Charles Beard (1935) argued that the economic self-interest of businessmen, merchants, manufacturers, bankers and investors led them to convene at the Constitutional Convention in the late 1770s. They believed that creating a new, or at least modified, system of laws would help them advance the projects in which they were interested at minimal cost. Indicate […]
U.S. automobile manufacturers chose not to switch to producing subcompact cars for which of the following reasons? (a) They did not perceive the U.S. demand for subcompacts as permanent. (b) This switch was not economically feasible in the long run. (c) Government policy prevented them from doing so. (d) All of the above. ANSWER […]
According to the monetarists, the ratio of nominal GDP to the money stock should be a. highly unstable in short run and in long run. b. unstable only during recession. c. unstable only in the long run. d. quite stable in the short run and the long run. e. unstable only if the LM curve […]
The stock market boom of the 1920s occurred in part because the demand for stocks increased. The source of this demand increase originated from whom? (a) Ordinary workers who experienced rising wages and now had incentive to invest in the stock market, thus driving up stock prices. (b) The people in the upper income strata; […]
The decade of the 1920s was characterized by which of the following? (a) Economic advancements in agriculture (b) A decrease in the inequality of income and wealth (c) Consumers dramatically shifted their household demands into purchases of durable goods on credit (d) All of the above characterized the decade of the 1920s ANSWER (c)
In a floating exchange rate system, when national savings falls then the equilibrium exchange rate a. falls and the trade balance falls. b. falls and the trade balance rises. c. rises and the trade balance falls. d. rises and the trade balance rises. ANSWER B
Steady-state growth refers to a. intermediate-run periods. b. long-run equilibrium growth. c. output determination in the short run. d. None of the above ANSWER B
Recent research in growth theory extends the traditional analysis by making the rates of a. technological change and/or population growth exogenous. b. technological change exogenous and population growth endogenous. c. population growth and/or technological change endogenous. d. population growth exogenous and technological change endogenous. ANSWER C
The rise in output of corn and wheat was achieved more by increasing acres farmed than by raising output per acre. Indicate whether the statement is true or false ANSWER FALSE
Thomas Jefferson strongly influenced the passing of the Land Ordinances of 1785 and 1787 . A close study of those ordinances suggests that Jefferson believed in the importance of securing the private rights of individuals to buy, sell and derive income from their land. Indicate whether the statement is true or false ANSWER TRUE
