By almost every measure of social and economic well-being, for how long after the Civil War (1861–1865) did the South lag behind the rest of the country? (a) For almost a century (b) For almost a decade before it adapted to life without slavery (c) For only two decades (d) Right down to the present […]
Date: September 10th, 2020
The U.S. economy is not a perfectly competitive market. There are costs associated with negotiating contracts, enforcing agreements, taxes and less than perfectly competitive firms. Nevertheless, according to Wallis and North (1986), the U.S. economy has grown in the presence of these transaction costs and these costs have risen sharply as a percentage of GDP […]
Date: September 10th, 2020
The American colonies’ estimated cost of membership in the British Empire was, according to most economic historians, fairly large. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
What was the primary reason the Income Tax Amendment of 1913 was passed? (a) To pay off the public debt accumulated during the Civil War (1861–65) (b) To pay off the public debt accumulated during World War II (1941–45) (c) To grant the federal government access to revenues beyond those from land sales, customs and […]
Date: September 10th, 2020
Keynesians and monetarists share the belief that a. recessions are caused by falls in aggregate demand. b. the demand for money is stable. c. excess demand is a chronic problem in modern economies. d. the Federal Reserve is responsible for most recessions. e. stabilization policy is beneficial. ANSWER A
Date: September 10th, 2020
An essentially classical feature in the supply-side perception of the saving-investment process is an emphasis on a. income and, therefore, on aggregate demand. b. the importance of rates of return as influences on the rates of saving, investment, and thus capital formation. c. the inflation rate. d. money neutrality e. both b and d. […]
Date: September 10th, 2020
The classical theory of aggregate supply where markets are perfectly flexible a. may or may not be compatible with the Keynesian system. b. is easily added the IS-LM framework of aggregate demand. c. is fundamentally incompatible with the Keynesian system. d. is consistent with the IS-LM framework if all shocks are to the IS curve. […]
Date: September 10th, 2020
Individuals rationally choosing career paths should weigh the preparation costs to the potential incomes generated within those careers. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
The shortage of precious metals or coins provided colonists with incentives to find alternatives. These alternatives included everything listed below except (a) Teeth (b) Country money (c) Fiat money (d) Bills of credit ANSWER (a)
Date: September 10th, 2020
Since the 1970s, the income tax system in the U.S. has become a. less regressive. b. more aggressive. c. less progressive. d. regressive e. more proportional. ANSWER C
Date: September 10th, 2020
