The “New Deal” programs of the 1930s aimed at (a) transforming American capitalism into a planned socialist economy. (b) introducing short-term measures to cure the depression but no fundamental changes in the American economy. (c) introducing measures to deal with the crises and cure the depression combined with measures to restructure important aspects of the […]
Industrialization through heavy capital investments required savings by households, businesses and/or government bodies. Indicate whether the statement is true or false ANSWER TRUE
The power of the contract and the ability to enforce contracts in the U.S. are, in part, responsible for the overall success of the U.S. economy. Indicate whether the statement is true or false ANSWER TRUE
Continued U.S. economic growth requires little institutional and technological change. Indicate whether the statement is true or false ANSWER FALSE
The right to grant charters to incorporated firms is reserved to the federal government, according to the Constitution. Indicate whether the statement is true or false ANSWER FALSE
In an open economy, there should be a close positive relationship between a. budget deficits and interest rates. b. trade deficits and budget deficits. c. savings and investment. d. investment and consumption. e. none of the above. ANSWER E
Olson (1971) argues that the gains from private competition cannot be exceeded by the gains from collective action. Indicate whether the statement is true or false ANSWER FALSE
Keynesian and classical theories agree that: a. AS is upward sloping in the short-run. b. AS is vertical in the long-run. c. sustained AD shocks can also shift AS in the long-run. d. all of the above. ANSWER B
Incorporated firms first began appearing in the 1850s. Indicate whether the statement is true or false ANSWER FALSE
The National Industrial Recovery Act (1933) (a) did not permit businesses to set prices and production quotas. (b) established three advisory boards composed of government, Webb-Pomerene firms and members of the Federal Reserve System. (c) was thrown out by the Supreme Court in May 1935. (d) prohibited collective bargaining. ANSWER (c)
