In the process described as Schumpeterian economic growth (involving Schumpeter’s ideas about growth), (a) recessions are the object of countercyclical policy designed to minimize the waste of unemployed labor and other resources. (b) expansions are considered wasteful because of the tendency for inflation to be generated near the cyclical peaks. (c) recessions are considered to […]
Governmental policy decisions have (a) only social benefits. (b) no private costs. (c) intended and unintended effects. (d) no social costs. ANSWER (c)
The National Labor Relations Act of 1935 and the Fair Labor Standards Act of 1938 forced employers to (a) negotiate with unionized labor. (b) keep hours at a minimum. (c) pay maximum wages. (d) do all of the above. ANSWER (a)
Historically, the U.S. governmental structure and political system (a) changes in the presence of a system of checks and balances as circumstances change. (b) is a fixed structure and, therefore, provides the stability needed to support productive activities. (c) guarantees that only the qualified can vote. (d) strongly protects the economic interests of capitalists identified […]
If the Habakkuk thesis had been correct—unamended by Rosenberg, David and others—a long-run decline in the supply of agricultural productivity west of the Appalachians would be matched by a proportional (a) decline in the productivity growth in eastern manufacturing. (b) increase in productivity in eastern manufacturing. (c) rise in American food imports. (d) rise in […]
The form of property ownership rights inherited from the colonial period was characterized by which of the following? (a) Property ownership was almost ideal as the base for a free-market economy. (b) Property ownership established property, including land, as a “commodity” that could be easily bought and sold. (c) Property ownership proved to be an […]
The federal funds market is the market for a. loans from the federal government. b. loans from the Federal Reserve. c. government borrowing and lending. d. interbank lending. e. all of the above. ANSWER D
The growth and development of the U.S. economy during its period of rapid industrialization was largely influenced by centralized economic planning. Indicate whether the statement is true or false ANSWER FALSE
Which of the following threatens the future of the U.S. economy? (a) A strengthening of private property rights (b) Effectively preventing some individuals and organizations from pursuing noncompetitive market legislation (c) Racism, discrimination and sexism (d) Increased private consumption and investment and reduced government expenditures ANSWER (c)
The Bank Act of 1935 restructured the Federal Reserve System (FRS) in which of the following ways? (a) The FRS Board of Governors gained discretionary control over bank reserves and margin requirements for loans against securities. (b) The Governor’s Committee was renamed the Federal Open Market which was comprised of 12 members, 7 of whom […]
