If the population of Country A grows at 3% a year but technology growth is zero, then the neoclassical model predicts that in the steady state a. the capital-to-labor ratio will increase at 3% a year. b. per capita output to grow at 3% a year. c. per capital output to grow at less than […]
Date: September 10th, 2020
Historically barriers to development in the U.S., such as the dry deserts of some of the country’s western states, have been solved by (a) only government action. (b) only private action. (c) a blend of government and private actions. (d) foreign expertise. ANSWER (c)
Date: September 10th, 2020
After the inflation of the Johnson-Nixon-Ford years (1963–1976), the Carter Administration, while still inflationary, managed to slow down the rate of advancing prices. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
According to the balance of payments schedule, as the level of income rises a. import demand increases while export demand does not. b. export demand increases while import demand decreases. c. both import demand and export demand increase. d. both import demand and export demand decrease. ANSWER A
Date: September 10th, 2020
The common ownership of natural resources frequently leads to (a) an efficient resource allocation. (b) an even distribution of resources. (c) an uneven distribution of resources. (d) a productive use of resources. ANSWER (c)
Date: September 10th, 2020
Keynesian economists link the start of the Great Depression to the drop in construction spending and the downturn in consumption following the stock market crashes of 1929. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
According to Friedman, changes in the level of aggregate demand a. are dominated by changes in the supply of money. b. cause the levels of output and employment to deviate from their natural rate for short periods of time. c. can cause movements of the economy away from the natural rate for at least 2 […]
Date: September 10th, 2020
The hope of “Reaganomics”—that ending inflation will stimulate economic growth—is supported by the experience of 1945–49. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Under the gold standard of the Great Depression, any country experiencing a balance of payment deficit was expected to finance those deficits by exporting gold. The loss of gold should be followed by contractionary monetary policy, reducing demand and causing prices to fall. All countries operating under the gold standard followed these rules of the […]
Date: September 10th, 2020
The South’s post-Civil War backwardness was due to all of the following except (a) extensive wartime destruction of life and property. (b) the fiscal disaster of the Confederacy, whereby nine tenths of the state banks in the South vanished. (c) the price of cotton was increasing, as it had prior to the Civil War, thus […]
Date: September 10th, 2020
