ECON 327

Suppose, using the Fogel and Rutner model, you know that the elasticity of demand for eastern labor is -1.5 and the wage rate increases from $1 per week to $1.20 per week as a result of the release of land in the west. What will the percentage change in quantity of eastern labor demanded be?% change in quantity demanded =____%

-30%

Match each of the following terms with the best description A. Operated directly by the crown, this form sometimes resulted from the failure of another initial colony form.B. These colonies were the result of land granted as personal favors by the king to individuals. Citizens of these colonies enjoyed all the rights of other Englishmen.C. An incorporated partnership in which shares were issued. The first colonies were organized this way. select A B C: 1. joint-stock company select A B C: 2. royal colony select A B C: 3. proprietary colonies

1. C 2. A 3. B

If the crude birth rate in a given year is 55 per 1000 and the crude death rate is 35 per 1000 in that same year, what is the net change in population in that year? ___ per 1000

20 per 1000

From 1700-1780, the population growth rate was about 3%. Based on the rule of 70, this means the population would double in about_____years. (round to the nearest whole number)

23

An Englishman signed an indenture (service) contract with a sea captain for passage to the colonies. The cost of passage is 50 pounds sterling. The captain sells the contract for the servant upon arrival in the colonies for 75 pounds sterling. The captain's profit is ___ pounds sterling. As a result, the Englishman is now contracted to work for the purchaser of the contract.

25

f the population has increased by 20 per 1000 in a given year, the growth rate is 2%. Using the rule of 70, how soon would the population double in this economy?

35 years

If cotton output rose by a factor of 11.5 in the period 1820-1860, and the slave population rose by a factor of 2.5 during that same time period, then output of cotton per slave must have increased by a factor of ____(please round to the nearest 1/10th decimal place)

4.6

If 4 units of capital are needed to produce one unit of output, and the ratio of capital to population is $200 (worth) of capital per person, then per capita output can be estimates as $ ___ per person.

50

Using the rule of 70 and the rate at which industrial development doubles reported in Hughes and Cain (2011) we can estimate that the average annual growth rate of industrial development is approximately _____%.

7%

The American manufacturing system began to emerge in the years prior to the Civil War. Which of the following was not an important aspect of the system? A. Extensive or increased use of craftsmen B. Extensive use of machinery and equipment C. Mass production of goods in factories D. The production of standardized goods

A. Extensive or increased use of craftsmen

Which of the following are push factors for immigration to the United States between 1815 and 1914? (choose all that apply) A. Harvest failures in the home countries of the immigrants B. Increasing job opportunities in an expanding U.S. economy C.European population increases, contributing to problems associated with more mouths to feed in a stagnant European economy D. Relatively high wages in the U.S. economy

A. Harvest failures in the home countries of the immigrants C.European population increases, contributing to problems associated with more mouths to feed in a stagnant European economy

Why did high fertility of the early population occur, according to Hughes and Cain (2011)? A. High fertility occurred due to all of the reasons below B. Children can be considered investment goods and the rate of return on a child born to a farm family was relatively high. C. More than half of the population were at ages where fertility is high - in 1820, for example, the median American was less than 17 years old. D. A nation composed mainly of farmers and people planning to farm had every reason to create large families.

A. High fertility occurred due to all of the reasons below

Which statement holds true for the period of slavery in U.S. history? A. It developed land and profitably produced agricultural goods for sale in world markets. B. It provided slaveholders with incentives to avoid purchasing farm implements. C. The system wasted natural resources. D. Slavery was a moral institution.

A. It developed land and profitably produced agricultural goods for sale in world markets.

Which of the following is NOT true? A. Mercantilism believed that free trade would generate wealthier nations. B. Mercantilism believed that government was necessary to maximize the wealth of a nation. C. Mercantilism was a central belief up until the American Revolution. D. Mercantilism believed that international trade was a zero-sum game.

