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
Date: September 10th, 2020
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
Date: September 10th, 2020
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
Date: September 10th, 2020
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
Date: September 10th, 2020
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 […]
Date: September 10th, 2020
The decisions of today have consequences that lie in the future. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
The Federal reserve prefers to use open market operations because a. it allows for small changes. b. its effects are well understood. c. it is easy to conduct. d. both a and b. e. all of the above. ANSWER E
Date: September 10th, 2020
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
Date: September 10th, 2020
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 […]
Date: September 10th, 2020
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 […]
Date: September 10th, 2020
