Question 1

According to Friedman and Schwartz, the most important structural change in the banking system to result from the 1933 panic

Accepted Answer

A)  were laws barring short calls on equities. 
B)  was Federal insurance of bank deposits. 
C)  was an unprecedented increase in regulation. 
D)  was the loss of public confidence. 
A)  were laws barring short calls on equities. 
B)  was Federal insurance of bank deposits. 
C)  was an unprecedented increase in regulation. 
D)  was the loss of public confidence. B

Question 2

What is not one of the reasons why farmers prefer price supports more than direct income supplements?

Accepted Answer

A)  Direct income supplements tend to remain fixed over time. 
B)  Direct income supplements tend to provide lower benefits. 
C)  Direct income supplements tend to go predominantly to poor farmers. 
D)  Direct income supplements tend to be viewed as demeaning. 
A)  Direct income supplements tend to remain fixed over time. 
B)  Direct income supplements tend to provide lower benefits. 
C)  Direct income supplements tend to go predominantly to poor farmers. 
D)  Direct income supplements tend to be viewed as demeaning. B

Question 3

Which United States President is most closely identified with the New Deal?

Accepted Answer

A)  Calvin Coolidge. 
B)  Herbert Hoover. 
C)  Franklin Roosevelt. 
D)  Theodore Roosevelt. 
E)  Richard Nixon. 
A)  Calvin Coolidge. 
B)  Herbert Hoover. 
C)  Franklin Roosevelt. 
D)  Theodore Roosevelt. 
E)  Richard Nixon. C

Question 4

What was not one of the government's strategies to pull the nation out of the Great Depression?

Accepted Answer

A)  Large subsidies for manufacturing companies. 
B)  Sizable increases in employment of emergency workers. 
C)  Development of the Federal Deposit Insurance Corporation (FDI
C) . 
D)  Institute price controls for farmers. 
A)  Large subsidies for manufacturing companies. 
B)  Sizable increases in employment of emergency workers. 
C)  Development of the Federal Deposit Insurance Corporation (FDI
C) . 
D)  Institute price controls for farmers.

Question 5

The New Deal policies both relieved distress and reformed the system to prevent future depressions. An example of the former is the ___ while the ___ is an example of the latter.

Accepted Answer

A)  Civilian Conservation Corps; Works Projects Administration. 
B)  Works Projects Administration; Industrial Organization Review Board. 
C)  Civilian Conservation Corps; Securities and Exchange Commission. 
D)  Federal Deposit Insurance Corporation; Industrial Organization Review Board. 
A)  Civilian Conservation Corps; Works Projects Administration. 
B)  Works Projects Administration; Industrial Organization Review Board. 
C)  Civilian Conservation Corps; Securities and Exchange Commission. 
D)  Federal Deposit Insurance Corporation; Industrial Organization Review Board.

Question 6

Which of the following was NOT a prominent New Deal reform?

Accepted Answer

A)  Monetary power was centralized. 
B)  The gold standard was eliminated. 
C)  Implementation of deposit insurance. 
D)  Separation of commercial from investment banking. 
A)  Monetary power was centralized. 
B)  The gold standard was eliminated. 
C)  Implementation of deposit insurance. 
D)  Separation of commercial from investment banking.

Question 7

The Commodity Credit Corporation (CCC) instituted several policies to improve the welfare of farmers. Which of the following best describes the programs' effects?

Accepted Answer

A)  The CCC price supports mandated a one-price policy on all agricultural goods. 
B)  The CCC support prices became minimum prices in the marketplace. 
C)  The CCC price supports inefficiently allocated resources, which decreased welfare. 
D)  If the commodity price increased, according to the free market, then the CCC would command and collect "excess" profits, i.e., revenues in excess of the one-price policy, for use as loanable funds. 
A)  The CCC price supports mandated a one-price policy on all agricultural goods. 
B)  The CCC support prices became minimum prices in the marketplace. 
C)  The CCC price supports inefficiently allocated resources, which decreased welfare. 
D)  If the commodity price increased, according to the free market, then the CCC would command and collect "excess" profits, i.e., revenues in excess of the one-price policy, for use as loanable funds.

Question 8

In which of the following areas were substantial New Deal reforms NOT made?

