Question 1

A conglomerate merger is a combination of

Accepted Answer

A) firms that formerly competed with each other. 
B) firms that formerly bought from and sold to each other. 
C) firms that produce nearly identical products,but are based in different countries. 
D) firms that produce unrelated products or services. 
A) firms that formerly competed with each other. 
B) firms that formerly bought from and sold to each other. 
C) firms that produce nearly identical products,but are based in different countries. 
D) firms that produce unrelated products or services. C

Question 2

Technological innovations and the increasing mechanization of industry

Accepted Answer

A) have led to long-run aggregate unemployment that is difficult to eradicate. 
B) have led to lower wages for skilled workers. 
C) mean higher prices for consumers. 
D) ultimately create new jobs that replace old jobs. 
A) have led to long-run aggregate unemployment that is difficult to eradicate. 
B) have led to lower wages for skilled workers. 
C) mean higher prices for consumers. 
D) ultimately create new jobs that replace old jobs. D

Question 3

According to Joseph Schumpeter,the success of capitalism relies on

Accepted Answer

A) continuous,small improvements to existing products. 
B) "gales of creative destruction." 
C) careful government direction of the manufacturing sector. 
D) a strong agricultural sector to support the manufacturing workforce. 
A) continuous,small improvements to existing products. 
B) "gales of creative destruction." 
C) careful government direction of the manufacturing sector. 
D) a strong agricultural sector to support the manufacturing workforce. B

Question 4

The period from 1977 through 1989 saw a wave of corporate mergers in the U.S.These mergers were characterized by

Accepted Answer

A) the use of junk bonds for financing buyouts. 
B) the low debt-to-equity ratios of the resulting firms. 
C) resulting firms that focused on "core competencies" rather than diversification. 
D) a "buyers' market" in which acquiring firms could purchase the stock of takeover targets for less than market value. 
E)  All of the above. 
A) the use of junk bonds for financing buyouts. 
B) the low debt-to-equity ratios of the resulting firms. 
C) resulting firms that focused on "core competencies" rather than diversification. 
D) a "buyers' market" in which acquiring firms could purchase the stock of takeover targets for less than market value. 
E)  All of the above.

Question 5

An increase in the price of oil causes

Accepted Answer

A) a decrease in the demand for substitute goods. 
B) an increase in the price of substitute goods. 
C) an increase in the demand for complementary goods. 
D) an increase in the price of complementary goods. 
A) a decrease in the demand for substitute goods. 
B) an increase in the price of substitute goods. 
C) an increase in the demand for complementary goods. 
D) an increase in the price of complementary goods.

Question 6

Relative to the white median family income,since 1980 African-American median family income has ________ and Hispanic median family income has __________.

Accepted Answer

A) increased;also increased 
B) fallen;also fallen 
C) increased;remained about the same 
D) fallen;increased 
A) increased;also increased 
B) fallen;also fallen 
C) increased;remained about the same 
D) fallen;increased

Question 7

In 2001,the labor force participation rate of married women equaled ________.

Accepted Answer

A) about 10 percent. 
B) about 25 percent. 
C) just over 60 percent. 
D) more than 80 percent. 
A) about 10 percent. 
B) about 25 percent. 
C) just over 60 percent. 
D) more than 80 percent.

Question 8

The introduction of computer-based technologies in the telephone industry caused

Accepted Answer

A) an increase in the supply of telephone services. 
B) an increase in the demand for telephone services. 
C) an increase in the price of telephone services. 
D) a decrease in the number of calls handled daily by telephone companies. 
A) an increase in the supply of telephone services. 
B) an increase in the demand for telephone services. 
C) an increase in the price of telephone services. 
D) a decrease in the number of calls handled daily by telephone companies.

