The short-run Phillips curve shifts upward whenever: a. inflation rises. b. a negative supply shock occurs. c. unemployment rises. d. all of the above. ANSWER B
Date: September 10th, 2020
According to Thomas (1954), increased immigration provided incentive to invest in capital that was (a) labor-using, resulting in capital widening. (b) labor-using, resulting in capital deepening. (c) labor-saving, resulting in capital widening. (d) labor-saving, resulting in capital widening. ANSWER (a)
Date: September 10th, 2020
One way to characterize technological change is “creative destruction,” which basically means that today’s innovation will productively destroy yesterday’s capital investment. This destruction creates new job opportunities, boosts production and offers a greater variety or more goods and services than in the past. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
The Charles River Bridge v. Warren Bridge (1837) decision established that a state could incorporate competing franchises, effectively overturning the old idea that a corporate charter implied a grant of monopoly. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Dollarization by a foreign country is another form of: a. balancing a country’s current account. b. maintaining monetary policy independence. c. fixing an exchange rate. d. maintaining a balanced government budget. ANSWER C
Date: September 10th, 2020
The New Deal in U.S. history is that period during the Great Depression in which American “capitalism” is redefined and the role of the federal government in the economy fundamentally changes forever. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Secured property rights provide individuals with incentive to use the resources they own productively because they realize the gains from this use. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
The reforms, acts and programs that emerged during the New Deal were dissolved quickly at the end of the Great Depression. On this front, the New Deal command economy was similar to the World War I command economy. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Under perfect capital mobility, fiscal policy has the largest impact on the income under: a. fixed exchange rates. b. floating exchange rates. c. dollarization. d. a currency union. ANSWER A
Date: September 10th, 2020
By the end of the 19th century, bituminous coal still was the largest single source of mineral energy used in this country, despite the enormous increase in oil production and refining. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
