Econ 1740 Final Section 1-2 || with 100% Error-free
Solutions.
1) Which of the following most accurately describes world population growth?
a. World population has increased steadily during the past 6,000 years.
b. World population has exhibited significant cyclical patterns of growth and decline.
c. World population was relatively small until 1750, after which it increased rapidly.
d. World population was small until World War II, after which it increased very quickly correct
answers c. World population was relatively small until 1750, after which it increased rapidly.
2) Which of the following most accurately describes changes in life expectancy?
a. Life expectancy was relatively low until 1750, after which it increased rapidly.
b. Life expectancy has increased steadily during the past 6,000 years.
c. Life expectancy was low until after World War II, after which it increased very quickly.
d. Life expectancy has exhibited significant cyclical patterns of growth and decline. correct
answers a. Life expectancy was relatively low until 1750, after which it increased rapidly.
3) Which of the following is true about present day Americans who are classified as "officially
poor" by the government?
a. Their incomes are about the same as those at the official poverty level in 1950.
b. Their incomes are higher than all but the richest Americans in 1900.
c. Their incomes are about the same as those at the official poverty level in 1900.
d. Their incomes are about the same as those in the middle class in 1950. correct answers b.
Their incomes are higher than all but the richest Americans in 1900.
4) Which of the following statements is most accurate about ownership of household goods, such
as flush toilets, refrigerators, televisions, clothes dryers and automobiles?
a. In 2005, very few "officially poor" Americans owned these goods.
b. The same proportion of Americans who were officially poor owned these goods in 2005 in
comparison to 1950. The proportion of officially poor Americans who owned these goods in
2005 was equal to the proportion of all households who owned these goods in 1950.
c. A higher proportion of "poor" Americans owned these goods in 2005 compared to the
proportion of all U.S. households who owned these goods in 1950.
d. The proportion of Americans at the poverty level who owned these goods in 2005 was exactly
double the proportion of all households who owned these goods in 1950. correct answers c. A
higher proportion of "poor" Americans owned these goods in 2005 compared to the proportion of
all U.S. households who owned these goods in 1950.
5) 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 a. 50% of the total income
,6) Which of the following institutional changes contributed to the high rate of development in
European and North American countries?
a. An increase in government intervention in production and consumption of goods and services
through taxes and subsidies
b. An increase in governments' support to monopolistic firms and businesses
c. An increase in government ownership of resources
d. Stricter enforcement of private property rights correct answers d. Stricter enforcement of
private property rights
7) England's American colonies were ultimately more successful than the colonies of other
European powers. The reasons for this success include:
a. the realization that successful colonies would provide markets for English goods.
b. a focus on establishing permanent settlements.
c. the access to land which could be privately owned.
d. all of the above. correct answers d. all of the above
8) Which English colony was the first permanent settlement in America?
a. Roanoke
b. Plymouth
c. Jamestown
d. d. Mexico
e. e. Quebec correct answers c. Jamestown
9) The establishment of Jamestown in 1607 was financed by
a. the London Company.
b. the Plymouth Company.
c. the English Parliament.
d. Sir Walter Raleigh. correct answers a. the London Company.
10) Investors in the London Company (which was later re-formed as the Virginia Company)
a. earned substantial profits on their investment.
b. earned modest profits on their investments.
c. broke even, with revenues just covering the principal.
d. earned substantial losses on their investment. correct answers d. earned substantial losses on
their investment.
11) 29. According to a royal investigation in 1623 of the English colonies in Virginia, the
average life expectancy of newly arrived setters was
a.2 years.
b.5 years.
c.10 years.
d.20 years. correct answers a.2 years.
12) Of the English-owned joint stock companies that operated in North America, which was the
only one to survive longer than 20 years?
a. The London Company
, b. The New Plymouth Company
c. The Hudson Bay Company
d. The Massachusetts Bay Company correct answers c. The Hudson Bay Company
13) Jamestown's early years were marked by
a. a focus on futile "get rich quick" schemes.
b. collective operations under which production methods and consumption were shared.
c. lack of local control over production decisions.
d. extremely high mortality rates.
e. All of the above. correct answers e. All of the above.
14) What was the least important reason for the failure of the Virginia Company?
a. Difficulty in finding good crops to grow
b. The Company's employees had unforeseen labor alternatives.
c. There was a relatively small incentive for employees to work hard.
d. The death rate was much higher than they expected. correct answers c. There was a relatively
small incentive for employees to work hard.
15) Based on the research findings of David Galenson, Robert Heavner and others, what type of
person would you expect to negotiate an indenture contract of the longest duration?
a. a 13 year-old illiterate male who went to New York
b. a 22 year-old female weaver who went to Massachusetts
c. a 20 year-old male unskilled worker who went to the West Indies
d. a 21 year-old male blacksmith who went to the Pennsylvania correct answers a. a 13 year-old
illiterate male who went to New York
16) Redemptioners were immigrants who:
a. came to America as missionaries.
b. were brought over on credit provided by ship captains.
c. had previously been imprisoned in England.
d. refused to work as indentured servants. correct answers b. were brought over on credit
provided by ship captains.
17) People from which nation in Europe were most likely to come to colonial North America as
redemptioners?
a. Italy.
b. Holland.
c. Germany.
d. France. correct answers c. Germany.
18) The term "tragedy of the commons" describes:
a. how communal ownership of property leads to overuse and speedy exhaustion of resources.
b. the very difficult circumstances that the every-day citizens faced when the first arrived in
colonial America.
c. how collective ownership of property produces a greater incentive for people to shirk, or work
less than they otherwise would.
