Tariff rates remained high in the U.S. throughout the postbellum period for which of the following reasons? (a) The government needed revenues to finance its expenditures. (b) Special interest groups organized themselves to realize rents. (c) Land sales dwindled as the Western frontier closed. (d) All of the above. ANSWER (d)
What is/are the central argument(s) against tariffs? (a) They redistribute income away from consumers who are paying higher prices because of the tariffs. These rents are given to the individual industries that are protected by the tariffs and are operating inefficiently. (b) A laissez-faire economy is the American way. (c) They protect the wealthy. (d) […]
In Japan, interest rates are close to zero. As a result, Keynesians would argue that money demand a. has become much more interest rate elastic. b. will shift upward. c. has become much less interest rate elastic. d. will shift downward. e. will remain unchanged. ANSWER A
According to Figure 6.1, the average annual rate of growth of the U.S. economy in the period 1948-73 equalled ________. A) 1.8 percent B) 4.0 percent C) 39 percent D) 697 percent ANSWER B
The Mint Act of 1792, following the ideas of Thomas Jefferson and Robert Morris, set the U.S. up as (a) a silver standard country. (b) a paper-money country. (c) a gold-standard country. (d) a bimetallic country. ANSWER (d)
Which of the following statements applies to the classical system? a. There is money wage inflexibility since full employment already existed b. A perfectly flexible money wage is not always a requirement for full employment c. Full employment was easily explained with downward money wage rigidity d. An imperfect market structure is requirement for full […]
With regard to the rule of caveat emptor in colonial America, which of the following does not apply? (a) “Let the buyer beware.” (b) This rule largely replaced the earlier rule of markets, market overt, by late colonial times. (c) It could be applied anywhere without the protective regulations of colonial officials. (d) It was […]
Ricardian Equivalence theory is based on the view that ________. A) the impact of a tax cut is felt primarily on domestic consumption spending B) households tend to take future events into account when engaging in economic decision-making C) the price of a commodity is negatively related to the quantity of that good demanded D) […]
During World War II (1941–45) which of the following fell? (a) Real GDP per capita (b) Private consumption expenditures (c) Private investment (d) Government expenditures ANSWER (c)
The Mint Act of 1792 failed to provide for a stable domestic hard currency for the U.S. because (a) the supply of gold and silver was inadequate. (b) the federal government failed to make the coins legal tender. (c) gold was undervalued, while silver was exported. (d) the notes of the U.S. government were not […]
