In 1865, Congress raised the tax on state bank notes to 10 percent of the value of notes in circulation. This tax:
a. ended the dual banking system in the U.S.
b. was less than the tax on national bank notes.
c. was rescinded in 1870.
d. was avoided through the use of deposits.
Question 2According to the Rule of 70, if per capita GDP is growing at a rate of 5 percent per year, then it will take __________ years for per capita income to double.
a. 14
b. 28
c. 70
d. 140
Question 3Republicans in Congress pushed for the passage of the National Bank Act of 1863 because:
a. they wanted the executive branch to have more control over the amount of notes in circulation.
b. they wanted to encourage a mild inflation in the U.S.
c. they felt that the Act would reduce the temptation for weak administrations to over issue paper currency.
d. they wanted to reduce the number of banks in the U.S.
Question 4Alice Hanson Jones (1980) finds that private nonhuman physical wealth in New England in 1774 was 36.4 pounds sterling per capita. Thus, assuming a capital output ratio of 3:1, Jones estimates that per capita income in New England in 1774 equaled:
a. about 9 pounds sterling.
b. about 12 pounds sterling.
c. about 45 pounds sterling.
d. about 145 pounds sterling.
Question 5Most of the increase in total money supply between 1860 and 1920 was due to:
a. sustained economic growth.
b. the growth of bank deposits.
c. an increase in greenbacks.
d. new discoveries of gold and silver.
Question 6The standard of living (measured by what one can purchase with after-tax income) of free Americans on the eve of the Revolution was ______.
a. lower than in 18th -century England, and lower than most people in the Third World today.
b. higher than in 18th -century England, and higher than most people in the Third World today.
c. lower than in 18th century England, but higher than most people in the Third World today.
d. higher than in 18th- century England, but lower than most people in the Third World today.
Question 7The greenback: a.provided a uniform currency across the U.S. b.provided additional revenue for the government during the Civil War. c.supplied monetary increases that sent prices skyrocketing. d.All of the above are correct. e.Only a and b are correct.
Question 8Today _________ countries generate average income levels that approach the earnings of free Americans on the eve of the revolution.
a. no
b. relatively few
c. many
d. most
Question 9Following the Civil War, U.S. currency included all of the following except:
a. wooden nickels.
b. silver and gold specie.
c. bank notes.
d. greenbacks.
Question 10What best describes the economic standing of the colonies on the eve of the Revolution?
a. The colonies were one of the richest nations in the world and had very little income inequality because of the many opportunities that existed.
b. The colonies had a low per capita income and had little income inequality.
c. The colonies were one of the richest nations in the world and had a significant amount of income inequality.
d. The colonies had a low per capita income and had a significant amount of income inequality.
Question 11Between the Civil War and World War I, the U.S. monetary system:
a. experienced a persistent deflation.
b. suffered several financial crises in which banks closed and firms went bankrupt.
c. adopted a de facto gold standard.
d. adopted a central bank.
e. All of the above.
Question 12Which of the following statements accurately reflects research findings on the distribution of colonial wealth?
a. The poorest 20 percent of colonist controlled nearly 20 percent of colonial wealth.
b. Distributional inequality tended to be greater in rural areas than in cities, particularly in New England.
c. Colonial wealth was distributed more unequally in the Middle colonies than in the South or New England.
d. The opportunity for income mobility was probably greater in the colonies than in England.
Question 13By the late 1800s, soft coal miners earned a higher hourly wage than other industrial workers of similar skill levels. The mining wage is an example of
a. wage discrimination.
b. a monopsony market.
c. a compensating wage differential.
d. an efficiency wage.
Question 14Which of the following statements correctly characterizes the distribution of colonial wealth?
a. Colonial wealth was distributed equally across the population.
b. While the distribution wealth was highly concentrated in the South, New England , the Middle colonies had very equal wealth distributions.
c. Wealth inequality tended to be greatest in colonial cities.
d. A permanent underclass of free poor people developed during the colonial period.
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