Question 1

In which of the following cases did the U.S.Supreme Court decide that a corporation was an "individual" but not a constitutional citizen?

Accepted Answer

A)  Nebbia v New York (1934) 
B)  Munn v Illinois (1877) 
C)  McCulloch v Maryland (1819) 
D)  Dartmouth College v Woodward (1819) 
A)  Nebbia v New York (1934) 
B)  Munn v Illinois (1877) 
C)  McCulloch v Maryland (1819) 
D)  Dartmouth College v Woodward (1819)

Question 2

According to Alfred Chandler (1977),big business could be justified,at least in part,by the ability?of large scale enterprises to take advantage of scale economies.

Accepted Answer

A) True 
 B)False

Question 3

Prior to the 1880s,federal government control over the daily operations of private economic activity

Accepted Answer

A)  was important but not as important as during the 1880s and following decades. 
B)  was virtually nonexistent; state and local governments handled any regulation or business management. 
C)  was important, but in the 1880s and following decades, it became less important as it was realized that regulation was basically inconsistent with the efficient operation of free markets. 
D)  was virtually nonexistent and did not become important until the Great Depression and New Deal programs of the 1930s. 
A)  was important but not as important as during the 1880s and following decades. 
B)  was virtually nonexistent; state and local governments handled any regulation or business management. 
C)  was important, but in the 1880s and following decades, it became less important as it was realized that regulation was basically inconsistent with the efficient operation of free markets. 
D)  was virtually nonexistent and did not become important until the Great Depression and New Deal programs of the 1930s.

Question 4

Even though government-operated firms do not have to make a profit,they usually operate efficiently.

Accepted Answer

A) True 
 B)False

Question 5

The long-term impact of Munn v Illinois (1877)on regulatory efforts was

Accepted Answer

A)  to hold back federal efforts to regulate business. 
B)  to prevent states from regulating interstate trade. 
C)  to provide a temporary justification for regulating business. 
D)  to establish government as able to regulate all businesses permanently. 
A)  to hold back federal efforts to regulate business. 
B)  to prevent states from regulating interstate trade. 
C)  to provide a temporary justification for regulating business. 
D)  to establish government as able to regulate all businesses permanently.

Question 6

According to Alfred Chandler (1977),big business could be justified,at least in part,by

Accepted Answer

A)  a rapid rate of innovation among big firms. 
B)  periodic recessions in which alert big businessmen buy out bankrupt firms and expand operations. 
C)  a relatively low rate of bankruptcies among big firms. 
D)  its ability to take advantage of scale economies-big business could best take advantage?of technology and economies resulting from large-scale production processes. 
A)  a rapid rate of innovation among big firms. 
B)  periodic recessions in which alert big businessmen buy out bankrupt firms and expand operations. 
C)  a relatively low rate of bankruptcies among big firms. 
D)  its ability to take advantage of scale economies-big business could best take advantage?of technology and economies resulting from large-scale production processes.

Question 7

Scherer (1970)provides which of the following argument(s)to explain the appearance of antitrust laws?

Accepted Answer

A)  Many farmers believed that the growth of big business came at the expense of growth in agriculture. 
B)  Many ordinary individuals with moderate or low incomes were envious of the fame ?and wealth accumulated by the relatively few industrial entrepreneurs. 
C)  Falling costs in transportation resulted in growth of the optimal size of the firm. 
D)  All of the above. 
A)  Many farmers believed that the growth of big business came at the expense of growth in agriculture. 
B)  Many ordinary individuals with moderate or low incomes were envious of the fame ?and wealth accumulated by the relatively few industrial entrepreneurs. 
C)  Falling costs in transportation resulted in growth of the optimal size of the firm. 
D)  All of the above.

Question 8

Will central planners or private investors be more likely to allocate investment funds into wealth-creating projects? Explain by illustrating the rise and fall of the railroad industry.

Accepted Answer

Central planners and private investors b

Question 9

The corporation,as a form of business organization,fueled the positive trend toward federal regulation of business activities for all of the following reasons except

Accepted Answer

A)  Corporations were rapidly becoming more numerous than sole proprietorships and partnerships. 
B)  Corporations made possible or encouraged growth in the number of giant enterprises. 
C)  Corporations were adept at market manipulations, including price-fixing. 
D)  Corporations were able to take advantage of economies of scale which made possible business organizations whose affairs overlapped local or state jurisdictions, creating the need for federal control across state lines. 
A)  Corporations were rapidly becoming more numerous than sole proprietorships and partnerships. 
B)  Corporations made possible or encouraged growth in the number of giant enterprises. 
C)  Corporations were adept at market manipulations, including price-fixing. 
D)  Corporations were able to take advantage of economies of scale which made possible business organizations whose affairs overlapped local or state jurisdictions, creating the need for federal control across state lines.

Question 10

The Webb-Pomerene Act of 1918 prohibits price fixing and other anticompetitive agreements that pertain solely to goods for export.

Accepted Answer

A) True 
 B)False

Question 11

Albro Martin (1971)argues that the Interstate Commerce Commission (1887-1995)was

Accepted Answer

A)  never a case of "capture." 
B)  "captured" by the railroads themselves. 
C)  "captured" by the customers of the railroads. 
D)  too ineffective to warrant "capture" by anyone. 
A)  never a case of "capture." 
B)  "captured" by the railroads themselves. 
C)  "captured" by the customers of the railroads. 
D)  too ineffective to warrant "capture" by anyone.

