Principles Of American Democracy Part 2

Front 1

The economist who disagreed with the idea that free markets lead to full employment and prosperity and suggested that increasing government spending would end the depression was:

Back 1

1. Keynes
2. Malthus
3. Smith
4. Friedman

Front 2

The father of modern economics is generally agrred to be:

Back 2

1. Thomas Robert Malthus
2. John Stuart Mill
3. Adam Smith
4. John Maynard Keynes

Front 3

The purchace of goods and services on one market for immediate resale on another market is:

Back 3

1. Output
2. Enterprise
3. Arbitrage
4. Mercantile

Front 4

Individual ownership of land, capital, and businesses with minimal governmental regulations is an economic system called:

Back 4

1. Free enteprsie
2. Laisses-faire
3. Micro-economy
4. Macro-economy

Front 5

Which two major factors are used to derive an individual's labor supply curve in the labor market?

Back 5

1. Wage and savings
2. Income and leisure
3. Unemployment and demand for workers
4. Population and capital
5. Technology and production

Front 6

A negative externality is when:

Back 6

1. A firm is earning negative economic profits.
2. A firm has a total cost that it can reduce with new technology.
3. An external cost is imposed on the public.
4. An external benefit is imposed on the public.
5. The price of the product goes up after an increase in the demand for that product.

Front 7

Which of the following best illustrates how economic incentives cause changes in a firm's behavior?

Back 7

1. A firm revises its corporate bylaws to clarify the rights of the shareholders.
2. A firm raises worker wages after acheiving an increase in earnings.
3. A firm modify the way it measures productivity after changing its product line.
4. A firm reduces output of a product because of declining consumer demand.

Front 8

Suppose a firm finds that demand is higher than it predicted when it made its long-run planning decision about the amount of capital it would need. Which of the following will occur?

Back 8

1. The firm will experience lower costs than it anticipated, due to overutilization of its existing plant.
2. The firm will experience higher costs than it anticipated, due to overutilization of its existing plant.
3. The firm will experience lower costs than it anticipated, due to underutilization of its existing plant.

Front 9

How can commercial banks increase the money supply?

Back 9

1. By transferring funds to the Federal Reserve
2. By buying bonds from the Federal Reserve
3. By transferring money to other banks
4. By keeping all deposits in reserve
5. By lending out excess reserves

Front 10

The condition for allocative efficiency holds when:

Back 10

1. Short-runprofits exists in a competitive industry.
2. The market demand curve is inelastic in a competitive indutry.
3. The markey demand curve is elastic in a competitive industry.
4. Firms are price markets.
5. Price equals marginal total cost.

Front 11

Of the following types of unemployemnt, which one is structural unemployment?

Back 11

1. A software engineer who leaves his job to move to Spain
2. A worker who loses his job during a recession
3. An assembly line worker who is replaced by a machine
4. A teacher who is unemployed during the summer months
5. A worker who is unproductive

Front 12

Which of the following was a major casue of the conflicts within and among the emerging democracies of Africa during the second half of the twentieth century?

Back 12

1. national economies that focised on the production of export crops
2. rulers who had been educated in colonial institutions of higher learning
3. population movement from rural to urban areas
4. political boundries that had been established by colonial powers

Front 13

Assume that as a result of an improvement in technology, the work done by Smith (who works on an assembly line) can be done more efficiently by a machine. According to the definitions of unemployment, Smith would be considered to be:

Back 13

1. cyclically unemployed.
2. structurally unemployed.
3. frictionally unemployed.
4. terminally unemployed.

Front 14

Which of the following wil most likely occur if the federal government imposes a minimum wage that is below the equilibrium?

Back 14

1. Employment in high-skill jobs will decrease.
2. Wages in low-skill jobs will remain unchanged.
3. Wages in high-skill jobs will fall.
4. Employment in low-skill jobs will increase.

Front 15

The idea or proposal for more equal division of profits among employers and workers was put forth by:

Back 15

1. Karl Marx
2. Thomas Malthus
3. Adam Smith
4. John Stuart Mill

Front 16

Marxism believes which two groups are in continual conflict:

Back 16

1. Kings and the nobility
2. Farmers and landowners
3. Workers and owners
4. The aristocrats and the middle class

Front 17

What event sparked the a great migration of people from all over the world to California?

