Click here for plain text version. 

1. Since the Great Depression of the 1930s           | Supplement |

a. the boom/bust cycle has been reduced, but not eliminated.
b. economic cycles have been the result of government manipulation.
c. very little has changed in terms of economic cycles.
d. globalization has reduced the risk of depression in the United States.

2. A depression is to a recession as           | Text |

a. India is to the British Empire.
b. a tidal wave is to an earthquake.
c. the United States is to Kansas.
d. a tornado is to a thunderstorm

3. What will be the eventual result of the tendency for land rent to grow proportionally as the economy's output increases?           | Text |

4. When too much of a particular commodity is produced,           | Text |

a. there is a glut of inventory, sales fall and workers are laid off.
b. unemployment increases.
c. the value of land falls.
d. other goods will also be over-produced, in a chain reaction.
e. its price rises and people have less to spend on other goods.

5. What facts show us that recessions cannot be caused by general overproduction or overconsumption?           | Text |

6. What three processes contribute to restoring production after a period of recession or depression? Must these processes function concurrently?           | Text |

7. Discuss the relationship between land speculation and the banking and finance industries.           | Supplement |

8. One way to hold off the recessionary effect of rising speculative land prices is           | Supplement |

a. to abolish the minimum wage.
b. to remove import duties.
c. to cut taxes.
d. to increase the money supply.
e. to establish rent controls.

9. Why is full employment considered to be impossible in a modern economy?           | Supplement |

10. The expectation of future increase in land value           | Supplement |

a. reduces the supply of affordable housing.
b. plays a role in every economic decision in our society.
c. is a component of the selling price of land.
d. is often innaccurate.
e. All of the above.
f. a, b and d, but not c.

11. How does the problem of the boom/bust cycle relate to the general problem of poverty?           | Text | Supplement |