Question 1

Explain why the inflation of the 1970s increased the opportunity costs of one woman staying at home.

Accepted Answer

The inflation of the 1970s increased the opportunity costs of one woman staying at home for several reasons. Firstly, during this time period, inflation led to a significant increase in the cost of living, making it more difficult for families to afford a single income. As prices for goods and services rose, families needed to generate more income in order to maintain their standard of living, which often meant that both partners needed to work.

Secondly, the rising inflation also led to higher interest rates, which made it more expensive for families to borrow money. This meant that if a woman chose to stay at home instead of working, the family would miss out on her potential income and financial contribution, making it harder to afford big-ticket items such as a home or a car.

Additionally, the 1970s saw a shift in societal attitudes towards women in the workforce, with more women entering and staying in the workforce. This meant that there were more opportunities for women to work and contribute to the family income, and staying at home became less of a societal norm.

Overall, the inflation of the 1970s increased the opportunity costs of one woman staying at home by making it more difficult for families to afford a single income, raising the cost of borrowing money, and shifting societal attitudes towards women in the workforce.

Question 2

In the period 1960-95,the federal government

Accepted Answer

A)  played, in general, a much larger role in the economy during this period than prior to World War II. 
B)  played a small role in the economy, similar to the 1920s. 
C)  eliminated most of the major programs for the federal government that were established by the New Deal in the 1930s, while state and local governments began to play a larger role in the economy. 
D)  played a large role in defense spending but followed basically a laissez-faire policy toward the rest of the economy. 
A)  played, in general, a much larger role in the economy during this period than prior to World War II. 
B)  played a small role in the economy, similar to the 1920s. 
C)  eliminated most of the major programs for the federal government that were established by the New Deal in the 1930s, while state and local governments began to play a larger role in the economy. 
D)  played a large role in defense spending but followed basically a laissez-faire policy toward the rest of the economy. A

Question 3

Describe the economic history behind the transportation sector in the U.S.What key changes took place and what fuelled these changes?

Accepted Answer

The economic history of the transportation sector in the U.S. can be traced back to the early 19th century with the invention and widespread adoption of the steam engine. This led to the development of steam-powered locomotives and steamboats, revolutionizing the movement of goods and people across the country.

The key changes in the transportation sector in the U.S. have been fueled by several factors. Firstly, the expansion of the railroad network in the 19th century connected the East and West coasts, enabling faster and more efficient transportation of goods and people. This led to the growth of industries and the development of new markets, ultimately driving economic growth.

Another key change was the widespread adoption of automobiles and the construction of highways in the early 20th century. This led to increased mobility and accessibility, further facilitating economic development and urbanization.

The discovery of oil and the development of the oil industry also played a significant role in fueling these changes. The availability of cheap and abundant fuel sources, such as oil, enabled the expansion of the transportation sector and the development of new technologies, such as airplanes and diesel-powered vehicles.

In more recent times, the transportation sector has seen significant advancements in technology, such as the development of electric and autonomous vehicles, as well as the expansion of global supply chains and logistics networks. These changes have further transformed the transportation sector and have had a profound impact on the U.S. economy.

Overall, the economic history of the transportation sector in the U.S. has been marked by significant changes driven by technological advancements, infrastructure development, and the availability of fuel sources. These changes have played a crucial role in shaping the U.S. economy and have contributed to its growth and prosperity.

Question 4

Like Franklin D.Roosevelt (1933-45),William J.Clinton's (1993-2001)deficit-reducing tax hikes pushed the economy into a recession.

Accepted Answer

A) True 
 B)False

Question 5

The term "stagflation" refers to an economy with the simultaneous problems of

Accepted Answer

A)  rising inflation rates and falling unemployment rates. 
B)  rising deflation and unemployment rates. 
C)  rising inflation and unemployment rates. 
D)  falling deflation and unemployment rates. 
A)  rising inflation rates and falling unemployment rates. 
B)  rising deflation and unemployment rates. 
C)  rising inflation and unemployment rates. 
D)  falling deflation and unemployment rates.

Question 6

Discuss the events leading up to the demise of the Glass-Steagall Act in 1999.

Accepted Answer

The Glass-Steagall Act, which was passed

Question 7

After the inflation of the Johnson-Nixon-Ford years (1963-1976),the Carter Administration,while still inflationary,managed to slow down the rate of advancing prices.

