Question 1

What best describes the impact of a price ceiling in a competitive market?

Accepted Answer

A)  This benefits all consumers because they are able to obtain the good for a lower price. 
B)  The quantity supplied will be in excess of the quantity demanded. 
C)  It will likely lead to consumers waiting in line for longer periods of time to buy the good. 
D)  It will benefit both consumers and producers of the good. 
A)  This benefits all consumers because they are able to obtain the good for a lower price. 
B)  The quantity supplied will be in excess of the quantity demanded. 
C)  It will likely lead to consumers waiting in line for longer periods of time to buy the good. 
D)  It will benefit both consumers and producers of the good. C

Question 2

Robert Higgs argued that ________ best explained the growth of "Leviathan" (Big Government).

Accepted Answer

A)  crises that changed fundamental ideologies. 
B)  urbanization. 
C)  the decline in organized religion as a provider of aid and relief for the poor. 
D)  expansion of the right to vote. 
A)  crises that changed fundamental ideologies. 
B)  urbanization. 
C)  the decline in organized religion as a provider of aid and relief for the poor. 
D)  expansion of the right to vote. A

Question 3

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.

Accepted Answer

A)  Treaty of Verdun. 
B)  Fourteen Points. 
C)  Economic Consequences of Peace. 
D)  United Nations. 
A)  Treaty of Verdun. 
B)  Fourteen Points. 
C)  Economic Consequences of Peace. 
D)  United Nations. B

Question 4

All of the following are associated with the War Industries Board except

Accepted Answer

A)  the negotiation of the prices of key industrial products. 
B)  developing and implementing the bulkline pricing system to determine industrial prices that maximized output. 
C)  the unintended consequence of the "priorities inflation" of contracts. 
D)  establishing and enforcing minimum wages for manufacturing workers. 
A)  the negotiation of the prices of key industrial products. 
B)  developing and implementing the bulkline pricing system to determine industrial prices that maximized output. 
C)  the unintended consequence of the "priorities inflation" of contracts. 
D)  establishing and enforcing minimum wages for manufacturing workers.

Question 5

Food rationing during World War I under the wartime food administration featured

Accepted Answer

A)  voluntary calls for "Meatless Mondays" and "Wheatless Wednesdays." 
B)  a broad policy of direct controls on prices set by the Food Administrator. 
C)  rationing for all food products except sugar. 
D)  a pervasive belief that fear of government retribution, rather than appeals to moral principles, was key to reducing consumption, and maintaining food surpluses for export. 
A)  voluntary calls for "Meatless Mondays" and "Wheatless Wednesdays." 
B)  a broad policy of direct controls on prices set by the Food Administrator. 
C)  rationing for all food products except sugar. 
D)  a pervasive belief that fear of government retribution, rather than appeals to moral principles, was key to reducing consumption, and maintaining food surpluses for export.

Question 6

Which US President was in office during World War I?

Accepted Answer

A)  Grover Cleveland 
B)  Herbert Hoover. 
C)  Abraham Lincoln. 
D)  Woodrow Wilson. 
A)  Grover Cleveland 
B)  Herbert Hoover. 
C)  Abraham Lincoln. 
D)  Woodrow Wilson.

Question 7

Which of the following is least accurate about the US during World War I?

Accepted Answer

A)  The armed forces increased from about 180,000 to 3 million 
B)    Soldiers were obtained through volunteer army and without a draft. 
C)  Many new agencies were started to regulate prices. 
D)  The US was a formal participant in the war for only 19 months. 
A)  The armed forces increased from about 180,000 to 3 million 
B)    Soldiers were obtained through volunteer army and without a draft. 
C)  Many new agencies were started to regulate prices. 
D)  The US was a formal participant in the war for only 19 months.

Question 8

If a government wants to distribute the burden of increased spending onto future generations it should:

Accepted Answer

A)  Increase taxes. 
B)  Borrow from the public. 
C)  Print more money. 
A)  Increase taxes. 
B)  Borrow from the public. 
C)  Print more money.

Question 9

Between 1914 and 1920, the US price level ______________.

Accepted Answer

A)  fell dramatically. 
B)  nearly doubled. 
C)  rose and fell in accordance with intensity of the war. 
D)  remained relatively stable. 
A)  fell dramatically. 
B)  nearly doubled. 
C)  rose and fell in accordance with intensity of the war. 
D)  remained relatively stable.

