The legislative immigration restrictions following World War I (1914–18) contributed to which of the following in the 1920s? (a) An acceleration in the growth in the U.S. population (b) A decline in the rate of household formation in the U.S. (c) Rapid rise in U.S. prices (d) High unemployment in the U.S. ANSWER (b) […]
If total domestic savings exceeds domestic investment, then the country will: a. run a trade surplus. b. borrow from abroad. c. have to float its exchange rate. d. a and b. ANSWER A
The U.S. demand for foreign cars has increased dramatically since the early 1900s because (a) Americans perceive foreign cars as lower quality cars than U.S.-produced cars. (b) foreign producers are manufacturing relatively fuel-efficient cars. (c) U.S. consumer demand for large, fuel inefficient cars has increased. (d) of all of the above reasons. ANSWER (b)
If private investment had held up as well as consumption did, the economic contraction from 1929 to 1933 would have been less severe than it was. Indicate whether the statement is true or false ANSWER FALSE
In the neoclassical growth model, break-even investment must cover a. the depreciation in capital. b. the rate of technology growth. c. depreciation and capital for new workers (population growth). d. capital for new workers (population growth) and technology growth. e. none of the above. ANSWER C
The last of the public land was sold between 1881 and 1907. Indicate whether the statement is true or false ANSWER FALSE
Western expansion put whites on a collision course with the indigenous people of North America. The major policy of the U.S. government was to (a) basically ignore them as a separate group and allow them to be naturally assimilated into American life over time. (b) confine them to reservations where they could practice their tribal […]
Burns (1934) argued that retardation and decline in some industries are (a) healthy for a growing and developing economy because resources are released for use in productive sectors. (b) healthy only for the competitors of the declining industries. (c) unhealthy for a growing economy because resources are idle in the declining industries. (d) unhealthy for […]
If a country imposes a tariff on all imports, then you would expect to see: a. an increase in this country’s current account surplus. d. an increase in this country’s foreign lending. c. in increase in this country’s exchange rate. d. a and b. e. all of the above. ANSWER E
Which of the following statements is correct with respect to endogenous growth models? a. Changes in government policy that affect savings and investment rates can increase levels of output in the long-run. b. Changes in government policy that affect savings and investment rates can increase the growth rate of output in the long-run. c. Long-run […]