Accepted Answer

A)  The commercial banking system. 
B)  The Federal Reserve System. 
C)  Securities markets. 
D)  Corporate accounting standards. 
A)  The commercial banking system. 
B)  The Federal Reserve System. 
C)  Securities markets. 
D)  Corporate accounting standards.

Question 9

Most economists have argued that the persistence of high unemployment despite New Deal policies

Accepted Answer

A)  constitutes a complete repudiation of New Deal policies. 
B)  was the result of "sticky" wages. 
C)  was in part the result of pressures from government to maintain wages. 
D)  Both b and c are correct. 
A)  constitutes a complete repudiation of New Deal policies. 
B)  was the result of "sticky" wages. 
C)  was in part the result of pressures from government to maintain wages. 
D)  Both b and c are correct.

Question 10

During the Great Depression, union membership _____ due to _____.

Accepted Answer

A)  expanded, greater cooperation between radicals and conservatives in the labor movement. 
B)  expanded, the passage of pro-union legislation. 
C)  contracted, greater conflict between radicals and conservatives in the labor movement. 
D)  contracted, people wouldn't risk losing their jobs by joining a union when unemployment was high. 
A)  expanded, greater cooperation between radicals and conservatives in the labor movement. 
B)  expanded, the passage of pro-union legislation. 
C)  contracted, greater conflict between radicals and conservatives in the labor movement. 
D)  contracted, people wouldn't risk losing their jobs by joining a union when unemployment was high.

Question 11

The National Recovery Act

Accepted Answer

A)  largely redistributed rather than expanded incomes. 
B)  cut unemployment in half. 
C)  was declared unconstitutional by the Supreme Court. 
D)  Both a and b are correct. 
E)  Both a and c are correct. 
A)  largely redistributed rather than expanded incomes. 
B)  cut unemployment in half. 
C)  was declared unconstitutional by the Supreme Court. 
D)  Both a and b are correct. 
E)  Both a and c are correct.

Question 12

Which were among the important reforms of the banking system that resulted from the financial crisis of the 1920 and 1930s?

Accepted Answer

A)  the Glass-Steagall Act 
B)  the prohibition of interest payments on bank deposits 
C)  the separation of commercial banking from investment banking 
D)  All of the above are correct. 
E)  Only a and c are correct. 
A)  the Glass-Steagall Act 
B)  the prohibition of interest payments on bank deposits 
C)  the separation of commercial banking from investment banking 
D)  All of the above are correct. 
E)  Only a and c are correct.

Question 13

What was not a significant cause of the Great Depression?

Accepted Answer

A)  Bank failures. 
B)  Stock market crash 
C)  Government fiscal and monetary policy. 
D)  Large increase in imports that took jobs away from American workers. 
A)  Bank failures. 
B)  Stock market crash 
C)  Government fiscal and monetary policy. 
D)  Large increase in imports that took jobs away from American workers.

Question 14

The text discusses unions in the context of the New Deal. It concludes that there was _____ in organized labor's relationship with government because _______.

Accepted Answer

A)  deterioration; Roosevelt's early speeches had created excessively high expectations. 
B)  an improvement; labor gained the right to strike and organize free of employer interference. 
C)  deterioration; organized labor was made subject to the same controls as big business. 
D)  an improvement; military preparations reduced unemployment. 
A)  deterioration; Roosevelt's early speeches had created excessively high expectations. 
B)  an improvement; labor gained the right to strike and organize free of employer interference. 
C)  deterioration; organized labor was made subject to the same controls as big business. 
D)  an improvement; military preparations reduced unemployment.

Question 15

Which United States President is most closely identified with the Great Depression?

Accepted Answer

A)  Calvin Coolidge. 
B)  Herbert Hoover. 
C)  Franklin Roosevelt. 
D)  Theodore Roosevelt. 
E)  Richard Nixon. 
A)  Calvin Coolidge. 
B)  Herbert Hoover. 
C)  Franklin Roosevelt. 
D)  Theodore Roosevelt. 
E)  Richard Nixon.

Question 16

Which of the following did the Fair Labor Standards Act (FLSA) of 1938 not accomplish?

Accepted Answer

A)  Lowered the maximum work week to 44 hours for many industries. 
B)  Outlawed companies' rights to break union strikes. 
C)  Prohibited many forms of child labor. 
D)  Set a minimum wage for laborers. 
A)  Lowered the maximum work week to 44 hours for many industries. 
B)  Outlawed companies' rights to break union strikes. 
C)  Prohibited many forms of child labor. 
D)  Set a minimum wage for laborers.

