Question 1

Which of the following cases was most important in arguing that the "public good" was best served by competition?

Accepted Answer

A)  Marbury v. Madison (1803) 
B)  McCulloch v. Maryland (1819) 
C)  Gibbons v. Ogden (1824) 
D)  Charles River Bridge v. Warren Bridge (1837) 
A)  Marbury v. Madison (1803) 
B)  McCulloch v. Maryland (1819) 
C)  Gibbons v. Ogden (1824) 
D)  Charles River Bridge v. Warren Bridge (1837) D

Question 2

The basic nature of the real property tenure that was transferred here from England included all of the following characteristics of ownership except

Accepted Answer

A)  Ownership by purchase was perpetual as long as taxes due were met. 
B)  Land could descend to heirs either by will or inheritance. 
C)  Ownership included surface resources but not subsurface resources or mineral rights, like iron ore, whose ownership was retained by the state. 
D)  The right to exploit owned resources (right of waste) was complete. 
A)  Ownership by purchase was perpetual as long as taxes due were met. 
B)  Land could descend to heirs either by will or inheritance. 
C)  Ownership included surface resources but not subsurface resources or mineral rights, like iron ore, whose ownership was retained by the state. 
D)  The right to exploit owned resources (right of waste) was complete. C

Question 3

The change from prescriptive rights to priority rights meant all of the following except

Accepted Answer

A)  Entrepreneurial costs of economic development, such as river and lake pollution, had to be paid by those who were responsible for the costs. 
B)  The courts encouraged entrepreneurial activity by judicial interpretation. 
C)  Amenity rights to scenery, clear air and quiet enjoyment could be reduced. 
D)  Judges placed social weights upon property rights that favored some more than others. 
A)  Entrepreneurial costs of economic development, such as river and lake pollution, had to be paid by those who were responsible for the costs. 
B)  The courts encouraged entrepreneurial activity by judicial interpretation. 
C)  Amenity rights to scenery, clear air and quiet enjoyment could be reduced. 
D)  Judges placed social weights upon property rights that favored some more than others. A

Question 4

Government regulation in the form of subsidies,tariffs,licensing,and inspections does which of the following?

Accepted Answer

A)  Creates rents for businesses 
B)  Offers profits to some businesses at the expense of others 
C)  Encourages the inefficient use of productive resources 
D)  All of the above 
A)  Creates rents for businesses 
B)  Offers profits to some businesses at the expense of others 
C)  Encourages the inefficient use of productive resources 
D)  All of the above

Question 5

The American Revolution was waged against the colonial governments that had emerged and had been supported by the English.

Accepted Answer

A) True 
 B)False

Question 6

The rights of state and local government to regulate,license and control businesses were taken away after the American Revolution.

Accepted Answer

A) True 
 B)False

Question 7

Unlike the person or persons who formally form a sole proprietorship or partnership,?a corporation has

Accepted Answer

A)  a perpetual life. 
B)  unlimited liability for the debts accumulated by the firm. 
C)  the right to vote. 
D)  concentrated ownership. 
A)  a perpetual life. 
B)  unlimited liability for the debts accumulated by the firm. 
C)  the right to vote. 
D)  concentrated ownership.

Question 8

Court rulings in the 19th century

Accepted Answer

A)  tended to favor business and profit-making activities. 
B)  tended to protect traditional amenity rights of property, such as the right to clean air, clean ?water, scenery and quiet enjoyment of property. 
C)  tended to favor small business activities over big business corporate activities. 
D)  tended to promote worker safety and ensure that employers were fully liable for ?worker injuries, should they occur. 
A)  tended to favor business and profit-making activities. 
B)  tended to protect traditional amenity rights of property, such as the right to clean air, clean ?water, scenery and quiet enjoyment of property. 
C)  tended to favor small business activities over big business corporate activities. 
D)  tended to promote worker safety and ensure that employers were fully liable for ?worker injuries, should they occur.

Question 9

During the colonial period,regulation of business activities was the right of government and its duty-extensive regulation was done,such as licensing,inspection,price fixing,etc.Which statement best describes regulation in the decades after 1789?

