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  1. When you use research, cite your sources. But always write your own answer. No copying from some one else or the internet without appropriate citation.
  2. When appropriate, present data for more than one point of view as requested (like international trade), then make your conclusions.
  3. About 4-5 pages answer for the whole test
  4. Your required sources of the answers are class notes that I posted, textbook, power points, some internet search (like Covid questions). Using the internet should be limited and only with credible references, cite your sources.
  5. The best answers will be the ones that utilize data, graphs, and class discussions.


  1. Briefly summarize the Economic impact of Covid-19 on the US Economy: Unemployment, prices, Jobs, consumers, Private debt, Public debt, Markets, wages… This may require some research.
  2. Briefly summarize the Fiscal and Monetary actions that were taken to stimulate the economy after the Covid-19 crisis. What is your judgement about their effectiveness or success? Explain.
  3. Explain the rising level of public debt : the reasons, the advantages and disadvantages.
  4. Tariffs
    1. Who gains and who loses from proposed higher tariffs against China or the EU directly or indirectly (consumers, producers, workers, farmers…
    1. Why is it hard to calculate the net gain or loss?
  5. Summarize the economic assessment of the labor market and price level as reported by the recent FOMC statements.
  6. What is the Federal Reserve’s justification for the 2% target inflation rate? What can be criticized about that strategy?
  7. What are the tools of monetary policy? Who implements it? Which is more effective? Why or why not? Use the Money Supply – Money Demand Graph to illustrate?
  8. Explain why we have high levels of personal debt and very little savings (used data). Who benefits and who loses when individuals borrow beyond their ability to pay off the debts? How should this problem be addressed by government and the banking system?
  9. Explain the difference between the Discount Rate, The Federal Funds Rate and the Prime Interest Rate. How are they related?
  10. The market system is superior as it provides efficiency, productivity, growth and incentives. It is, however challenged in the following areas
    1. Most growth goes to upper 10% of the population. The rest of the population’s share of GDP do not grow / or even declines
    1. Instability: Recessions occur systematically every few years. Some are worse than others.
    1. Monopoly: The market seems to grow less competitive with less small businesses as larger corporations grow in size
    1. Sustainability: Our natural resources are threatened: examples include rising sea levels, climate change, water and air pollution, plastic, indirect health impact as cancer, kidney and lung disease rates occur.
  11. Use the following data to predict the equilibrium interest rate, given the Money demand for assets, transactions and the money supply (all in $billions). Illustrate with a graph (m0ney supply = Money Demand) similar to our graph used in class. The equilibrium interest is ….. ? Use the graph on page 325 in your answer.


12.What do you think interested you the most in this course? I do think that all students should take an economics course. It is important for you as a business professional, a voter, a taxpayer, a citizen, a student, a borrower, a worker and a parent. Do you agree? Explain.

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