A constant returns to scale production function means that if all inputs are halved then output will a. double. b. increase, but not double. c. fall by half. d. fall, but not by half. e. none of the above. ANSWER C
Date: September 10th, 2020
During the period of rapid industrialization in the U.S. after the Civil War, (a) real farm incomes fell drastically. (b) real incomes in the agricultural sector increased at a faster pace than real incomes in manufacturing. (c) real incomes in the agricultural sector increased at relatively the same rate as real incomes in manufacturing. (d) […]
Date: September 10th, 2020
Assuming imperfect perfect capital mobility, the BP schedule is a. vertical. b. horizontal. c. upward sloping. d. downward sloping. e. flat. ANSWER C
Date: September 10th, 2020
The Federal Constitution, like the laws under English rule, permitted the U.S. government to (a) impose taxes to pay for government services and national defense. (b) regulate commerce with other countries. (c) create money and regulate its value. (d) do all of the above. ANSWER (d)
Date: September 10th, 2020
In the monetarist view, if the money supply has been rising too quickly for years, the resulting inflation can be brought under control by slowing money growth. This will a. quickly reduce inflation with no side effects. b. quickly reduce inflation with higher unemployment. c. increase unemployment depending upon how quickly the public changes their […]
Date: September 10th, 2020
The Smoot-Hawley Tariff Act of 1930, like any tariff act, increased the price of the taxed imported goods as well as the domestic price of U.S. goods and services produced in the industries favored by the tariff. Consequently, any tariff negatively impacts U.S. consumers by forcing them to pay higher prices. Indicate whether the statement […]
Date: September 10th, 2020
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
In 2002 the steel industry successfully lobbied Congress to impose a tariff of 8 to 30 percent on foreign steel. Which of the following is an unintended consequence of this tariff? (a) U.S. steel firms were protected from the price cutting efforts of foreign competitors benefiting from governmental support in their countries. (b) U.S. steel […]
Date: September 10th, 2020