A. Mercantilism believed that free trade would generate wealthier nations.

Historians typically disagree with which of the following contentions from Time on the Cross? A. Slave breeding and sexual exploitation were myths and slave sales rarely broke up slave families B. Slavery was on the verge of extinction on the eve of the Civil War. C. Slavery was profitable for Southerners and consequently resulted in wealth accumulation. D. Slave owners were moral and treated slaves with kindness and high standards

A. Slave breeding and sexual exploitation were myths and slave sales rarely broke up slave families

Which of the following is not an example of innovative regulatory efforts to reduce panics and failures? A. The fractional reserve system B. The Suffolk System of Boston banks C. Clearinghouse rules D. The New York Safety Fund E. The Forstall System in Louisiana

A. The fractional reserve system

Which of the following groups benefited from the Civil War? A. Those groups issuing bonds during the war B. Those farmers whose crops and farm animals were destroyed C. Slave owners who parted with their property without compensation D. Wage earners who suffered declining real earnings as wages lagged behind inflation

A. Those groups issuing bonds during the war

The free-rider problem can be alleviated by setting up a tax system for provision of a public good by the government. A. True B. False

A. True

The South was characterized by all of the following except A. a strong manufacturing sector. B. large plantations and slave labor. C. a more unequal distribution of income and wealth than in the North. D. a lack of public education systems.

A. a strong manufacturing sector.

The shape of a production possibilities curve is typically A. concave B. convex C. a straight line D. depends on the stage of development of the economy

A. concave

A welfare analysis to show the impact of a tariff would show a decline in A. consumer surplus B. producer surplus C. deadweight loss D. none of the above

A. consumer surplus

If Congress could auction each piece of land in a fair, untainted auction, the revenue for the federal government from land sales would have been higher than it actually was. This is because an auction helps the seller find the buyer's A. reservation price, thereby capturing most of the buyer's consumer surplus B. reservation price, which shifts producer surplus to consumer surplus C. reservation price, which increases the deadweight loss D. reservation price, allowing the government to sell all future parcels at the same price

A. reservation price, thereby capturing most of the buyer's consumer surplus

All of the following methods were used to raise funds to finance the Civil War (1861-1865) except A. taxes on prostitution B. the printing of paper money C. taxes on whiskey and beer D. an income tax

A. taxes on prostitution

The tool used to facilitate transactions across the Atlantic Ocean was A. the Bill of Exchange B. British coins and bullion C. American coins and bullion D. Italian coins and bullion

A. the Bill of Exchange

Time on the Cross views slavery as a system in which A. the plantations were efficient operations with incentive systems providing slaves with some rewards for productive behaviors B. the slaves, because of the oppression and brutal conditions they faces, had the same type of attitudes as did the inmates of Nazi concentration camps during World War II. C. the slaves were quite happy, good-hearted and content with their condition. D. the prospects of escape or resistance were so poor that slaves made few revolts against slavery

A. the plantations were efficient operations with incentive systems providing slaves with some rewards for productive behaviors

The Articles of Confederation and Perpetual Union (1781) adequately addressed the free-rider problems by setting up a tax system that required all states to share the costs of providing national defense, protecting private property rights, regulating commerce with other countries and across states and upholding a system of laws. A. True B. False

B. False

The Constitution made no mention of slavery reflecting the belief that individual states should have the authority to legislate over the institution A. True B. False

B. False

How do external economies change the production possibilities curve? A. They improve the comparative advantage of trading partners, causing more foreign trade. B. They result in lower cost of production for producers in cities, increasing the amount of urban production that can be produced with the same amount of resources. C. They increase the costs of production so that the market can not reach the efficient equilibrium. D. all of the above

B. They result in lower cost of production for producers in cities, increasing the amount of urban production that can be produced with the same amount of resources.

If the inflation rate is greater than the increase in nominal wages, as was the case after the Civil War, then real wages (or the purchasing power of wages) A. are increasing B. are decreasing C. remain unchanged D. can't be determined with the given information

B. are decreasing

Under the new Constitution in 1789, the states gained the sovereign power to A. "regulate" the value of money. B. create corporation by special franchise. C. power and issue money. D. levy taxes.

