mgt 3050 final usu
Which of the following is not an example of the "tragedy of the commons"
A CEO who closes their domestic factories and moves production to a foreign country - again, not anything that has to do with hurting the public property.
Which is not an example of the "tragedy of the commons"
A CEO who destroys his company's machines by running them too long. The other options talk about where people do things to destroy PUBLIC property and make other peoples' lives miserable, like smoking in a movie theater, or dumping trash in the Logan River, etc.
General Motors as a company is best described as a __________
A Holding Company
White (1990) studies the reasons for stock growth and collapse during the late 1920s. What does he argue was the cause of the rapid collapse of the market in October 1929
A business cycle downturn had begun just prior to the collapse
Why would you not want to produce with a reaper if you had a small farm
A farmer would not be able to produce enough to pay down the high fixed costs of buying a reaper
______ describes a bank that is willing to lend to illiquid but solvent banks during a crisis
A lender of last resort
In his Report on a National Bank, Hamilton made several claims in support of establishing a National Bank. Which of the following is not among the principal advantages he highlights?
A national bank would establish more commercial banks and avoid political favoritism - Political favoritism actually DOES happen in the national banks.
Acemoglu, Johnson, and Robinson (2001) and Engerman and Sokoloff (2002) agree that the North American colonies were likely to establish good institutions relative to other British colonies, but their reasons differ. Which of the following best explains the reasons for their positions
Acemoglu, Johnson, and Robinson argue that European settlers were better able to SURVIVE the American conditions, whereas Engerman and Sokoloff argue that the American colonies had more equality because they did not have INDIGENOUS LABOR or ability to produce cash crops on plantations
Economies of scale is a strategy to lower _______
Average total costs
What is the "originate to distribute" model?
Banks receive fees for issuing loans and then sell the loan to others regardless of risk
How do commercial banks multiply up the amount of currency in an economy to become M1
Banks use deposits to provide loans which put money back out into circulation to create more deposits
What is one of the reasons the demand curve almost always slopes downward
Because consumers can buy more within their budget when prices are low It is NOT because people like diversifying, according to the test
Why did we argue that American technology was not necessarily superior to the British technology
British technology was labor-heavy because British wages were relatively low, and American technology was capital-heavy because the U.S. rental rate of capital was relatively low
Which of the following was not a way that General Motors competed with Ford for business?
Built a single factory that produced all the company's car brands at once - they struggled a lot with vertical integration. Each type of car was built in its own factory which made it difficult for them to feel like a single company.
How might the Federal Reserve have helped a housing bubble to emerge prior to the Great Recession?
By keeping interest rates very low
In common language, Bagehot's Rule argues which of the following?
Central banks should provide as much money as solvent banks want during panics
Why did Britain initially allow the American colonies so much freedom and encourage development beyond the initial coastal locations
Challenge the nearby Spanish and French colonies Let the settlers more freedom to claim more land.
As time went on, land size for homesteading was steadily increased. Why might this have been necessary in order to encourage settlement in the west
Farmers needed more because western lands had less water, a harsher climate, and rockier soil - needed more space to be able to find good land to work with.
Which of the following was not a key emphasis of the "American System"
Focus on highly skilled labor The American system was about: - Simplicity of design - Standardization/interchangeable parts - Economies of scale - Continuous process production REDUCES need for skilled workers
How are GDP and GDP per capita different
GDP per capita is GDP divided by the number of people in the country
Why is more growth not always better
Growth can sometimes leads to EXTERNALITIES that hurt individuals that were not party to the growth
Ford's strategy was successful in the market, but what was the strategy's distinct problem
He did not innovate much on the car itself or quickly implement new technology - Stuck with the model T, a one-size-fits-all approach, which did not go well with people who wanted more customized features.
What was the reasoning behind the actions of the Fed and Congress during the Great Recession?
