From 1860 to 1910, international net capital flow into the U.S. (a) was positive when the U.S. economy expanded. (b) was neutral and not influenced by the U.S. business cycle. (c) was negative when the U.S. economy grew. (d) was positively impacted by U.S. discussions about and actual restrictions on immigration. ANSWER (a)
The federal government incentive to support special-interest groups (steel, auto, drug, environment) at the expense of unorganized, widely dispersed groups (for example, taxpayers or consumers) occurs (a) only when the benefits that accrue to the special-interest group exceed the costs imposed on others. (b) when nonspecial-interest voters are unconcerned or uninformed about the issue, and […]
The research of Ben Bernanke (1983) found the banking system of the 1930s to be fundamentally flawed and unable to serve its function of financial intermediation. Federal help was needed. Indicate whether the statement is true or false ANSWER TRUE
The divergent behavior of unemployment in the United States and Europe, especially in the 1990s, a. has been ascribed to different structural characteristics of money markets in the two regions. b. has been attributed to different structural characteristics of labor markets in the two regions. c. cannot be explained for these two regions. d. has […]
From 1860 to 1910, U.S. statistical and qualitative evidence suggests that (a) many migrants came during the upswings in the U.S. business cycle. (b) the employment experiences and economic conditions of family and friends in the U.S. influenced the decisions of prospective immigrants. (c) economic desperation, social immobility and restricted labor opportunities “pushed” immigrants out […]
In the Mundell-Fleming model, the exogenous variables are a. government spending, taxes, and income. b. the exchange rate and the price level. c. the price level, the world interest rate, monetary policy, and fiscal policy. d. the world interest rate, the price level, and the exchange rate. e. none of the above. ANSWER C
The government significantly raised farm incomes by raising farm prices by: (i) destroying crops, (ii) slaughtering millions of baby pigs and pregnant sows, (iii) paying farmers not to grow crops and (iv) injecting dye into harvested potatoes, making them inedible. Indicate whether the statement is true or false ANSWER FALSE
According to the Keynesian model, a decline in the expected price level a. will increase the inflation rate a central bank must generate to achieve a target level of unemployment. b. will decrease the inflation rate a central bank must generate to achieve a target level of unemployment. c. will not affect the inflation rate […]
Hughes and Cain (2011) give some credit to which of the following factors for the 1860–1910 increase in the number of people employed, shorter work days and higher real incomes? (a) A decrease in the number of immigrants (b) A closed economy with no imports coming into or exports going out of the U.S. (c) […]
Brinley Thomas (1954) argues that immigrants were attracted to the United States between 1815 and 1914 for all of the following reasons except (a) Harvest failures in the home countries of the immigrants (b) Organized labor opportunities, health benefits, safe working conditions and healthy work environments in the U.S. (c) European population increases, contributing to […]
