What is/are the lesson(s) learned from the stock market crash of 1929? (a) Statements and opinions of federal officials can and do impact consumer and business optimism and pessimism regarding stocks and other financial markets, leading to volatile buying and selling behaviors. (b) Portfolio diversification is important. (c) One segment of the aggregate market economy […]
Today’s railroads are: (a) Privately owned and regulated by competitive forces. (b) Private owned but managed by federal regulatory bodies. (c) Federally owned and managed by government regulatory bodies. (d) Federally owned but competitive. ANSWER (b)
The Articles of Confederation and Perpetual Union (1781) failed because they made governmental controls too restrictive and federal taxes too high. Indicate whether the statement is true or false ANSWER FALSE
Fifty-five delegates from seven states convened at the first Constitutional Convention (1787) to determine whether the central government of the new, independent country should modify its rules and regulations to permit more or less state sovereignty. Indicate whether the statement is true or false ANSWER TRUE
Some researchers argue that the overall standard of living increased during the 1920s. In general, holding constant all other factors that might impact it, economists are careful about connecting an increase in the standard of living to (a) increases in the amount of labor used in production processes. (b) new inventions being made in research […]
Monetarists believe in all of the following except a. steady growth in inflation will yield stable output. b. steady growth in the money supply will yield stable output. c. fluctuations in the money supply are responsible for business cycles. d. the Fed should not be involved in trying to stabilize the economy. ANSWER A
Growth rates in labor productivity (a) increased in the 1970s. (b) slowed across all employment sectors, with some experiencing more severe drops than others. (c) decreased across all employment sectors at the same rate. (d) were largely stagnate. ANSWER (b)
Assuming the United States sends foreign aid payments to another country. Then, this is shown in the U.S. balance of payments account as a a. credit in the current account. b. debit in the current account. c. debit in the capital account. d. credit in the capital account. e. credit in the official reserve transactions […]
The Desert Land Act (1877) and the Cary Act (1894) liberalized the terms for preemption that had been set originally in the 1862 Homestead Act. Indicate whether the statement is true or false ANSWER TRUE
The Articles of Confederation and Perpetual Union (1781) adequately addressed the free-rider problems by setting up a tax system that required all states to share the costs of providing national defense, protecting private property rights, regulating commerce with other countries and across states and upholding a system of laws. Indicate whether the statement is true […]