Did not want to make the same mistakes of the Great Depression and wanted to stop bank runs
To encourage greater productivity, some manufacturing firms implemented _______ whereby workers received a much higher wage rate if their output met or exceeded the daily standard.
Differential piece-rate method
Which of the following are almost always going to be short-term
Discount Bonds
_______ is the idea that it is hard to have transactions without money because each party has to demand what the other has
Double coincidence of wants
How is economic development different from economic growth
Economic growth measures total output growth while economic development measures the growth of peoples' well-being (policies and programs that improve life)
Which of the following would decrease the deposit multiplier?
Either the bank now has to hold a larger reserve, or people start guarding their money at home and not putting it into banks.
Which of the following canals was so successful that it spawned a wave of canal building
Erie Canal
What did the Northwest Land Ordinances of 1785 do
Established surveyors to set baselines and principle meridians - Made 6-square-mile townships, with plots of land, each a square mile.
A trademark is an:
Exclusive right granted for a word, name, or symbol that indicates the source of the goods and to distinguish them from the goods of others
Who is generally hurt by protective tariffs and who is generally helped
Exporters and consumers are hurt by tariffs and protected industries are helped
What event led to the immediate breakout of the Panic of 1907?
Failed corner on United Copper Company stock by F. Augustus Heinze
According to our growth accounting model, which of inputs has contributed the least to U.S. GDP growth
Land Later on, the biggest contribution is Productivity
Which of the following acts switched the U.S. from a "first to invent" system to a "first to file system"
Leahy-Smith America Invents Act
People who argue for the Infant Industry Argument of international trade believe that they need to protect firms because_____
Leaning by doing will help them compete - Young firms are initially inefficient and thus temporary tariffs are sometimes necessary to protect them until they learn to become efficient
_____is the economic term that people get more efficient doing something the more they do it over time
Learning by doing
The New York Safety Fund was intended to do what?
Limit losses to depositors and noteholders
Bank Note Reporters and Counterfeit Detectors increased bank note efficiency and helped them circulate around the country by _______
Listing discounts of bank notes from face value based on the probability of default and cost of redemption
The failure of the New York Safety Fund is often blamed on a principle-agent problem. Why did the Safety Fund fail from this issue while the Suffolk System was able to avoid it and survive?
Losses in the Suffolk System were concentrated in a single bank which prompted them to supervise, whereas losses in the Safety Fund were dispersed amongst banks which did not prompt them to supervise
What would we expect to happen to M1 and M2 if depositors move their funds from demand to time deposits?
M1 would go down and M2 would stay the same - time deposits are usually in M2, so if you were to switch funds to time, it would have ALREADY been counted in M2, but now will NOT be counted in M1.
Why was the transportation revolution vital for the growth of modern manufacturing
Machines are only useful if firms can sell a lot (i.e., have a big market) so that they can pay off their investment in the machine.
One of the main ways that manufacturers were increasing the speed of their production after 1900 was to redesign their factories by _____
Making them based on the order of the steps of production rather than on the power source
What strategy did General Motors undertake in order to compete with Ford
Market segment approach - where they innovated different cars for different types of people, such as luxury cars, cheaper cars, heavy duty cars, etc.
Heckelman and Dougherty (2007) argue that personal characteristics affected politicians' votes on the U.S. Constitution. They find that merchants were more likely to vote for a strong central government system. As discussed in class, what is the most likely cause of this vote:
Merchants wanted a more stable government and currency to encourage trade, they want money and control.
The U.S. manufacturing system started very slow. Which of the following was the first major step to establishing U.S. manufacturers that could compete with European ones
Migration of smart people who had "studied" European technology
The Quantity Theory of Money would argue that which of the following is generally responsible for decreases in prices (i.e., deflation)?
Money quantity available going down
What would we expect to happen to the U.S. production possibilities curve given that the U.S. has lost a large amount of labor due to Covid
Move towards the axis in both directions - As there would be less resources and labor
The "shop-order system" was installed in order to ________.
