Econ 40 Final Practice Exam I.

150 Questions | Total Attempts: 87

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Economics Quizzes & Trivia

Questions and Answers
  • 1. 
    Which of the following is true? 
    • A. 

      The Japanese rebuilt their economy after World War II by selling its goods to their own rapidly growing population.

    • B. 

      Slow U.S. population growth in the 19th century forced American farmers and manufacturers to seek foreign markets to propel its rapid economic growth.

    • C. 

      The Japanese rebuilt their economy after World War II by targeting the large U.S. market, while their own market remained largely closed to U.S. manufactured goods

    • D. 

      America's rapid population growth in the 19th century slowed its economic growth rate.

  • 2. 
    Which statement is true? 
    • A. 

      In 1900 most Americans still lived on farms.

    • B. 

      Except for the stock market, most of our economy was depressed in the 1920s.

    • C. 

      There was a depression within three years after World War I.

    • D. 

      None of the statements are true.

  • 3. 
    Which was a decade of high inflation and high unemployment? 
    • A. 

      The 1920s

    • B. 

      The 1940s

    • C. 

      The 1950s

    • D. 

      The 1960s

    • E. 

      The 1970s

  • 4. 
    Which statement is true? 
    • A. 

      Few Americans blamed Herbert Hoover for the Great Depression.

    • B. 

      The U.S. experienced a brief depression in the early 1920s.

    • C. 

      Most American homes were not wired for electricity until the late 1940s.

    • D. 

      None of the choices are true.

  • 5. 
    In the late 1920s, you could buy $10,000 worth of stock by putting down as little as 
    • A. 

      $100

    • B. 

      $1,000

    • C. 

      $2,500

    • D. 

      $5,000

    • E. 

      $10,000

  • 6. 
    The economic expansion which began in 1933 was due to 
    • A. 

      The fact that business had hit bottom and was ready to rebound.

    • B. 

      The efforts of the Roosevelt Administration to stimulate the economy.

    • C. 

      Both the efforts of the Roosevelt Administration and the readiness of business to rebound.

    • D. 

      Neither the efforts of the Roosevelt Administration nor the readiness of business to rebound.

  • 7. 
    Which statement is false? 
    • A. 

      Before the Civil War about three quarters of the farms of over 500 acres were located in the South

    • B. 

      The great abundance of land was the most influential factor in our economic development during the 19th century.

    • C. 

      Although the percentage of Americans living on farms has declined substantially over the last 70 years, the actual number of people living on farms has remained constant.

    • D. 

      None of the statements are false.

  • 8. 
    Who said the nation was "ill-fed, ill-clothed, and ill-housed?" 
    • A. 

      Herbert Hoover

    • B. 

      Franklin D. Roosevelt

    • C. 

      Lyndon B. Johnson

    • D. 

      Jimmy Carter

    • E. 

      Ronald Reagan

  • 9. 
    Which statement is false? 
    • A. 

      Had the stock market not crashed and the rest of the world not gone into a depression, the U.S. depression might have been avoided.

    • B. 

      The end of 1930 thousands of banks had failed.

    • C. 

      . By the first week in March 1933 every single bank in the United States had shut its doors.

    • D. 

      None of the statements are false.

  • 10. 
    Choosing from among the following, the worst recession was in 
    • A. 

      1937-1938

    • B. 

      1980

    • C. 

      1990-1991

    • D. 

      2001

  • 11. 
    Which statement is true? 
    • A. 

      All regions of the United States were primarily agricultural in 1865

    • B. 

      Only the South was primarily agricultural in 1865

    • C. 

      Only the North and West were primarily agricultural in 1865

    • D. 

      None of the statements are true

  • 12. 
    When General Dwight D. Eisenhower ran for the presidency for the first time, he said he would 
    • A. 

      End the recession and end inflation.

    • B. 

      End the recession and end the Korean War.

    • C. 

      End inflation and end the Korean War

    • D. 

