Creative destruction includes all of the following except (a) The rise of the automobile industry at the expense of the carriage industry (b) The rise of the computer industry at the expense of the typewriter industry (c) The destruction of all capital during economic busts (d) There is no except; all of the above are […]
Legal reserve requirements specify that banks must hold a certain percentage of their deposit liabilities a. in currency only. b. as deposits at regional Federal Reserve Banks only. c. either in currency or as deposits at regional Federal Reserve Banks. d. None of the above ANSWER C
Special interest groups (such as doctors, teachers, lawyers, health insurance companies, the automobile industry and others) can best be characterized by which of the following statements? (a) They are constantly working the government to seek rents from policy decisions. (b) They are resistant to change in governmental policies that benefit them at the expense of […]
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. […]
Wal-mart (a) is the railroad of the late nineteenth century. (b) provides an example of how one large business enterprise still can seize market power to restrict entry and exit. (c) holds monopoly power in retail. (d) exists at the expense of consumers. ANSWER (a)
The Federal Open Market Committee is responsible for directing a. issuing government securities. b. setting monetary policy. c. setting reserve requirements. d. printing money. e. All of the above ANSWER B
Which of the following was illustrated by the majority voting decisions witnessed during the Great Depression? (a) If the U.S. wants to get the most from its resources, the pricing of goods and allocation of investment should be decided by majority voting. (b) In a representative democracy, majority voting will assure that approved projects are […]
The nature of employer liability changed in the 19th century through judicial instrumentalism and had what effect? (a) Reducing the risks and the costs of business, making business enterprise more daring and profitable than it would have been otherwise. (b) Increasing the risks and the costs of business, making business enterprise more daring and profitable […]
A review of U.S. history provides evidence that (a) class mobility is restricted. (b) race and gender barriers simply cannot be dismantled. (c) the wealthy and idle rich class has deep and permanent roots in the U.S. (d) there are no social barriers that cannot be overcome in the U.S. ANSWER (d)