Track the specific costs associated with each step of making each product
Why would an investment bank or hedge fund primarily use repurchase agreements (i.e., repos)?
Obtain liquidity but hold onto the assets
Why did the South Improvement Company try to use oil refiners as "eveners"
Oil refiners could allocate the quantity of oil to help maintain collusion among railroads
Which one of the following is true in the Von Thünen's Featureless Plain Model before a railroad, canal, or road is built
On a featureless plain, only those farmers that live within a certain distance from the city center will engage in commercial agriculture whereas the rest of farmers will produce only for their own family's consumption (i.e., subsistence farming)
The Fed was created to provide an elastic currency. Some of this was issuing funds through the discount window, but the Fed's main way to expand or contract currency is through _____
Open market operations that buy or sell Treasury bonds
If the GDP of the American colonies grew nearly 10-fold over the 1700s, but GDP per capita growth was less than 35%, then what must have been occurring
Population growth was strong over the period due to high fertility and immigration (GDP is the overall production of the country, while per capita is per person, which means that if GDP grows, but not significantly per person, there are more people to get a piece of the wealth)
Which of the following banking issues did the Federal Reserve Act not solve at all?
State banks and their low regulations
A subprime loan as opposed to a prime loan signals what?
The borrower is less likely to repay the loan
An entire production possibilities curve (and not just a point along the curve) illustrates what
The combinations of products a country can produce using all its resources
Scholars often split the New Deal into two parts. What was the difference between the two
The early period legislation was seeking to deal with the Great Depression itself whereas the later period legislation was focused on safety nets and improving standards of living for working class people
Why specifically did the First Banking Crisis of the Great Depression begin in 1930?
The failure of Caldwell and Company led to closures at connected banks
What is the problem of graduation
The government has to deal with unsold land in developed areas - all the garbage areas in the mid-west where no one wants to live. The government fixed this by selling the land for very cheap.
The stock market crashes in October of 1929 often date the start of the Great Depression. However, because ______, the crashes were probably more psychologically damaging than anything.
There were no bank or firm failures for almost a year after the crash
Inventive activity (i.e., the creation of new inventions) is nearly always driven by what:
A profit-seeking motive - So basically people are greedy
The pyramiding of reserves describes _______
A system where banks were allowed to keep reserves in other banks in larger cities
What would we expect to happen to the adoption of mechanized technology in the U.S. if the minimum wage was raised in all states
Adoption would increase - if you adopt mechanized technology, you don't have to pay as many workers in the long run.
Most tech companies are located near Silicon Valley, most Hedge Funds are located near New York City, and most car companies are located near Detroit because firms are often more efficient when they operate around other similar firms. This concept is labeled what
Agglomeration economies
After the Panic of 1907, Congress' immediate but temporary solution for the nation's inelastic currency was_________
Allowing banks to monetize their assets (i.e., print bank notes) during panics under the Aldrich Vreeland Act
Why might people prefer fiat currency (as opposed to a Bimetallic Standard)
Allows a government to increase its currency to help the economy during panics (Which can be both a good thing and a bad thing, depending on the side of the political spectrum that one is at)
American technology developed much differently from Great Britain because_____
America had fewer people relative to land than Great Britain and thus had to economize on labor
What is a credit default swap?
An insurance contract on bonds
Which of the following best describes the U.S. Constitution
Compromise between National and Federal Systems For each of the Intolerable Acts, there were grievances. Sugar Act was to raise revenue and achieve mercantilist goals, while the Stamp Act was purely to raise revenue.
The Great Depression consisted of two distinct economic downturns. The second downturn during 1937-38 was driven by _____
Congress reducing expenditures and the Fed raising reserve requirements thinking the crisis was over
While the Reconstruction Finance Corporation was intended to help prop up industry and banks by providing loans, it is often regarded as semi-responsible for the Third Banking Panic of the Great Depression because ____________
Congress released the names of all the banks it lent to
The 1920s are characterized by much broader segment of population having access to high standard of living. Which of the following did not fuel this particular growth of the middle class?
