Question 1

Economists such as James Tobin and Paul Samuelson claimed that _________ provided solid evidence of the effectiveness of Keynesian policies.

Accepted Answer

A) increases in deficit spending accompanied by extremely low unemployment during WWII 
B) increases in taxes accompanied by rising federal budget surpluses 
C) increases in the money supply accompanied by falling interest rates 
D) price controls accompanied by inflation 
A) increases in deficit spending accompanied by extremely low unemployment during WWII 
B) increases in taxes accompanied by rising federal budget surpluses 
C) increases in the money supply accompanied by falling interest rates 
D) price controls accompanied by inflation A

Question 2

Which of the following were NOT related to the price controls that existed during World War II?

Accepted Answer

A) Price ceilings facilitated the formulation of black markets for automobiles. 
B) A black market for meat formed,referred to as "meat-easys," due to a price ceiling on meat. 
C) Price ceilings created an excess demand of consumer durable goods. 
D) Despite price ceilings,hidden price increases were realized through deterioration in the quality of goods. 
A) Price ceilings facilitated the formulation of black markets for automobiles. 
B) A black market for meat formed,referred to as "meat-easys," due to a price ceiling on meat. 
C) Price ceilings created an excess demand of consumer durable goods. 
D) Despite price ceilings,hidden price increases were realized through deterioration in the quality of goods. C

Question 3

What statement best describes the production and allocation of resources after the United States entered World War II?

Accepted Answer

A) Government spending as a percentage of GNP during this period never exceeded the maximum level at the height of the Depression under Roosevelt's New Deal policies. 
B) Production shifted out closer to the production possibilities frontier,primarily as a result of technical change. 
C) Production shifted out toward the production possibilities frontier,primarily as a result of underutilized resources being utilized. 
D) Greater production of goods to support the war involved nominally higher incidents of disabling injuries in the workplace,yet not increases in the rates of disabling injuries. 
A) Government spending as a percentage of GNP during this period never exceeded the maximum level at the height of the Depression under Roosevelt's New Deal policies. 
B) Production shifted out closer to the production possibilities frontier,primarily as a result of technical change. 
C) Production shifted out toward the production possibilities frontier,primarily as a result of underutilized resources being utilized. 
D) Greater production of goods to support the war involved nominally higher incidents of disabling injuries in the workplace,yet not increases in the rates of disabling injuries. C

Question 4

Which of the following is most accurate about women's involvement in the labor force?

Accepted Answer

A) Over half of the women who entered the labor force between 1940 and 1944 had dropped out by 1950. 
B) Between 1940 and 1950 the number of women employed in the labor force dropped. 
C) After World War II,the supply of young married women available to work increased. 
D) Women made their largest gains in employment in the service and agricultural sectors. 
A) Over half of the women who entered the labor force between 1940 and 1944 had dropped out by 1950. 
B) Between 1940 and 1950 the number of women employed in the labor force dropped. 
C) After World War II,the supply of young married women available to work increased. 
D) Women made their largest gains in employment in the service and agricultural sectors.

Question 5

When an economy is at full employment,increases in military production

Accepted Answer

A) cause a movement along the PPF. 
B) cause an outward shift in the PPF. 
C) mean that the economy is operating outside the PPF. 
D) mean that the economy is operating inside the PPF. 
A) cause a movement along the PPF. 
B) cause an outward shift in the PPF. 
C) mean that the economy is operating outside the PPF. 
D) mean that the economy is operating inside the PPF.

Question 6

Which of the following statements is most accurate about the role of minorities in the US?

Accepted Answer

A) The armed services were desegregated before World War II. 
B) Although African Americans had historically lived on agricultural areas,by 1970 about 75% of African Americans lived in urban areas. 
C) During World War II,there was a large increase in demand for hiring highly skilled Japanese-Americans. 
A) The armed services were desegregated before World War II. 
B) Although African Americans had historically lived on agricultural areas,by 1970 about 75% of African Americans lived in urban areas. 
C) During World War II,there was a large increase in demand for hiring highly skilled Japanese-Americans.