Solutions.
1) Which of the following most accurately describes world population growth?
a. World population has increased steadily during the past 6,000 years.
b. World population has exhibited significant cyclical patterns of growth and decline.
c. World population was relatively small until 1750, after which it increased rapidly.
d. World population was small until World War II, after which it increased very quickly correct
answers c. World population was relatively small until 1750, after which it increased rapidly.
2) Which of the following most accurately describes changes in life expectancy?
a. Life expectancy was relatively low until 1750, after which it increased rapidly.
b. Life expectancy has increased steadily during the past 6,000 years.
c. Life expectancy was low until after World War II, after which it increased very quickly.
d. Life expectancy has exhibited significant cyclical patterns of growth and decline. correct
answers a. Life expectancy was relatively low until 1750, after which it increased rapidly.
3) Which of the following is true about present day Americans who are classified as "officially
poor" by the government?
a. Their incomes are about the same as those at the official poverty level in 1950.
b. Their incomes are higher than all but the richest Americans in 1900.
c. Their incomes are about the same as those at the official poverty level in 1900.
d. Their incomes are about the same as those in the middle class in 1950. correct answers b.
Their incomes are higher than all but the richest Americans in 1900.
4) Which of the following statements is most accurate about ownership of household goods, such
as flush toilets, refrigerators, televisions, clothes dryers and automobiles?
a. In 2005, very few "officially poor" Americans owned these goods.
b. The same proportion of Americans who were officially poor owned these goods in 2005 in
comparison to 1950. The proportion of officially poor Americans who owned these goods in
2005 was equal to the proportion of all households who owned these goods in 1950.
c. A higher proportion of "poor" Americans owned these goods in 2005 compared to the
proportion of all U.S. households who owned these goods in 1950.
d. The proportion of Americans at the poverty level who owned these goods in 2005 was exactly
double the proportion of all households who owned these goods in 1950. correct answers c. A
higher proportion of "poor" Americans owned these goods in 2005 compared to the proportion of
all U.S. households who owned these goods in 1950.
5) 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 a. 50% of the total income
,6) Which of the following institutional changes contributed to the high rate of development in
European and North American countries?
a. An increase in government intervention in production and consumption of goods and services
through taxes and subsidies
b. An increase in governments' support to monopolistic firms and businesses
c. An increase in government ownership of resources
d. Stricter enforcement of private property rights correct answers d. Stricter enforcement of
private property rights
7) England's American colonies were ultimately more successful than the colonies of other
European powers. The reasons for this success include:
a. the realization that successful colonies would provide markets for English goods.
b. a focus on establishing permanent settlements.
c. the access to land which could be privately owned.
d. all of the above. correct answers d. all of the above
8) Which English colony was the first permanent settlement in America?
a. Roanoke
b. Plymouth
c. Jamestown
d. d. Mexico
e. e. Quebec correct answers c. Jamestown
9) The establishment of Jamestown in 1607 was financed by
a. the London Company.
b. the Plymouth Company.
c. the English Parliament.
d. Sir Walter Raleigh. correct answers a. the London Company.
10) Investors in the London Company (which was later re-formed as the Virginia Company)
a. earned substantial profits on their investment.
b. earned modest profits on their investments.
c. broke even, with revenues just covering the principal.
d. earned substantial losses on their investment. correct answers d. earned substantial losses on
their investment.
11) 29. According to a royal investigation in 1623 of the English colonies in Virginia, the
average life expectancy of newly arrived setters was
a.2 years.
b.5 years.
c.10 years.
d.20 years. correct answers a.2 years.
12) Of the English-owned joint stock companies that operated in North America, which was the
only one to survive longer than 20 years?
a. The London Company
, b. The New Plymouth Company
c. The Hudson Bay Company
d. The Massachusetts Bay Company correct answers c. The Hudson Bay Company
13) Jamestown's early years were marked by
a. a focus on futile "get rich quick" schemes.
b. collective operations under which production methods and consumption were shared.
c. lack of local control over production decisions.
d. extremely high mortality rates.
e. All of the above. correct answers e. All of the above.
14) What was the least important reason for the failure of the Virginia Company?
a. Difficulty in finding good crops to grow
b. The Company's employees had unforeseen labor alternatives.
c. There was a relatively small incentive for employees to work hard.
d. The death rate was much higher than they expected. correct answers c. There was a relatively
small incentive for employees to work hard.
15) Based on the research findings of David Galenson, Robert Heavner and others, what type of
person would you expect to negotiate an indenture contract of the longest duration?
a. a 13 year-old illiterate male who went to New York
b. a 22 year-old female weaver who went to Massachusetts
c. a 20 year-old male unskilled worker who went to the West Indies
d. a 21 year-old male blacksmith who went to the Pennsylvania correct answers a. a 13 year-old
illiterate male who went to New York
16) Redemptioners were immigrants who:
a. came to America as missionaries.
b. were brought over on credit provided by ship captains.
c. had previously been imprisoned in England.
d. refused to work as indentured servants. correct answers b. were brought over on credit
provided by ship captains.
17) People from which nation in Europe were most likely to come to colonial North America as
redemptioners?
a. Italy.
b. Holland.
c. Germany.
d. France. correct answers c. Germany.
18) The term "tragedy of the commons" describes:
a. how communal ownership of property leads to overuse and speedy exhaustion of resources.
b. the very difficult circumstances that the every-day citizens faced when the first arrived in
colonial America.
c. how collective ownership of property produces a greater incentive for people to shirk, or work
less than they otherwise would.