B. create corporation by special franchise.

The fractional reserve banking system may "create money" because A. each bank is required to hold all of its deposits on reserve in the vault B. each bank can lend out a fraction of its deposits C. any single bank can lend out more than the total value of its deposits D. none of the above

B. each bank can lend out a fraction of its deposits

If the price of land increases when the price of farm products increase, this reflects A. the increase in demand for land due to immigration B. factor returns pricing of land C. the trickle-down effect D. a market disequilibrium

B. factor returns pricing of land

As the economy is changed by a technological innovation, which of the following would we not expect to see? A. jobs change B. institutions remain fixed C. populations move D. social infrastructure adapts E. learning-by-doing integrates the innovation into the economy

B. institutions remain fixed

According to Hughes and Cain, after the Civil War the freed slaves were A. able to quickly become successful farmers and craftsmen. B. left to fend for themselves without property, money or skills. C. provided with 40 acres and a mule to get a start in life as free people. D. provided with some monetary compensation for the centuries-long oppression and exploitation they and their ancestors had faced.

B. left to fend for themselves without property, money or skills.

Land grants to military veterans could be resold by those veterans. These were often sold at a discount, meaning the veteran received _______ than the per-acre price set by the federal government. A. more B. less

B. less

The practice of parents giving their children an amount of land similar to what they received from their parents is knows as a(n) A. investment bequest. B. targeted bequest. C. life-cycle bequest. D. strategic bequest.

B. targeted bequest.

The cost to buy a bill of exchange was determined by (choose all that apply) A. fixed price B. the amount payable on maturity C. the interest discount D. the bank fee for the transaction E. the buyer's and seller's negotiating strengths

B. the amount payable on maturity C. the interest discount E. the buyer's and seller's negotiating strengths

It is possible that the colonies were better off under British rule if A. the taxes and costs of restrictions imposed by England exceeded the defense expenditures and bounties and drawbacks provided by England and English merchants. B. the defense expenditures and bounties and drawbacks provided by England and English merchants exceeded the taxes and costs of restrictions imposed by England. C. the defense expenditures and bounties and drawbacks provided by England and English merchants were just equal to the taxes and costs of restrictions imposed by England. D. The 7-years war had never happened.

B. the defense expenditures and bounties and drawbacks provided by England and English merchants exceeded the taxes and costs of restrictions imposed by England.

The policy of selling off public lands undermined the gains that could be made from private sale of land by farmers because A. it placed land in the hands of the public and took away private rights B. the public lands essentially shifted the supply curve of land to the right, reducing the market price of lands C. government officials set land prices for all lands D. the release of public lands reduced demand, shifting the demand curve to the left and reducing the market price of lands

B. the public lands essentially shifted the supply curve of land to the right, reducing the market price of lands

One reason that slave labor became common in the colonies might have been because A. the marginal productivity of a unit of slave labor was higher than the marginal productivity of a unit of free labor. B. the wars of King William III and Queen Anne reduced the supply of prime-aged males coming from England as indentured servants. C. eventually, ship captains refused to transport redemptioners because it was no longer profitable. D. the number of prisoners that had been sent from English jails had been exhausted.

B. the wars of King William III and Queen Anne reduced the supply of prime-aged males coming from England as indentured servants.

The gold export point could slow rapid U.S. expansion by tightening the money supply as gold was sent abroad to maintain balance of payments accounts. This process A. destabilized the economy B. was reversed during times of stagnation C. required federal government intervention D. could only occur once per year

B. was reversed during times of stagnation

Inflation results A. when prices, on average, decrease across the economy. B. when too much money is chasing too few goods. C. when the price of one good or service increases. D. when banks decrease lending.

B. when too much money is chasing too few goods.

The Constitution created an environment conducive to economic growth and development because the federal government could constitutionally do all of the following EXCEPT A. Coin money and regulate its value B. Regulate commerce, thus prohibiting states from erecting barriers to the interstate movement of goods C. Set "fair" prices on the private sale of goods in the marketplace D. Levy uniform taxes

C. Set "fair" prices on the private sale of goods in the marketplace

Slaves were expensive factors of production in comparison to free labor. Which of the following was not a cost to slave labor? A. Medical care B. Food C. Wages D. Clothing

C. Wages

The concavity of the production possibilities curve is a result of A. economies of scale B. comparative advantage C. diminishing marginal productivity D. a compass

C. diminishing marginal productivity

Business cycles are best categorized as A. fluctuations in the production and employment levels in one industry of the economy. B. variations in international trade. C. major upswings and downturns in most sectors of the economy. D. all of the above.

