American economic history actually is a study of
(a) stable population growth.
(b) how colonial Americans worked side-by-side with the natives to produce
stable economic growth and wealth for all individuals.
(c) how a small, inconsequential economy grew into a giant economy
through a series of successes and failures.
(d) how people in other countries created problems for colonial Americans
of the past as well as U.S. citizens of today.
Question 2If output per worker in a steady state is 30,000, depreciation is 13, the population growth rate is two percent, and the saving rate is 20, what is the steady state capital-labor ratio?
A) 10,500
B) 85,714
C) 22,500
D) 40,000
Question 3When World War II (194145) came, the U.S. civilian labor force could be expanded only by about 30 percent.
Indicate whether the statement is true or false
Question 4Hughes and Cain (2011) ask: Who suffered from the tariff in the 19th century? What was their answer?
(a) the government
(b) producers of import-competing goods
(c) consumers
(d) workers in import-competing industries
Question 5In any efficiency wage model, it must be true that
a. the marginal benefit of increased efficiency is equal to the marginal cost of higher wages.
b. nominal wages are inflexible.
c. disequilibrium in the labor market exists.
d. all of the above.
e. none of the above.
Question 6Payroll taxes levy taxes on ________.
A) consumption
B) imports
C) wages
D) exports
Question 7One way to overcome the problem of time inconsistency is to
a. legislate policy rules.
b. grant policymakers independence..
c. appoint policy makers with credibility.
d. both a and c.
e. all of the above.
Question 8Population growth is similar to depreciation, in that ________.
A) each lowers the capital-labor ratio
B) each tends to encourage saving
C) capital wears out faster when used by more workers
D) each helps to explain how economies can sustain a positive growth rate of output
Question 9In the first years of the new nation, American producers
(a) found it difficult to compete with the British in manufactured goods.
(b) quickly developed agricultural technology that was more efficient than that in England.
(c) did not use British manufacturing technology because England had forbidden the export of its technology.
(d) began to specialize in the production of manufacturing goods, selling them to England and Europe.
Question 10Since the economy was operating at less than full capacity when the U.S. entered World War II (194145), price controls did not surface until the end of the war.
Indicate whether the statement is true or false
Question 11Which of the following cannot be used to justify efficiency wages
a. Sticky price (menu cost) models
b. turnover costs
c. worker shirking
d. worker morale
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