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)
Assuming the required reserve ratio is 20 percent and total reserves are set at $20 billion, then the maximum amount of deposits would be a. $100 billion. b. $40 billion. b. $4 billion. d. $60 billion. e. $120 billion. ANSWER A
The appearance of “classical American capitalism” in the middle and late 19th century includes all of the following except (a) An industrial labor force concentrated in manufacturing centers (b) The commercialization of agriculture and extractive industries (c) The rise of big-time finance and giant transportation systems (d) The strengthening of small scale family farm enterprises […]
The percentage of people living in urban areas decreased surprisingly between 1860 and 1910. Indicate whether the statement is true or false ANSWER FALSE
Those closest to fomenting a real revolution during the early years of the Great Depression were (a) bankers. (b) farmers. (c) industrial workers. (d) the middle class. ANSWER (b)
Prior to the Civil War (1861–1865) American capitalism was free from government influence and controls. The government only served as the protector of private property rights and the provider of national defense. Indicate whether the statement is true or false ANSWER FALSE
Health care debates illustrate how special interest groups can use their lobbying power to “control” the federal government to transfer wealth from one group of productive, income earning individuals to another group that may or may not be productive. Indicate whether the statement is true or false ANSWER TRUE
Social Security, like other governmental programs, alters individuals’ decisions to save, consume and invest privately for the present as well as the future. Indicate whether the statement is true or false ANSWER TRUE
Industrial entrepreneurs like J.P. Morgan, Henry Ford and Andrew Carnegie were driven by desires to earn profits. In the process of pursuing these profits, American consumers were made better off. Indicate whether the statement is true or false ANSWER TRUE
During the colonial period, regulation of business activities was the right of government and its duty—extensive regulation was done, such as licensing, inspection, price fixing, etc. Which statement best describes regulation in the decades after 1789? (a) Regulation continued at about the same level as during the colonial period. (b) As commerce and manufacturing became […]
