ECON Midterm Review

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

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 (This is simply births - deaths for the year)

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

If 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? _?_ years

35 (To find the period using the rule of 70, divide 70 by the growth rate)

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 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.

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

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.

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. and C.

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 dead-weight 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

In response to business cycle downturns, all of the following happened EXCEPT, A. steamboats were scrapped and the parts were used to build small factories B. steamboat technology improved as production during the recovery (following the downturn) was of better boats C. existing steamboats were docked until the cyclical recovery D. the fleet productivity increased by nearly 9 times from 1815-1860

A. steamboats were scrapped and the parts were used to build small factories

Robert Fogel (1964) demonstrates that A. the canal and river systems of transportation could very nearly have produced the same results as the railroad in terms of land cultivated. B. the railroad was responsible for a great "take-off" in terms of economic growth in the 19th century. C. the railroad gave a huge boost to the iron industry because, for a time, it consumed well over 50% of all iron produced. D. the social saving of the railroad was large; much of the country (over 25%) could not have been settled and cultivated without the railroad

A. the canal and river systems of transportation could very nearly have produced the same results as the railroad in terms of land cultivated.

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 Gallatin Plan (1808) A. was characterized by all given below. B. was a plan by the U.S. Senate for a comprehensive system of internal land and water transport in the eastern part of the country to be built by the federal government. C. was promoted on the basis that only the federal government could command sufficient resources to build a transportation system. D. was partially implemented but not completely by the federal government because of concerns about the constitutionality of such federal action.

A. was characterized by all given below.

The steamboat era ended because (choose all that apply) A.during the Civil War, blockades on rivers meant that railroad competition was devastating to river transport and trains replaced the steamboat B. rivers, being a feature of nature, could not be improved C. the $/ton price of transport was lower on rails than on the water D. steamboats could not provide year-round operation so the lower $/ton price was offset by uncertainty and closures E. the crises of 1837 and 1839-1840 affected state debt, which reduced states' ability to support canals

A., D., E.

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

In 1860, earnings from cotton exports A. were what attracted the majority of agriculturalists into cotton production B. exceeded the total revenue of the U.S. government by four-fold C. accounted for a small percentage of Gross National Product D. All of the above are accurate about cotton exports.

B. exceeded the total revenue of the U.S. government by four-fold

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

The Erie Canal provided the first reliable and relatively quick east-west link in markets. This link, consequently, A. increased consumer prices in all markets. B. increased profit margins and expanded markets for agriculturalists. C. hindered trade and the accumulation of wealth. D. all of the above

B. increased profit margins and expanded markets for agriculturalists.

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

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 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

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.

Which of the following statements is supported by the research of economic historians? A. Canals were built with public assistance, but railroads were built with almost no government assistance. B. Canals and railroads were built largely without U.S. government participation. C. Canals and railroads were built with a mixture of private and public enterprise and financing. D. Railroads were built with public assistance, but canals were built by private enterprise.

C. Canals and railroads were built with a mixture of private and public enterprise and financing.

Which statement best describes the railroad? A. It was invented in the U.S. but first put into operation in England. B. It was invented in England but first put into operation in the U.S. C. It is a good example of "technology transfer" (from England to the U.S.) - the first operating railroad was in England. D. It is an American home product - the first operating railroad was in the U.S.

C. It is a good example of "technology transfer" (from England to the U.S.) - the first operating railroad was in England

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

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. market price - opportunity cost = economic profit When economic profit is positive, we know that supply will shift out in the long run until economic profit equals zero

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.

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. benefited 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. benefited from it

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

Why do historians argue that there was a mixture of enterprise, partly private and partly governmental, in building our transportation system? A. The sheer size of the investment required for a transportation system was beyond the capability of private enterprise alone. B. Private individuals took the initiative and were able to extract special privileges and financial assistance from government for the purpose of enhancing their profits. C. Political leaders, who wanted transportation improvement for reasons of local or national ambition, took the initiative and coaxed private enterprise into building the transportation system by the offer of special financial advantages. D. All of the above ideas have been used by historians to explain the mixture of enterprise in building our transportation system.

D. All of the above ideas have been used by historians to explain the mixture of enterprise in building our transportation system.

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.