Question 9

By 1964,nearly all blacks outside the South were covered by laws that allowed the government to issue cease and desist orders against discriminating firms.According to recent research by William Collins,these laws

Accepted Answer

A) were successful in improving the wages and working conditions of all African-Americans. 
B) were successful in improving the wages and working conditions of only Southern African-Americans. 
C) led to lower wages and deteriorating working conditions for African-Americans. 
D) had some success in improving the wages and working conditions of African-American women. 
A) were successful in improving the wages and working conditions of all African-Americans. 
B) were successful in improving the wages and working conditions of only Southern African-Americans. 
C) led to lower wages and deteriorating working conditions for African-Americans. 
D) had some success in improving the wages and working conditions of African-American women.

Question 10

Productivity

Accepted Answer

A) increased slightly from 1970 to 1980. 
B) rose rapidly after World War II. 
C) is a fundamental determinant of real wages. 
D) All of the above are correct. 
E)  Only b and c are correct. 
A) increased slightly from 1970 to 1980. 
B) rose rapidly after World War II. 
C) is a fundamental determinant of real wages. 
D) All of the above are correct. 
E)  Only b and c are correct.

Question 11

Measured in BTUs per dollar of real GDP,energy consumption fell by only 5 percent between 1970 and 1975,but had fallen by almost 30 percent by 1990.These figures illustrate the fact that

Accepted Answer

A) energy demand does not respond to price changes in the short run. 
B) energy demand does not respond to price changes in the long run. 
C) energy demand is more elastic in the short run than in the long run. 
D) energy demand is more elastic in the long run than in the short run. 
A) energy demand does not respond to price changes in the short run. 
B) energy demand does not respond to price changes in the long run. 
C) energy demand is more elastic in the short run than in the long run. 
D) energy demand is more elastic in the long run than in the short run.

Question 12

Which of the following statements about the "separate but equal" provision of Plessy v.Ferguson is MOST accurate?

Accepted Answer

A) resulted in African-American schools that were comparable to white schools. 
B) resulted in African-American schools that were preferable to white schools in the South. 
C) did not seriously hamper the labor market experience of African-Americans. 
D) led to the creation of African-American schools that were systematically under funded. 
A) resulted in African-American schools that were comparable to white schools. 
B) resulted in African-American schools that were preferable to white schools in the South. 
C) did not seriously hamper the labor market experience of African-Americans. 
D) led to the creation of African-American schools that were systematically under funded.

Question 13

According to the text,the growth of service sector employment in the US has contributed to

Accepted Answer

A) higher unemployment rates in the postwar period. 
B) a slowdown in the growth of real wages during the postwar period. 
C) reduced economic stability in the postwar period. 
D) an increase in the power and membership of unions. 
E)  All of the above. 
A) higher unemployment rates in the postwar period. 
B) a slowdown in the growth of real wages during the postwar period. 
C) reduced economic stability in the postwar period. 
D) an increase in the power and membership of unions. 
E)  All of the above.

Question 14

In 2001,the percent of total employment in the manufacturing,mining,and construction sector equaled

Accepted Answer

A) less than 20 percent. 
B) 30 percent. 
C) 40 percent. 
D) 60 percent. 
A) less than 20 percent. 
B) 30 percent. 
C) 40 percent. 
D) 60 percent.

Question 15

Productivity growth in the service sector

Accepted Answer

A) is notoriously difficult to measure. 
B) is comparable to productivity growth in agriculture. 
C) has been slow compared with productivity growth in manufacturing. 
D) Both a and b are correct. 
E)  Both a and c are correct. 
A) is notoriously difficult to measure. 
B) is comparable to productivity growth in agriculture. 
C) has been slow compared with productivity growth in manufacturing. 
D) Both a and b are correct. 
E)  Both a and c are correct.

Question 16

During the postwar period,changing patterns of consumer demand led to changes in the distribution of jobs in the US economy.In particular,the income elasticity of demand for many consumer products was ____________ the income elasticity of demand for services,such as medical care and insurance.