C. major upswings and downturns in most sectors of the economy.

If the relative market price of cotton is greater than the opportunity cost of producing it in the South, A. resources will flow away from the production of cotton, causing the supply of it to decline with the passage of time. B. the market price of cotton will increase in the long run. C. producers will increase the supply of cotton in the long run. D. the situation will remain unchanged as long as supply and demand remain in balance.

C. producers will increase the supply of cotton in the long run.

Technology changes that make capital more productive will A. result in a movement along the investment demand curve toward the southeast corner. B. shift the investment demand curve to the left. C. shift the investment demand curve to the right. D. not have any effect on investment demand.

C. shift the investment demand curve to the right.

Engerman's (1971) studies of the Civil War's impact on industrialization A. restricted the real cost of the War to the South. B. showed that the War sped up the ongoing processes of industrialization. C. showed that the War effort slowed down industrialization. D. support the previous work of Hacker and Beard.

C. showed that the War effort slowed down industrialization.

Uselding and Neal's research finds that immigrants allowed the U.S. to grow more rapidly because A. they had a higher average skill set than U.S. workers B. they were motivated to work harder because they did not want to return to their country of origin C. they contributed human capital that their country of origin had invested in while the U.S. benefitted from it D. they had a higher birth rate, so increased population more rapidly than native Americans

C. they contributed human capital that their country of origin had invested in while the U.S. benefitted from it

Consistent with Gresham's Law, ____ was driven out of circulation by the printing of paper money by the Continental Congress to pay bills related to the Revolutionary War.

Consistent with Gresham's Law, specie was driven out of circulation by the printing of paper money by the Continental Congress to pay bills related to the Revolutionary War.

On the farm, which of the following people had the highest labor value? A. A woman B. A child under the age of 5 C. A grandparent D. A man

D. A man

Profitability in cotton farming depended on which of the following factors? A. Physical crop yields B. World and domestic cotton prices C. Subsistence farming during periods of low cotton prices D. All of the above

D. All of the above

Which of the following is true in passing the Land Ordinances of 1785 and 1787, A. Thomas Jefferson strongly influenced the passing of the Land Ordinances B. Their passage allowed individuals to buy and sell land C. Their passage allowed individuals to derive income from their land D. All of the above E. None of the above

D. All of the above

Which of the following is NOT correct. A. Caveat emptor, "let the buyer beware", was common until recent decades and facilitated an expanding economy allowing greater freedom to do business. B. Caveat emptor, "let the buyer beware", is not a cover for fraud and still allows the buyer to sue a seller in civil court for damages. C. Caveat emptor, "let the buyer beware", mostly replace the market overt system. D. Caveat emptor, "let the buyer beware", does not provide a fair opportunity for the buyer to examine the goods.

D. Caveat emptor, "let the buyer beware", does not provide a fair opportunity for the buyer to examine the goods.

The Federal Constitution, like the laws under English rule, permitted the U.S. government to A. Impose taxes to pay for government services and national defense. B. Create money and regulate its value C. Regulate commerce with other countries D. Do all of the above E. Do none of the above

D. Do all of the above

Using the equation for the Aggregate Burden of Empire Membership found on page 78 of your textbook, which variable is falling at the end of the French and Indian War in 1762? A. T B. C C. S D. E

D. E

The idea of interchangeable parts, which was an important aspect of the American System of Manufacturing, is attributed by Hughes and Cain (2011) to A. Adam Smith, who suggested it in his book The Wealth of Nations. B. Thomas Jefferson, who used it in his "nailery" on his plantation. C. Henry Ford, who used it in the production of automobiles. D. Eli Whitney, who used it in the production of guns.

