The Civil War (1861–1865) was the root of which modern-day belief(s)? (a) The Thirteenth Amendment of the Constitution, which prohibits slavery and involuntary servitude in the U.S. (b) The belief that wars can stimulate industrialization. (c) The belief that wars can effectively mobilize resources, boost employment and heighten production without inflationary consequences. (d) All of […]
The Fourteenth Amendment was applied to the railroads in the Santa Clara County v Southern Pacific Railroad (1886) decision even though the original intent of that amendment had been to protect the property of former slaves. Indicate whether the statement is true or false ANSWER TRUE
Which of the following statements is(are) correct a. As a result of the Great Depression of the 1930s, the quantity theory had come into disrepute, together with the rest of the classical theories. b. According to Friedman, the depression was caused by a fall in aggregate supply and not aggregate demand as believed by the […]
The monetarists would expect a tax cut to have a strong effect on output only if the spending increase was a. financed by a sale of bonds. b. financed by a cut in government spending. c. financed by an increase in the money stock. d. accompanied by a reduction in the deficit. ANSWER C
In 1994, the Republicans’ “Contract with America” encompassed economic provisions that drew upon the ideas of a. Keynesian economists. b. monetarists. c. new classical economists. d. supply-side economists. ANSWER D
During World War I (1914–18), the government supported the cause of labor when it (a) reduced the work day to eight hours in all government jobs. (b) reduced the work day to eight hours in all private sector jobs. (c) enforced the eight-hour work day in all government jobs. (d) enforced the eight-hour work day […]
Taxes can have different effects on different income groups. Which type of tax takes a larger percentage of income from high-income groups than from low-income groups? (a) Progressive (b) Regressive (c) Proportional (d) Flat (e) Protective ANSWER (a)
Inflation burdens those individuals living on fixed incomes. Indicate whether the statement is true or false ANSWER TRUE
Compared to the 19th century, the population of the 20th century (a) was largely urbanized. (b) was 3.7 times larger in number. (c) experienced a 63 percent increase in life expectancy at birth. (d) can be described by all of the above. ANSWER (d)
The Keynesian AS curve differs from the classical AS curve in that: a. the classical AS curve assumes flexible nominal wages. b. the Keynesian AS curve is upward sloping. c. the Keynesian AS curve focuses on short-run behavior. d. b and c. e. all of the above. ANSWER E
