Test bank for microeconomics 11th edition by slavin

The United States' economy is larger than Japan's and The United States' population is smaller than Japan's.. The United States' economy is smaller than Japan's and The United States' po

Chapter 01

A Brief Economic History of the United States

Multiple Choice Questions

A attracted millions of immigrants

C encouraged rapid technological development

D All of the choices are true

growing population

seek foreign markets to propel its rapid economic growth

C The Japanese rebuilt their economy after World War II by targeting the large U.S market, while their own market remained largely closed to U.S manufactured goods

4 The completion of the American national railroad network in the second half of the 19th century led

to all of the following except

A that it enabled manufacturers to sell their products all over the country

regions of the country?

bypassed the South

C The South remained an agricultural region after the Civil War instead of immediately becoming

a higher productivity manufacturing region

D All of the choices are true

8 Under President Eisenhower the problem of inflation

A got a lot worse

B got a little worse

C got a little better

D got a lot better

States the world's first mass market

B Southern manufacturers benefited from high protective tariffs of the 19th century that kept out cheaper Japanese manufactured goods

C The canal system linking east-coast rivers with the Great Lakes in the 1820s created an

"American economy" rather than just a series of regional economies located in one country

D Agricultural inventions such as John Deere's steel plows did little to improve farm productivity

A the steel industry

B the rubber industry

C the meatpacking industry

D the chemical industry

12 Which was a decade of high inflation and high unemployment?

A before the Civil War

B after the Civil War

C after 1890

D after the 20th century began

C There were no recessions while Ronald Reagan was president

D None of the statements are true

16 Which statement is true?

the Civil War

bypassed the South

C Before the Civil War most of the nation's large farms were located in the North

D None of the choices are true

C two weeks to one week

D two weeks to two days

was

20 Which statement is true?

C Most American homes were not wired for electricity until the late 1940s

D None of the choices are true

24 The recovery from the low point of the Great Depression lasted for months

C the Roosevelt Administration, but not the Federal Reserve Board

D the Federal Reserve Board, but not the Roosevelt Administration

C We have had at least three recessions in all of the decades since World War II

D None of the choices are true

28 The creation of the dust bowl and the migration of the "Okies" to California took place in the

C Both the efforts of the Roosevelt Administration and the readiness of business to rebound

D Neither the efforts of the Roosevelt Administration nor the readiness of business to rebound

32 In 1937-1938, the number of unemployed

A fell dramatically by about 5 million

B fell slightly by about 1 million

C rose slightly by about 1 million

D rose dramatically by about 5 million

C Very little new housing was built during the Great Depression and World War II

D None of the statements are false

A both labor and capital were scarce

B neither labor nor capital were scarce

C labor was scarce and capital was plentiful

D capital was scarce and labor was plentiful

36 Between 1850 and 1950 the productivity of the average American farm worker

A declined

C doubled

D quadrupled

the 19th, 20th and 21st centuries?

40 Henry Ford

interchangeable parts

C sold millions of cars at a small unit of profit that allowed his company to keep auto prices low and wages high

D all of the statements are true

century?

C It gave away no land, but charged only a token amount

D It charged a fairly substantial amount for the land it sold

South

C Although the percentage of Americans living on farms has declined substantially over the last

70 years, the actual number of people living on farms has remained constant

D None of the statements are false

43 Each of the following was an effect of cheap or free land during the 19th century except

A a high birth rate

B a high rate of immigration

C a rapid rate of technological development

D a high rate of migration from the farms to the cities

presidency

C created a growing problem of not enough food to feed everyone

D provided a market for the United States' farmers and manufacturers

45 Southern agriculture differed markedly from agriculture in the rest of the country before the Civil War in each of these respects EXCEPT

A it had, on the average, larger farms

B it had slavery

C it had different major crops

D it had more subsistence farming

C increased at about the same pace as population growth

D increased faster than population growth

47 The mechanical reaper was invented by

A the largest and the fastest growing

B neither the largest nor the fastest growing

C the largest, but not the fastest growing

D the fastest growing, but not the largest

1973

A higher

B lower

C about the same

51 The New Deal

C succeeded in quickly extending the Great Depression

D reduced the economic role of the federal government

52 Who said the nation was "ill-fed, ill-clothed, and ill-housed?"

C the Securities and Exchange Commission (SEC)

55 Which statement is false?

depression might have been avoided

C By the first week in March 1933 every single bank in the United States had shut its doors

D None of the statements are false

59 For all intents and purposes, the Great Depression ended in

D There is no exception Agricultural prices fell in all these time periods

C The automobile market was completely saturated by 1921 and sales remained low for the rest

of the decade

D None of these statements are true

63 Which statement is false?

that decade

C Between 1921 and 1929 national output rose by 50 percent

D None of the statements are false

C raise government spending

D put people to work in government jobs

67 The highest unemployment rate we experienced since the Great Depression was in

C The United States' huge agricultural surpluses have completely eliminated starvation in this country