Accepted Answer

A)  Regulation continued at about the same level as during the colonial period. 
B)  As commerce and manufacturing became more complex, the old police-power controls by detailed inspection became increasingly difficult to maintain and many controls were abolished by the states. 
C)  Because the economy was becoming more complicated, the task of regulation shifted to the federal government. 
D)  Regulation was abandoned because it was inconsistent with property rights guaranteed by the Constitution. 
A)  Regulation continued at about the same level as during the colonial period. 
B)  As commerce and manufacturing became more complex, the old police-power controls by detailed inspection became increasingly difficult to maintain and many controls were abolished by the states. 
C)  Because the economy was becoming more complicated, the task of regulation shifted to the federal government. 
D)  Regulation was abandoned because it was inconsistent with property rights guaranteed by the Constitution.

Question 10

The nature of employer liability changed in the 19th century through judicial instrumentalism and had what effect?

Accepted Answer

A)  Reducing the risks and the costs of business, making business enterprise more daring and profitable than it would have been otherwise. 
B)  Increasing the risks and the costs of business, making business enterprise more daring and profitable than it would otherwise have been. 
C)  Continuing the older doctrine that employers could be found guilty of contributory negligence, thus increasing the employer's liability for worker injury. 
D)  None of the above were effects of the changes to the nature of employer liability. 
A)  Reducing the risks and the costs of business, making business enterprise more daring and profitable than it would have been otherwise. 
B)  Increasing the risks and the costs of business, making business enterprise more daring and profitable than it would otherwise have been. 
C)  Continuing the older doctrine that employers could be found guilty of contributory negligence, thus increasing the employer's liability for worker injury. 
D)  None of the above were effects of the changes to the nature of employer liability.

Question 11

Which type of business organization is the most important part of U.S.history given its "super" economic powers?

Accepted Answer

A)  Sole proprietorship 
B)  Partnership 
C)  "Mom and pop" business, which is a mix of sole proprietorships and partnerships 
D)  Corporation 
A)  Sole proprietorship 
B)  Partnership 
C)  "Mom and pop" business, which is a mix of sole proprietorships and partnerships 
D)  Corporation

Question 12

Local,state and federal government control and influence over businesses through taxes,subsidies,licensing and inspections are a firm part of U.S.history.

Accepted Answer

A) True 
 B)False

Question 13

The appearance of "classical American capitalism" in the middle and late 19th century includes all of the following except

Accepted Answer

A)  An industrial labor force concentrated in manufacturing centers 
B)  The commercialization of agriculture and extractive industries 
C)  The rise of big-time finance and giant transportation systems 
D)  The strengthening of small scale family farm enterprises and hand-crafted production activities 
A)  An industrial labor force concentrated in manufacturing centers 
B)  The commercialization of agriculture and extractive industries 
C)  The rise of big-time finance and giant transportation systems 
D)  The strengthening of small scale family farm enterprises and hand-crafted production activities

Question 14

Chief Justice John Marshall had a strong conviction that

Accepted Answer

A)  slavery would only work in the South. 
B)  a country needs a central government with enough power to place in check state and local interests when the development and growth of the country is concerned. 
C)  strong state banking systems would help the nation's commerce. 
D)  the Constitution should be interpreted literally. 
A)  slavery would only work in the South. 
B)  a country needs a central government with enough power to place in check state and local interests when the development and growth of the country is concerned. 
C)  strong state banking systems would help the nation's commerce. 
D)  the Constitution should be interpreted literally.

Question 15

During the antebellum period,the federal government assumed

Accepted Answer

A)  responsibility for full employment. 
B)  responsibility for stable prices. 
C)  responsibility for the overall economy through control of the money supply. 
D)  little responsibility for most economic matters, leaving them to private individuals in businesses and households. 
A)  responsibility for full employment. 
B)  responsibility for stable prices. 
C)  responsibility for the overall economy through control of the money supply. 
D)  little responsibility for most economic matters, leaving them to private individuals in businesses and households.