D. Eli Whitney, who used it in the production of guns.

Which of the following was NOT a function of the First and Second Banks of the United States? A. Handling government finances B. Keeping state banks in line by presenting their notes C. Helping establish uniform paper currency in the U.S. D. Promoting growth of state banks

D. Promoting growth of state banks

Richard Steckel's research found low average birth weights (which resulted in about 2x the rate of death of black children younger than 5 years than of white children at that age) and high infant mortality and expected high rates of miscarriage for slaves. If, the population growth rates were similar for antebellum blacks and whites, then this higher infant mortality and rate of miscarriage meant that, A. in order for the population growth rates to be similar, slave women must have become pregnant more frequently B. in order for the population growth rates to be similar, slave women must have become pregnant beginning at younger ages than white women C. in order for the population growth rates to be similar, slave children must have had better nutrition than white children D. a and b are correct E. b and c are correct

D. a and b are correct

On the gold standard, a trade deficit in the U.S. impacted the economy by producing A. low interest rates B. a gain of specie C. deflation D. a tight supply of money

D. a tight supply of money

Intermediation entities include which of the following? A. stock exchanges B. life and fire insurance companies C. mutual saving banks D. all of the above

D. all of the above

One advantage of the indentured servant contract was that A. it could be used for virtually any type of labor: skilled, unskilled, farm, industrial, etc. B. it could be resold if the buyer's circumstances changed and he no longer needed the labor C. it could be used regardless of the origin of the laborer and the destination of the laborer D. all of the above are advantages of the contract E. none of the above are the advantages of the contract

D. all of the above are advantages of the contract

Economists generally believe that the American Revolutionary War was a response to A. the economic policies of the British government toward its colonies, in particular the North American colonies. B. the colonial merchant class' desire to have control over their business destinies C. the "lower orders" belief that their economic future would be rosier under self-rule D. all of the above factors were most likely relevant factors in the colonies' choices to rebel.

D. all of the above factors were most likely relevant factors in the colonies' choices to rebel.

The careful historian, in studying an institution like slavery and in striving for objectivity, will give special attention to all of the following except A. the background conditions of the period B. a theory which provides understanding of the cause-and-effect relationships involved C. those processes which recur over time and which continually motivated the institution D. all of the above statements must be given special attention

D. all of the above statements must be given special attention

Slavery was more widely adopted as A. the absolute price of white labor increased B. the relative price of white labor increased C. the invention of the cotton gin increased cotton production D. due to all of the above factors E. due to none of the above factors

D. due to all of the above factors

Early nineteenth century (early 1800s) banks primarily A. accepted and managed checkable deposits. B. provided a broad range of financial services. C. relied on a federal safety fund in times of well spread crisis. D. enabled small savers to buy shares in a diversified portfolio of investments.

D. enabled small savers to buy shares in a diversified portfolio of investments.

The term for labor brought from Europe with a contract for a certain term employment in exchange for employment is A. contract worker B. assigned servant C. redemptioner D. indentured servant

D. indentured servant

The relatively high capital/labor ratio in U.S. production technology was a result of A. relatively scarce capital B. an abundance of labor that resulted from westward expansion C. an abundance of labor that resulted from immigration before the Civil War D. relatively scarce labor E. none of the above options explains the high capital/labor ratio

D. relatively scarce labor

If taxes (or quit-rent) are collected on a piece of land in order to maintain tenure, then A. the land is NOT likely to remain idle because the opportunity cost of holding the land is less than the amount of the tax B. the land is likely to remain idle because the opportunity cost of holding the land is greater than the amount of the tax C. the land is likely to remain idle because the opportunity cost of holding the land is less than the amount of the tax D. the land is NOT likely to remain idle because the opportunity cost of holding the land is equal to the amount of the tax

D. the land is NOT likely to remain idle because the opportunity cost of holding the land is equal to the amount of the tax

Which of the following was NOT a factor in the change in power for manufacturing from predominantly water to predominantly steam? A. fast-moving water was geographically limited B. the manufacturing of weight reducing goods was more efficiently done near the source of the raw material C. the fuel needed to run high pressure steam engines was abundant in the U.S. D. the variable costs of water use were nearly zero

D. the variable costs of water use were nearly zero

The inflation that occurred during the Civil War A. was a means of expropriating resources to fight the war. B. represented a decrease in the purchasing power of money. C. was a form of taxation to provide resources to fight the war. D. was true for all of the above.

