The Sherman Antitrust Act of 1890 was not well understood because (a) skilled lawyers were not involved in its creation. (b) judges were mainly political hacks and therefore were unable to follow the logic of the Act. (c) vested interests had been allowed too much influence in drafting the legislation. (d) the purpose of the […]
The turnpikes built in the early 1800s were (a) intercity toll roads. (b) highly profitable enterprises. (c) financed entirely by private enterprise. (d) regulated by the federal government. ANSWER (a)
Fiat money is: a. includes currency and gold in bank vaults. b. does not include coins. c. is backed by any sort of commodity. d. has no value outside of its use as money. ANSWER D
Historians are in general agreement that (a) railroads opened the country and were built at great risk ahead of demand, gambling on the future. (b) railroads sharply cut down transportation costs, linking the country together in all directions and spurring the nation’s growth far in advance of anything that might otherwise have been achieved. (c) […]
Which of the following are NOT true? a. Credit cards are the same as debit cards when determining the money supply. b. Credit cards are included in M2 but not M1. c. Credit cards do not impact the demand for money. d. Credit cards are a means of payment. e. All of the above are […]
Private initiative and financing were most important in (a) the canal system of transportation. (b) the steamboat system. (c) the railroad system. (d) none of the transportation systems. ANSWER (b)
A fall in which of the following would increase the money multiplier? a. The monetary base b. A change in M1 c. The level of Federal Reserve open market purchases d. An increase in the currency to checkable deposit ratio e. All of the above ANSWER D
As a result of the case of Dartmouth College v Woodward (1819), the Federal Trade Commission was formed years later in 1914. Indicate whether the statement is true or false ANSWER FALSE
Railroads had advantages over canals in all respects except (a) year-around service. (b) speed of delivery. (c) full access to shipping points. (d) there is no “except”; all of the above were advantages of railroads. ANSWER (d)
Contrary to many researchers’ views, Hurst (1969) claims the government needed private investors to fund internal improvements. Indicate whether the statement is true or false ANSWER TRUE
