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Historical Responses to Economic Challenges Quiz

#1

Which New Deal program aimed to provide employment opportunities through public works projects?

Works Progress Administration
Explanation

Employment through public works under New Deal.

#2

Who was the British economist whose ideas laid the groundwork for Keynesian economics?

John Maynard Keynes
Explanation

Foundational figure in Keynesian economics.

#3

What economic event led to the Great Depression of the 1930s?

Stock market crash of 1929
Explanation

Trigger event for the Great Depression.

#4

Who wrote the influential book 'The Wealth of Nations'?

Adam Smith
Explanation

Author of 'The Wealth of Nations'.

#5

Which country faced hyperinflation during the early 1920s, leading to economic turmoil?

Germany
Explanation

Hyperinflation crisis in early 1920s.

#6

What was the primary goal of Franklin D. Roosevelt's 'New Deal' programs?

Reducing unemployment and revitalizing the economy
Explanation

Economic recovery and employment focus of New Deal.

#7

Which economist is known for the theory of comparative advantage?

David Ricardo
Explanation

Key figure in comparative advantage theory.

#8

During the 1970s, which economic theory gained popularity due to its focus on reducing government intervention and promoting free markets?

Supply-side economics
Explanation

Emphasizes free markets and minimal government intervention.

#9

Which economist is associated with the concept of 'creative destruction'?

Joseph Schumpeter
Explanation

Linked with concept of creative destruction.

#10

What is the economic term for a situation where the demand for a good exceeds its supply, leading to increased prices?

Shortage
Explanation

Demand surpasses supply, leading to price rise.

#11

Which economic theory advocates for government intervention to address market failures and promote social welfare?

Keynesianism
Explanation

Supports government intervention for market failures.

#12

Who developed the theory of the business cycle, which describes fluctuations in economic activity over time?

Friedrich Hayek
Explanation

Contributor to business cycle theory.

#13

Which economist is known for his theory of 'rational expectations' in macroeconomics?

Robert Lucas Jr.
Explanation

Contributor to rational expectations theory.

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