Test for third year students

 

Текст 1: Money (стр. 67-68)

 1. Multiple Choice (Выберите правильный вариант ответа)

 1. What was the main problem with the barter system?

A) Goods were too expensive to swap.

B) It was inconvenient because you had to find someone who wanted what you had.

C) It required the use of metal coins.

D) People did not trust each other.

 2. According to the text, commodity money (e.g., salt, gold) had the advantage of being able to...

A) circulate faster than modern money.

B) be used as a unit of account more easily than fiat money.

C) store value over time.

D) be produced by anyone.

 3. What does "liquidity" refer to in the context of commodity money?

A) How tasty the commodity is.

B) How rare the commodity is.

C) How easily the money can circulate or be carried around.

D) How much the government guarantees its value.

4. Why does fiat money (modern coins and notes) have value?

A) Because it is made from rare metals.

B) Because it has high intrinsic value.

C) Because its value is guaranteed by the government.

D) Because it is difficult to create.

 5. What is the main difference between commodity money and fiat money?

A) Commodity money is used for bartering, while fiat money is not.

B) Commodity money has inherent value, while fiat money represents value.

C) Commodity money is issued by governments, while fiat money is not.

D) Commodity money is more liquid than fiat money.

 

2. True or False (Верно / Неверно). Justify your answer citing the text.

 1. Before money was invented, people used a system called bartering, which involved swapping one good for another.

2. One of the advantages of bartering was that all goods held their value for a very long time.

3. Salt and metals like copper and gold are examples of fiat money.

4. Commodity money is considered a good unit of account because everyone always agrees on its exact value.

5. Fiat money has no intrinsic value but is valuable because its worth is guaranteed by the government.

 

Текст 2: Fiscal policy (стр. 72-73)

 1. Multiple Choice (Выберите правильный вариант ответа)

 1. What are the two main components of fiscal policy?

 A) Interest rates and the money supply.

B) Government spending and the exchange rate.

C) Changes to the tax system and changes in government spending.

D) Public projects and private investment.

 

2. Under a progressive taxation system, what happens as a person earns more money?

 A) They pay a lower percentage of their income in tax.

B) They pay a higher percentage of their income in tax.

C) Their personal allowance increases.

D) They stop paying tax.

 3. What is the "personal allowance" in the context of income tax?

 A) The amount of money a person is allowed to borrow.

B) The percentage of income paid to the government.

C) The amount of income a person can keep without paying tax on it.

D) The maximum amount a person can earn.

 4. How can the government slow down spending if the economy is growing too fast?

 A) By increasing the personal allowance or decreasing the tax percentage.

B) By decreasing the personal allowance or increasing the tax percentage.

C) By printing more money.

D) By building more motorways.

 5. What does the "multiplier effect" describe?

 A) How a decrease in taxes leads to a decrease in government revenue.

B) How an initial amount of government spending can lead to a larger total increase in national income.

C) How inflation multiplies the cost of public projects.

D) How companies multiply their profits during a recession.

 6. According to the text, when does the multiplier effect theoretically stop?

 A) When the government runs out of money.

B) When inflation reaches 2%.

C) When there is full employment and the nation's resources are fully used.

D) When the personal allowance is increased.

 

2. True or False (Верно / Неверно). Justify your answer citing the text.

 1. Fiscal policy is a tool used by governments to help keep the economy stable.

2. Income tax is a minor source of income for most governments.

3. In a progressive tax system shown in the text, someone earning £25,000 pays 22% tax on their income after their personal allowance.

4. To slow down a rapidly growing economy, a government would typically reduce taxes.

5. The multiplier effect works because companies and workers spend some of the money they earn from government projects, creating income for others.