Econ History ECN 111B
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Date Created: 09/08/15
University of CaliforniaDavis TA Jason Lee Economics lllBAmerican Economic History Email jawleeucdavisedu Handout 6 1 Practice Multiple Choice Questions for Midterm 2 1 Which of the following is NOT a reason the Stock Market crash of 1929 could have caused the Great Depression Consumer confidence collapsed following the crash B Business investment fell following the cras C Consumers suffered large declines in their wealth following the crash D Bank portfolios were wiped out following the crash gt Who made the famous Cross of Gold Speech in 1896 William Jennings Bryan William McKinley J P Morgan John D Rockefeller U0wgt What was the Crime of 73 The Secretary of the Interior selling timber land for personal gain The US Treasury deciding not to mint Silver coins The US government deciding to abandon the Gold Standard The law that prohibited state banks from printing their own currency notes U0wgtw A return to the Gold Standard in the 18705 had what effect on the US economy In ation Recession De ation Both B and C U0wgte Which group would most likely be in favor of a Gold Standard Miners in Neva a The Populist Party The Republican Party Debtors U0wgtv gm Which of the following New Deal Programs established the Federal Deposit Insurance Corporation DIC A GlassSteagall Act B Wagner Act C Securities Act D National Industrial Recovery Act 7 Which of the following New Deal Programs provided projects for thousands of unemployed artists musicians and writers A Fair Labor Standards Act B Wagner Act C Works Progress Administration D National Recovery Act 8 Which of the following was permitted by the National Industrial Recovery Act NIRA A Firms could discriminate on the basis of sex B Workers had a right to strike C Firms could set up agreements to limit output and fix prices D Firms could fire employees who organized a union 9 The Wagner Act addressed which of the following A Labor disputes B Agricultural prices C Unemployment Insurance D Banking regulations 10 Who was President at the onset of the Great Depression in 1929 A President Calvin Coolidge B President Herbert Hoover C President Franklin D Roosevelt D President Warren Harding 11 Approximately how many workers were unemployed at the lowest point of the Great Depression in 933 A 15 B 20 C 25 D 30 12 Which of the following periods was NOT a recession A 18921894 B 19201921 C 19641966 D 19901992 13 Which of the following is MOST likely to have been one of the causes of the Great Depression A Hyperin ation in Germany in 1923 B Collapse of farm product prices and the value of land after WWT C Drop in Government spending after WWT D Drop in the construction of new homes after 1925 14 Why did the Federal Reserve increase the Reserve Requirement ratio in August 1936 and again in January 1937 A Banks were making too many risky loans B There was a wave of bank failures in 1936 C To discourage consumers from withdrawing bank deposits D Banks were holding too much excess reserves 15 What led to an increase in the money supply in the economy starting in 1937 The Federal Reserve lowered the Reserve requirement ratio back to 1933 levels Gold started flowing from Europe The Bank of England went back on the Gold Standard The Federal Reserve engaged in large open market purchases UOUUIP 1 6 Which of the following was NOT a goal of the Federal Reserve in 1928 Help the United Kingdom stem the loss of gold out of its economy Provide banks with enough reserves to prevent bank panics Curb speculation in the stock market Help stabilize the US economy I1gt U003 17 When did the United Kingdom abandon the Gold standard A October 1929 B October 1930 C December 1930 D September 1931 18 When was the Great Stock Market crash A August 1929 B September 1929 C October 1929 D November 1929 19 Which of the following policies was NOT attempted by the Hoover Administration to combat the Great Depression A Pay a onetime pension to veterans of WWI B Massive defense spending on battleships C A large tax hike D A small tax cut 20 What is Friedman and Schwartz monetarist interpretation of the Great Depression A The primary cause of the Great Depression was the decline of the interest rate B The primary cause of the Great Depression was the increase in the tax rates from the Revenue Act of 1932 C The primary cause of the Great Depression was the decease of Government spending to balance the budget D The primary cause of the Great Depression was a decline in the stock of money 21 Why did most members of the Federal Reserve decide not to inject reserves to the banking system during the banking panics of the early 1930s A They felt that the banks failing were unsound and that they should be allowed to fail B The charter of the Federal Reserve explicitly prohibits the Federal Reserve from taking action in matters involving private banking C They felt that injection of reserves was a function for correspondent banks D They felt that banks would lend out the reserves on more risky loans 22 By how much did the Federal Reserve increase the reserve requirement ratio in August 1936 23 Which of the following New Deal Programs no longer exists today A SEC B FSLIC C FDIC D All of the above still exists today 24 Which of the following DID NOT contribute to the SampL loan crisis in the 1980s A High in ation due to OPEC in the 1970s B Raising the deposit insurance coverage to 100000 C Reducing the budget of the regulatory agency supervising SampL s D Wave of home mortgage failures in the 1980s 25 At the peak of the Union membership in 1947 approximately what percentage of the labor force belonged to unions A B 33 c 52 D 75 26 Which of the following statements best describes the