ECON 1740 Final || with Accurate Answers 100%.
In the year 2010, the richest fifth of the American population earned close to:
a. 50% of the total income
b. 20% of the total income
c. 30% of the total income
d. 80% of the total income correct answers 50% of the total income
Investors in the London Company (later Virginia Co.)
a. earned substantial profits
b. earned modest profits
c. broke even, with revenues just covering the principal
d. earned substantial losses correct answers d. earned substantial losses on their investment
Which of the following is the most accurate about the Native Americans during the colonial
period?
a. There is a strong consensus among historians about the size of the population...
b. Native Americans rarely formed trading alliances.
c. The significant deterioration of the Native American population occurred after 1825, when the
US expanded west.
d. The susceptibility to disease was one of the primary reasons the population declined correct
answers d. The susceptibility to disease was one of the main reasons the Native American
population declined.
If a series of severe storms in the Atlantic Ocean drastically disrupted the transatlantic slave
trade, which would most accurately describe the market for slaves in colonial America?
a. price of slaves would increase and quantity decrease
b. price and quantity of slaves would increase
c. price and quantity of slaves would decrease
d. price would decrease and quantity increase correct answers b. price and quantity of slaves
would increase
In colonial America, _______ was/were especially scarce, while the supply of _____ was
plentiful.
a. land and labor; capital
b. capital and labor; land
c. land and capital; labor
d. unskilled labor; skilled labor correct answers b. capital and labor; land
Residents of the developing American colonies lived _____ lives compared to people living in
the advanced countries of that time because _____.
a. better; of favorable protections by England
b. better; of high levels of output per worker
c. worse; of unfavorable taxation
d. worse; of the inaccessibility of both capital and finished machine goods. correct answers b.
better; of high levels of output per worker
,Which of the following statements is NOT true about the economy of the Middle Colonies?
a. it was a net importer of food
b. the farms were generally smaller than those in the South
c. Wheat and flour were exported from the region
d. its main agricultural products were grains correct answers a. it was a net importer of food
If a product exhibits increasing returns to scale, then the average cost of making the product will
_____ as its production decreases.
a. increase
b. decrease
c. remain the same
d. there is insufficient information provided to answer correct answers b. decrease
Suppose the only input in agriculture is time and the following chart depicts the time it took for
the Middle Colonies and New England to produce barley and milk. Using the principle of
comparative advantage, what would be the most efficient solution?
Time to produce:
1 ton of barley: New England-4 hours; Middle Colonies-5 hours
1 ton of milk: New England-3 hours; Middle Colonies-6 hours correct answers c. New England
produces milk and the Middle Colonies produce barley
According to the mercantilists, colonies were supposed to export _____ and import _____ from
_____.
a. manufactured products; raw materials; the mother country
b. raw materials; manufactured products; countries outside the empire
c. manufactured products; raw materials; countries outside the empire
d. raw materials; manufactured products; the mother country correct answers d. raw materials;
manufactured products; the mother country
Early forms of colonial money included:
a. wampum
b. tobacco
c. furs and hides
d. musket balls
e. All of the above correct answers e. All of the above
Problems with the use of commodity money include:
a. quality control
b. storage difficulties
c. inconvenience
d. spoilage
e. All of the above correct answers e. All of the above
What statement most accurately describes the U.S. colonial economy in the 1700s?
a. Middle Colonies had big trade surpluses from large shipments of food
,b. The majority of pop. lived in large urban areas along Atlantic Coast
c. Once indentured servants completed their indentures, they moved to the lower South
d. Colonial America was the first region in the world to permanently use paper money correct
answers d. Colonial America was the first region in the world to permanently use paper money
Capital formation in the colonies was mostly due to
a. savings and investments from the colonists themselves
b. capital inflows from English merchants
c. capital inflows from the English crown
d. capital inflows from international sources other than England correct answers a. savings and
investments from the colonists themselves
The largest productivity gains in colonial shipping were from:
a. decreased layover times in ports
b. lower costs associated with the increase in size of vessels
c. increased speed of ships
d. use of larger ships correct answers a. decreased layover times in ports
What was the most immediate impact of introducing the horse to the plains Indians?
a. A decrease in the amount of agricultural work the Indians did
b. A large increase in the size of hunting groups
c. More intensive and more efficient use of animal carcasses
d. More time was spent in fixed locations correct answers a. A decrease in the amount of
agricultural work the Indians did
Which of the following statements accurately reflects research findings on the distribution of
colonial wealth?
a. The poorest 20% of colonist controlled nearly 20% of colonial wealth
b. Distributional inequality tended to be greater in rural areas
c. Colonial wealth was distributed more unequally in the Middle Colonies
d. The opportunity for income mobility was probably greater in the colonies than in England.
correct answers d. The opportunity for income mobility was probably greater in the colonies than
in England.
