During the antebellum period, the federal government assumed (a) responsibility for full employment. (b) responsibility for stable prices. (c) responsibility for the overall economy through control of the money supply. (d) little responsibility for most economic matters, leaving them to private individuals in businesses and households. ANSWER (d)
Which of the following statements holds true for eminent domain? (a) The costs are diverse and the benefits concentrated to those special groups who secured it. (b) It supports rent-seeking where some individuals gain and others lose. (c) The owner of the property secured through eminent domain has no legal recourse. (d) It is well-defined […]
By 1910 the top ten industries included printing, malt liquors, tobacco cars and railroad cars. The introduction of these new top ten industries indicated (a) a shift in consumer preferences toward luxury items. (b) an increase in real incomes in the U.S., permitting people to purchase luxury items. (c) a smaller percentage of total consumption […]
If the money supply is $1 billion, the reserve requirement is 10%, and currency holding $50 million, then reserves are a. $50 million. b. $100 million. c. $20 million. d. $40 million. e. none of the above ANSWER A
The early U.S. canals and railroads were built by private enterprise without the aid of governments. Indicate whether the statement is true or false ANSWER FALSE
If the Fed follows a policy of fixed exchange rates, an undervalued dollar will force the Fed to a. conduct open market purchases. b. raise the discount rate. c. raise the required reserve ratio. d. cut taxes or raise government spending. ANSWER A
Chief Justice John Marshall had a strong conviction that (a) slavery would only work in the South. (b) a country needs a central government with enough power to place in check state and local interests when the development and growth of the country is concerned. (c) strong state banking systems would help the nation’s commerce. […]
Heavy business taxes (a) vary according to firm size. (b) benefit small firms but cost large ones. (c) stifle entrepreneurial activity. (d) can be described by all of the above. ANSWER (c)
Internal economies in the U.S. during its period of industrialization involved the (a) production of goods in factories. (b) production in small, isolated towns spread throughout the U.S. (c) production of goods in factories grouped together in the same geographical region. (d) production of goods in isolated factories spread throughout the U.S. ANSWER (a)
The federal funds interest rate a. can be raised or lowered by the Federal Reserve to regulate the volume of loans to banks. b. is administered by the Open Market Committee. c. increases when the fed conducts open market purchases. d. is set by Congress. e. none of the above. ANSWER E
