One reason the colonials complained about the Navigation Acts was (a) the “shortage” of money; they believed the trade deficits of the colonies were bleeding them of coins. (b) the “surplus” of money that was causing inflation; they believed the trade deficits were flooding the colonies with coins. (c) the Acts’ not allowing foreign coins, […]
Monetarists emphasize a. crowding-out but not the liquidity trap. b. crowding-out and the liquidity trap. c. the liquidity trap but not crowding-out. d. neither crowding-out nor the liquidity trap. ANSWER A
Economic prosperity returned under the New Deal programs of the 1930s. Indicate whether the statement is true or false ANSWER FALSE
The decline of output of other domestic auto producers besides Ford, General Motors and Chrysler occurred in the presence, even before 1970, of rising sales of imported cars in the U.S. market. Indicate whether the statement is true or false ANSWER TRUE
A decrease in the demand for unskilled and skilled labor was a secondary effect of the productive use of fractional horsepower and internal combustion engines. Indicate whether the statement is true or false ANSWER TRUE
According to supply-side advocates, the increase in government regulatory activity in the late 1960s slowed economic growth a. by increasing the cost of producing a given output. b. by requiring capital formation that contributes to increased productivity in terms of measured output. c. only temporarily until there was an adequate adjustment period. d. Both a […]
Fogel (1964) came up with two estimates of social savings ( and ). What do they represent? (a) The level of industrial productivity using railroads and the level not using railroads (b) The lowered benefit of transport for agricultural goods using railroads and the lowered benefit of transport for all goods and passengers using railroads […]
Even though the number of workers in manufacturing has increased in the post-war world (since 1947), the proportion of manufacturing workers in the total labor force has declined. Indicate whether the statement is true or false ANSWER TRUE
Alternative proposals to change the current system of exchange rates include a. a new explicit system of fixed exchange rates. b. adjustable target zones for exchange rates. c. a dirty float rate system. d. Both a and b e. Both b and c ANSWER D
The current international monetary system is best described as a a. fixed rate system. b. completely flexible rate system. c. gold standard. d. mercantilist system. e. managed floating rate system. ANSWER E
