The U.S. government is an asset to the U.S. economy when it (a) effectively serves its role as the agent that defines and protects private property rights. (b) taxes one group of individuals and redistributes that taxed income to another group. (c) permits special groups to secure legislative protection from foreign competition in the industries […]
If the Federal Reserve were to simultaneously sell government bonds in the open market and decrease the discount rate, the a. money supply will increase. b. money supply will decline. c. money stock will stay the same. d. two tools will work in opposite directions and the effect on the money supply is uncertain. […]
The cost of output is income to the land, labor, capital and entrepreneurial talent used to produce it. Indicate whether the statement is true or false ANSWER TRUE
If you write a check on your checking account to pay your rent which your landlord deposits in a bank, then a. the monetary base and the money supply will fall. b. the monetary base falls but the money supply remains unchanged. c. there is no change in the monetary base or the money supply. […]
The demand for goods and services decreases with a rise in employment and income. Indicate whether the statement is true or false ANSWER TRUE
The most commonly used tool by the Federal Reserve to control the monetary base is a. changes in the discount rate. b. changes in tax rates on commercial banks. c. changes in legal required reserve ratios. d. open market operations. ANSWER D
Which of the following is blamed for the lack of increased business investment spending on new factories and machinery during the 1930s? (a) The new presence of government’s large-scale economic activity caused business to lose some of its former confidence. (b) The general outlook stressed caution. (c) A much lower rate of population growth and […]
Which of the following best describes the policy of the New Deal to combat the Great Depression? (a) Taxation should be increased so as to eliminate the deficit in the federal budget. (b) Government spending should be reduced so as to give businesses confidence that the free enterprise system was not being replaced by big […]
Industrialization and urbanization in the U.S. occurred simultaneously between 1860 and 1910. Indicate whether the statement is true or false ANSWER TRUE
The greater the social immobility is within a country, the greater the chance that human talent and skills will not go to waste. Indicate whether the statement is true or false ANSWER FALSE
