Economics News

Question: In 2014, this economist became the first woman appointed as chair of the Federal Reserve in the United States:

Answer: Janet Yellen was endorsed by President Barack Obama and was sworn in as chair of the Federal Reserve on February 3, 2014.

Question: The country that has the largest income per person (as measured by GDP per capita in US dollars) is:

Answer: Luxemburg is the world leader with a GDP per capita of $110,697. The United States ranks 10th with $53,042, Canada ranks 12th with $52,409, and China ranks well below (around 100th) with $6,807. (World Bank, 2013 figures).

Question: The latest round of trade negotiations among members of the World Trade Organization is known as:

Answer: The Doha round is the latest round of trade negotiations among the WTO membership, where the aim is to achieve major reform in international trade relations through large scale reductions in trade barriers.

Question: The Nobel Prize in Economics in 2014 was awarded to which of these economists?

Answer: French economist Jean Tirole won the 2014 economics Nobel for his pioneering contributions to the study of monopolistic industries.

Question: The 2001 event that led to the bankruptcy of a U.S. energy company and resulted in the dissolution of Arthur Anderson—one of the top five U.S. accounting firms—was:

Answer: The Enron scandal led to the collapse of the Houston, Texas, based Enron Corporation and caused millions of dollars of losses to Enron’s long-time employees whose retirement portfolios were tied to the company stock.

Question: Which of the following European countries does not use the Euro as its main currency?

Answer: The United Kingdom uses the British pound (sterling) as its main currency and does not participate in the European Monetary Union.

Question: The economist that identified massive vulnerability in the U.S. banking system and predicted its collapse three years before the Great Recession occurred was:

Answer: Nouriel Roubini, professor of economics at NYU’s Stern School of Business was dismissed as a doom-monger by many financial experts and prominent economists at the time he predicted the coming crises.

Question: "The Great Moderation" refers to what?

Answer: "The Great Moderation" refers to a reduction in output volatility that occurred across the world between the late 1980s up until the early 2000s.

Question: The most recent hyperinflation, where the percent increase in the general price level (inflation) exceeds 1,000% per year, occurred in which country?

Answer: The most recent hyperinflation occurred in Zimbabwe, from the late 1990s up until 2009 when the country had to abandon its local currency. At its peak around November 2008, the inflation rate in Zimbabwe was estimated to be around 79.5 billion percent a year!

Question: The Great Recession—the most recent world-wide economic downturn—started in:

Answer: The Great Recession was triggered by the financial crisis of 2007-09, which was in turn the result of the collapsing housing bubble in the United States.