      End the recession, the Korean War, and inflation

  • 13. 
    In the decades before the Civil War, the South _________________________. 
    • A. 

      Opposed the extension of slavery into the territories

    • B. 

      Supported the extension of slavery into the territories

    • C. 

      Cooperated with the North to establish both free and slavery territories

    • D. 

      None of the choices are true

  • 14. 
    Statement I. The generation that came of age in the 21st century did better economically than their parents' generation. Statement II. The American economic picture was brighter in the 1980s than the 1990s. 
    • A. 

      Statement I is true and statement II is false.

    • B. 

      Statement II is true and statement I is false.

    • C. 

      Both statements are true.

    • D. 

      Both statements are false.

  • 15. 
    Which president had to cope with both rising deficits and a rising rate of inflation? 
    • A. 

      John Kennedy

    • B. 

      Dwight Eisenhower

    • C. 

      Jimmy Carter

    • D. 

      Ronald Reagan

  • 16. 
    Which statement is true? 
    • A. 

      In 1900 most Americans lived on farms.

    • B. 

      Our nation's industrial base was largely destroyed by World War I.

    • C. 

      John D. Rockefeller controlled the U.S. automobile industry during the first two decades of the 20th century.

    • D. 

      . Andrew Carnegie was the leading steel producer in the U.S. in 1900.

  • 17. 
    The most important factor in reversing the economic decline of 1929-1933 was that 
    • A. 

      The federal government finally balanced its budget.

    • B. 

      The stock market began to rise.

    • C. 

      People became more optimistic.

    • D. 

      The federal government began to spend a huge amount of money.

  • 18. 
    Which statement is false? 
    • A. 

      The rate of inflation rose during the Eisenhower Administration.

    • B. 

      Our economy has not had an unemployment rate below 5 percent since the early 1940s.

    • C. 

      President Reagan believed the federal government should "tax, tax, tax, spend, spend, spend", its way to prosperity.

    • D. 

      All of the statements are false.

  • 19. 
    Which of the following is true? 
    • A. 

      The completion of the transcontinental railroad system in the 1880s eventually made the United States the world's first mass market.

    • B. 

      Southern manufacturers were hurt by the high protective tariffs of the 19th century that kept out cheaper British manufactured goods.

    • C. 

      The national railroad network created an "American economy" rather than just a series of regional economies located in one country.

    • D. 

      Agricultural inventions such as John Deere's steel plows greatly improved farm productivity.

    • E. 

      All of the choices are true.

  • 20. 
    Which of the following was considered a mild recession? 
    • A. 

      1937-1938

    • B. 

      1973-1975

    • C. 

      1981-1982

    • D. 

      1990-1991

  • 21. 
    Statement I. Employment discrimination causes underemployment. Statement II. The concept of opportunity cost has little validity in the global economy. 
    • A. 

      Statement I is true and statement II is false.

    • B. 

      Statement II is true and statement I is false.

    • C. 

      Both statements are true.

    • D. 

      Both statements are false.

  • 22. 
    Our economy would be operating at full employment with labor unemployment rate of ___ percent and a capacity utilization rate of _____ percent. 
    • A. 

      5; 95

    • B. 

      5; 85

    • C. 

      10; 95

    • D. 

      10; 85

  • 23. 
    Which of the following is not demonstrated by a production possibility curve? 
    • A. 

      Scarcity

    • B. 

      Opportunity cost

    • C. 

      Necessity for choice due to scarcity

    • D. 

      Price

  • 24. 
    Assuming that a society always operates on its production possibilities curve, an outward shift of the curve implies 
    • A. 

      Economic growth has occurred

    • B. 

      . the society is making more efficient use of its available resources

    • C. 

      Consumer demand has increased

    • D. 

      The present value of capital resources has increased

  • 25. 
    The reason that opportunity costs arise is that 
    • A. 

      People have unlimited wants.

    • B. 

      There are no alternative decisions that could be made.

    • C. 

      An economy relies on money to facilitate exchange of goods and services.

    • D. 

      Resources are scarce.

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