By the late 1880s, the main difference between the American Federation of Labor (AFL) and the Knights of Labor was
(a) the relatively low dues charged members by their AFL locals.
(b) the broader membership base of AFL locals compared to the Knights.
(c) the AFL's commitment to progressive politics.
(d) the narrow membership qualifications of AFL locals compared to
the Knights.
Question 2Unemployment in the post-World War II era (194550)
(a) was reduced only because of the post-war decline in the size of the civilian labor force.
(b) rose above wartime levels, but remained far below the levels of the 1930s.
(c) rose in response to the decline in civilian consumption levels.
(d) remained at the low levels achieved in World War II (194145).
Question 3The assumption of constant velocity is a critical component of the
a. monetarist model.
b. classical model.
c. real business cycle model.
d. new classical model.
e. all of the above.
Question 4Sharecropping after the Civil War (18611865) was the land tenure of black and white non-landowning farmers in about equal proportions.
Indicate whether the statement is true or false
Question 5By restricting the amount of precious metals going into the colonies, the British significantly hindered economic growth in colonial America.
Indicate whether the statement is true or false
Question 6According to the Keynesian model with fixed money wages, real wages should be
a. negatively correlated with changes in output.
b. positively correlated with changes in unemployment.
c. negative correlated with changes in the price level.
d. fixed as well.
e. both a and c.
Question 7The Mokyr-DeCanio thesis states that real wages of Northern workers lagged behind price increases during the Civil War (18611865), thus shifting to the workers themselves a major part of the war's cost.
Indicate whether the statement is true or false
Question 8In implementing the Marshall Plan (194851),
(a) the United States discouraged European countries from cooperating among themselves to increase trade, as it was felt that economic recovery would be better achieved through competition.
(b) the United States, in order to offset the large capital outflow caused by loans and grants made abroad, tried to maintain a balance of payments surplus.
(c) the United States offered financial aid to many of the economies in Western Europe devastated by World War II.
(d) the U.S. dollar was devalued 30 against other world currencies.
Question 9In the classical model, a tax on labor supply will
a. decrease the demand for labor, increase the real wage, decrease output, and reduce the price level.
b. decrease the supply of labor, increase real wages, decrease output, and increase the price level.
c. decrease the demand for labor, the real wage, decrease output, and increase the price level.
d. have no effect on the labor market, but reduce output and increase the price level.
e. increase both labor demand and supply, which will increase output and the price level.
Question 10State mechanic lien laws
(a) required licensing of mechanics.
(b) permitted laborers to make claims against the assets of an employer or business
if it fell into bankruptcy.
(c) assured payment for value added by labor to property of third parties.
(d) gave property owners with goods held in bailkment a guarantee of competent
repair work by mechanics.
Question 11According to the new classical view, changes in aggregate demand
a. can temporarily influence output
b. affect only the aggregate price level.
c. can influence output but at the cost of higher inflation.
d. are primarily driven by changes in investment.
e. Both a and c
Question 12During the colonial period, the English permitted both silver and gold to move freely in and out of the colonies.
Indicate whether the statement is true or false
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