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ECON 2200
final exam
75
Economics
Undergraduate 2
12/11/2011

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Cards

Term
During the worst years of the Great Depression
Definition
All of the above (Stock prices fell, Price level fell, Consumer durables output fell, gross investment spending fell)
Term
If investment expenditures are ____ the replacement rate, productive capacity is ________
Definition
greater than; increasing
(not exactly the same)
Term
During the stock market boom of the late 1920s stock prices
Definition
rose faster than earnings
Term
Mosts of the funds for US stock bought on margin in the late 1930s came from
Definition
call loans made by corporations to brokers
Term
During the 1920s the fed followed the "real bills doctrine". This meant that the fed felt it shold only offer discount rate loans to banks that
Definition
made loans that were backed by capital
Term
As banks failed in the early 1930s, the federal reserve
Definition
increased the discount rate
Term
during the national bank holiday of March 1933
Definition
commercial banks were inspected
Term
Keynesians argue that during the great depression
Definition
the decrease in the demand for money was larger than the decrease in the supply of money
Term
According to Ben Bernanke and others, deflation in the 1930s
Definition
increased the burden of economic debt
Term
Monetarists note that the ratio of money to net national product rose between 1929 and 1932, indicating that
Definition
people were hoarding money rather than spending that
Term
Between 1929 and 1933, nominal interest rates ______ and the real interest rates_______
Definition
fell, rose
Term
According to the stupid fucking book that we have never read, between 1932 and 1940
Definition
All of the above (The federal government ran a deficit budget, federal government expenditures increased, expenditures tended to be less than revenues at the state and local level, the change in private investment spending exceeded the change in total government spending)
Term
During the worst years of the Great Depression (1929-1933), farmers experienced
Definition
All of the above (adverse terms of trading, declined in real income, increasing the debt burdens, rapidly falling prices for their product)
Term
Which of the following statements accurately describes business environment in the 1920s
Definition
All of the above (The use of the "yellow dog" contracts was permitted, the Sherman and Clayton Ats were not strongly enforced, Courts allowed firms to obtain injunctions against striking workers, Weak inactive members were appointed to the Federal Trade Commission)
Term
During WWII American farmers _______ their output, while _______ their level of indebtedness
Definition
Increased; also increasing
Term
The 1920s were characterized by large numbers of bank failures ever year, especially among rural banks. Rural banks were particularly inclined to fail because
Definition
farm mortgages constituted the major portion of their loans
Term
Consider the productions of good that has a high fixed cost, as the output of this good increases we typically find that the firm's
Definition
average cost fell
(maybe total fixed cost fails, but probably not cause Joseph is really smart)
Term
Corporations grew in size and numbers in the alte 19-th and early 20th centuries. Reasons for this growth include
Definition
All of the above (urban concentrations of buyers, the emergence of investment banking firms, lower transport costs that created national markets for many goods, the adoption by most states of easier processes for obtaining corporate charters)
Term
Which of the following is an example of a vertical merger
Definition
all of the above
Term
A monopoly market produces _____ output as a _____ price than a perfectly competitive market
Definition
less, higher
Term
Economist often note that in a fractional reserve system, private sector banks, commercial bankes tend to "starve recessions" in other words during recessions commercial banks tend to
Definition
increase their holdings of reserves
Term
Which of the following central bank functions did the early Federal Reserve system perform particularly well
Definition
served as a clearinghouse for checks and notes
Term
According to the Quantity theory of Money, an increase in the money supply can lead to
Definition
I don't know.
Just know the MV=PY thing and you should be good to go :)
Term
When the Coinage act of 1873 was passed, Silver was worth _____ on the mint than on the market, however _____ in the money supply of silver led to public outcry over the "demonitization" of silver under the act
Definition
Joseph fucked this one up too so I dont know the answer.
Its either b. less; decreases
or d. more; increases
Term
According to Rockoff and your text, the goals of monetary expansion and inflation that were advocated by followers of WIlliam Jennings Bryan
Definition
Were ultimately accomplished because of increased supplies of gold
(I think)
Term
According to the "economic ways of thinking" when ______ change, behavior changes in predictable ways
Definition
incentives
Term
American economi development over the past 250 years is largely characterized by
Definition
a moderate, but sustained record of economic growth
Term
What is teh real GDP per capita increase in the past 200 years
Definition
2-3%
Term
Sources of productivity growth include all of the following except
Definition
All of the above (Specialization and division of labor, managerial and organizational improvements, investment in human capital through education, training, and healthcare)
Term
Which of the following statements accurately characterizes western farming in the US in the late 19th century?
Definition
The real per capita income of farmers was increasing slightly
Term
Which of the following statements correctly characterizes the elasticity of demand for food?