Accepted Answer

A) less than 
B) greater than 
C) equal to 
A) less than 
B) greater than 
C) equal to

Question 17

Suppose that wages are higher in one geographic region (Region 1)of a country than in another geographic region (Region 2).Given free migration of workers,

Accepted Answer

A) wages in the two regions will become even more divergent. 
B) wages in Region 1 will rise. 
C) wages in Region 2 will rise. 
D) employment in Region 2 will rise. 
A) wages in the two regions will become even more divergent. 
B) wages in Region 1 will rise. 
C) wages in Region 2 will rise. 
D) employment in Region 2 will rise.

Question 18

Using a Cobb-Douglas production function and assuming the share of labor used in production remains constant,it can be shown that

Accepted Answer

A) real wages will increase in tandem with the price of capital. 
B) a stable relationship will exist between the average product of labor and the marginal product of labor. 
C) real wages will decrease as the average product of labor increases. 
D) real wages and output are inversely related. 
A) real wages will increase in tandem with the price of capital. 
B) a stable relationship will exist between the average product of labor and the marginal product of labor. 
C) real wages will decrease as the average product of labor increases. 
D) real wages and output are inversely related.

Question 19

In the 1970s,members of the Law and Economics program at the University of Chicago argued that

Accepted Answer

A)  per se rules should be adopted by the Supreme Court and used to decide antitrust cases. 
B) large firms should always be broken up in order to encourage competition. 
C) large market shares may be due to efficient management or innovation. 
D) courts should "get out of the antitrust business". 
A)  per se rules should be adopted by the Supreme Court and used to decide antitrust cases. 
B) large firms should always be broken up in order to encourage competition. 
C) large market shares may be due to efficient management or innovation. 
D) courts should "get out of the antitrust business".

Question 20

The term "path dependence" refers to

Accepted Answer

A) inefficient outcomes that result from early technology choices that are not optimal in the long run. 
B) the tendency for competitive markets to become monopolistic in the long run. 
C) inefficient outcomes that result from negative externalities. 
D) the natural growth of monopoly when economies of scale exist in a market. 
A) inefficient outcomes that result from early technology choices that are not optimal in the long run. 
B) the tendency for competitive markets to become monopolistic in the long run. 
C) inefficient outcomes that result from negative externalities. 
D) the natural growth of monopoly when economies of scale exist in a market.

Exam 28: Manufacturing, Productivity, and Labor

A conglomerate merger is a combination of

Technological innovations and the increasing mechanization of industry

According to Joseph Schumpeter,the success of capitalism relies on

The period from 1977 through 1989 saw a wave of corporate mergers in the U.S.These mergers were characterized by

An increase in the price of oil causes

Relative to the white median family income,since 1980 African-American median family income has ________ and Hispanic median family income has __________.

In 2001,the labor force participation rate of married women equaled ________.

The introduction of computer-based technologies in the telephone industry caused

By 1964,nearly all blacks outside the South were covered by laws that allowed the government to issue cease and desist orders against discriminating firms.According to recent research by William Collins,these laws

Productivity

Measured in BTUs per dollar of real GDP,energy consumption fell by only 5 percent between 1970 and 1975,but had fallen by almost 30 percent by 1990.These figures illustrate the fact that

Which of the following statements about the "separate but equal" provision of Plessy v.Ferguson is MOST accurate?

According to the text,the growth of service sector employment in the US has contributed to

In 2001,the percent of total employment in the manufacturing,mining,and construction sector equaled

Productivity growth in the service sector

During the postwar period,changing patterns of consumer demand led to changes in the distribution of jobs in the US economy.In particular,the income elasticity of demand for many consumer products was ____________ the income elasticity of demand for services,such as medical care and insurance.

Suppose that wages are higher in one geographic region (Region 1)of a country than in another geographic region (Region 2).Given free migration of workers,

Using a Cobb-Douglas production function and assuming the share of labor used in production remains constant,it can be shown that

In the 1970s,members of the Law and Economics program at the University of Chicago argued that

The term "path dependence" refers to

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

World War II

The Changing Role of the Federal Government

Government the Business Cycle After World War II

Achievements of the Past, Challenges for the Future

Filters

Relative to the white median family income,since 1980 African-American median family income has and Hispanic median family income has __.