Econ 111 EXAM 3 questions with
correct answers graded A+ passed
Pullman Strike - correct answer ✔✔This was the third most famous of the violent conflicts that
occurred between management and labor in the last quarter of the nineteenth century. The
Pullman strike was initiated due to a 28% decrease in railcar worker wages. The rioting showed
unions that violent action will only look poorly on themselves and only do damage to
themselves and/or their reputation
Injunction - correct answer ✔✔Injunction is a ruling by a judge that prevents a person or entity
from invading the rights of another. The injunction during the early 1900s prevented unions
from calling or continuing a strike if employers were to bring the issue to court. This would soon
be referenced as "government by injunction" and any that would defy the injunction would be
sentenced jail time.
Crime of '73 - correct answer ✔✔The crime of 73 is a nickname with a negative connotation
towards the act of stopping the minting of silver coins from the US currency. Those that wished
for the silver coin to still be minted wanted its presence to remain to stop or slow down the
deflation that the government was creating in the economy.
William Jennings Bryan - correct answer ✔✔William Jennings Bryan was the Democratic
nominee that lost in the election of 1896. He won the title by appealing to the inflationists of
the United States and advocated for the ratio of silver to be 16 to 1.
War Industries Board - correct answer ✔✔This was a government made agency that had
massive effects on the economy. During their temporary reform, they took actions such as fixing
prices, converting factories for war time materials, fixing prices, and ect. The board was able to
reach its level of success by maximizing production.
,Prior to 1890 from which countries did most immigrants to the United States arrive from?
Between 1890 and 1920 from which countries did most immigrants to the United States arrive
from? What are some explanations for why the "new immigrants" supplanted the "old
immigrants"? - correct answer ✔✔Prior to 1890, the large majority of immigrants came from
northern and western europe, while between 1890 and 1920 80% of the total immigrants were
from southern and eastern europe, which consisted of Italians, Serbs, Greeks, Poles and
Russians. This influx of "new" immigrants was due to improvements in transportation that
finally allowed for immigrants from eastern and southern europe to come to the United States.
Additionally, economic opportunities in the native land of the immigrants from western and
northern began to grow to the point that the appeal of the United states began to dwindle.
What were some of the economic benefits of increased immigration in the late 19th century? -
correct answer ✔✔The labor industry first benefited the large amount of unskilled workers that
came with this wave of immigrants. The immediate benefit was seen in the steam ships and
railways industry. They were the ones that would have to transport massive amounts of
immigrants to and around the states when they would initially arrive in the US. Also the wave of
immigrants increased the demand in the retail and housing market. This sparked an increase in
supplies of goods and services, of which American consumers would also benefit from
What was the main reason why Republicans were concerned about making greenbacks a
permanent medium of exchange? How would the development of a national banking system
that issued its own banknotes address the concerns Republicans had with greenbacks? - correct
answer ✔✔The Republicans were worried that the implementation of greenbacks into the
economy would give the government the ability to print too many bills (that were not backed by
spechie) which could lead to serious inflation if the administration was under the control of an
irresponsible representative. Additionally they were concerned about the creation of banks that
would not be backed/ held accountable by federal bonds. This would lead to a greater chance of
a bank failing. With the presence of national banking, a national bank could sell government
bonds to pay back their debts. There was little fear of inflation due to the fact that the bank
notes were securely backed by government bonds.
What does it mean that the United States had a "dual banking system"? What were the benefits
and costs of a commercial bank to be a member of the national bank system? - correct answer
✔✔A dual banking system was the economic environment that included both state chartered
banks and national chartered banks. Some of the benefits that could be seen by a commercial
, bank would be the power to issue notes and the ability to attract more depositors with this new
level of validity. The downfall that could be seen by commercial banking would be that there
would be stricter regulations
As seen in the table, in 1864, the vast majority of commercial banks in the United States were
state chartered banks. But just a year later, the vast majority of commercial banks in the United
States were national banks. What can explain this sudden conversion of banks from state
chartered to national chartered? - correct answer ✔✔The popularity of national banks was only
able to increase in the time span of a year because of governmental intervention. In order to
encourage the amount of national banks in America, the government imposed taxes levied
against state bank notes. There were two taxes that were put onto state notes, the first was
enforced in 1864 (2%), and then they increased in 1865 (10%).
Use the above table to explain why the U.S. Treasury did not want to return to the gold standard
immediately after the Civil War in 1865. What needed to occur before the U.S. could return to
the gold standard. - correct answer ✔✔The table illustrates the price increase that occurred
during the civil war, which was around 76%. With these increasing prices, if the government
were to switch back to the gold standard, they feared that many of the citizens would cash out
their notes for gold, and trade them for the British pound. This would only worsen their issues.
Deflation is what was needed before the government put the gold standard back into effect.
Why did Democrats and members of the Greenback Party argue against returning to the gold
standard? What were the arguments made by the Republican Party about the necessity of the
U.S. to return to the prewar parity of the gold standard? - correct answer ✔✔Democrats and
those in the Green party argue that delaying the gold standard would put lots of citizens
through unnecessary economic hardship. Additionally, this contraction of the economy would
cause loads of unemployment and cause debtors to endure extra hardship. The Republicans on
the other hand thought that with the deflation creditors would be treated more fairly in
repaying their investment and would look favorably in the sense of credibility for foreign capital
markets. Along with this, Republicans feared that if they did not engage in deflation, the
currency of the United States might stay attached to paper and not be backed by species; this
was not a responsibility they wanted to entrust to the government.
correct answers graded A+ passed
Pullman Strike - correct answer ✔✔This was the third most famous of the violent conflicts that
occurred between management and labor in the last quarter of the nineteenth century. The
Pullman strike was initiated due to a 28% decrease in railcar worker wages. The rioting showed
unions that violent action will only look poorly on themselves and only do damage to
themselves and/or their reputation
Injunction - correct answer ✔✔Injunction is a ruling by a judge that prevents a person or entity
from invading the rights of another. The injunction during the early 1900s prevented unions
from calling or continuing a strike if employers were to bring the issue to court. This would soon
be referenced as "government by injunction" and any that would defy the injunction would be
sentenced jail time.