Continued government spending after WWI
How did J.P. Morgan take action to help end the Panic of 1907?
Deposited his and other wealthy individuals' money in struggling companies and arranged to float bonds on European markets as needed
How did Fannie Mae and Freddie Mac encourage the housing bubble that emerged in the 2000s?
Created a large number of mortgage backed securities
Assuming the price of Coca-Cola is higher in the rest of the world than in the U.S. and U.S. initially has no tariffs, which of the following would happen to the price, consumption, and production of Coca-Cola in the U.S. economy if President Trump imposes a tariff on Coca-Cola imports from all other countries
Decreased price, decreased domestic production, increased domestic consumption
Assuming the price of Lays Potato Chips is higher in the rest of the world than in the U.S. and all countries trade with each other, which of the following would happen to the price, consumption, and production of Lays Potato Chips in the U.S. if the U.S. instituted a trade embargo that stopped all international trade
Decreased price, decreased domestic production, increased domestic consumption The price would go down to the price that the US can sell at, and people would consume more than produce as it would be cheaper with no competitive forces.
What was Jefferson's view on the early land debate
He wanted land to be sold very cheaply in order to encourage democracy
In his first year, FDR implemented several pieces of gold legislation. What was he seeking to do?
He wanted to prevent the money supply and prices from falling further
Why did Charles Goodyear begin to study how to improve the properties of rubber
He was told that it was in demand and he could make a lot of money
Why do investors purchase mortgage backed securities?
Higher return relative to other investments and protected by collateral
How did Jay Gould spur the massive railroad consolidation movement after the Civil War
His wild actions proved to Vanderbilt and others that collusion was not possible in the long run because people were always going to undercut prices and try to take over the system
Allen (1991) argues which of the following
Homesteading allowed the U.S. government to avoid high costs associated with land maintenance. Basically, it dumped the high costs of land maintenance on the people as they received very cheap land.
Hornbeck (2010) argues that protection of private property is vital for individuals to invest and improve that land by showing what
How farmers increased investment after the invention of barbed wire - once people felt actual ownership for their property and could protect it, they would do more to improve their land.
What are bank notes actually?
IOUs of individual banks
According to the Von Thünen's Featureless Plain Model, what do we expect to occur to commercial agriculture when a railroad is built out from the city center in one direction
In addition to the initial circle of commercial agriculture, commercial agriculture would occur in a cone-like shape starting at the city center and getting smaller on each side of the railroad as the distance along the railroad increased
What would we expect to happen to velocity (as defined in the Quantity Theory of Money equation) if money starts being used much more easily due to digital currencies such as Bitcoin?
Increase Quantity Theory of Money states: Price X Output = Money X Velocity
According to the Von Thünen's Featureless Plain Model, what do we expect to occur to the price of land when a high speed train with much lower costs is built north from the city center of New York
Increase for most places along the route but remain similar in the city center of NYC
Assuming the price of printers is lower in the rest of the world than in the U.S. and U.S. has tariffs on foreign imports, which of the following would happen to consumer and producer surplus of printers in the U.S. economy if President Trump reduces the tariff on printer imports from all other countries
Increased consumer surplus and decreased producer surplus
How does the arrival or improvement of transportation affect competition in general
Increases competition because multiple firms serve the same market despite being located other places
While democracy is often associated with higher economic growth, the relationship mainly is _______
Indirect and works through its influence on the establishment of good institutions, and those good institutions have a DIRECT relationship with economic growth.
While companies can secretly collude, set a high price, and earn high profits, most collusion does not last for very long. Why is this the case
Individual firms have a large incentive to undercut the high collusive price and capture the entire market regardless of the deal they made
Banks help solve the maturity mediation problem. What describes this problem?