PayasyouGo system in Social Security A portion of your paycheck is deducted and put in a fund for you to draw upon when you retire A portion of your paycheck is deducted and used to pay the retirement benefits of today s elderly You are required to withdraw a certain amount of your paycheck and invest in a retirement account You can opt out of Social Security and rely on your 401k to provide for your retirement U0wgt Which of the following about Social Security is not true Social security is designed to help the handicapped as well as the elderly The poor tend to get more in social security benefits than they contribute The rich tend to get as much in social security benefits as they contribute The retirement age upon which you can collect full social security benefits will be raised to 67 U0wgtg Which of the following hypothetical situations would NOT lead to a future crisis in Social Security A large increase in immigration to the United States The average life expectancy increases to 90 The number of workers per retired worker decreases in half People begin to have a preference to retire when they are 55 U0wgtg What does the New Deal program SEC stand for South Eastern Conference Southern Educational Commission Securities and Exchange Commission Soil and Electricity Conservation U0wgtg Which of the following New Deal Programs was declared unconstitutional by the Supreme Court GlassStegall Act Fair Labor Standards Act National Industrial Recovery Act Tennessee Valley Authority UOWgt3 L r Who was Chairman of the Federal Reserve during the 1982 Recession Douglas North Paul Volcker Alan Greenspan Ben Bernake U0wgt Which of the following was NOT a method used by the North to finance the Civil War Issue bonds Print greenbacks Raise taxes All the above were used by the North to finance the Civil War UOWgtB Which of the following groups did not experience economic advances during WWII JapaneseAmericans Women AfricanAm ericans D Farmers cwgtm 34 During a recession which of the following policies should NOT be undertaken A Raise taxes B Raise Government spending C Increase the Money supply D Increase government transfer payments ie Social Security 35 In what year did the United States permanently go off the gold standard A 1933 B 1945 C 1971 D 1992 36 What was the Barings Crisis A Conflict between the US and Russia over Alaska in 1870 B A large British bank collapsing due to bad loans to Argentina in 1890 C United States returning to the gold standard in 1879 D A large strike against the Pullman Company in 1894 37 Which of the following examples best illustrates the term contagion A Mexico defaults on its international debt and as a result it becomes harder for Belize to borrow money from the international community B Mexico defaults on its international debt and as a result it must offer high interest rates to attract capital C Mexico defaults on its international debt and is unable to borrow from any other source D Mexico defaults on its international debt and the peso collapses 38 What were Greenbacks A Paper currency issued during the Civil War backed by silver B Paper currency issued during the Civil War backed by gold C Paper currency issued during the Civil War not backed by gold or silver D Bonds issued by the US Treasury during the Civil War 39 1f the economy experiences unexpected deflation as in the 1870s which of the following statements is true A Real interest rates increase B Real interest rates decrease C Nominal interest rates increase D Nominal interest rates decrease 40 When was the nationwide Banking Holiday A October 1929 B September 1931 C March 1933 D January 1936 41 Which of the following New Deal programs attempted to restrict supply of output A Agricultural Adjustment Administration B Wagner Act C Public Works Administration D Fair Labor Standards Act 42 Which of the following was a central aim for the G1 Bill of Rights A End segregation in the armed forces B Protect the factory jobs of women who entered the workforce during the war C Provide educational benefits to returning servicemen D Compensate the JapaneseAm ericans for their interment during the war 43 Which of the following is NOT a reason why the United States spends more on health care than other countries A The United States has better quality of health care B There is a shortage of qualified doctors in the United States C There are high bureaucratic costs in the United States D Prices for medical services and prescription drugs are high 44 Which of the following BEST explains why most private health insurance was tied to a worker s job starting in the 1940s A The Fair Labor Standards Act required employers to offer health insurance B The Supreme Court ruled that employers who offer health insurance are entitled to a tax break C The presence of wage controls during WWII forced employers to seek alternative means to attract workers D Employers were forced to offer private health insurance due to demands from unions 45 What is supplyside economics A An increase in military spending will lead to new technologies that will spill over to the private business sector B Cutting taxes on the wealthy will encourage innovation that will spill over to the aggregate economy C Increase in transfer payments ie Social Security will put more money in the hands of consumers D Increasing money supply will stimulate the economy 46 Which of the following fiscal policies was the only one that seems to have been most effective in increasing GDP A The Revenue Act of 1932 B KennedyJohnson Tax Cut of 1964 C President Reagan cutting taxes and raising military spending D George W Bush cutting taxes in 2001 WUWOgtUWOUWWUUOOWgtOOgtOUWgt WWOUJOIPOIPOIPUUOIPIPUUUOOIPOUJ
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