and controlled.

During the Great Depression

During the Great Depression

1. the price level and GDP both fell.
2. the price level rose and GDP fell.
3. the price level fell and GDP was unchanged.
4. the price level was unchanged and GDP fell.


Answer: 1. the price level and GDP both fell.

Thomas Malthus is most well-known for his ideas on

Thomas Malthus is most well-known for his ideas on

1. international trade.
2. monetary policy.
3. population and growth.
4. government spending.


Answer: 3. population and growth.

Which of the following statements describes trade in the early middle ages (about 476 - 1000 A.D.)?

Which of the following statements describes trade in the early middle ages (about 476 - 1000 A.D.)?

1. Roman roads and law enabled trade to flourish.
2. The colonisation of America raised European incomes.
3. Trade of any type was non-existent.
4. Trade was mostly confined to local areas.


Answer: 4. Trade was mostly confined to local areas.

Prior to the rise of substantial cities, wealth was mainly based on

Prior to the rise of substantial cities, wealth was mainly based on

1. being able to convert innovative ideas into marketable products.
2. holding gold and allowing it to increase in value.
3. owning land.
4. specialising in the production of a commodity and trading.


Answer: 3. Owning land

Which of the following 20th century events is associated with high unemployment and falling prices?

Which of the following 20th century events is associated with high unemployment and falling prices?

1. World War I.
2. The Great Depression.
3. The 1970s oil price shock.
4. The Vietnam War.


Answer: 2. The Great Depression

Which of the following is correct?

Which of the following is correct?

1. By the year 1000 A.D. Europe was well ahead of the rest of the world in income per capita.
2. Most of the growth in income per capita that has occurred over the last 2000 years is concentrated in the last 200 years.
3. Life expectancy has risen steadily since about the year 500 A.D.
4. China was the first country to experience the Industrial Revolution.


Answer: 2. Most of the growth in income per capita that has occurred over the last 2000 years is concentrated in the last 200 years.

The reform period that occurred in New Zealand from the mid-1980s resulted in

The reform period that occurred in New Zealand from the mid-1980s resulted in

1. a reduction in the role of government in the economy.
2. reduced consumer choice.
3. higher marginal and average tax rates.
4. a substantial fall in the value of the $NZ


Answer: 1. a reduction in the role of government in the economy.