The growth of total railroad mileage
(a) was far greater after the Civil War than before.
(b) was maximized in miles built per decade before 1860.
(c) was a free-market phenomenon, not subject to government subsidies.
(d) was not subject to business cycle fluctuations.
Question 2Assume that the fixed exchange rate system of 1.1 euros = 1 dollar is below the equilibrium exchange rate of 1.3 euros = 1 dollar in a flexible exchange rate system. Then, at the fixed exchange rate, the dollar would be
a. undervalued and the euro would be overvalued.
b. overvalued and the euro would be undervalued.
c. revalued and the euro would be devalued.
d. depreciated and the euro would be appreciated.
Question 3In the classical and monetarist aggregate demand curves:
a. money is the primary factor driving changes in aggregate demand.
b. taxes can never shift aggregate demand.
c. government spending can never shift aggregate demand.
d. changes in aggregate demand drive most recessions.
e. both a and d.
Question 4After 1926, a decline in total building construction occurred even though building costs remained fairly stable.
Indicate whether the statement is true or false
Question 5Regarding the output growth slowdown during the 1970s and 1980s, it is true that
a. the slowdown took place in the U.S. but not other developing countries.
b. the primary determinant of the slowdown was lower labor productivity growth.
c. increases in capital formation did not offset some of the slowdown in labor productivity growth.
d. both b and c.
Question 6Modern work in economic history by people like Robert Fogel (1964) and Albert Fishlow (1965) shows
(a) that railroads were the indispensable key to rapid economic growth in the 19th century.
(b) that the levels of Gross National Product (GNP) reached in 1890 would have been reached
in 1880 had it not been for reckless railroad speculation.
(c) that less than 5 of the country's late 19th-century economic growth was attributable to railroads.
(d) none of the above.
Question 7The premium on a college education increases when
(a) the market demand for knowledge and skilled workers decreases, and all else is held constant.
(b) the market supply of knowledge and skilled workers increases, and all else is held constant.
(c) the growth in the demand for knowledge and skilled workers outpaces the growth in supply.
(d) the growth in the supply of knowledge and skilled workers outpaces the growth in demand.
Question 8The Articles of Confederation (17771781) did all of the following except
(a) Tax the colonists to finance the central government
(b) Provide a formal means by which the colonists communicated and interacted
(c) Granted significant power to the colonial states
(d) Required negotiations for funding the War between the leaders of the American Revolution
and each colonial state
Question 9An increase in the effective corporate tax rate due to increased inflation results in
a. a upward shift of the investment schedule.
b. a downward shift of the investment schedule.
c. no shift of the investment schedule.
d. a rightward shift of the saving schedule.
Question 10A system of exchange rate determination with no central bank intervention is a
a. fixed exchange rate system.
b. flexible exchange rate system.
c. floating exchange rate system.
d. either a flexible or a floating exchange rate system.
Question 11The experience of the United States and other industrialized countries in the 1930s contradicts the classical view of the labor market where the money wage adjusts quickly to maintain full employment. On this issue
a. the Keynesians agree but the monetarists disagree.
b. the monetarists agree but the Keynesians do not agree.
c. both the Keynesians and monetarists are in agreement.
d. neither the Keynesians nor the monetarists agree.
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