D. was true for all of the above.

According to the research of economic historians, Southern farms A. were far larger, on average, than farms in the North. B. used the gang system to increase the production of slaves. C. realized the gains from regional specialization in the production of cotton, tobacco, sugar and rice. D. were all of the above.

D. were all of the above.

Selling contracts for indentured servants helped the Virginia Company overcome A. the contract portability problem of agency B. the principle-agent problem with labor C. the principle-agent problem with land owners who rented labor from the Virginia Company D. a and b E. b and c

E. b and c

Laws imposed in Great Britain designed to maintain technological monopoly were largely successful in preventing the spread of technology to the U.S. A. true B. false

FALSW

Fill in each blank below with either increase or decrease.According to the Fogel and Rutner model, land sales in the west are likely to _____wages in the east and ______ wages in the west. The aggregate rent in the east will ______ and the aggregate rent in the west will_________ .

Fill in each blank below with either increase or decrease.According to the Fogel and Rutner model, land sales in the west are likely to increase wages in the east and increase wages in the west. The aggregate rent in the east will decrease and the aggregate rent in the west will increase .

Fill in each of the blanks with one of the following terms: increases, reduces, speeds, slows Financial intermediation ___ the amount of idle resources in the economy and, thus, ___ economic growth.

Fill in each of the blanks with one of the following terms: increases, reduces, speeds, slowsFinancial intermediation reduces the amount of idle resources in the economy and, thus, speeds economic growth.

Printing money to pay for goods and service that the federal government needed for the war caused ___which reduced the real value of these payments.

Printing money to pay for goods and service that the federal government needed for the war caused inflation which reduced the real value of these payments.

The federal government could have paid fair market price to purchase the freedom of every slave in the South and provided each slave family with a 40 acre farm for less than the combined costs for the North and South of the Civil War. A. true B. false

TRUE

The direct costs of the Civil War for the North were approximately $ ___ and the direct costs for the South were approximately $ ____ billion, adding up to $6.7 billion dollars in direct costs for the U.S.

The direct costs of the Civil War for the North were approximately $ 3.4 billion and the direct costs for the South were approximately $ 3.3 billion, adding up to $6.7 billion dollars in direct costs for the U.S.

The two manufacturing industries with the highest value added growth from 1790-1860 were ____ and _____-

The two manufacturing industries with the highest value added growth from 1790-1860 were cotton goods and lumber

Use the following terms to fill in each blank below: deficit, surplus Because of cotton trade with England, foreign exchange was earned by the South as a result of a trade _____ between England and the South. This would be used to purchase manufactured goods from the North. Northern manufacturers would use this foreign exchange to pay for the trade ____ between England and the North.

Use the following terms to fill in each blank below: deficit, surplusBecause of cotton trade with England, foreign exchange was earned by the South as a result of a trade surplus between England and the South. This would be used to purchase manufactured goods from the North. Northern manufacturers would use this foreign exchange to pay for the trade deficit between England and the North.

Use the following terms to fill in the blanks: capital, labor, land, high, low The most abundant resource in the U.S. was ______ . Because of this abundance, the land/labor ratio of resource employment was ______ .

Use the following terms to fill in the blanks: capital, labor, land, high, lowThe most abundant resource in the U.S. was land . Because of this abundance, the land/labor ratio of resource employment was high .

Use the following terms to fill in the blanks: higher, lower, skilled, unskilled Because standardization, interchangeability, and division of labor were widely applied in U.S. production facilities, the ratio of skilled to unskilled wages was _____ in the United States than it was in Europe. This reflects the relatively higher productivity of _____ workers using more capital intensive production techniques in the U.S.

Use the following terms to fill in the blanks: higher, lower, skilled, unskilledBecause standardization, interchangeability, and division of labor were widely applied in U.S. production facilities, the ratio of skilled to unskilled wages was lower in the United States than it was in Europe. This reflects the relatively higher productivity of unskilled workers using more capital intensive production techniques in the U.S.

