(UNISA) ECS2608 ECONOMIC HISTORY OF THE WORLD COMPREHENSIVE FINAL EXAM REVIEW(UNISA) ECS2608 ECONOMIC HISTORY OF THE WORLD COMPREHENSIVE FINAL EXAM REVIEW(UNISA) ECS2608 ECONOMIC HISTORY OF THE WORLD COMPREHENSIVE FINAL EXAM REVIEW(UNISA) ECS2608 ECONOMIC HISTORY OF THE WORLD COMPREHENSIVE FINAL EX...
,1. What was the primary economic consequence of the Black
Death in 14th century Europe?
A) Increase in feudalism
B) Decrease in serfdom
C) Inflation
D) Deflation
Correct Answer: B) Decrease in serfdom
Rationale: The Black Death significantly reduced the population,
leading to a labor shortage that increased the bargaining power of
the peasantry, thus decreasing serfdom.
2. The Dutch East India Company (VOC) is often considered the
world's first multinational corporation. What innovation did it
bring to the financial world?
A) The concept of limited liability
B) The use of double-entry bookkeeping
C) The issuance of bonds and shares of stock to the general public
D) The establishment of centralized currency exchange
Correct Answer: C) The issuance of bonds and shares of stock to
the general public
Rationale: The VOC was the first company to issue bonds and
shares of stock to the general public, effectively creating the first
modern stock exchange.
3. Which economic theory, developed by Adam Smith, describes
the unintended social benefits of an individual's self-interested
actions?
A) The Invisible Hand
B) Keynesian Economics
C) Mercantilism
D) The Labor Theory of Value
Correct Answer: A) The Invisible Hand
, Rationale: Adam Smith's 'Invisible Hand' theory posits that
individuals pursuing their own self-interest inadvertently
contribute to the economic well-being of society.
4. The Bretton Woods Conference led to the creation of which
two global financial institutions?
A) The World Bank and the International Monetary Fund (IMF)
B) The United Nations and the World Trade Organization (WTO)
C) The European Central Bank and the Bank for International
Settlements
D) The Federal Reserve and the Bank of England
Correct Answer: A) The World Bank and the International
Monetary Fund (IMF)
Rationale: The Bretton Woods Conference established the World
Bank and the IMF to oversee the post-World War II global
financial system.
5. What was the main cause of the Great Depression in the 1930s?
A) Hyperinflation
B) The stock market crash of 1929
C) The collapse of the gold standard
D) An agricultural surplus
Correct Answer: B) The stock market crash of 1929
Rationale: The stock market crash of 1929 triggered a series of
events that led to the Great Depression, characterized by severe
economic downturn and mass unemployment.
6. Which of the following best describes the economic policy of
protectionism?
A) Reducing trade barriers to encourage free trade
B) Imposing tariffs and quotas to protect domestic industries
C) Promoting global financial integration
D) Encouraging foreign direct investment
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