Question 7

A distribution of goods is inefficient

Accepted Answer

A) only when an economy is producing inside its production possibility frontier. 
B) only when an economy is producing at the wrong point on the production possibility frontier. 
C) either when an economy is producing inside the production possibility frontier or when an economy is producing at the wrong point on the production possibility frontier. 
D) when the economy is producing at the optimal point on the production possibility frontier. 
A) only when an economy is producing inside its production possibility frontier. 
B) only when an economy is producing at the wrong point on the production possibility frontier. 
C) either when an economy is producing inside the production possibility frontier or when an economy is producing at the wrong point on the production possibility frontier. 
D) when the economy is producing at the optimal point on the production possibility frontier.

Question 8

To mobilize resources in WWII,the United States relied on

Accepted Answer

A) the same methods used in World War I 
B) the draft 
C) taxes 
D) creating money 
E)  All of the above are correct. 
A) the same methods used in World War I 
B) the draft 
C) taxes 
D) creating money 
E)  All of the above are correct.

Question 9

An economy producing at the wrong point on its production possibility frontier is ___.

Accepted Answer

A) efficient,because it is on the production possibility frontier. 
B) inefficient,because the combination of goods and services produced is not what people want. 
C) efficient,because the economy is producing goods at the lowest possible cost. 
D) inefficient,because that combination of goods could be produced at a lower cost if more efficient technology were employed. 
A) efficient,because it is on the production possibility frontier. 
B) inefficient,because the combination of goods and services produced is not what people want. 
C) efficient,because the economy is producing goods at the lowest possible cost. 
D) inefficient,because that combination of goods could be produced at a lower cost if more efficient technology were employed.

Question 10

What best describes real per capita GDP in the US between 1929 and 1959?

Accepted Answer

A) It was a period of consistent increase. 
B) It was lower at the end of the period than the beginning because of the Great Depression. 
C) Although it was erratic in the early part of this period during the Great Depression,it increased consistently after World War II. 
D) It grew the most during World War II. 
A) It was a period of consistent increase. 
B) It was lower at the end of the period than the beginning because of the Great Depression. 
C) Although it was erratic in the early part of this period during the Great Depression,it increased consistently after World War II. 
D) It grew the most during World War II.

Question 11

What best describes the changes in federal spending of the US economy from 1939 to 1949?

Accepted Answer

A) Between 1939 and 1944 military expenditures increased substantially and civilian-related expenditures remained about the same. 
B) Between 1939 and 1944 both military and civilian-related expenditures increased substantially. 
C) Between 1939 and 1944 the production possibilities frontier for military and civilian-related expenditures shifted out. 
D) Between 1944 and 1949 military expenditures decreased substantially and civilian-related expenditures returned to 1939 levels. 
A) Between 1939 and 1944 military expenditures increased substantially and civilian-related expenditures remained about the same. 
B) Between 1939 and 1944 both military and civilian-related expenditures increased substantially. 
C) Between 1939 and 1944 the production possibilities frontier for military and civilian-related expenditures shifted out. 
D) Between 1944 and 1949 military expenditures decreased substantially and civilian-related expenditures returned to 1939 levels.

Question 12

The drop in unemployment from over 11 percent in 1939 to roughly 1 percent in 1944

Accepted Answer

A) has been attributed by Keynesians as a validation of larger deficits as a solution to unemployment. 
B) has been attributed by Monetarists as a validation that a large increase in the money supply would cure the depression. 
C) has been acknowledged as a success in Keynesian policies,with the caveat that inflation was only averted through price controls. 
D) All of the above are correct. 
A) has been attributed by Keynesians as a validation of larger deficits as a solution to unemployment. 
B) has been attributed by Monetarists as a validation that a large increase in the money supply would cure the depression. 
C) has been acknowledged as a success in Keynesian policies,with the caveat that inflation was only averted through price controls. 
D) All of the above are correct.

Question 13

Wartime economic mobilization resulted in

Accepted Answer

A) increased hours for workers. 
B) dramatic increases in the industrial accident rate. 
C) some reduction in the quality of output. 
D) Increased production rates. 
E)  All of the above. 
A) increased hours for workers. 
B) dramatic increases in the industrial accident rate. 
C) some reduction in the quality of output. 
D) Increased production rates. 
E)  All of the above.

Question 14

The wage and price controls of the 1940s eventually led to

Accepted Answer

A) black markets. 
B) "forced uptrading." 
C) calls for nationalizing the nation's cattle herds. 
D) All of the above are correct. 
A) black markets. 
B) "forced uptrading." 
C) calls for nationalizing the nation's cattle herds. 
D) All of the above are correct.