Crime of '73 - correct answer ✔✔The crime of 73 is a nickname with a negative connotation
towards the act of stopping the minting of silver coins from the US currency. Those that wished
for the silver coin to still be minted wanted its presence to remain to stop or slow down the
deflation that the government was creating in the economy.
William Jennings Bryan - correct answer ✔✔William Jennings Bryan was the Democratic
nominee that lost in the election of 1896. He won the title by appealing to the inflationists of
the United States and advocated for the ratio of silver to be 16 to 1.
War Industries Board - correct answer ✔✔This was a government made agency that had
massive effects on the economy. During their temporary reform, they took actions such as fixing
prices, converting factories for war time materials, fixing prices, and ect. The board was able to
reach its level of success by maximizing production.
,Prior to 1890 from which countries did most immigrants to the United States arrive from?
Between 1890 and 1920 from which countries did most immigrants to the United States arrive
from? What are some explanations for why the "new immigrants" supplanted the "old
immigrants"? - correct answer ✔✔Prior to 1890, the large majority of immigrants came from
northern and western europe, while between 1890 and 1920 80% of the total immigrants were
from southern and eastern europe, which consisted of Italians, Serbs, Greeks, Poles and
Russians. This influx of "new" immigrants was due to improvements in transportation that
finally allowed for immigrants from eastern and southern europe to come to the United States.
Additionally, economic opportunities in the native land of the immigrants from western and
northern began to grow to the point that the appeal of the United states began to dwindle.
What were some of the economic benefits of increased immigration in the late 19th century? -
correct answer ✔✔The labor industry first benefited the large amount of unskilled workers that
came with this wave of immigrants. The immediate benefit was seen in the steam ships and
railways industry. They were the ones that would have to transport massive amounts of
immigrants to and around the states when they would initially arrive in the US. Also the wave of
immigrants increased the demand in the retail and housing market. This sparked an increase in
supplies of goods and services, of which American consumers would also benefit from
What was the main reason why Republicans were concerned about making greenbacks a
permanent medium of exchange? How would the development of a national banking system
that issued its own banknotes address the concerns Republicans had with greenbacks? - correct
answer ✔✔The Republicans were worried that the implementation of greenbacks into the
economy would give the government the ability to print too many bills (that were not backed by
spechie) which could lead to serious inflation if the administration was under the control of an
irresponsible representative. Additionally they were concerned about the creation of banks that
would not be backed/ held accountable by federal bonds. This would lead to a greater chance of
a bank failing. With the presence of national banking, a national bank could sell government
bonds to pay back their debts. There was little fear of inflation due to the fact that the bank
notes were securely backed by government bonds.
What does it mean that the United States had a "dual banking system"? What were the benefits
and costs of a commercial bank to be a member of the national bank system? - correct answer
✔✔A dual banking system was the economic environment that included both state chartered
banks and national chartered banks. Some of the benefits that could be seen by a commercial
, bank would be the power to issue notes and the ability to attract more depositors with this new
level of validity. The downfall that could be seen by commercial banking would be that there
would be stricter regulations
As seen in the table, in 1864, the vast majority of commercial banks in the United States were
state chartered banks. But just a year later, the vast majority of commercial banks in the United
States were national banks. What can explain this sudden conversion of banks from state
chartered to national chartered? - correct answer ✔✔The popularity of national banks was only
able to increase in the time span of a year because of governmental intervention. In order to
encourage the amount of national banks in America, the government imposed taxes levied
against state bank notes. There were two taxes that were put onto state notes, the first was
enforced in 1864 (2%), and then they increased in 1865 (10%).
Use the above table to explain why the U.S. Treasury did not want to return to the gold standard
immediately after the Civil War in 1865. What needed to occur before the U.S. could return to
the gold standard. - correct answer ✔✔The table illustrates the price increase that occurred
during the civil war, which was around 76%. With these increasing prices, if the government
were to switch back to the gold standard, they feared that many of the citizens would cash out
their notes for gold, and trade them for the British pound. This would only worsen their issues.
Deflation is what was needed before the government put the gold standard back into effect.
Why did Democrats and members of the Greenback Party argue against returning to the gold
standard? What were the arguments made by the Republican Party about the necessity of the
U.S. to return to the prewar parity of the gold standard? - correct answer ✔✔Democrats and
those in the Green party argue that delaying the gold standard would put lots of citizens
through unnecessary economic hardship. Additionally, this contraction of the economy would
cause loads of unemployment and cause debtors to endure extra hardship. The Republicans on
the other hand thought that with the deflation creditors would be treated more fairly in
repaying their investment and would look favorably in the sense of credibility for foreign capital
markets. Along with this, Republicans feared that if they did not engage in deflation, the
currency of the United States might stay attached to paper and not be backed by species; this
was not a responsibility they wanted to entrust to the government.
