Regarding business conditions during the 1930s, which of the following events did not occur?
(a) The number of patents applied for declined.
(b) The number of mergers between companies increased in an attempt to increase
their consolidated strength.
(c) Some interest rates, such as the prime rate, fell to less than 1.
(d) In the early years of the Depression, business investment spending on plants and
equipment was not enough to increase or maintain the country's capital stock.
Question 2The nonwhite percentage of the U.S. population rose after the Civil War.
Indicate whether the statement is true or false
Question 3Immigrants were valued as a vital source of labor and, consequently, they were greeted with open arms after the 1830s.
Indicate whether the statement is true or false
Question 4In the neoclassical growth model, convergence is conditional upon two countries having
a. the same savings rates.
b. the same depreciation rates.
c. the same technology growth rates.
d. the same population growth rates.
e. all of the above.
Question 5The number of people living in urban areas fell after the Civil War and then increased as World War I approached.
Indicate whether the statement is true or false
Question 6If the short run aggregate supply curve is flat, the Phillips curve will be
a. flat
b. steep
c. horizontal
d. upward sloping
Question 7In 1933 the unemployment rate was about 25. This percentage
(a) is probably quite accurate because the data on unemployment collected by the federal government was quite good at the time.
(b) is probably too high because some people with jobs claimed to be unemployed so
that they could collect unemployment compensation payments.
(c) is probably too low because there were discouraged and underemployed workers.
(d) is probably meaningless because the data on unemployment was either very poor
or nonexistent.
Question 8The years after 1960 witnessed some social and economic changes of extraordinary magnitude, including all of the following except
(a) The core of U.S. growth shifted away from its historic base in heavy industry.
(b) A huge influx of women into the labor force occurred.
(c) Legislation provided for greater safety on the job and cleaner air and water.
(d) The Cold War ended in the early 1970s, following the end of the Vietnam War, and defense spending declined significantly from the Cold War years of the 1950s.
Question 9Immigration significantly contributed to economic growth in the U.S. throughout the entire period between Independence and the Civil War.
Indicate whether the statement is true or false
Question 10According to Edward Denison, during the 1929-1982 period, real output grew at an annual rate of
a. 1.4 percent.
b. 0.6 percent.
c. 2.9 percent.
d. just below 1 percent.
e. exactly one-half percent.
Question 11The BP schedule will be steeper the
a. more responsive capital flows are to the interest rate.
b. less responsive capital flows are to the interest rate.
c. smaller the marginal propensity to import.
d. less likely an expansionary fiscal policy will lead to a balance of payments deficit.
Question 12Which of the following did not occur during the early years of the Great Depression?
(a) Marriage rates fell.
(b) Birth rates fell.
(c) Divorce rates increased.
(d) Actually, all of the above occurred.
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