Exam 22: The Command Economy Emerges: World War I

A government runs a deficit when its government revenues exceed expenditures.

According to Hughes and Cain (2011),taxation can be a form of forcible seizure of property,under certain circumstances.

The average number of weekly hours worked in manufacturing began to decline during?World War I (1914-18).

Wartime inflation occurs when war requires a country to shift resources away from efficient uses into war-related production.

Explain the relationship between World War I (1914-18)and post-war inflation.

Following the war-time prosperity for capital and the rich during World War I (1914-18),income distribution trended towards greater equality when peace came and market forces replaced the economy's wartime concerns in determining income distribution.

The government has used a variety of methods of financing wars.Discuss the methods used in the Revolutionary War,the Civil War (1861-65)for both sides,and World War I (1914-18),and whether they enabled the government to achieve its long-term and short-term goals.Who were the winners and losers of the government's policies both during and after the war?

For the first time since the Civil War (1861-65),laborers were forced into active military service during World War I (1914-18).

Taxes impact incentives to use resources since they distort relative prices.

During World War I (1914-18),the government supported the cause of labor when it

The reason food prices rose so little in 1916-19 was the extraordinary increase in output from the nation's farms.

Which group came out of World War I (1914-18)better off?

Unlike business,government can coerce individuals to paying higher prices through taxes.

Under the Gold Standard (1880-1913)gold would flow into the U.S.when

Marxists claim that "capitalists start wars to maintain their class interests; they seem to have chosen?a poor vehicle." Explain why World War I (1914-18)experiences counter this claim.

During World War I (1914-18),the government did not have to rely on which one of the following reallocation devices?

Describe the economic and political reasoning behind the Income Tax Amendment of 1913.Why do taxes distort prices? Describe the secondary effects of taxes on private consumption and production.

Explain the shift in government support for unions during and immediately after World War I ?(1914-18).

Describe some of the World War I (1914-18)(WWI)institutions that reappeared during the Great Depression and World War II (1941-45).What purposes did they serve? Did they disappear in the same fashion as their WWI predecessors?

Discuss the importance of the Lever Food Act of 1917 in economic history.Using economic reasoning,explain the inefficiencies associated with some of the price-setting policies of this Act.