Accepted Answer

A) True 
 B)False

Question 8

The expansion of governmental direct controls over the economy which characterized the "New Frontier" and "Great Society" programs of the Kennedy-Johnson years was continued and expanded by the Nixon Administration.

Accepted Answer

A) True 
 B)False

Question 9

Prices rose strongly during the Vietnam War (1964-1974),and only the adroit monetary and fiscal policy management of the Carter administration (1976-1980)managed to get inflation under control.

Accepted Answer

A) True 
 B)False

Question 10

What is the Consumer Price Index (CPI)? Interpret Table 30.1.Explain how increases in the CPI affect (i)individuals living on fixed incomes,(ii)savers with deposits paying interest rates not indexed to inflation rates and (iii)net U.S.exports.When does inflation not affect real output and ?the purchasing power of income?

Accepted Answer

The Consumer Price Index (CPI) is a meas

Question 11

With special attention paid to the role of economic forces,explain the rise in the number of ?two-income families in the U.S.

Accepted Answer

The rise in the number of two-income fam

Question 12

The U.S.economy remains subject to frequent boom and bust cycles.Throughout U.S.history,policymakers after the Great Depression often

Accepted Answer

A)  raise or lower taxes and spending to adjust aggregate demand and thereby smooth the ?business cycle. 
B)  take a hands-off approach to the business cycle. 
C)  consult with world organizations on how to address cyclic fluctuations. 
D)  close economies to international trade. 
A)  raise or lower taxes and spending to adjust aggregate demand and thereby smooth the ?business cycle. 
B)  take a hands-off approach to the business cycle. 
C)  consult with world organizations on how to address cyclic fluctuations. 
D)  close economies to international trade.

Question 13

Explain how the energy crisis of the 1970s provided economic incentive to explore other energy alternatives.

Accepted Answer

The energy crisis of the 1970s, sparked

Question 14

In the period 1960-95,

Accepted Answer

A)  the relations between capital and labor (owners and workers) continued to be as hostile and violent as they were in the 1930s and earlier. 
B)  the relations between capital and labor (owners and workers) continued to be cooperative and peaceful, as they had been throughout U.S. history. 
C)  an accord was struck which involved more cooperative relations between capital and labor and encouraged high rates of productivity in industry. 
D)  the federal government intervened with a strong hand to ensure that labor and capital worked together cooperatively. 
A)  the relations between capital and labor (owners and workers) continued to be as hostile and violent as they were in the 1930s and earlier. 
B)  the relations between capital and labor (owners and workers) continued to be cooperative and peaceful, as they had been throughout U.S. history. 
C)  an accord was struck which involved more cooperative relations between capital and labor and encouraged high rates of productivity in industry. 
D)  the federal government intervened with a strong hand to ensure that labor and capital worked together cooperatively.

Question 15

How much does it cost to tax a dollar of revenue away from the private sector and transfer it to the government in order to bail out a specific industry?

Accepted Answer

A)  One dollar 
B)  Less than one dollar because the administration of and compliance with the tax ?laws creates jobs for people 
C)  Less than a dollar because of the excess burden resulting from the elimination of ?productive exchanges by the taxes 
D)  More than a dollar because collection of the taxes requires resources that would otherwise ?be available for private sector production 
A)  One dollar 
B)  Less than one dollar because the administration of and compliance with the tax ?laws creates jobs for people 
C)  Less than a dollar because of the excess burden resulting from the elimination of ?productive exchanges by the taxes 
D)  More than a dollar because collection of the taxes requires resources that would otherwise ?be available for private sector production

Question 16

Economic history shows that stock market averages are useful predictors of the future.

Accepted Answer

A) True 
 B)False

Question 17

When output is held constant,inflation does which of the following?

Accepted Answer

A)  Increases real GDP 
B)  Increases real income 
C)  Increases government spending 
D)  Reduces the purchasing power of individuals ?living on fixed incomes. 
A)  Increases real GDP 
B)  Increases real income 
C)  Increases government spending 
D)  Reduces the purchasing power of individuals ?living on fixed incomes.

Question 18

Unlike the 1930s,the Federal Reserve System followed an easy money policy in the first decade?of the 2000s and,consequently,was able to prevent a severe recession from following a period of notably high economic activity.

