Unit 4: Economy

What was the average annual growth in the gross domestic product of the United States for the fifth years following World War II

3%

What controversial institution did congress charter in 1791

Bank of the United States

What was rechartered in 1816

Bank of the United States

How did the federal government fund the war of 1812

By borrowing from state banks

What was the outcome of the supreme court's decision in Gibbons v. Ogden (1824) on the U.S. economy

Created a national U.S. economy based on free trade ad guided only by Congress instead of being hindered by a patchwork of conflicting state regulations

What two sources of credit encouraged consumers to spend more during the 1950s

Credit cards and home mortgages

What waterway enables New York City to become the chief financial center of the United States

Erie Canal

What did congress establish in 1913 to serve as the central bank for the United States

Federal Reserve System

Name three benefits of the federal government issuing bonds, as Alexander Hamilton suggested

Gives the buyers of bonds a strong reason to support the government; bond redemption more reliable; bonds sold well in the U.S. and in Europe

What action did king George III take in 1763 that frustrated colonists

He forbade settlements between the Appalachian Mountains and the Mississippi River.

What was the name of the system begun in 1840 to hold federal funds and pay the federal government's bills

Independent Treasury

What was the major economic problem of the 1970s

Inflation

What French and British practice hurt American trade during the war they fought against one another in the early 1800s?

Intercepting American vessels

What prohibition in the constitution helped unify the nation's economy

Internal tariffs

What two tentative steps did the federal government take in 1887 and 1890 to guide business along ethical lines?

Interstate commerce commission; Sherman antitrust act

Bankers such as J.P. Morgan participated in what type of business in which they built large enterprises that did not make things themselves, but invested huge sums of money in companies that did

Investment capitalism

What was the effect of the embargo act on American business

It caused a serious loss of trade.

Describe how the type of economics Reagan proposed is supposed to work

Lower taxes give people the incentive to work harder and save and invest more, stimulating economic growth; generates more tax revenue

An economic system in which a government businessmen in establishing colonial outposts is called what

Mercantilism

What economic difficulty worries people who lived between the Appalachian Mountains and the Mississippi River

Native American attacks; the federal government couldn't guarantee them access to the port of New Orleans to sell their goods

What u.s. president encouraged a large tax cut in the early 1960s in order to spur the economy? What was his party

President John Kennedy, Democratic

What programs of the 1960s greatly increased federal spending and deficits

President Lyndon Johnson's social programs, such as Medicare and Medicaid, and the war in Vietnam

What was the first big business in the U.S., which grew dramatically after the civil war

Railroads

What are the reassuring words of Jesus from Matthew 6:34

So do not worry about tomorrow; for tomorrow will care for itself. Each day has enough trouble if its own

The morill land grant act enabled public lands to be sold in order to establish what

State agriculture and mechanical universities

What international events contributed to the panic of 1819

The Napoleonic Wars ended, causing a decline in demand for American agricultural products, and Britain found a cheaper source for cotton in the East Indies.

What made it possible for people to become millionaires quickly in the 1990s

The dot-com boom in Internet businesses

How did federal involvement in the economy change as a result of president Franklin roosevelt's policies during the Great Depression

The federal government under Franklin Roosevelt played an active role in trying to recover from the collapse

What weakness did the articles of confederation have in regard to taxes

The national government had no power to tax; it could only request payments from the states and the states were free to ignore those requests.

What was the economic impact of the civil war in the north and in the south

The northern economy grew and the southern economy was largely destroyed.

What did the embargo act of 1807 require of American ships

They couldn't leave port bound for Britain unless they paid a large bond.

What was the economic purpose of the first Spanish settlements in the new world

To extract as much wealth from the land as possible and return it to Spain

What was Andrew Jackson's response to congressional renewal of the bank of the United States in 1832

Veto

List three innovations that spurred economic growth in America in the late 1700s and early 1800s.

Water-powered spinning frame, cotton gin, steamboat

How did the U.S. government issue bonds to fight the American revolution

Wealthy individuals loaned money to the United States by buying bonds, with the expectation of getting their money back plus interest.

What was the grievance that farmers had that resulted in their rebellion under the leadership of Daniel Shays

What they felt was unfair treatment by creditors to whom they owed money

According to the constitution, the national government could regulate commerce with what three entities

With foreign nations, with Indian tribes, and among the states

Before the American revolution, the basis of economy in the American colonies was what

agriculture

A leader in what industry caused the Panic of 1907?

copper mining

What crime involving money did the Constitution specify that the federal government could punish?

counterfeiting

What did the federal government sell to help pay off debt after the war of 1812

frontier lands

What is hard money

gold and silver

What did the American economy become by the 1890s

largest economy in the world

The fiscal powers given to congress in the constitution were significant but were also what

limited

What was the primary standard of wealth in the English colonies in America

ownership of land

What type of company precipitated the panics of 1873 and 1893

railroad

What industry had many failures during the late 1980s and early 1990s

savings and loan institutions

What type of economics did president Ronald Reagan propose in 1980

supply side

What was the main source of income for the federal government for many years

tariffs