Question 16

Which of the following is false?

Accepted Answer

A)  Constitutions are the basic framework of law. 
B)  The day-to-day interpretation and application of constitutions are matters for legislatures and the courts. 
C)  The U.S. is a "common-law" (judge-made law) country, even though we operate by positive statute law and written constitution. 
D)  The "police power" of government to control business activity was reduced significantly by the U.S. Constitution compared to what it had been during the colonial period. 
A)  Constitutions are the basic framework of law. 
B)  The day-to-day interpretation and application of constitutions are matters for legislatures and the courts. 
C)  The U.S. is a "common-law" (judge-made law) country, even though we operate by positive statute law and written constitution. 
D)  The "police power" of government to control business activity was reduced significantly by the U.S. Constitution compared to what it had been during the colonial period.

Question 17

Compare a corporation to both a sole proprietorship and partnership.Explain the role of the corporation in the development of and growth in the U.S.economy.

Accepted Answer

A corporation, a sole proprietorship, an

Question 18

Which of the following accurately describes condemnation by right of eminent domain?

Accepted Answer

A)  It involves the redistribution of property first owned by the government to private businesses. 
B)  It was never exercised for such private purposes as acquiring land for canal or railroad construction during the antebellum period. 
C)  The benefits can be diverse and the costs can be concentrated. 
D)  It was never exercised by the federal government before the 1870s. 
A)  It involves the redistribution of property first owned by the government to private businesses. 
B)  It was never exercised for such private purposes as acquiring land for canal or railroad construction during the antebellum period. 
C)  The benefits can be diverse and the costs can be concentrated. 
D)  It was never exercised by the federal government before the 1870s.

Question 19

The power of the U.S.government to seize private property or exercise the right of eminent domain was an English innovation.

Accepted Answer

A) True 
 B)False

Question 20

To secure a charter,the deciding bodies required which of the following from the business enterprises?

Accepted Answer

A)  A statement of business purpose and location 
B)  A business plan 
C)  A description of capital and labor requirements and expectations 
D)  All of the above 
A)  A statement of business purpose and location 
B)  A business plan 
C)  A description of capital and labor requirements and expectations 
D)  All of the above

Exam 7: Law and the Rise of Classical American Capitalism

Which of the following cases was most important in arguing that the "public good" was best served by competition?

The basic nature of the real property tenure that was transferred here from England included all of the following characteristics of ownership except

The change from prescriptive rights to priority rights meant all of the following except

Government regulation in the form of subsidies,tariffs,licensing,and inspections does which of the following?

The American Revolution was waged against the colonial governments that had emerged and had been supported by the English.

The rights of state and local government to regulate,license and control businesses were taken away after the American Revolution.

Unlike the person or persons who formally form a sole proprietorship or partnership,?a corporation has

Court rulings in the 19th century

During the colonial period,regulation of business activities was the right of government and its duty-extensive regulation was done,such as licensing,inspection,price fixing,etc.Which statement best describes regulation in the decades after 1789?

The nature of employer liability changed in the 19th century through judicial instrumentalism and had what effect?

Which type of business organization is the most important part of U.S.history given its "super" economic powers?

Local,state and federal government control and influence over businesses through taxes,subsidies,licensing and inspections are a firm part of U.S.history.

The appearance of "classical American capitalism" in the middle and late 19th century includes all of the following except

Chief Justice John Marshall had a strong conviction that

During the antebellum period,the federal government assumed

Which of the following is false?

Compare a corporation to both a sole proprietorship and partnership.Explain the role of the corporation in the development of and growth in the U.S.economy.

Which of the following accurately describes condemnation by right of eminent domain?

The power of the U.S.government to seize private property or exercise the right of eminent domain was an English innovation.

To secure a charter,the deciding bodies required which of the following from the business enterprises?

Overseas Empire

Colonial Development

America on the Eve of Revolution

Gaining Independence

Westward Expansion

Population and Labor Force

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

To the New Millennium and Beyond

Does Our Past Have a Future?

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