Today _____ countries generate average income levels that approach the earnings of free
Americans on the eve of the revolution.
a. no
b. relatively few
c. many
d. most correct answers b. relatively few
Increases in productivity due to changes in technological capacity could be best represented by:
a. Outward shift in the demand curve
b. Outward shift in the supply curve
c. Outward shift in both the demand and supply curves
d. Inward shift in the supply curve correct answers b. Outward shift in the supply curve
, Tobacco prices fell dramatically in the early 1600s in spite of demand increases because:
a. supply was also increasing
b. supply was decreasing
c. new farming machinery was introduced
d. the colonial government provided agriculture subsidies for tobacco farmers correct answers a.
supply was also increasing
Which one of the following colonial groups actually benefited from the Navigation Acts?
a. Southern tobacco farmers
b. New England shipbuilders
c. colonists who bought goods imported from non-imperial sources
d. No colonial group benefited from the Navigation Acts correct answers b. New England
shipbuilders
England's colonial policy changed dramatically following the French and Indian War. All of the
following statements describe factors that contributed to this change in policy EXCEPT
a. Following the war, property taxes doubled in England to finance war debt
b. Wealthy New England merchants asked the crown to exercise more authority over colonial
affairs
c. Colonists had actively traded with England's enemies during war
d. English military leaders realized a continuing presence would be necessary to protect colony
borders correct answers b. Wealthy New England merchants asked the crown to exercise more
authority over colonial affairs
The _____ was designed to raise revenue and achieve mercantilist goals, while the _____ was
simply intended to raise revenue.
a. Sugar Act; Tea act
b. Tea Act; Molasses Act
c. Sugar Act; Stamp Act
d. Stamp Act; Hat Act correct answers c. Sugar Act; Stamp Act
Economic consequences of Tea Act (1773) included a/an _____ in the price of tea in the colonies
and a/an _____ in the revenues of colonial tea wholesalers.
a. increase; increase
b. increase; decrease
c. decrease; increase
d. decrease; decrease correct answers d. decrease; decrease
Which of the following provisions was NOT a component of the Intolerable Acts?
a. Permitted British officials charged with crimes to be tried in Britain
b. Raised taxes in Boston to pay for the tea destroyed during the Boston Tea Party
c. Provided for the quartering of troops in the city of Boston
d. Revised the charter of Massachusetts to make some rights dependent on the decisions of a
governor who was appointed by England correct answers b. Raised taxes in Boston to pay for the
tea destroyed during the Boston Tea Party
In the year 2010, the richest fifth of the American population earned close to:
a. 50% of the total income
b. 20% of the total income
c. 30% of the total income
d. 80% of the total income correct answers 50% of the total income
Investors in the London Company (later Virginia Co.)
a. earned substantial profits
b. earned modest profits
c. broke even, with revenues just covering the principal
d. earned substantial losses correct answers d. earned substantial losses on their investment
Which of the following is the most accurate about the Native Americans during the colonial
period?
a. There is a strong consensus among historians about the size of the population...
b. Native Americans rarely formed trading alliances.
c. The significant deterioration of the Native American population occurred after 1825, when the
US expanded west.
d. The susceptibility to disease was one of the primary reasons the population declined correct
answers d. The susceptibility to disease was one of the main reasons the Native American
population declined.
If a series of severe storms in the Atlantic Ocean drastically disrupted the transatlantic slave
trade, which would most accurately describe the market for slaves in colonial America?
a. price of slaves would increase and quantity decrease
b. price and quantity of slaves would increase
c. price and quantity of slaves would decrease
d. price would decrease and quantity increase correct answers b. price and quantity of slaves
would increase
In colonial America, _______ was/were especially scarce, while the supply of _____ was
plentiful.
a. land and labor; capital
b. capital and labor; land
c. land and capital; labor
d. unskilled labor; skilled labor correct answers b. capital and labor; land
Residents of the developing American colonies lived _____ lives compared to people living in
the advanced countries of that time because _____.
a. better; of favorable protections by England
b. better; of high levels of output per worker
c. worse; of unfavorable taxation
d. worse; of the inaccessibility of both capital and finished machine goods. correct answers b.
better; of high levels of output per worker
,Which of the following statements is NOT true about the economy of the Middle Colonies?
a. it was a net importer of food
b. the farms were generally smaller than those in the South
c. Wheat and flour were exported from the region
d. its main agricultural products were grains correct answers a. it was a net importer of food
If a product exhibits increasing returns to scale, then the average cost of making the product will
_____ as its production decreases.
a. increase
b. decrease
c. remain the same
d. there is insufficient information provided to answer correct answers b. decrease
Suppose the only input in agriculture is time and the following chart depicts the time it took for
the Middle Colonies and New England to produce barley and milk. Using the principle of
comparative advantage, what would be the most efficient solution?
