Munn v Illinois (1877) was particularly important with regard to government regulation because it
(a) upheld the traditional right of businesses to act freely without interference by government.
(b) established the right of government to regulate any business that was deemed clothed in
the public interest.
(c) established the right of government to regulate any and all businesses wherever such regulation was deemed desirable to promote competition.
(d) established the right of government at any level to regulate any business activity if such regulation was deemed desirable for any reason.
Question 2If the nominal rate of interest on a bond was 5 percent, the inflation rate was 3 percent and an individual was in a 25-percent tax bracket, the after-tax real return on the bond would be equal to
a. 2 percent.
b. 2.5 percent
c. .5 percent..
d. -.5 percent.
e. none of the above.
Question 3Farm prices fell sharply in 191921 . Then, until 1929, the farm terms of trade (the movement of farm prices relative to the movement of non-farm prices)
(a) collapsed by more than half.
(b) remained essentially unchanged.
(c) actually rose.
(d) collapsed, but only slightly.
Question 4Employment in manufacturing fell by almost twenty percent between 1980 and 1999.
Indicate whether the statement is true or false
Question 5Capital outflows in the balance of payments accounts include
a. purchases of financial assets by U.S. residents.
b. direct investments in foreign countries.
c. indirect investments in foreign countries.
d. purchases of U.S. real estate by foreigners.
e. all of the above
Question 6Regarding the Interstate Commerce Commission (ICC),
(a) historians agree that it was primarily captured by the industry that it was supposed to regulate.
(b) historians agree that it was primarily captured by passengers and shippers to the disadvantage of the railroads.
(c) historians generally agree that it was not captured by any group, but rather served the
public well.
(d) historians do not agree on any of the above.
Question 7Friedman and others view changes in velocity as the result of changes in
a. income.
b. who is the chairman of the Federal Reserve.
c. interest rates.
d. inflation.
Question 8The First Continental Congress met in September and October of 1774 and listed several complaints against the British government, including
(a) an objection not to the Navigation Acts but to the taxation without consent.
(b) the argument that they were entitled to all the rights of British citizenship.
(c) the demand that virtually all of the laws passed by Britain on the colonies since 1763 be repealed.
(d) all of the above.
Question 9The official reserve transactions balance in the United States balance of payments accounts is
a. reflects the difference between government spending and total taxes.
b. negative if a current account deficit exceeds a capital account surplus.
c. positive if a current account deficit exceeds a capital account surplus.
d. none of the above
Question 10There has been a massive relocation of heavy industry from the U.S. Northeast and upper Midwest to the Sun Belt.
Indicate whether the statement is true or false
Question 11Monetarists assume that people form their expectations only by
a. looking forwards
b. looking backwards.
c. using all available information.
d. using publicly available forecasts.
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