D None of the statements are true

C the number of family farms has decreased by 10%

D the number of family farms has decreased by 70 percent

71 Which statement is true?

was a great abundance of labor

C The central problem of economics is an oversupply of capital

D None of the statements are true

C Between 1835 and 1858 the United States' population doubled

D None of the statements are false

A All regions of the United States were primarily agricultural in 1865

B Only the South was primarily agricultural in 1865

C Only the North and West were primarily agricultural in 1865

D None of the statements are true

75 The "Okies" were associated with each of these EXCEPT

A the Dust Bowl

C the Great Depression

D the rust belt

A recession

C very slow economic growth

D fairly high economic growth

A end the recession and end inflation

C end inflation and end the Korean War

D end the recession, the Korean War, and inflation

79 Which statement is false?

them white—from the cities to the suburbs

the large majority of whom were black and Hispanic

C The inner cities today are socially isolated from the rest of the country

D None of these statements are false

C Mass production can take place without mass consumption and mass consumption can take place without mass production

D Mass production cannot take place without mass consumption, nor can mass consumption take place without mass production

83 Which statement is true?

C The recession of 1973-1975 was mild; the recession of 1981-1982 was severe

D The recession of 1973-1975 was severe; the recession of 1981-1982 was mild

industrial power by the beginning of World War I were

A the world's first universal public education system

B a large agricultural surplus

C entrepreneurial abilities of great industrialists

D all of the choices are true

C only the North

D only the South

A were over tariffs and the extension of slavery into the new territories

C was Abraham Lincoln freeing the slaves

D None of the choices are true

87 In the decades before the Civil War, the South

A opposed the extension of slavery into the territories

B supported the extension of slavery into the territories

C cooperated with the North to establish both free and slavery territories

D None of the choices are true

the outbreak of the Civil War?

B Industrialization in the North

C Trade barriers with England

D All of the choices are true

A quickly recovered

B experienced no lingering effects

C suffered decades of economic transition

91 The prototype of suburban tract development was in

A San Luis Obispo, California

C Butte, Montana

D Levittown, New York

suburbs after World War II

C about the same number of

95 The world's number one economic power, in terms of total output, is

A the United States

C Compared to other decades, the 1990s was a decade was unique in that it had strong economic growth with no recessions

D At the end of the 1990s, the government was running budget surpluses

than Japan's

smaller than Japan's

C The United States' economy is larger than Japan's and The United States' population is smaller than Japan's

D The United States' economy is smaller than Japan's and The United States' population is larger than Japan's

98 Which presidential candidate made this pledge: "Read my lips: no new taxes"?

99 In the 1970s, the main economic problem was

A stagflation

C a slow growing money supply

D an economy that was expanding too rapidly

100.Which president had to cope with both rising deficits and a rising rate of inflation?

B It was very bad for the construction industry

C It left the cities with large concentrations of poor people

D It raised the tax bases of most cities

102.What revived the United States' economy out of the Depression in the early 1940s?

103.Which statement is true?

C The federal government played a significant role during Dwight Eisenhower's presidency

D The longest recession since World War II began in 1990

104.In early 2010 there were Americans working than there were 10 years earlier

A more

B fewer

C the same number of

105.Which statement is true?

C John D Rockefeller controlled the U.S automobile industry during the first two decades of the

20th century

D Andrew Carnegie was the leading steel producer in the U.S in 1900

106.The New Deal was carried out during the administration of President

B Franklin Roosevelt

C Harry Truman

D Dwight Eisenhower

107.In the first week in March 1933, banks had shut their doors

C people became more optimistic

D the federal government began to spend a huge amount of money

109.Which statement is false?

110.Which one of the following was the strategy followed by Japanese industrialists after World War II?

industrial base

consumers, since Americans could afford to pay more for these goods

C They sold high-priced goods to the high end of the American market, leaving the low end to Korea and Taiwan

D They received tens of billions of dollars in aid from the U.S government and have still not paid back a penny

111.Which one of the following was a basic economic conflict between the North and the South in the years preceding the Civil War?

C The North demanded the abolition of slavery

D The North opposed the building of a transcontinental railroad

112.In 1860 four-fifths of the farms with over 500 acres were in the

A North

B East

C South

D West

113.For most of the 19th century in the American West, there was

A an abundance of labor relative to land

B abundance of land relative to labor

C an abundance of both labor and land

D a scarcity of both labor and land

114.The Age of the great industrial capitalist was

A the first quarter of the 19th century

B the second quarter of the 19th century

C the third quarter of the 19th century

D the fourth quarter of the 19th century

115.The U.S did not lapse back into a depression after World War II ended for all of the following reasons EXCEPT

C government programs that aided the trend toward suburbanization

D a return to laissez-faire economic policies

116.The United States experienced depressions in all of the following decades except

A the 1890s

B the 1920s

C the 1930s

D the 1950s

117.Which of the following would not be considered a boom period as measured by the percentage growth rate of U.S output of goods and services?