Back 17

1. The birth of labor unions
2. California statehood
3. The intervention of the automobile
4. The gold rush

Front 18

The Gramm-Rudman-Hollings Act required

Back 18

1. automatic cuts in government spending when the deficit reached a certain amount.
2. the president to order more defense spending.
3. Congress to balance the budget by 1986.
4. the federal budget deficit to be increased.

Front 19

Which of the following is the best general definition of the study of economics?

Back 19

1. Inflation and unemployment in a growing economy.
2. Business decision making under foreign competition.
3. Individual and social choice in the face of scarcity.
4. The best way to invest in the stock market.

Front 20

Specialization and exchange (trade) often leave a country in the (short run) position of increasing employment in one industry, while increasing unemployment in some other industry. How should a country determine whether this specialization and exchange is really beneficial?

Back 20

1. If specialization and exchange creates unemployment it is never beneficial.
2. If the country's trading partner benefits, then that country will not benefit.
3. It depends on whether the benefits to the consumers (who are able to enjoy more of both goods than before trade) outweigh the cost to the workers in the industry experiencing increased unemployment.
4. The country may benefit from trade in the short run, but a long run goal of every country should be self-sufficiency.

Front 21

Suppose an auto firm’s factories are capable of producing both large and small cars and are operating at full capacity. Suppose the price of large cars increases, due to an increase in demand. What would reasonably be expected to happen to the equilibrium price and equilibrium quantity for the firm’s small cars?

Back 21

1. price increases; quantity decreases.
2. price decreases; quantity decreases.
3. price decreases; quantity increases.
4. price increases; quantity increases.

Front 22

In 1990, Congress increased the minimum wage to $4.25 per hour. However, many critics of the minimum wage law argued that this would simply result in increased unemployment. Which of the following arguments could be used to support this assertion?

Back 22

1. An increase in the minimum wage causes labor supply to decrease.
2. An increase in the minimum wage increases the demand for labor.
3. The minimum wage acts like a price floor set above equilibrium.
4. The minimum wage acts like a price ceiling set below equilibrium.

Front 23

The ecomienda system consisted of all of the descriptions, practices, and events below except:

Back 23

1. A fuedal-like system established by the Spanish in the New World to ensure a cheap labor supply
2. A grant of Idians to an encomendero or Spanish landowner
3. Natives were treated harshly and were eventually so overworked that slaves were brought in from Africa to replace the diminishing native labor supply
4. Christian missionaries successfully ended the system by protesting against it

Front 24

Native communities in California are commonly divided into several cultural areas. How many cultural areas?

Back 24

1. 3
2. 4
3. 5
4. 6
5. 7

Front 25

At the beginning of the sixteenth century, most American Indians in southern and south central California were members of:

Back 25

1. small, independent groups organized on the basis of lineage and clan.
2. large political confederacies that control substantial amounts of land.
3. unstratified societies without chiefs or social hierarchies.
4. nomadic bands that were constatly on the move throughout the region.

Front 26

Mining for gold and silver

Back 26

1. forced Ameridians off the Great Plains
2. destroyed large cities in the West
3. brought law-abiding citizens to California
4. ecourage great numbers of fortune seekers to move West
5. sent the United States off of the gold standard

Front 27

Which of the following best illustartes the continuing effect of Progressive era reforms in California?

Back 27

1. nonpartisan elections
2. bank regulation
3. taxation of corporate income
4. initiative law-making

Front 28

In the United States government, the power of coining money is:

Back 28

1. Implied or suggested
2. Concurrent or shared
3. Delegated or expressed
4. Reserved

Front 29

From 1930 to 1945, many Americans migrated to California from other parts of the nation and constituted one of the largest migrations in United States history.
With your knowledge of California history, analyse two reasons for this migration to California.

Back 29

?

Front 30

The United States continues to lead the world in the globalization effort and encourages the lack of restrictions of the international exchange of goods and capital. With your own knowledge of econimics, analyse why some U.S. economists have reservations about these policies and why some do not. (Points: 10)

Back 30

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