The rule for profit-maximizing output that would determine the optimal scale of farms in the Cotton South is A. TR = TC B. TR = FC C. AR = AC D. MR = MC E. None of these rules will result in profit maximization

D. MR = MC

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 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

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

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

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

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

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 statistical details on the U.S. balance of international payments between 1790 and 1860 help economic historians determine A. what the U.S. sold domestically B. changes in domestic trade patterns C. how other countries paid for their own domestic goods and services D. how the U.S. paid other countries for their exports.

D. how the U.S. paid other countries for their exports.

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

Limitations to scale economies on plantations in the Cotton South could have been caused by all of the following EXCEPT, A. problems of management B. the principle-agent problem of slave labor efforts C. communication D. the labor-intensive nature of the crop

D. the labor-intensive nature of the crop

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

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

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

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. T/F

False

During the antebellum period, it was widely accepted that a central bank was necessary for the operation of the federal government. T/F

False

Push factors

Incentives for potential migrants to leave a place, such as a harsh climate, economic recession, or political turmoil.

Fill in each blank with either North or South The capital/output ratio was higher on farms in the __?__ while the labor/output ratio was higher on farms in the __?__. This indicates that the marginal revenue product per dollar spent of a unit of capital was generally higher in the __?__ while the marginal revenue product per dollar spent on a unit of labor was generally higher in the __?__.

North, South; North, South

How do external economies change the production possibilities curve?

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

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. T/F

True

During the antebellum period, two systems of land use emerged - the self-sufficient system of the North, which did not rely on specialization, and the specialized system of the South, which concentrated on the use of slaves. T/F

True

Fogel and Engerman argue that slavery was economically viable until 1860. T/F

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. T/F

True

One factor that would explain the large size farming operations (plantations) in the Cotton South is the presence of large scale economies T/F

True

Railroads attracted funds from foreign investors. T/F

True

Social saving = Real GNP - what Real GNP would have been with the next best alternative T/F

True

The free-rider problem can be alleviated by setting up a tax system for provision of a public good by the government. T/F

True

The two main sources of U.S. population increase between Independence and the Civil War were natural increases in population and immigration. T/F

True

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? $ _a.?_ 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? $ _b.?_ 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? $ _c.?_ per person

a. 5000 b. 2000 c. 3000

As transportation costs decrease, productivity A. increases B. decreases C. remains unchanged

a. increases

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 term for labor brought from Europe with a contract for a certain term employment in exchange for employment is a. contract worker b. redemptioner c. indentured servant d. assigned servant

c. indentured servant

Midwestern farmers had three resources that were inputs to the production process: labor, capital and land. Given the relative prices of those three resources, with fixed technology (per acre yields were fixed), Midwest farmers were likely to combine more __?__ with __?__ to increase output. (fill in the blank with labor, capital or land)

capital; land

The shape of a production possibilities curve is typically

concave

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

cotton goods; lumber

Which of the following is NOT correct a. 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 b. Caveat emptor, "let the buyer beware", was common until recent decades and facilitated an expanding economy allowing greater freedom to do business 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

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 concavity of the production possibilities curve is a result of

diminishing marginal productivity

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.

elastic; inelastic; decrease

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 __?__.

increase; increase; decrease; increase

Fill in the following blanks with terms from this list: increased, decreased, positively, negatively When the price of cotton, wool, and wheat, (the agricultural products of the U.S.) __?__ during the antebellum period, the quantity of land transactions increased supporting the idea that resource prices are __?__ related to output prices

increased; positively

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 __?__

land; 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.

lower; unskilled

What were the four reasons for government licensing and control?

monopoly power, quality control, morals, taxes

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.

reduces; speeds

Fill in the following blanks with terms from this list: supply, demand, right, left, higher, lower: Increases in the carrying capacity of the river steamboat fleet and the productivity of the fleet shift the transport supply curve __?__ resulting in __?__ equilibrium transportation prices. This, in turn shifts the __?__ of food curve out which results in __?__ prices for food being shipped.

right; lower; supply; lower

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.

right; right

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

Paul David noted that labor costs, interest rates, and the machine life of reapers required a minimum threshold scale of farm to justify investment in a reaper. As the machine life of reapers lengthened, __?__ farms could buy a reaper with the expectation of a reasonable return on that investment. (Fill in the blank with smaller or larger)

smaller

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.

specie

Fill in the following blanks with terms from this list: supply, demand, right, left, increase, decrease Because capacity to harvest is the bottleneck in agricultural production, inventions that improved harvest efficiency caused the __?__ curve to shift __?__ and the price of food to __?__

supply; right; decrease