Question 15

Between 1940 and 1944,real Federal spending increased by roughly ____ percent.

Accepted Answer

A) 100 
B) 250 
C) 750 
D) 1000 
A) 100 
B) 250 
C) 750 
D) 1000

Question 16

The draft is analogous to a tax,where the amount of the tax equals

Accepted Answer

A) the discounted present value of the soldier's lost private sector income. 
B) the estimated value of a human life. 
C) the difference between what a soldier would need to be paid to serve voluntarily and his/her actual pay. 
D) The soldier's earnings while enlisted. 
A) the discounted present value of the soldier's lost private sector income. 
B) the estimated value of a human life. 
C) the difference between what a soldier would need to be paid to serve voluntarily and his/her actual pay. 
D) The soldier's earnings while enlisted.

Question 17

The GI Bill is often cited as a successful example of

Accepted Answer

A) universal health insurance. 
B) an unemployment compensation program. 
C) a voucher program. 
D) a job training program. 
A) universal health insurance. 
B) an unemployment compensation program. 
C) a voucher program. 
D) a job training program.

Question 18

The use of strategic bombing by the Allies during World War II

Accepted Answer

A) caused a marked decrease in Axis munitions production. 
B) caused Germany to divert significant resources to air defense. 
C) used the various air forces as an aid to the ground or sea forces. 
D) was intended to attack the civilian population. 
E)  Only b and d are correct. 
A) caused a marked decrease in Axis munitions production. 
B) caused Germany to divert significant resources to air defense. 
C) used the various air forces as an aid to the ground or sea forces. 
D) was intended to attack the civilian population. 
E)  Only b and d are correct.

Question 19

Forms of federal taxation used to finance the war effort did NOT include

Accepted Answer

A) the income tax. 
B) the corporate tax. 
C) the excess profits tax. 
D) sales tax. 
A) the income tax. 
B) the corporate tax. 
C) the excess profits tax. 
D) sales tax.

Question 20

Which of the following statements about labor unions and management during the 1940s is most accurate?

Accepted Answer

A) The real earnings of people in labor unions increased significantly during World War II. 
B) During World War II there were many strikes. 
C) There were few strikes during World War II because management frequently locked-out labor before the employees could strike. 
D) Immediately following the end of the war was a period of significant earnings growth for labor union members. 
A) The real earnings of people in labor unions increased significantly during World War II. 
B) During World War II there were many strikes. 
C) There were few strikes during World War II because management frequently locked-out labor before the employees could strike. 
D) Immediately following the end of the war was a period of significant earnings growth for labor union members.

Exam 25: World War II

Economists such as James Tobin and Paul Samuelson claimed that _________ provided solid evidence of the effectiveness of Keynesian policies.

Which of the following were NOT related to the price controls that existed during World War II?

What statement best describes the production and allocation of resources after the United States entered World War II?

Which of the following is most accurate about women's involvement in the labor force?

When an economy is at full employment,increases in military production

Which of the following statements is most accurate about the role of minorities in the US?

A distribution of goods is inefficient

To mobilize resources in WWII,the United States relied on

An economy producing at the wrong point on its production possibility frontier is ___.

What best describes real per capita GDP in the US between 1929 and 1959?

What best describes the changes in federal spending of the US economy from 1939 to 1949?

The drop in unemployment from over 11 percent in 1939 to roughly 1 percent in 1944

Wartime economic mobilization resulted in

The wage and price controls of the 1940s eventually led to

Between 1940 and 1944,real Federal spending increased by roughly ____ percent.

The draft is analogous to a tax,where the amount of the tax equals

The GI Bill is often cited as a successful example of

The use of strategic bombing by the Allies during World War II

Forms of federal taxation used to finance the war effort did NOT include

Which of the following statements about labor unions and management during the 1940s is most accurate?

Economic History

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 Western Movements

Transportation and Market Growth

Market Expansion 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

Mobilizing for War

The Roaring Twenties

The Great Depression

The New Deal

The Changing Role of the Federal Government

Government the Business Cycle After World War II

Manufacturing, Productivity, and Labor

Achievements of the Past, Challenges for the Future

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