Individuals provide short term deposits for LONG TERM loans
Banks help solve the denomination mediation problem. What describes this problem:
Individuals provide small amounts of deposits, but loans often need to be very large
We gave the Ogallala Aquifer as an example of the tragedy of the commons. How did the tragedy manifest itself
Individuals who owned the land used too much water with the aquifer below the surface. They planted a lot of water-heavy crops, and soon the aquifer began drying up in many areas, as it is a slowly-renewing resource. The land began collapsing as the water disappeared.
Why did Ford's plan to raise salaries to $5 a day not greatly reduce profits
It allowed the company to attract and retain the best workers thus raising productivity
What is the General Revision Act of 1891
It allowed the president to set aside forest reserves - Teddy Roosevelt is the founder of these, which is why he is on Mount Rushmore.
What is the general revision act of 1891
It allowed the president to set aside forest reserves - This was Teddy Roosevelt
The Sherman Antitrust Act of 1890 was the first law that allowed for the punishment of monopolies and trusts. However, it did not initially see much success because _____
It did not lay out clear legal definitions for the concepts of "trust" and "monopoly"
Which of the following was a drawback of government land grants to fund railroads
It did not prevent railroads from building wherever they wanted just to obtain extra land - The railroad companies just wanted money, and the government couldn't do anything about that.
What is the drawback of buying stock on margin?
It magnifies the losses of downturns in stock prices
The U.S. did not allow regular banks to branch (i.e., operate in more than one location) before the 1980s. Why did the lack of branching lead to more historical bank failures and financial panics?
It prevented banks from diversifying their loans across different areas
Engerman and Sokoloff (2002) argue that the United States' sustained growth relative to other colonies and countries was the result of _____
Its lack of indigenous labor or ability to produce cash crops on plantations Just a sidenote, because indigenous labor wasn't used, there was less inequality compared to other colonies, and one of the first to establish public education and universal suffrage.
While both Jefferson and Hamilton want a rectangular land registration system, who eventually won out in terms of prices for government land
Jefferson
Which of the following events encouraged a large-scale but temporary increase in U.S. factory incorporations
Jefferson Embargo of 1807-1809 and subsequent War of 1812
In which of the following ways did the Navigation Acts help Britain's mercantilism
Kept shipping costs in the Empire and prevented other countries from undercutting
Which of the following Supreme Court cases ruled that any firm "clothed in the public interest" was subject to government regulation
Munn v. Illinois Wabash, St. Louis, and Pacific Railroad v. Illinois - Railroads were interstate commerce and only properly subject to regulation by Congress
There are many possible effects that could be responsible for the recovery from the Great Depression. Romer (1990) calculates what output would have been like (1) without fiscal policy or (2) without monetary policy to determine what factor was most important. She finds that _______
Nearly all the recovery was due to the expansion of money supply due to gold inflows NOT DUE to FISCAL policy
Electricity is fairly efficient, but what is its main drawback
Needs to be around an area that has invested in an electrical system There are other energy systems: • Animal Energy - Extremely limited • Water power - Efficient - Drawbacks: Does not produce much power, somewhat seasonal, and limited in location • Steam - More power, not seasonal, and could be placed anywhere - Drawbacks: Had to bring coal and water, needed lots of repairs, and often broke down
There are often provided two likely causes for the depth of the Great Depression. Of the two, _____ highlight how hard it was for firms to receive loans because bank failures destroyed borrowing relationships.
Non-Monetary Effects
Assuming the price of cars is higher in the rest of the world than in the U.S. and U.S. freely trades with other, which of the following would happen to the price, consumption, and production of Coca-Cola in the U.S. economy if President Trump imposes a tariff on Coca-Cola imports from all other countries
Nothing would occur in the U.S.
White (1990) studies the reasons for stock growth and collapse during the late 1920s. What does he argue was the cause of the rapid growth?
People (particularly new investors) irrationally over-estimated the market during the 1920s
According to Gresham's Law, bad money drives out good. How did this work in the early 1800s?