Accepted Answer

A) True 
 B)False

Question 19

The years after 1960 witnessed some social and economic changes of extraordinary magnitude,including all of the following except

Accepted Answer

A)  The core of U.S. growth shifted away from its historic base in heavy industry. 
B)  A huge influx of women into the labor force occurred. 
C)  Legislation provided for greater safety on the job and cleaner air and water. 
D)  The Cold War ended in the early 1970s, following the end of the Vietnam War, and defense spending declined significantly from the Cold War years of the 1950s. 
A)  The core of U.S. growth shifted away from its historic base in heavy industry. 
B)  A huge influx of women into the labor force occurred. 
C)  Legislation provided for greater safety on the job and cleaner air and water. 
D)  The Cold War ended in the early 1970s, following the end of the Vietnam War, and defense spending declined significantly from the Cold War years of the 1950s.

Question 20

Discuss how the basic steel and automobile industries have been challenged by foreign competition and have been forced to change to remain competitive.Identify the costs associated with the changes.Explain why these industry challenges,by contrast,have benefited consumers of steel ?and autos.

Accepted Answer

The basic steel and automobile industrie

Exam 30: To the New Millennium and Beyond

Explain why the inflation of the 1970s increased the opportunity costs of one woman staying at home.

In the period 1960-95,the federal government

Describe the economic history behind the transportation sector in the U.S.What key changes took place and what fuelled these changes?

Like Franklin D.Roosevelt (1933-45),William J.Clinton's (1993-2001)deficit-reducing tax hikes pushed the economy into a recession.

The term "stagflation" refers to an economy with the simultaneous problems of

Discuss the events leading up to the demise of the Glass-Steagall Act in 1999.

After the inflation of the Johnson-Nixon-Ford years (1963-1976),the Carter Administration,while still inflationary,managed to slow down the rate of advancing prices.

The expansion of governmental direct controls over the economy which characterized the "New Frontier" and "Great Society" programs of the Kennedy-Johnson years was continued and expanded by the Nixon Administration.

Prices rose strongly during the Vietnam War (1964-1974),and only the adroit monetary and fiscal policy management of the Carter administration (1976-1980)managed to get inflation under control.

With special attention paid to the role of economic forces,explain the rise in the number of ?two-income families in the U.S.

The U.S.economy remains subject to frequent boom and bust cycles.Throughout U.S.history,policymakers after the Great Depression often

Explain how the energy crisis of the 1970s provided economic incentive to explore other energy alternatives.

In the period 1960-95,

How much does it cost to tax a dollar of revenue away from the private sector and transfer it to the government in order to bail out a specific industry?

Economic history shows that stock market averages are useful predictors of the future.

When output is held constant,inflation does which of the following?

Unlike the 1930s,the Federal Reserve System followed an easy money policy in the first decade?of the 2000s and,consequently,was able to prevent a severe recession from following a period of notably high economic activity.

The years after 1960 witnessed some social and economic changes of extraordinary magnitude,including all of the following except

Discuss how the basic steel and automobile industries have been challenged by foreign competition and have been forced to change to remain competitive.Identify the costs associated with the changes.Explain why these industry challenges,by contrast,have benefited consumers of steel ?and autos.

Overseas Empire

Colonial Development

America on the Eve of Revolution

Gaining Independence

Westward Expansion

Population and Labor Force

Law and the Rise of Classical American Capitalism

Transportation, Internal Improvements, and Urbanization

Agricultural Expansion: The Conflict of Two Systems on the Land

The Debate over Slavery

The Early Industrial Sector

The Financial System and the International Economy

Economic Effects of the Civil War

Railroads and Economic Development

Post-Civil War Agriculture

Population Growth and the Atlantic Migration

Industrialization, Entrepreneurship, and Urban Growth

Big Business and Government Intervention

Financial Developments 1863–1914

The Giant Economy and Its International Relations

Labor and the Law

The Command Economy Emerges: World War I

Normalcy”: 1919–1929

The Great Depression

The New Deal

The “Prosperity” of Wartime

Before the New Frontier: The Postwar Economy

Population, Health, and Labor

Postwar Industry and Agriculture

Does Our Past Have a Future?

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