Which type of business organization is the most important part of U.S. history given its “super” economic powers? (a) Sole proprietorship (b) Partnership (c) “Mom and pop” business, which is a mix of sole proprietorships and partnerships (d) Corporation ANSWER (d)
Date: September 10th, 2020
Assuming an increase in money demand, then if the Federal Reserve a. can keep the interest rate unchanged assuming that it changes the monetary base by the appropriate amount. b. would have to aim below their previous money stock target. c. would not have to cut taxes to keep output from falling. d. All of […]
Date: September 10th, 2020
Which of the following statement(s) is true? (a) All state legislatures acted to create corporations. (b) The federal government created the federal incorporated entities when it established the First (1791–1811) and Second (1816–1836) Banks of the United States. (c) All federal, state and local governments possessed the right to create corporations. (d) All of the […]
Date: September 10th, 2020
According to Rosenberg (2004), the U.S. economy between the Civil War and World War II was relatively poor in which of its productive resources? (a) Land (b) Labor (c) Capital (d) Entrepreneurial talent ANSWER (b)
Date: September 10th, 2020
Which of the following statements is (are) correct? The Federal Reserve a. can, over the long run, roughly control the money supply by changing the monetary base to offset any undesirable changes in the money stock as a result of changes in currency holdings or excess reserve holdings. b. controls the money supply better in […]
Date: September 10th, 2020
Schumpeter asserts all of the following except (a) A strong middle class fosters growth in society’s entrepreneurial base. (b) Entrepreneurs are the leading force behind technological advancement. (c) Invention and innovation are unnecessary in a growing economy. (d) Secured property rights encourage risk-taking entrepreneurial behaviors. ANSWER (c)
Date: September 10th, 2020
Economies of scale result as a firm increases in size and expands its use of resources. Productivity increases and fixed production costs are spread over an increased number of goods and services. Which of the following are types of economies of scale? (a) Command economies (b) External economies (c) Open economies (d) Closed economies […]
Date: September 10th, 2020
Which of the following cases was most important in arguing that the “public good” was best served by competition? (a) Marbury v. Madison (1803) (b) McCulloch v. Maryland (1819) (c) Gibbons v. Ogden (1824) (d) Charles River Bridge v. Warren Bridge (1837) ANSWER (d)
Date: September 10th, 2020
The money supply is determined a. only by the Fed. b. by the Fed and banks. c. by the Fed, banks, and the public. d. by congress. e. by the President. ANSWER C
Date: September 10th, 2020
Which of the following reduces U.S. potential for economic growth by reducing household incentive to use private property most efficiently and effectively? (a) Personal income taxes (b) Farm subsidies and import tariffs (c) Auto bailouts (d) Regulation in the health care industry ANSWER (a)
Date: September 10th, 2020
