Test 3 Flashcards
Which of the following is the most accurate description of the US between 1880 and 1920?
The United States was the leading manufacturer in the world in terms of total production and output per worker.
What is least accurate about marketing and selling in the US prior to the Civil War?
Most companies eliminated wholesalers to market products directly to their customers and save money.
What is the most accurate statement about the fraction of the US population that lived in urban areas between 1800 and 1910?
The fraction of the US population that lived in urban areas grew steadily throughout the period.
Which of the following is least accurate in characterizing changes in retailing in the second half of the 19th century?
Large growth in the number of “general stores.”
What is least accurate about marketing and selling in the US after the Civil War?
There was a decrease in product differentiation—goods became more alike.
What most accurately describes the U.S. compared to other nations in the early 1900s?
The U.S., Great Britain and Germany were the three most industrialized nations.
Which is least accurate about foreign trade?
The most industrialized nations exported foodstuffs and raw materials to the least developed countries.
What most accurately describes the US tariff policy between 1850 and 1910?
The US became more protectionist during the Civil War and the level of tariffs remained high into the beginning of the 20th century.
What most accurately describes imperialism between 1870 and 1917?
The “Roosevelt Corollary” and the Monroe Doctrine were the primary documents that outline the US foreign policy.
Advertising to differentiate your product most often occurs in what type of industry?
Industries with monopolistic competition.
Which of the following is least accurate about the US during World War I?
Soldiers were obtained through volunteer army and without a draft.
Which of the following is most accurate about the US during World War I?
The continent had experienced several major wars in the preceding decades.
Which nation was not an ally of the United States during World War I?
Austria-Hungary
Which of the following is the least accurate?
The financial center of the world shifted from New York before the war to London and Paris after the war.
The U.S. financed WWI primarily by:
borrowing from the public.
The best description of the economic ideology during World War I was __________.
The belief that the economy could be strengthened by centralized coordination.
What most accurately describes what happened to earnings in the US between 1914 and 1920?
Both nominal and real earnings increased substantially.
At the end of World War I, the ___________ outlined in broad terms the territorial adjustments that should occur in Europe, the extent of the reparations the losing nations owed, and the general association of nations that would guarantee each nation’s sovereignty in the future.
The Fourteen Points.
All of the following are associated with the War Industries Board except
establishing and enforcing minimum wages for manufacturing workers.
Food rationing during World War I under the wartime food administration featured
voluntary calls for “Meatless Mondays” and “Wheatless Wednesdays.”
What best describes the impact of a price ceiling in a competitive market?
It will likely lead to consumers waiting in line for longer periods of time to buy the good.
If a government wants to distribute the burden of increased spending onto future generations it should:
Borrow from the public.
What best describes the reason for the large migration of African-Americans from the south to the north during the 1920s?
Employers in the North who had traditionally hired many immigrants had to search elsewhere when immigration restrictions were imposed.
“Marriage bars”
- became more widespread in the 1920s
- forced female employees to leave work when they married.
Which of the following is most accurate about the 1920s?
The rapid increases in income reduced the use of credit.
Which of the following was not a major source of economic growth in the 1920s?
railroad construction
The 1920 census reported that ________ percent of Americans were urban dwellers.
more than 50
The ownership of radios increased from ___ percent in 1920 to ___ percent in 1930.
less than one; 40
During Prohibition the consumption of alcohol _____ and the crime rate _______.
fell;
Increased
During Prohibition overdose and accidental poisoning due to alcohol _____ and the variation in the quality of alcohol _______.
Increased;
Increased
In 1910, 8.6 percent of American 17-year olds were high school graduates. By 1938, this figure _____.
had risen to nearly 50 percent.
Union membership declined during the 1920s due to
- the growth of the service sector.
- increased use of high-tech, labor-saving devices in the manufacturing sector.
- firms’ use of “yellow-dog” contracts.
- poor union leadership.
Which of the following best describes trends in unionization and immigration in the 1920s?
Both decreased.
Which groups were least likely to support restrictions on immigration?
Employers
Which of the following pieces of agricultural legislation might be thought of as a solution to a problem that did not exist?
the Smoot-Hawley Tariff Act
In the 1920s, the Federal Reserve followed a policy of _____ because it believed that the insolvent banks ____.
Letting insolvent banks fail; were too small to be profitable and were badly managed.
During the stock market boom of the late 1920s stock prices ______.
rose faster than dividends.
The 1920s were characterized by large numbers of bank failures each year, especially among country banks. Country banks were particularly inclined to fail because
farm mortgages constituted the major portion of their loans.
Which of the following is most accurate?
Most economic historians believe rapid increase in inequality caused the Great Depression.
Investors should be willing to pay more for a stock when (controlling for all other things):
Future interest rates are expected to decrease.
Research by Warburton, and more recently Miron and Zweibel on alcohol consumption during and after prohibition indicates that
the demand for alcohol is fairly price inelastic.
During the Great Depression, real GDP decreased by roughly ____ percent and unemployment rose to roughly ____ percent.
30:
25
What is the best description of the US economy from 1929-1940?
The economy suffered an initial drop, a four-year expansion and then another drop towards the end of the decade.
The Stock Market Crash of 1929 probably contributed ____ to the Great Depression because _____.
a good deal;
consumer confidence and spending on durables were reduced.
At its maximum during the Great Depression unemployment reached approximately ___ percent of the labor force?
25
What best explains the pattern of bank collapses in the US?
The vast majority of banks closed early in the decade and the closing dropped significantly in the latter half of the decade.
During the Federal Bank Holiday ordered by President Roosevelt and the week that followed it,
- the banks were inspected.
- actions were taken to take the US off the gold standard
During the 1930s,
- ordinary citizens were not allowed to hold gold.
- the US government fixed the price at which the Treasury would by and sell gold.
- production of gold soared
Britain’s departure from the gold standard in September 1931 ____ bank closures in the United States because ____.
increased, anyone who wanted gold had to withdraw it from U.S. banks.
According to Walton and Rockoff, which of the following was the most important in bringing the banking crises of the 1930s to an end?
the promise of federal bank deposit insurance.
Between 1929 and 1933, nominal interest rates ___, and real interest rates ___.
fell;
rose.
Andrea Schwatz has argued that the Great Depression was caused by
the fall in the stock of money.
One reason the Federal Reserve Board in Washington did not act as a lender of last resort during the early years of the Great Depression, was its power struggle with ____.
Federal Reserve Bank of New York.
Some have argued that the Federal Reserve looked at the wrong indicator of monetary policy, and that the Fed mistakenly thought that monetary policy was “easy” because ______.
market interest rates were low.