Question 10

Which of the following was not a reason why wages in the US increased during World War I?

Accepted Answer

A)  A sharp decrease in immigration during the war. 
B)  A large increase in drafting men into the armed forces. 
C)  A large increase in the number of government contracts. 
D)  A large increase in the number of women who were employed in the labor market. 
A)  A sharp decrease in immigration during the war. 
B)  A large increase in drafting men into the armed forces. 
C)  A large increase in the number of government contracts. 
D)  A large increase in the number of women who were employed in the labor market.

Question 11

Which nation was not an ally of the United States during World War I?

Accepted Answer

A)  Austria-Hungary . 
B)  Britain . 
C)  France . 
D)  Russia . 
A)  Austria-Hungary . 
B)  Britain . 
C)  France . 
D)  Russia .

Question 12

What best describes the role of the United States in World War I?

Accepted Answer

A)  The U.S. entered World War I as soon as it started. 
B)  The U.S. was a neutral moderator throughout the war. 
C)  The U.S. entered the war on the side of Russia and opposed Austria Hungary 
D)  U.S. business suffered severe financial losses during the war. 
A)  The U.S. entered World War I as soon as it started. 
B)  The U.S. was a neutral moderator throughout the war. 
C)  The U.S. entered the war on the side of Russia and opposed Austria Hungary 
D)  U.S. business suffered severe financial losses during the war.

Question 13

During the post war period,

Accepted Answer

A)  an economic slowdown occurred immediately following the Armistice. 
B)  a vigorous boom began in 1919. 
C)  the Federal Reserve followed a policy of keeping its discount rate below market rates. 
D)  All of the above are correct. 
E)  Only b and c are correct. 
A)  an economic slowdown occurred immediately following the Armistice. 
B)  a vigorous boom began in 1919. 
C)  the Federal Reserve followed a policy of keeping its discount rate below market rates. 
D)  All of the above are correct. 
E)  Only b and c are correct.

Question 14

To pay for WW I, the national debt was expanded from ___ percent of GDP at the beginning of the war to ___ percent of GDP by the end of the war.

Accepted Answer

A)  1; 5 
B)  2; 13 
C)  3; 32 
D)  The national debt did not expand due to reparations payments. 
A)  1; 5 
B)  2; 13 
C)  3; 32 
D)  The national debt did not expand due to reparations payments.

Question 15

Which of the following is the least accurate ?

Accepted Answer

A)  European nations purchased large quantities of munitions and food at ever-rising prices form the U.S. 
B)  The financial center of the world shifted from New York before the war to London and Paris after the war. 
C)  The gap between Europe's imports from the U.S. and exports to the US rose dramatically. 
D)  The war was immensely profitable for many U.S. corporations. 
A)  European nations purchased large quantities of munitions and food at ever-rising prices form the U.S. 
B)  The financial center of the world shifted from New York before the war to London and Paris after the war. 
C)  The gap between Europe's imports from the U.S. and exports to the US rose dramatically. 
D)  The war was immensely profitable for many U.S. corporations.

Question 16

One of the causes of World War I was _________.

Accepted Answer

A)  the deteriorating standards of living in Europe. 
B)  the assassination in Serbia of Austrian Archduke Ferdinand. 
C)  Europe had experienced several wars in recent decades that spilled over into World War I. 
D)  the European working class was increasingly fractured and nationalistic. 
A)  the deteriorating standards of living in Europe. 
B)  the assassination in Serbia of Austrian Archduke Ferdinand. 
C)  Europe had experienced several wars in recent decades that spilled over into World War I. 
D)  the European working class was increasingly fractured and nationalistic.

Question 17

Which of the following is most  accurate about Europe during World War I?

Accepted Answer

A)  Long-standing nationalistic and imperialistic rivalries produced a dangerous political situation. 
B)  The continent had experienced several major wars in the preceding decades. 
C)  Industrialization and a greater commitment to international trade had created rapidly rising standards of living. 
D)  There was rising solidarity among the labor movements of different nations. 
A)  Long-standing nationalistic and imperialistic rivalries produced a dangerous political situation. 
B)  The continent had experienced several major wars in the preceding decades. 
C)  Industrialization and a greater commitment to international trade had created rapidly rising standards of living. 
D)  There was rising solidarity among the labor movements of different nations.