Use the following terms to fill in the blanks: increase, decrease, elastic, inelastic Claudia Goldin finds that differences in relative price elasticity of demand for slave labor relative to free labor in rural and urban areas helps to explain the more common use of slave labor in rural areas rather than urban areas in the south. Goldin's theory suggests that the price elasticity of demand for slave labor in urban areas is relatively _____ while the price elasticity of demand for slave labor in rural areas is relatively _______ . Therefore, as the price of slave labor increases, use of that resource will ______ in urban areas relative to rural areas.

Use the following terms to fill in the blanks: increase, decrease, elastic, inelasticClaudia Goldin finds that differences in relative price elasticity of demand for slave labor relative to free labor in rural and urban areas helps to explain the more common use of slave labor in rural areas rather than urban areas in the south. Goldin's theory suggests that the price elasticity of demand for slave labor in urban areas is relatively elastic while the price elasticity of demand for slave labor in rural areas is relatively inelastic . Therefore, as the price of slave labor increases, use of that resource will decrease in urban areas relative to rural areas.

Using proxies to estimate growth: Suppose colonial wealth in the southern colonies is estimated to be $15,000 per person and wealth in the norther colonies is estimate at $6,000 per person. Using the capital to output ratio of 3 units of capital needed per unit of output, and assuming all wealth takes the form of capital, what is the value of per capita output in the southern colonies? $ _____ per person Using the capital to output ratio of 3 units of capital needed per unit of output, and assuming all wealth takes the form of capital, what is the value of per capita output in the northern colonies? $ _____ per person If, due to its comparative advantage in agriculture and rural production, the production function relationship is different in the southern colonies, requiring 5 units of capital to produce one unit of output rather than 3 units of capital per unit of output, what is the value of per capita output in the southern colonies? $ _____ per person

Using the capital to output ratio of 3 units of capital needed per unit of output, and assuming all wealth takes the form of capital, what is the value of per capita output in the southern colonies? $ 5000 per person Using the capital to output ratio of 3 units of capital needed per unit of output, and assuming all wealth takes the form of capital, what is the value of per capita output in the northern colonies? $ 2000 per person If, due to its comparative advantage in agriculture and rural production, the production function relationship is different in the southern colonies, requiring 5 units of capital to produce one unit of output rather than 3 units of capital per unit of output, what is the value of per capita output in the southern colonies? $ 3000 per person

A speculator would have earned a higher return on land investment had he waited until the price of a particular parcel of land peaked rather than selling earlier at a lower price to a farmer using a mortgage to finance the purchase. TrueFalse

false

During the antebellum period, it was widely accepted that a central bank was necessary for the operation of the federal government. A. true B. false

false

Headright grants were given for each man, woman, or child. This decreased the value of African slaves. TrueFalse

false

The economic well-being of other economies had little impact on U.S. business cycles during the antebellum period because of the high proportion of agriculture output produced in the U.S. A. true B. false

false

The financial chaos during the antebellum period had a serious negative effect on long-run growth of the U.S. economy. A. true B. false

false

The losses sustained by the North and South from the Civil War were roughly equal, particularly the debt incurred by each. A. true B. false

false

What were the four reasons for government licensing and control?

monopoly power, quality control, morals, taxes

Transportation improvements to western lands would shift demand for land _______ as more settlers are able to reach the land and shift the supply of goods produced on the land ________as more of these goods could reach markets in the east. (fill in each blank with left or right)

right right

A Bill of Exchange is an order to pay and works in a similar way as a promissory note or a check on a demand deposit. TrueFalse

true

A fundamental criticism of Time on the Cross is that economics cannot be used to simply compare the welfare of the slaves to their free, white counterparts. A. true B. false

true

Fogel and Engerman argue that slavery was economically viable until 1860. A. true B. false

true

Monopolist fears that central banks would unfairly compete with all other profit-maximizing banks contributed to the demise of the First and Second Banks of the U.S. A. trueB. false

true

The decline of the greenback against gold made imports more expensive. A. true B. false

true

The two main sources of U.S. population increase between Independence and the Civil War were natural increases in population and immigration. A. True B. False

true