Definition
If the price of food falls by 5%, the quantity demanded will rise by less than 5%
Term
In both the late 1800s and the early 1920s, the price of US farm products
Definition
was decreasing more rapidly than the overall price-level
Term
T/F IF the annua growth rate of GDP is 2%, GDP will double in about 35 years
Definition
True
Term
T/F The greenback Party supported "reflation" through an increase in the money supply
Definition
True
Term
T/F When a firm is operating with excess capacity, its output is greater than the output associated with minimum long-run average cost
Definition
Joseph thinks this is true
Term
T/F Cliometric studies conclude that competition increased in most industries during the merger era of the late 19th and early 20th centuries
Definition
True- i think
Term
t/f Under the bimetallic standard, onlt the metal that is overvalued at the mint will circulate as money
Definition
true
Term
T/F The two components of mass production are interchangeable parts and vertical integration
Definition
False
Term
t/f "Balloon mortgages" are lonas the required borrowers to repay the entire principal at the end of the term
Definition
True
Term
T/F During the early 1930s, nominal wages increased while real wages declined
Definition
false
Term
T/F Cliometric research indicates that an increased supply of loans caused teh 1920s bull market
Definition
false
Term
t/f Unanticipated deflation typically harms borrowers and benefits lenders
Definition
true
Term
Which of the these was not structurally stable in the 1920s
Definition
transportation
Term
T/F After the civil war in order for specie payment to resume, the price level had to decrease
Definition
Joseph put true, but then again Joseph is a Lingerthal, and is not sure of the real truth
Term
T/F the fed funds rate is the rate that the Fed charges other banks
Definition
false
Term
T/F Monopolies charge a price higher than MC
Definition
true
Term
rule of 70 question
Definition
70/10, says the lingerthal
Term
Which of the following.................................
Definition
No minimum wage rule made during this time
Term
Fiscal policy includes changes in
Definition
government spending.
Term
According to the “propositions for economic reasoning” (as described in Chapter 1), ______ matter.
Definition
. All of the above.
Term
Since 1870, the long-term trend in the annual growth rate of US real per capita GDP has has been about _______ percent.
Definition
2
Term
Which of the following variables has been shown to be highly correlated with nutrition, disease and income, and
is increasingly being used by economists to measure the well-being of people?
Definition
D. height , Question like this i think he said all of the above but i forget
Term
According to a study of income mobility by Cox and Alm (1995), _____ percent of individuals in the top income quintile in 1975 had moved to a lower income quintile by 1991.
Definition
C. 37.5 Similar question, answer on test was mobility of class over time upward downward mobility over quintiles, Large
Term
According to the Rule of 70 if the growth rate of real GDP is 4 percent per year, real GDP will double in about ____ years.
Definition
D. 17.5
Term
A producer should specialize in the production of the good that commands the highest price in the market.
Definition
False . A producer should specialize in the production of the good in which he/she has a comparative advantage--which is the good that has the lowest opportunity cost.
Term
In 1860, the largest US industry (as measured by value added) was
Definition
cotton goods
Term
In 1910, the largest US industry (as measured by value added) was:
Definition
C. machinery
Term
The two components of mass production are standardized interchangeable parts and vertical integration.
Definition
False, Think its a multiple choice question
Term
Of the industries listed in Table 17.5, _____ was the fastest growing between 1860 and 1910 in terms of value added per worker.
Definition
men's clothing, maybe on test plasker forgets
Term
In the Reunification period, firms with high fixed costs often found that their _____ fell as they expanded output.
Definition
average cost
Term
A profit-maximizing monopoly charges a price that is
Definition
greater than its marginal cost.
Term
According to an article by Jonathan Hughes, Andrew Carnegie's innovations included the introduction of:
Definition
All of the above.
Term
According to an article by Jonathan Hughes, Carnegie generally operated his various companies as
Definition
B. partnerships.
Term
Which of the following is an example of a horizontal merger?
Definition
C. the purchase of E.C. Knight Company by American Sugar Refining Company. Might not be this question but there is a hz question I think its all of the above if its not this. but not sure
Term
A firm experiencing excess capacity is producing an output that is ______ the output associated with minimum long-run average cost.
Definition
less than
Term
In the late-19th century, firms engaged in vertical mergers in order to
Definition
All of the above.
Term
Exact question
In 1911, the Supreme Court ordered the dissolution of both Standard Oil Co. and American Tobacco Co. In these decisions, the Court held that all of the following were grounds for antitrust violations EXCEPT:
Definition
the size of the firm relative to other firms in the same market.
Term
Exact question :According to the "Wizard of Oz" article by Rockoff (1990), who does the character of the Wicked Witch of the East represent?
Definition
Grover Cleveland
Term
During the Civil War, US exports _____ and US imports _____.
Definition
decreased; increased
Term
Which of the following statements provides accurate information about SILVER between 1874 and 1877?
Definition
All of the above.
Term
The 1920s were characterized by large numbers of bank failures each year, especially among rural banks. Research by White (1984) concludes that rural banks were particularly inclined to fail because:
Definition
farm mortgages constituted the major portion of their loans.
Term
Exact question :In 1933, about _____ of the US civilian workforce was either unemployed or working in government-created emergency jobs.
Definition
25 percent
Term
According to Table 22.8, in 1925 the price-to-dividend ratio for US stock equaled _____, and in 1929 it equaled _____.
Definition
$19.27; $28.74
Term
Exact :In the year immediately after the stock market crash of 1929, US stock prices, on average,
Definition
were lower than in 1929, but higher than in the mid-1920s.
Term
According to a video clip we viewed in class, a popular song entitled _____ was symbolic of the optimistic mood of Americans in the 1920s.
Definition
"Blue Skies"
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