Question 18

What most accurately describes what happened to earnings in the US between 1914 and 1920?

Accepted Answer

A)  Both nominal and real earnings increased substantially. 
B)  Nominal and real earnings dropped significantly as the World War I triggered a recession. 
C)  Nominal earnings increased slightly, but real wages decreased because of the large inflation. 
D)  A period of deflation led real earnings to increase even though nominal earnings had decreased slightly 
A)  Both nominal and real earnings increased substantially. 
B)  Nominal and real earnings dropped significantly as the World War I triggered a recession. 
C)  Nominal earnings increased slightly, but real wages decreased because of the large inflation. 
D)  A period of deflation led real earnings to increase even though nominal earnings had decreased slightly

Question 19

The best description of the economic ideology during World War I was __________.

Accepted Answer

A)  The belief that the economy could be strengthened by centralized coordination. 
B)  The economy would work best with a strong commitment to the free market 
C)  The US should eliminate many federal agencies during World War I to make the government more efficient. 
A)  The belief that the economy could be strengthened by centralized coordination. 
B)  The economy would work best with a strong commitment to the free market 
C)  The US should eliminate many federal agencies during World War I to make the government more efficient.

Question 20

The War Industries Board, headed by Bernard Baruch, performed all of the following functions except

Accepted Answer

A)  negotiating prices of key industrial products. 
B)  developing and implementing the bulkline pricing system to determine industrial prices that maximized output. 
C)  establishing a ratings system for government contracts. 
D)  establishing and enforcing minimum wages for manufacturing workers. 
A)  negotiating prices of key industrial products. 
B)  developing and implementing the bulkline pricing system to determine industrial prices that maximized output. 
C)  establishing a ratings system for government contracts. 
D)  establishing and enforcing minimum wages for manufacturing workers.

Exam 21: World War I, 1914-1918

What best describes the impact of a price ceiling in a competitive market?

Robert Higgs argued that ________ best explained the growth of "Leviathan" (Big Government).

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.

All of the following are associated with the War Industries Board except

Food rationing during World War I under the wartime food administration featured

Which US President was in office during World War I?

Which of the following is least accurate about the US during World War I?

If a government wants to distribute the burden of increased spending onto future generations it should:

Between 1914 and 1920, the US price level ______________.

Which of the following was not a reason why wages in the US increased during World War I?

Which nation was not an ally of the United States during World War I?

What best describes the role of the United States in World War I?

During the post war period,

To pay for WW I, the national debt was expanded from ___ percent of GDP at the beginning of the war to ___ percent of GDP by the end of the war.

Which of the following is the least accurate ?

One of the causes of World War I was _________.

Which of the following is most accurate about Europe during World War I?

What most accurately describes what happened to earnings in the US between 1914 and 1920?

The best description of the economic ideology during World War I was __________.

The War Industries Board, headed by Bernard Baruch, performed all of the following functions except

Growth, Welfare, and the American Economy

Founding the Colonies

Colonial Economic Activities

The Economic Relations of the Colonies

Economic Progress and Wealth

Three Crises and Revolt

Hard Realities for a New Nation

Land and the Early Westward Movements

Transportation and Market Growth

Market Expansion and Industry in First Transition

Labor During the Early Industrial Period

Money and Banking in the Developing Economy

The Entrenchment of Slavery and Regional Conflict

War, Recovery, and Regional Divergence

Agricultures Western Advance

Railroads and Economic Change

Industrial Expansion and Concentration

The Emergence of Americas Labor Consciousness

Money, Prices, and Finance in the Postbellum Era

Commerce at Home and Abroad

The Roaring Twenties

The Great Depression

The New Deal

World War Ii

The Changing Role of the Federal Government

The Changing Role of the Federal Government: Consumer Safety, Agriculture, the Environment, and Housing

Monetary Policy, Fiscal Policy, and the Business Cycle After World War Ii

Manufacturing, Productivity, and Labor

Achievements of the Past, Challenges for the Future

Filters

To pay for WW I, the national debt was expanded from _ percent of GDP at the beginning of the war to _ percent of GDP by the end of the war.