People exported the coin whose metal was undervalued at the mint and imported the metal that was overvalued
Which of the following types of competition is likely to lead to the highest quantity produced and sold in the market
Perfect competition Monopoly will do the opposite - highest price and lowest quantity produced.
According to the anti-trust case study, what particular problem drove the rise in trusts and collusion in the United States and why
Periodic overcapacity
Clearinghouses provided some help to locations during financial panics. Which of the following best describes this approach?
Provided emergency liquidity to members
Which was not a given reason why we typically measure national power using output
Provides a measure of a country's preferences
After Jackson vetoed the Second Bank of the United States, what did he do with all the government's money?
Put the money in ordinary commercial banks around the country that were considered his "pet" banks of favorite people
What Act most likely provided the necessary number of people to allow the American Revolution to take place
Quebec Act - Made that part of the northern land ceded to Canada, taking away the farmers' land, and rising them up to rebellion against the British
What industry was the first to develop modern business management structures and why
Railroads because they operated in a variety of locations and provided a variety of services
Railroads reduced travel time compared to canals. While the higher speed of trains compared to boats is one factor, which drove this travel time reduction in a targeted and endogeneous way
Railroads could be built straight to specific large cities whereas canals took roundabout routes based on where rivers were located
Railroads companies were often accused of agreeing to charge a high common rate and not lowering it. This practice is specifically called ______.
Rate fixing
The main purpose of the Troubled Asset Relief Program under Bush was to ______
Remove risky and illiquid assets from the market and provide cash to the system instead
While we do not have data between 1780 and 1840, we know that growth per capita after 1840 was faster than before 1780. This has led many scholars to point towards various causes of the accelerated growth. Which of the following authors argued that the so-called "take-off" was driven by infrastructure and railroad investment
Rostow North - restriction of foreign trade Towne & Rasmussen - slow innovation of agriculture - Rostow — development of infrastructure (particularly railroads) David — Shift from agriculture to mfg.
Which of the following would not be directly counted towards an accurate and full calculation of GDP
Rubber sold in the country to eventually be used to make tires (As in, the product must be a FINISHED product)
How did the U.S. government solve the specific land policy issue of "graduation"
Selling off unsold land for very cheap
The industry life cycle describes the birth, rise, and decline of industries over time. During which of the steps is the number of competitors declining (i.e., consolidation) and a separation of the market into segments based on price or quality
Shakeout
Which of the regions of American colonies produced mostly for trade with Britain
South North and Middle colonies were mostly only for ship-building - too cold to be of much use to Britain as far as international trade.
While the pound sterling was Britain's official currency, the U.S. chose to adopt a currency system more similar to what country?
Spain
Why did the financial innovations of the 1990s and 2000s help lead to the Great Recession?
Spread housing market risk across the entire financial network
Before the arrival of Ford's Model T, the automobile industry could best be described as being in what step of the industry life cycle
Startup
_______ mortgage describes a mortgage with an interest rate that dramatically increases after a year or two
Teaser Rate
Which of the following was a given reason that extensive U.S. growth has slowed after 1840
The U.S. has focused on more capital deepening and less capital broadening
In his Report on Manufactures, Hamilton argued that the government needed to support manufacturing. Which of the following was not one of the main reasons that Hamilton gave
The U.S. needed a positive trade balance in order for it succeed relative to others
Allen (1991) argues that little homesteading was done in Utah because _______.
The Utah population reached out to help the Indian communities rather than to fight them - and they already had a lot of settlements with the pioneers, so they didn't need to bribe people to come live here.
Between 1850 and 1858, there was a sudden increase in reaper sales. What was the main reason for the rise in reapers during the decade
The price of wheat in the U.S. rose dramatically due to the Crimean War in Europe - if wheat prices go up, then people are willing to pay more for it, so you will get a higher profit off the wheat when you go to sell. That makes buying machinery more worth it.
