Which statement holds true in the post-World War II era? (a) There was a permanent increase in the percentage of working adult women with children. (b) Firms found it most profitable to treat women as individuals rather than groups. (c) Marriage bars returned. (d) Female participation in farming, common labor and craft work in the […]
The number of highly skilled and knowledge workers entering the workforce increases when (a) firms substitute capital for high priced labor. (b) the market demands labor with advanced degrees. (c) the government cuts educational funding. (d) All of the above ANSWER (b)
The stock market boom in 1922–1929 seems “rational” enough if you take into account the expansion of the money supply in the same period. Indicate whether the statement is true or false ANSWER FALSE
A system of exchange rate determination with no central bank intervention is a a. fixed exchange rate system. b. flexible exchange rate system. c. floating exchange rate system. d. either a flexible or a floating exchange rate system. ANSWER D
The experience of the United States and other industrialized countries in the 1930s contradicts the classical view of the labor market where the money wage adjusts quickly to maintain full employment. On this issue a. the Keynesians agree but the monetarists disagree. b. the monetarists agree but the Keynesians do not agree. c. both the […]
An increase in the effective corporate tax rate due to increased inflation results in a. a upward shift of the investment schedule. b. a downward shift of the investment schedule. c. no shift of the investment schedule. d. a rightward shift of the saving schedule. ANSWER B
The Articles of Confederation (1777–1781) did all of the following except (a) Tax the colonists to finance the central government (b) Provide a formal means by which the colonists communicated and interacted (c) Granted significant power to the colonial states (d) Required negotiations for funding the War between the leaders of the American Revolution and […]
Modern work in economic history by people like Robert Fogel (1964) and Albert Fishlow (1965) shows (a) that railroads were the indispensable key to rapid economic growth in the 19th century. (b) that the levels of Gross National Product (GNP) reached in 1890 would have been reached in 1880 had it not been for reckless […]
Regarding the output growth slowdown during the 1970s and 1980s, it is true that a. the slowdown took place in the U.S. but not other developing countries. b. the primary determinant of the slowdown was lower labor productivity growth. c. increases in capital formation did not offset some of the slowdown in labor productivity growth. […]
A current account deficit in a nation’s balance of payments accounts implies that a. imports are equal to exports. b. exports exceed imports. c. expenditures are more than income. d. income is more than expenditures. ANSWER C