Question 17

What most accurately describes the implementation of the New Deal?

Accepted Answer

A)  It was implemented in two phases over the course of about eight years. 
B)  Its major reforms were implemented in the first 100 days of Franklin Roosevelt's Presidency. 
C)  The first elements of the New Deal that were implemented were the most politically liberal. 
D)  Most of the reforms were temporary and were phased out by World War II. 
A)  It was implemented in two phases over the course of about eight years. 
B)  Its major reforms were implemented in the first 100 days of Franklin Roosevelt's Presidency. 
C)  The first elements of the New Deal that were implemented were the most politically liberal. 
D)  Most of the reforms were temporary and were phased out by World War II.

Question 18

Concerning the effect of New Deal farm measures, Walton and Rockoff conclude that the New Deal _____.

Accepted Answer

A)  simply failed to help farmers because the farmer's terms of trade did not improve. 
B)  helped the farmer to a limited extent primarily through the stimulation of aggregate demand. 
C)  helped the farmer to a substantial extent by limiting farm output. 
D)  helped the farmer to a substantial extent by increasing farm output. 
A)  simply failed to help farmers because the farmer's terms of trade did not improve. 
B)  helped the farmer to a limited extent primarily through the stimulation of aggregate demand. 
C)  helped the farmer to a substantial extent by limiting farm output. 
D)  helped the farmer to a substantial extent by increasing farm output.

Question 19

Which of the following is least accurate about labor and employment during the Great Depression?

Accepted Answer

A)  New social security programs were established. 
B)  The price level decreased. 
C)  Average real wages decreased. 
D)  Unemployment rates dropped throughout the course of the Great Depression. 
A)  New social security programs were established. 
B)  The price level decreased. 
C)  Average real wages decreased. 
D)  Unemployment rates dropped throughout the course of the Great Depression.

Question 20

Which of the following is MOST accurate about the early years of the Great Depression?

Accepted Answer

A)  The price that farmers paid for farming inputs dropped, but the price they received for the products they sold dropped even more. 
B)  The price that farmers paid for farming inputs increased, forcing more farmers into debt 
C)  The debt of farmers decreased 
D)  The price that farmers received for the products they sold increased. 
A)  The price that farmers paid for farming inputs dropped, but the price they received for the products they sold dropped even more. 
B)  The price that farmers paid for farming inputs increased, forcing more farmers into debt 
C)  The debt of farmers decreased 
D)  The price that farmers received for the products they sold increased.

Exam 24: The New Deal

According to Friedman and Schwartz, the most important structural change in the banking system to result from the 1933 panic

What is not one of the reasons why farmers prefer price supports more than direct income supplements?

Which United States President is most closely identified with the New Deal?

What was not one of the government's strategies to pull the nation out of the Great Depression?

The New Deal policies both relieved distress and reformed the system to prevent future depressions. An example of the former is the ___ while the ___ is an example of the latter.

Which of the following was NOT a prominent New Deal reform?

The Commodity Credit Corporation (CCC) instituted several policies to improve the welfare of farmers. Which of the following best describes the programs' effects?

In which of the following areas were substantial New Deal reforms NOT made?

Most economists have argued that the persistence of high unemployment despite New Deal policies

During the Great Depression, union membership _____ due to _____.

The National Recovery Act

Which were among the important reforms of the banking system that resulted from the financial crisis of the 1920 and 1930s?

What was not a significant cause of the Great Depression?

The text discusses unions in the context of the New Deal. It concludes that there was _____ in organized labor's relationship with government because _______.

Which United States President is most closely identified with the Great Depression?

Which of the following did the Fair Labor Standards Act (FLSA) of 1938 not accomplish?

What most accurately describes the implementation of the New Deal?

Concerning the effect of New Deal farm measures, Walton and Rockoff conclude that the New Deal _____.

Which of the following is least accurate about labor and employment during the Great Depression?

Which of the following is MOST accurate about the early years of the Great Depression?

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

World War I, 1914-1918

The Roaring Twenties

The Great Depression

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

The New Deal policies both relieved distress and reformed the system to prevent future depressions. An example of the former is the _ while the _ is an example of the latter.

During the Great Depression, union membership _ due to _.

The text discusses unions in the context of the New Deal. It concludes that there was _ in organized labor's relationship with government because ___.