Due to the lack of infrastructure spending, many roads and bridges are starting to break down meaning that there are increased transportation costs within the U.S.. What would we expect to occur to the prices received by U.S. producers after shipping costs and the prices paid by U.S. consumers at the register as a result of the increased costs if the U.S. does not engage in international trade
The price paid by the consumer rises and the price ultimately received after shipping costs by the producer falls, which means they will get much less of a profit margin.
Which of the following was a main reason that both Jefferson and Hamilton wanted a rectangular land registration system (i.e., the Northeastern Township Approach)
The system's precise boundaries prevented land disputes. Also, it is WAY less confusing than metes and bounds.
Why did the Italian city-states dominate the early spice trade
They could travel on the Mediterranean Sea for a lot of the trip
Why did the American colonies not fit the typical mercantilist model
They did not have good resources (i.e., gold/silver, spices, people), it became more a place of living rather than a resource.
How did credit ratings agencies play a role in the build up to the Great Recession?
They helped firms build the worst top rated MBS bonds possible
Clearinghouses were not able to prevent financial panics from occurring because _______
They only provided funds to members after a panic had started
Why were colonies helpful under the mercantilism approach
They provided resources and outputs that the main country did not
The First and Second Banks of the United States reportedly slowed down growth of speculative credit and helped maintain stability in the financial system. How did they achieve this?
They used their branches to threaten other banks with redemption of their notes
Before 1900, manufacturers were focused on decreasing costs by increasing the quantity produced. However, after 1900, modern manufacturing firms began to focus on increasing their _______ (i.e., the speed of their production).
Throughput
According to the anti-trust case study, which of the following is not a lower-order generalization that the authors make about the productive efficiencies deriving from economies of scale, long production runs, and concentration of production in the least cost plants
Tight horizontal integrations often hurt consumers unlike loose horizontal combinations
Assuming the price of tires is higher in the rest of the world than in the U.S. and there are no tariffs, what would happen to tire prices in the U.S., the quantity of tires sold to consumers in the U.S., and the quantity of tires produced in the U.S. if the U.S. opened up to trade for the first time (i.e., the change from autarky)
U.S. prices would increase, domestic consumption would decrease, and domestic production would increase The price would shift up, causing more room for exports, while the people inside the US would buy less because the price would go up.
Ford lowered costs by bringing a electricity plant, iron ore processing, and a steel mill into the factory as well as purchasing trucks, ships, railroads, glass works, timber forests, iron-ore mines, and rubber plantations. What is this called
Vertical integration
Why was the Federal Reserve broken into 12 different districts?
Wanted the Fed to properly represent local interests and concerns
Why did Standard Oil fortify their management by shifting from a trust structure to a holding company structure
Wanted to create a single unified chain of command with punishment for managers for deviations from the agreed upon strategy
Heckelman and Dougherty (2007) argue that personal characteristics affected politicians' votes on the U.S. Constitution. Which of the following do they find to be a significant predictor of an anti-National position
Western landowners - basically how it is now with Republicans and Democrats and their thoughts on government.
What are interlocking directorships
When different companies are run by the same set of executives
Why do we generally consider mercantilism to be a zero-sum game
With exception of the discovery of new mines, a country can only gain gold or silver when they take it from another country, there is no other way to gain more money.
The Infant Industry Argument states which of the following
Young firms are initially inefficient and thus temporary tariffs are sometimes necessary to protect them until they learn to become efficient
In the absence of federal banking regulation, the Suffolk Banking System was a private entity that stepped in to facilitate the use of bank notes. How did they achieve this?
established relationships among banks and forced them to redeem each other's notes at par
When trying to calculate the total benefits of the railroad to the nation, we have to account for ______ which consists of benefits to all producers because of the railroad's ability to allow larger markets to develop and goods to arrive faster.
forward linkages - the ones that end up using the railroad backward linkages - the people that were benefitted by giving the railroad the materials used to build it.