C mass production

D the abundance of land

119.The South's economy was based on production of

A iron, steel and textiles

C tobacco, cotton and rice

D iron, wheat and cotton

120.Which of the following is false?

American market rather than just a series of smaller regional markets

tariffs, but were in conflict over the spread of slavery into the new Western territories

C The U.S was the first mass-consumption society

D From 1900 to the end of World War I, U.S farmers prospered

121.Economic growth was stimulated by suburbanization

A in the first five years after World War II

B in the 15 years following World War II

C from the mid 1960s to the mid 1970s

D after the Persian Gulf War

122.In which of the following decades did the American government take a more "hands off" or "let it alone" approach in its role in the economy?

125.In which year did the United States account for half the world's manufacturing output?

A a declining federal budget deficit

C the spread of computerization

D a rising rate of inflation

127.Each of the following took place in the latter half of the 1990s except

A a falling rate of inflation

B a rising stock market

C an economic boom

D a rising unemployment rate

128.The symbiotic relationship between mass production and mass consumption was best personified

by

C Henry Ford

D John Deere

129.Which of the following statements is true?

C Despite hundreds of billions of dollars on farm price-support payments since World War II, the family farm is vanishing

D About 20 million people live on farms today

130.Which of the following is true?

C Once the Great Depression began in 1929, the United States' economy moved steadily downhill until 1933

D All of the choices are true

131.Which statement is false?

early 1940s

C President Reagan believed the federal government should "tax, tax, tax, spend, spend, spend", its way to prosperity

D All of the statements are false

132.Which statement is false?

C The United States' longest economic expansion was for six years during the Reagan Administration

D None of the choices are false

133.Which statement is true?

C We have had twelve recessions since the beginning of 1945

D None of the choices are true

134.Which statement is true?

C We have had twelve recessions since January, 1945

D All of the choices are true

135.Which of the following was an element of the New Deal?

C Regulation of the stock market

D Unemployment insurance, bank deposit insurance, and regulation of the stock market, but not wage and price controls

136.In which of the following years was there a recession?

137.Which of the following statements is false?

A In the early 19th century, the United States suffered from a scarcity of labor-relative to land

C The transcontinental railroads completed in the 1880s brought railroads to every region of the country

D Between 1939 and 1944, federal government spending rose by 400 percent

138.Which of the following statements is false?

C The inflation rate declined during the Eisenhower and Reagan administrations

D None of these statements are false

139.Which of the following statements is true?

C Output in the United States fell by about one-third between 1929 and 1933

D The Medicare and Medicaid programs were inaugurated during the New Deal

140.Which statement is true?

Security and unemployment insurance

C A war in Vietnam and a "war on poverty" in the Johnson Administration helped to reduce the federal budget deficit

D None of the choices are true

141.During George W Bush's presidency

B The United States' federal budget deficit hit a record high

C the federal budget surpluses in the last years of the Clinton presidency continued

D we experienced a very high inflation rate

142.Which of the following is false?

C The U.S has not had a depression since the 1930s

D The U.S had rising inflation all throughout the 1990s

143.Which statement is true?

of the previous 25 years

C Until the time of the Great Depression, the United States was primarily an agricultural nation

D There were no recessions during the presidency of Bill Clinton (January 1993-January 2000)

144.Which of the following describes what happened to the economy of the South after the Civil War?

two decades after the Civil War

key role in the industrialization of the South in the 1880s and 1890s

C The South remained the poorest region in the country until the growth of the Sun Belt took off

in the 1960s

145.Which of the following is true?

States the world's first mass market

B Southern manufacturers were hurt by the high protective tariffs of the 19th century that kept out cheaper British manufactured goods

C Agricultural inventions such as John Deere's steel plows greatly improved farm productivity

D All of the choices are true

146.Ransom E Olds

interchangeable parts

C sold millions of cars at a small unit of profit that allowed his company to dominate the industry

D All of the choices are true

147.Comparing the United States economy in the 1920s with the economy in the 1990s, all of the following were similar EXCEPT

C both decades had rapid technological progress

D both decades had the federal government take a laissez-faire approach to the economy

148.Comparing the United States economy in the 1920s with the economy in the 1990s, both decades

C suffered from economic depressions

D had soaring stock markets

149.The longest economic expansion on record lasted

A almost five years

B almost six years

D the Vietnam War

151.The United States experienced a depression in which of the following decades?

153.In the 1990s the United States' economy generated more than _ million additional jobs

American market rather than just a series of smaller regional markets

goods

C The U.S was the first mass-consumption society

D Aside from slavery, southern and northern agriculture were very similar

156.The massive shift of population and industry out the large central cities from the late 1940s through the 1960s was caused by

A terrorist attacks

C suburbanization

D the widespread use of electricity

E fear of nuclear war