Question 12

Since colonial times,the U.S.government controlled businesses at some level by:

Accepted Answer

A)  letting market actions and interactions between private consumers and producers drive decisions 
B)  regulating, licensing and closing them. 
C)  protecting private property rights. 
D)  providing national defense. 
A)  letting market actions and interactions between private consumers and producers drive decisions 
B)  regulating, licensing and closing them. 
C)  protecting private property rights. 
D)  providing national defense.

Question 13

What is the function of the system of federal regulation created by Congress from 1887 until now?

Accepted Answer

A)  To change the outcomes of market decisions 
B)  To enforce the outcomes of market decisions 
C)  To replace market allocations with economic planning 
D)  To enforce the law 
A)  To change the outcomes of market decisions 
B)  To enforce the outcomes of market decisions 
C)  To replace market allocations with economic planning 
D)  To enforce the law

Question 14

The organized groups of people who favor government intervention do so at the expense of other groups because even government resources are limited.

Accepted Answer

A) True 
 B)False

Question 15

Why was the Munn v Illinois (1877)court case particularly important with regard to government regulation?

Accepted Answer

A)  It upheld the traditional right of businesses to act freely without interference by government. 
B)  It established the right of government at any level to regulate any business activity if it was deemed desirable for any reason. 
C)  It established the right of government to regulate any and all businesses wherever it was deemed desirable to promote competition. 
D)  It established the right of government to regulate any business that had become "clothed in the public interest." 
A)  It upheld the traditional right of businesses to act freely without interference by government. 
B)  It established the right of government at any level to regulate any business activity if it was deemed desirable for any reason. 
C)  It established the right of government to regulate any and all businesses wherever it was deemed desirable to promote competition. 
D)  It established the right of government to regulate any business that had become "clothed in the public interest."

Question 16

The Sherman Antitrust Act of 1890

Accepted Answer

A)  was intended by Congress to prevent monopoly actions by both business and labor organizations. 
B)  was intended by Congress to prevent monopoly actions by business only, but was also used by the courts as a weapon against labor unions. 
C)  was intended as a measure to control unions but was also used by the courts to control business. 
D)  was intended to prevent monopoly actions by business only and was never used by the courts against unions. 
A)  was intended by Congress to prevent monopoly actions by both business and labor organizations. 
B)  was intended by Congress to prevent monopoly actions by business only, but was also used by the courts as a weapon against labor unions. 
C)  was intended as a measure to control unions but was also used by the courts to control business. 
D)  was intended to prevent monopoly actions by business only and was never used by the courts against unions.

Question 17

The three acts that form the basic machinery behind the U.S.anti-trust laws are the Sherman Act?of 1890,the Federal Trade Commission Act of 1914,and the Robinson Patman Act of 1836.

Accepted Answer

A) True 
 B)False

Question 18

Compare and contrast the views of Schumpeter (1939,1976)and Chandler (1977)on the relationship between innovation and a successful business firm.Identify what they have in common and describe their differences.

Accepted Answer

Schumpeter and Chandler both had influen

Exam 18: Big Business and Government Intervention

In which of the following cases did the U.S.Supreme Court decide that a corporation was an "individual" but not a constitutional citizen?

According to Alfred Chandler (1977),big business could be justified,at least in part,by the ability?of large scale enterprises to take advantage of scale economies.

Prior to the 1880s,federal government control over the daily operations of private economic activity

Even though government-operated firms do not have to make a profit,they usually operate efficiently.

The long-term impact of Munn v Illinois (1877)on regulatory efforts was

According to Alfred Chandler (1977),big business could be justified,at least in part,by

Scherer (1970)provides which of the following argument(s)to explain the appearance of antitrust laws?

Will central planners or private investors be more likely to allocate investment funds into wealth-creating projects? Explain by illustrating the rise and fall of the railroad industry.

The corporation,as a form of business organization,fueled the positive trend toward federal regulation of business activities for all of the following reasons except

The Webb-Pomerene Act of 1918 prohibits price fixing and other anticompetitive agreements that pertain solely to goods for export.

Albro Martin (1971)argues that the Interstate Commerce Commission (1887-1995)was

Since colonial times,the U.S.government controlled businesses at some level by:

What is the function of the system of federal regulation created by Congress from 1887 until now?

The organized groups of people who favor government intervention do so at the expense of other groups because even government resources are limited.

Why was the Munn v Illinois (1877)court case particularly important with regard to government regulation?

The Sherman Antitrust Act of 1890

The three acts that form the basic machinery behind the U.S.anti-trust laws are the Sherman Act?of 1890,the Federal Trade Commission Act of 1914,and the Robinson Patman Act of 1836.

Compare and contrast the views of Schumpeter (1939,1976)and Chandler (1977)on the relationship between innovation and a successful business firm.Identify what they have in common and describe their differences.

Overseas Empire

Colonial Development

America on the Eve of Revolution

Gaining Independence

Westward Expansion

Population and Labor Force

Law and the Rise of Classical American Capitalism

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

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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