Who can create valuable output out of idle property? (a) labor (b) entrepreneurs (c) tenants making rental improvements (d) all of the above ANSWER (d)
Date: September 10th, 2020
The degree to which monetary forces are the cause of aggregate demand instability is the major controversy between a. classicists and Keynesians. b. monetarists and new classical economists. c. real business cycle theorists and classicists. d. monetarists and Keynesians. e. None of the above ANSWER D
Date: September 10th, 2020
Relative to the Keynesians, the supply-side economists a. place more emphasis on the importance on the level of investment than on the level of income. b. place more emphasis on the after-tax rate of return as a determinant of investment. c. are more concerned with government budget deficits. d. All of the above ANSWER […]
Date: September 10th, 2020
Which of the following was the single largest component of wealth in colonial America? (a) Land (b) Stocks (c) Bonds (d) Capital ANSWER (a)
Date: September 10th, 2020
The aggregate supply schedule is steeper where the money wage is more variable than where the money wage is fixed because the rise in the money wage in the a. fixed-wage case dampens the effect on employment and output from an increase in the price level. b. variable-wage case dampens the effect on employment and […]
Date: September 10th, 2020
Compared to earlier times, the period of the 1950s to the early 1960s was one characterized by (a) temporary deficit spending of the government. (b) permanent deficit spending of the government. (c) temporary surplus spending of the government. (d) permanent surplus spending of the government. ANSWER (b)
Date: September 10th, 2020
The arguments of Kessel and Alchien (1959) on the terms of trade and the question of “who paid for the Civil War (1861–1865)” conclude that 40 percent of the war’s burden fell on (a) those who exported manufactures. (b) those who purchased imports. (c) farmers alone. (d) the economy as a whole. ANSWER (b)
Date: September 10th, 2020
Stanley Engerman’s (1971) work on the economic impact of the Civil War (1861–1865) refuted a view sometimes called the Beard-Hacker thesis. This thesis holds that (a) the Civil War (1861–1865) held back the ongoing processes of industrialization. (b) the Civil War (1861–1865) accelerated the ongoing processes of industrialization. (c) the Civil War (1861–1865)’s demands for […]
Date: September 10th, 2020
According to the Keynesian fixed wage theory, real wages should be a. positively correlated with income. b. not correlated with income. c. fixed. d. negatively correlated with income. ANSWER D
Date: September 10th, 2020
According to the public-choice view, a. laissez-fare is always the best economic policy. b. macroeconomic policymakers are only interested in the social good. c. policymakers often act in irrational ways or out of ignorance. d. politics often trump economic theory in policymaking. e. both c and d. ANSWER D
Date: September 10th, 2020
