During World War II (1941–45), Engel’s law applied. As income rose, consumption of food dropped relative to all other goods and services purchased. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
In the 1800s, early agricultural activity in the U.S. used the technology of the time which was based on (a) handwork and animal power. (b) waterpower and the steam engine. (c) the internal combustion engine and electric motor. (d) large-scale enterprises using water driven machinery. ANSWER (a)
Date: September 10th, 2020
“Capital dilution” refers to ________. A) the flow of investment in the “bathtub model” B) the depreciation of capital associated with an increase in the percentage of younger workers C) the decline in the marginal product of capital that results from reliance on new, inexperienced workers D) the decrease in capital per worker that is […]
Date: September 10th, 2020
Farming in the New England colonies tended to be (a) large scale. (b) worked by slaves. (c) small scale and worked by members of the family. (d) exported to England and its trading partners for high profits. ANSWER (c)
Date: September 10th, 2020
The low interest rates that prevailed after 1942 made World War II (1941–45) financing problems fundamentally the same as World War I (1914–18). Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
According to the quantity theory of money, the quantity of money determines the a. interest rate. b. level of real output. c. price level. d. level of employment. ANSWER C
Date: September 10th, 2020
Output expanded and was distributed toward wartime uses and away from private uses only during World War I (1914–18), not World War II (1941–45). The high unemployment of the 1940s made this possible. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Technological advancements and changes in factor proportions shift a producer’s comparative advantage. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
New Keynesians would agree with all of the following except a. stabilization policy can reduce the severity of business cycles. b. wages and prices are sticky. c. markets are perfectly competitive. d. market equilibrium is often suboptimal. ANSWER C
Date: September 10th, 2020
Monetary policy will be a. less effective the higher the interest elasticity of investment, and thus the steeper the IS schedule. b. more effective the higher the interest elasticity of investment, and thus the flatter the IS schedule. c. equally effective regardless of whether or not the interest elasticity of investment is higher or lower, […]
Date: September 10th, 2020