Time to produce:
1 ton of barley: New England-4 hours; Middle Colonies-5 hours
1 ton of milk: New England-3 hours; Middle Colonies-6 hours correct answers c. New England
produces milk and the Middle Colonies produce barley
According to the mercantilists, colonies were supposed to export _____ and import _____ from
_____.
a. manufactured products; raw materials; the mother country
b. raw materials; manufactured products; countries outside the empire
c. manufactured products; raw materials; countries outside the empire
d. raw materials; manufactured products; the mother country correct answers d. raw materials;
manufactured products; the mother country
Early forms of colonial money included:
a. wampum
b. tobacco
c. furs and hides
d. musket balls
e. All of the above correct answers e. All of the above
Problems with the use of commodity money include:
a. quality control
b. storage difficulties
c. inconvenience
d. spoilage
e. All of the above correct answers e. All of the above
What statement most accurately describes the U.S. colonial economy in the 1700s?
a. Middle Colonies had big trade surpluses from large shipments of food
,b. The majority of pop. lived in large urban areas along Atlantic Coast
c. Once indentured servants completed their indentures, they moved to the lower South
d. Colonial America was the first region in the world to permanently use paper money correct
answers d. Colonial America was the first region in the world to permanently use paper money
Capital formation in the colonies was mostly due to
a. savings and investments from the colonists themselves
b. capital inflows from English merchants
c. capital inflows from the English crown
d. capital inflows from international sources other than England correct answers a. savings and
investments from the colonists themselves
The largest productivity gains in colonial shipping were from:
a. decreased layover times in ports
b. lower costs associated with the increase in size of vessels
c. increased speed of ships
d. use of larger ships correct answers a. decreased layover times in ports
What was the most immediate impact of introducing the horse to the plains Indians?
a. A decrease in the amount of agricultural work the Indians did
b. A large increase in the size of hunting groups
c. More intensive and more efficient use of animal carcasses
d. More time was spent in fixed locations correct answers a. A decrease in the amount of
agricultural work the Indians did
Which of the following statements accurately reflects research findings on the distribution of
colonial wealth?
a. The poorest 20% of colonist controlled nearly 20% of colonial wealth
b. Distributional inequality tended to be greater in rural areas
c. Colonial wealth was distributed more unequally in the Middle Colonies
d. The opportunity for income mobility was probably greater in the colonies than in England.
correct answers d. The opportunity for income mobility was probably greater in the colonies than
in England.
Today _____ countries generate average income levels that approach the earnings of free
Americans on the eve of the revolution.
a. no
b. relatively few
c. many
d. most correct answers b. relatively few
Increases in productivity due to changes in technological capacity could be best represented by:
a. Outward shift in the demand curve
b. Outward shift in the supply curve
c. Outward shift in both the demand and supply curves
d. Inward shift in the supply curve correct answers b. Outward shift in the supply curve
, Tobacco prices fell dramatically in the early 1600s in spite of demand increases because:
a. supply was also increasing
b. supply was decreasing
c. new farming machinery was introduced
d. the colonial government provided agriculture subsidies for tobacco farmers correct answers a.
supply was also increasing
Which one of the following colonial groups actually benefited from the Navigation Acts?
a. Southern tobacco farmers
b. New England shipbuilders
c. colonists who bought goods imported from non-imperial sources
d. No colonial group benefited from the Navigation Acts correct answers b. New England
shipbuilders
England's colonial policy changed dramatically following the French and Indian War. All of the
following statements describe factors that contributed to this change in policy EXCEPT
a. Following the war, property taxes doubled in England to finance war debt
b. Wealthy New England merchants asked the crown to exercise more authority over colonial
affairs
c. Colonists had actively traded with England's enemies during war
d. English military leaders realized a continuing presence would be necessary to protect colony
borders correct answers b. Wealthy New England merchants asked the crown to exercise more
authority over colonial affairs
The _____ was designed to raise revenue and achieve mercantilist goals, while the _____ was
simply intended to raise revenue.
a. Sugar Act; Tea act
b. Tea Act; Molasses Act
c. Sugar Act; Stamp Act
d. Stamp Act; Hat Act correct answers c. Sugar Act; Stamp Act
Economic consequences of Tea Act (1773) included a/an _____ in the price of tea in the colonies
and a/an _____ in the revenues of colonial tea wholesalers.
a. increase; increase
b. increase; decrease
c. decrease; increase
d. decrease; decrease correct answers d. decrease; decrease
Which of the following provisions was NOT a component of the Intolerable Acts?
a. Permitted British officials charged with crimes to be tried in Britain
b. Raised taxes in Boston to pay for the tea destroyed during the Boston Tea Party
c. Provided for the quartering of troops in the city of Boston
d. Revised the charter of Massachusetts to make some rights dependent on the decisions of a
governor who was appointed by England correct answers b. Raised taxes in Boston to pay for the
tea destroyed during the Boston Tea Party
