The Interstate Commerce Commission (ICC) (a) was the first permanent independent federal ...

The Interstate Commerce Commission (ICC)
 
  (a) was the first permanent independent federal regulatory agency.
  (b) was established because, given the interstate nature of railroads, the regulation the public demanded from the states simply passed to the federal government.
  (c) initially lacked the power to set railroad rates, but its founding marked the beginning of a kind
  of federal government power capable of almost infinite expansion.
  (d) is best described by all of the above.

Question 2

The steel industry successfully lobbied for protection from foreign competition. Consequently, the steel-producing industries and those industries using steel benefited.
 
  Indicate whether the statement is true or false

Question 3

Thomas Jefferson supported the Land Ordinances of 1785 and 1787.
 
  Indicate whether the statement is true or false

Question 4

If the central bank targets interest rates, then the LM curve is
 
  a. vertical.
  b. horizontal.
  c. upward sloping.
  d. downward sloping.

Question 5

Assuming a flexible exchange rate, then an expansionary monetary policy in the foreign exchange market will shift
 
  a. the demand curve for foreign exchange to the right
  b. the demand curve for foreign exchange to the right and the supply curve of foreign exchange to the left.
  c. both the demand curve for foreign exchange and the supply curve of foreign exchange to the right.
  d. both the demand curve for foreign exchange to the left.
  e. none of the above.

Question 6

The Granger Cases of the 1870s
 
  (a) sealed the fate of the U.S. railroad system, even though the cases were covered under a case involving a grain elevator.
  (b) came before the U.S. Supreme Court because state legislatures had passed laws in the 1870s to allow state agencies to control various aspects of railroad operation, including rate setting; these laws were then challenged by railroad companies.
  (c) established the principle that railroads were unquestionably subject to permanent regulation.
  (d) are true for all of the above.

Question 7

The loss of total market share of steel in the world market for steel can be blamed on steel producers' decisions to not adopt the latest steel technology.
 
  The producers in other countries that adopted it gained market share at the expense of the U.S. Indicate whether the statement is true or false

Question 8

During the decade of the 1920s, the U.S. economy
 
  (a) was generally healthy and gave no indication of the troubles that lay ahead regarding
  the Great Depression.
  (b) was relatively stagnant in terms of growth of total output with small declines in agriculture
  and housing, which suggested that difficult times might lie ahead in the 1930s.
  (c) experienced actual declines in overall production levels, including agriculture and housing, which suggested that even more difficult times probably lay ahead.
  (d) experienced relatively rapid growth in overall output but in the late 1920s nevertheless
  showed weaknesses in certain sectors such as agriculture, housing and the financial
  sector, which suggested the possibility of difficult times ahead.

Question 9

Provision was made for squatters' rights in the 1785 Northwest Ordinance.
 
  Indicate whether the statement is true or false

Question 10

A trade deficit can be financed by all of the following except
 
  a. a surplus in the capital account.
  b. a surplus in the official reserves transaction account.
  c. selling U.S. assets to foreigners.
  d. U.S. citizens buying foreign stocks and bonds.

Question 11

Evidence in favor the Keynesian model would be that:
 
  a. investment is not sensitive to changes in tax rates.
  b. labor supply is inelastic.
  c. the aggregate price level is positively correlated with income.
  d. all of the above.
  e. none of the above.

Question 12

The overall productivity crisis of the 1970s can be attributed, in part, to insufficient investment in research and development.
 
  Indicate whether the statement is true or false

Question 13

During the decade of the 1920s, the distribution of income
 
  (a) became increasingly equal.
  (b) changed little or not at all.
  (c) became increasingly unequal.
  (d) may or may not have changed, but it is difficult to know because of lack of data.