If the Federal Reserve raises the discount rate, the market rate of interest a. will rise but the monetary base will be unchanged. b. will rise and the monetary base will fall. c. and the monetary base will both rise. d. will fall and the monetary base will rise. ANSWER B
Date: September 10th, 2020
The change from prescriptive rights to priority rights meant all of the following except (a) Entrepreneurial costs of economic development, such as river and lake pollution, had to be paid by those who were responsible for the costs. (b) The courts encouraged entrepreneurial activity by judicial interpretation. (c) Amenity rights to scenery, clear air and […]
Date: September 10th, 2020
Which of the following did NOT contribute to “internal economies” in the industrialization process? (a) Diminishing returns to scale (b) Central power sources (c) Managerial improvements (d) Transportation networks ANSWER (a)
Date: September 10th, 2020
The nature of contracts changed in the 19th century through judicial instrumentalism and had what effect? (a) Facilitating free-market determinations of wages and prices. (b) Allowing factory owners to contract with masses of employees for wages, hours and working conditions if the terms were made known and the laborers agreed to them. (c) Advancing the […]
Date: September 10th, 2020
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 […]
Date: September 10th, 2020
Court rulings in the 19th century (a) tended to favor business and profit-making activities. (b) tended to protect traditional amenity rights of property, such as the right to clean air, clean water, scenery and quiet enjoyment of property. (c) tended to favor small business activities over big business corporate activities. (d) tended to promote worker […]
Date: September 10th, 2020
The U.S. system of property rights (a) is strictly private. (b) is influenced by a mix of private and public forces. (c) does not permit governmental seizure of property under any circumstances. (d) does not permit the government to seize earned income through taxation. ANSWER (b)
Date: September 10th, 2020
President Franklin D. Roosevelt’s first action regarding the run on banks was to (a) close all banks. (b) increase the money supply. (c) prohibit bank foreclosures. (d) provide federal guarantees to depositors. ANSWER (a)
Date: September 10th, 2020
The basic nature of the real property tenure that was transferred here from England included all of the following characteristics of ownership except (a) Ownership by purchase was perpetual as long as taxes due were met. (b) Land could descend to heirs either by will or inheritance. (c) Ownership included surface resources but not subsurface […]
Date: September 10th, 2020
Sustained economic growth in the U.S. has been primarily a product of which of the following factors? (a) War and exploitation of natural resources (b) Capital accumulation, increases in capital and labor productivity, and technological advancements (c) Restricted trade (d) Government policies and market interventions ANSWER (b)
Date: September 10th, 2020
