With regard to British trade and commercial policies, all of the following are true except (a) British trade and commercial policies had been somewhat beneficial, from the colonials’ point of view, but now (the 1770s) they had become intolerable. (b) These policies, unlike land, did not take away American rights so much as they attempted […]
In the modern Keynesian model, velocity a. varies positively with the level of the interest rate but not with income. b. varies positively with the level of the interest rate and with income. c. is constant. d. varies in the short run but is constant in the long run. e. none of the above […]
Many railroads received government subsidies and land grants and, thus, were influenced by the government. Indicate whether the statement is true or false ANSWER TRUE
The Laffer curve specifies a. a negative relationship between marginal tax rates and tax revenue. b. a positive relationship between marginal tax rates and tax revenue. c. no relationship between marginal tax rates and tax revenue. d. none of the above. ANSWER D
In the Monetarist model, the long-run holds when a. the money supply is constant. b. real wages are constant. c. output is constant. d. the expected price level equals the actual price level. e. none of the above. ANSWER D
Differences in what can explain the wage gap between U.S.-born and foreign-born workers? (a) Culture (b) Schooling (c) Urbanization (d) All of the above ANSWER (b)
The U.S. economy during the 2001-2004 period was been characterized by all of the following except a. expansionary fiscal policy. b. expansionary monetary policy. c. a jobless recovery. d. moderate economic growth. e. none of the above ANSWER E
All railroads were private enterprises with no government influence. Indicate whether the statement is true or false ANSWER FALSE
The decline in wholesale and consumer prices in 1929–30 was not as large as had been the decline in 1920–21. Indicate whether the statement is true or false ANSWER TRUE
Taxes provide individuals with incentive to: (a) Increase the number of working hours. (b) Increase productivity by working longer and harder. (c) Direct resources to uses where taxes are relatively low or nonexistent. (d) Buy and save more. ANSWER (c)
