Question 1

Which of the following are arguments that have been and currently are used to justify protectionism?

Accepted Answer

A)  The infant industry argument 
B)  Tariffs create lower profits, generate fewer jobs, and reduce wages in the U.S. 
C)  Countries should not operate on the basis of comparative advantage. 
D)  All of the above 
A)  The infant industry argument 
B)  Tariffs create lower profits, generate fewer jobs, and reduce wages in the U.S. 
C)  Countries should not operate on the basis of comparative advantage. 
D)  All of the above

Question 2

Explain why net economic progress is accompanied by periods of booms and busts,by financial progress and crisis,as well as by economic expansion and depressions.

Accepted Answer

Net economic progress is often accompani

Question 3

What was the Morill Tarriff Act of 1861? Why was it passed,and what were the economic ramifications?

Accepted Answer

The Morrill Tariff Act of 1861 was a pie

Question 4

Discuss the types of protection from foreign competition that American industry had under the Morrill Act of 1861.What was their importance in the development of manufacturing?

Accepted Answer

The Morrill Act of 1861 provided several

Question 5

The U.S.claimed a disproportionate share of world trade given its share of the world's population.

Accepted Answer

A) True 
 B)False

Question 6

Describe the new directions of U.S.trading patterns from the Civil War throughout the early 1920s.Account for some of the new patterns of international trade.

Accepted Answer

The trading patterns of the United State

Question 7

In the industrial period of U.S.history,the manufacturing goods consumed by U.S.households were subject to

Accepted Answer

A)  high taxes. 
B)  Engel's Law. 
C)  income effects. 
D)  none of the above. 
A)  high taxes. 
B)  Engel's Law. 
C)  income effects. 
D)  none of the above.

Question 8

What is/are the central argument(s)against tariffs?

Accepted Answer

A)  They redistribute income away from consumers who are paying higher prices because of the tariffs. These rents are given to the individual industries that are protected by the tariffs and?are operating inefficiently. 
B)  A laissez-faire economy is the American way. 
C)  They protect the wealthy. 
D)  They benefit only fast-growing industries. 
A)  They redistribute income away from consumers who are paying higher prices because of the tariffs. These rents are given to the individual industries that are protected by the tariffs and?are operating inefficiently. 
B)  A laissez-faire economy is the American way. 
C)  They protect the wealthy. 
D)  They benefit only fast-growing industries.

Question 9

Define Engel's Law.Explain why it applies to food consumption but not to consumption of manufactured goods.

Accepted Answer

Engel's Law is a concept in economics th

Question 10

From the Civil War until 1914,what change(s)occurred in U.S.policies regarding tariffs?

Accepted Answer

A)  Tariff rates were generally higher and customs receipts were higher than before the ?Civil War. 
B)  As the momentum of the westward movement increased, increased revenues from land sales allowed Congress to return tariff rates to their pre-Civil War levels. 
C)  Customs revenues increased because of economic growth and the lack of important changes?in tariff policy. 
D)  All of the above 
A)  Tariff rates were generally higher and customs receipts were higher than before the ?Civil War. 
B)  As the momentum of the westward movement increased, increased revenues from land sales allowed Congress to return tariff rates to their pre-Civil War levels. 
C)  Customs revenues increased because of economic growth and the lack of important changes?in tariff policy. 
D)  All of the above

Question 11

Between 1866 and 1914,statistical evidence suggests that many big businesses depended heavily on U.S.protectionist policies.

Accepted Answer

A) True 
 B)False

Question 12

The opportunity cost of the U.S.producing tea or coffee is measured by the value of the foregone production alternative-manufacturing or staples.

Accepted Answer

A) True 
 B)False

Question 13

The "rules of the game," if followed closely by central banks,would have

Accepted Answer

A)  made trade fluctuations worse than they were. 
B)  wiped out trade fluctuations. 
C)  "neutralized" central bank policy. 
D)  forced the federal government to borrow directly from central banks. 
A)  made trade fluctuations worse than they were. 
B)  wiped out trade fluctuations. 
C)  "neutralized" central bank policy. 
D)  forced the federal government to borrow directly from central banks.

Question 14

Despite the huge increase in American exports of manufactures and the importation of primarily luxury goods in 1880-1910,the American market for American products was still largely self-sufficient.

Accepted Answer

A) True 
 B)False

Question 15

Tariff rates remained high after the Civil War because government revenue needs were pressing and there were protectionist sentiments.

Accepted Answer

A) True 
 B)False

Question 16

Engel's Law asserts that consumer expenditures on daily food in the aggregate decline as incomes rise.This explains the decreased demand for daily foods and the increased U.S.demand for exotic foods.

Accepted Answer

A) True 
 B)False

Question 17

Describe the international factors encouraging and hindering the rise of manufacturing in the U.S.during the mid-nineteenth century.

Accepted Answer

During the mid-nineteenth century, there

Question 18

What does a successful protective tariff do?

Accepted Answer

A)  It forces foreign manufacturers to pay higher wages. 
B)  It re-enforces competition. 
C)  It creates an "economic rent" that goes to the competing domestic industries producing the ?taxed imported goods. 
D)  It mandates accelerated technological advance in the domestic economy. 
A)  It forces foreign manufacturers to pay higher wages. 
B)  It re-enforces competition. 
C)  It creates an "economic rent" that goes to the competing domestic industries producing the ?taxed imported goods. 
D)  It mandates accelerated technological advance in the domestic economy.

Question 19

Discuss the link between the U.S.balance of account and its international capital flows.

Accepted Answer

The U.S. balance of accounts and its int

Question 20

The U.S.and other industrializing nations depended heavily on international trade.

Accepted Answer

A) True 
 B)False

Exam 20: The Giant Economy and Its International Relations

Which of the following are arguments that have been and currently are used to justify protectionism?

Explain why net economic progress is accompanied by periods of booms and busts,by financial progress and crisis,as well as by economic expansion and depressions.

What was the Morill Tarriff Act of 1861? Why was it passed,and what were the economic ramifications?

Discuss the types of protection from foreign competition that American industry had under the Morrill Act of 1861.What was their importance in the development of manufacturing?

The U.S.claimed a disproportionate share of world trade given its share of the world's population.

Describe the new directions of U.S.trading patterns from the Civil War throughout the early 1920s.Account for some of the new patterns of international trade.

In the industrial period of U.S.history,the manufacturing goods consumed by U.S.households were subject to

What is/are the central argument(s)against tariffs?

Define Engel's Law.Explain why it applies to food consumption but not to consumption of manufactured goods.

From the Civil War until 1914,what change(s)occurred in U.S.policies regarding tariffs?

Between 1866 and 1914,statistical evidence suggests that many big businesses depended heavily on U.S.protectionist policies.

The opportunity cost of the U.S.producing tea or coffee is measured by the value of the foregone production alternative-manufacturing or staples.

The "rules of the game," if followed closely by central banks,would have

Despite the huge increase in American exports of manufactures and the importation of primarily luxury goods in 1880-1910,the American market for American products was still largely self-sufficient.

Tariff rates remained high after the Civil War because government revenue needs were pressing and there were protectionist sentiments.

Engel's Law asserts that consumer expenditures on daily food in the aggregate decline as incomes rise.This explains the decreased demand for daily foods and the increased U.S.demand for exotic foods.

Describe the international factors encouraging and hindering the rise of manufacturing in the U.S.during the mid-nineteenth century.

What does a successful protective tariff do?

Discuss the link between the U.S.balance of account and its international capital flows.

The U.S.and other industrializing nations depended heavily on international trade.

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

Big Business and Government Intervention

Financial Developments 1863–1914

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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