According to Hughes and Cain (2011), all of the following have been primary motives throughout American history for government regulation except (a) the existence of monopoly power (b) quality control of products and services (c) funding of government activities through taxation (d) raising wages and improving working conditions ANSWER (a)
Olson (1971) claims that unions strive for job monopoly to achieve their goals by coercion. Indicate whether the statement is true or false ANSWER FALSE
In the IS-LM model, when government spending and taxes increase by the same amount a. income and interest rates remain unchanged. b. interest rates and income rise. c. interest rates and income fall. d. changes in interest rates are indeterminate but income rises. e. none of the above. ANSWER B
In colonial America, work (a) was required, at least for the lower classes, even for whites not bound in servitude. (b) was required of all classes, wealthy or poor, slaves or free. (c) was the decision of the individual, like it is today, except for slaves and indentured servants. (d) was thought to be for […]
Before the Civil War (1861–1865), the U.S. credit system made capital investments possible and fueled overall economic growth and development across many sectors. This system was supported heavily by whom? (a) The British (b) The North (c) The South (d) None of the above ANSWER (a)
The natural rate of unemployment is not zero. It is at least 5 percent, allowing for individuals who are frictionally and structurally unemployed. Indicate whether the statement is true or false ANSWER TRUE
In the classical theory of aggregate demand, a decrease in the propensity to hold money will a. shift the aggregate demand curve up. b. Shift the aggregate demand and supply curves up and to the right. c. have no effect on aggregate demand as the money supply changes. d. will increase the money supply […]
Which of the following statements is NOT true during the colonial years, according to Hughes and Cain (2011)? (a) Labor organizations were considered, by law, criminal conspiracies against society. (b) Colonial society provided for its aged and sick poor; others had to work. (c) Efforts to control wages and prices by governmental authority were present. […]
According to efficiency wage models, a. their key element is an explanation of why the efficiency (or productivity) of workers depends on the real wage. b. the rationale underlying those models implies that firms will set the real wage below the market clearing level. c. they explain real wage volatility. d. all of the above. […]
The difference between voluntary and involuntary unemployment is that: a. involuntary unemployment exists when wages are high. b. voluntary unemployment exists in equilibrium. c. voluntary unemployment falls as wages rise. d. both b and c. e. all of the above. ANSWER D
