____ 1. The gold standard meant that the value of a dollar was equal to a certain amount of gold, and paper money could be redeemed for gold. A. true B. false

____ 2. A stock split means A. investing in common stock. B. investing in preferred stock. C. dividing a single share of stock into more than one share.

____ 3. Which law addressed the issue of workplace discrimination based on gender? A. the Taft-Hartley Act of 1947 B. the Fair Labor Standards Act of 1938 C. the Equal Pay Act of 1963

____ 4. A call option is A. a contract to buy shares of a certain stock at a certain price. B. a contract to sell shares of a certain stock at a certain price. C. an obligation to sell stock at a set price even if the price increases.

____ 5. Which asset is part of M2 but not M1? A. currency B. demand deposit C. savings deposit

____ 6. An organized work stoppage to gain a concession from management is A. a strike. B. collective bargaining. C. arbitration.

____ 7. Suppose a home's value increases from $200,000 to $250,000 because of inflation. What can we assume to be true? A. The values of other homes in the area also increased. B. Wages and prices of goods did NOT change. C. The values of other homes in the area decreased.

____ 8. Which characteristic of money means that any two units of money must have the same value? A. Money is divisible. B. Money is portable. C. Money is uniform. ____ 9. Offshoring is A. a business having production work done in another country. B. hiring part-time workers instead of full-time workers. C. allowing foreign workers into the United States for a short time.

____ 10. A prolonged economic contraction generally lasting six to eighteen months is a(n) A. trough. B. recession. C. economic fluctuation.

____ 11. Money as a unit of account means that A. people trade goods and services directly. B. money serves as a way to compare the value of goods and services. C. money holds its value regardless of whether you spend or keep it. ____ 12. Which agency insures depositors' accounts? A. Federal Deposit Insurance Corporation B. Federal Reserve Board of Governors C. Consumer's Savings Bank of Worcester, Massachusetts

____ 13. The Consumer Price Index (CPI) measures A. the percentage of change in price levels over time. B. the price of the "market basket" of a typical consumer. C. the rate of inflation excluding the effects of food and energy.

____ 14. The total dollar value of all goods and services produced within a country is A. gross national product (GNP). B. gross domestic product (GDP). C. per capita GDP.

____ 15. Who is HIGHEST ranking in a typical corporate structure? A. chief executive officer (CEO) B. department managers C. board of directors