Deck 31: Does Our Past Have a Future?

Question 1

The power of the contract and the ability to enforce contracts in the U.S.are,in part,responsible for the overall success of the U.S.economy.

Answer 1

True

Question 2

Historically,the U.S.governmental structure and political system

A) changes in the presence of a system of checks and balances as circumstances ?change.
B) is a fixed structure and, therefore, provides the stability needed to support ?productive activities.
C) guarantees that only the qualified can vote.
D) strongly protects the economic interests of capitalists identified as responsible ?for economic growth.

Answer 2

changes in the presence of a system of checks and balances as circumstances ?change.

Question 3

Which of the following factors have contributed and continue to contribute to long-term economic growth in the U.S.?

A) Individual rights to vote and popular democracy
B) Public and private education
C) Increased labor productivity, capital accumulation ?and technological change
D) All of the above

Answer 3

All of the above

Question 4

The decisions of today have consequences that lie in the future.

Question 5

Net worth and assets are the same.

Question 6

Health care debates illustrate how special interest groups can use their lobbying power to "control" the federal government to transfer wealth from one group of productive,income earning individuals to another group that may or may not be productive.

Question 7

The decisions of today have consequences that lie in the future.

Question 8

Secured property rights provide individuals with incentive to use the resources they own productively because they realize the gains from this use.

Question 9

The U.S.has a system of private property rights that encourages productive uses of its resources even in the presence of some government influence.

Question 10

Continued U.S.economic growth requires little institutional and technological change.

Question 11

The U.S.government is an asset to the U.S.economy when it

A) effectively serves its role as the agent that defines and protects private property rights.
B) taxes one group of individuals and redistributes that taxed income to another group.
C) permits special groups to secure legislative protection from foreign competition in the ?industries which they own, manage or work within.
D) does all of the above.

Question 12

Sustained economic growth in the U.S.has been primarily a product of which of the following factors?

A) War and exploitation of natural resources
B) Capital accumulation, increases in capital and labor productivity, ?and technological advancements
C) Restricted trade
D) Government policies and market interventions

Question 13

The founders of the U.S.Constitution clearly understood how to write a document capable of producing the amount of wealth presently accumulated in the U.S.

Question 14

Social Security,like other governmental programs,alters individuals' decisions to save,consume ?and invest privately for the present as well as the future.

Question 15

Olson (1971)argues that the gains from private competition cannot be exceeded by the gains from collective action.

Question 16

The greater the social immobility is within a country,the greater the chance that human talent and skills will not go to waste.

Question 17

Even today,individuals distrust the outcome of free markets,as is evidenced by the protests against the construction of Walmarts across the nation.

Question 18

Historically,the U.S.government has been used to overcome crises,redistribute income and wealth and address negatively received market outcomes.

Question 19

The following have strengthened individual control over private property: taxation,zoning,land-use restrictions and eminent domain law.

Question 20

The U.S.system of property rights

A) is strictly private.
B) is influenced by a mix of private and public forces.
C) does not permit governmental seizure of property under any circumstances.
D) does not permit the government to seize earned income through taxation.

Question 21

Discuss the economic history behind the importance of social mobility in the U.S.Provide evidence that it exists and explain why it contributes to our growing and developing economy.

Question 22

Discuss the key changes in the U.S.federal government's role in the market throughout ?U.S.economic history.

Question 23

Wal-mart

A) is the railroad of the late nineteenth century.
B) provides an example of how one large business enterprise still can ?seize market power to restrict entry and exit.
C) holds monopoly power in retail.
D) exists at the expense of consumers.

Question 24

Heavy business taxes

A) vary according to firm size.
B) benefit small firms but cost large ones.
C) stifle entrepreneurial activity.
D) can be described by all of the above.

Question 25

Overall,U.S.citizens and foreign-born residents embrace change that promises overall growth.?This is evidenced by which of the following?

A) Innovation
B) The growth of new industries and the demise of others
C) Population migration from one part of the U.S. to another
D) All of the above

Question 26

Explain how the current debate over Wal-Mart is similar to the debate that took place with regard to the railroad industry in the late nineteenth century.How is this debate different?

Question 27

A review of U.S.history provides evidence that

A) class mobility is restricted.
B) race and gender barriers simply cannot be dismantled.
C) the wealthy and idle rich class has deep and permanent roots in the U.S.
D) there are no social barriers that cannot be overcome in the U.S.

Question 28

Which of the following reduces U.S.potential for economic growth by reducing household incentive to use private property most efficiently and effectively?

A) Personal income taxes
B) Farm subsidies and import tariffs
C) Auto bailouts
D) Regulation in the health care industry

Question 29

Why does popular democracy,as defined in the U.S.Constitution,contribute to long-term economic growth and political stability?

A) It allows regular change in the structure of the government.
B) It provides incentive to invest, innovate and invent.
C) It permits the President of the U.S. to choose fiscal policies to advance ?contemporary mercantilism.
D) It transfers wealth from the extremely wealthy to the desperately poor.

Question 30

Discuss discrimination and the economic waste attached to it throughout U.S.history.

Question 31

Special interest groups (such as doctors,teachers,lawyers,health insurance companies,the automobile industry and others)can best be characterized by which of the following statements?

A) They are constantly working the government to seek rents from policy decisions.
B) They are resistant to change in governmental policies that benefit them at the expense of others.
C) They help push through federal policies that result in technological backwardness, low productivity and less overall economic growth.
D) They can be characterized by all of the above.

Question 32

Use lessons learned from your study of economic history to answer the question: "Does our past have a future?"

Question 33

Describe some of the lessons learned from key "failures" in U.S.history.Discuss how these lessons have contributed to the political,social and/or economic successes of the present.Describe how they can help shape the future.

Question 34

From the economic historian's perspective,discuss the highlights of the evolution of U.S.political institutions.List these highlights and explain their economic underpinnings.

Question 35

Why does the history of the U.S.matter?

A) Historical knowledge helps us understand the forces that shaped the current economy.
B) The lessons of the past help us avoid future mistakes.
C) Historical knowledge helps us identify who or what is most likely to fuel future ?economic prosperity.
D) All of the above.

Question 36

Comment on the following: "The American economy succeeded in part because it already succeeded."

Question 37

Answer the question: "Who will create the future?" Discuss your role as well as the roles of those individuals who made decisions in the past.

Question 38

Governmental policy decisions have

A) only social benefits.
B) no private costs.
C) intended and unintended effects.
D) no social costs.

Question 39

Which of the following threatens the future of the U.S.economy?

A) A strengthening of private property rights
B) Effectively preventing some individuals and organizations from pursuing ?noncompetitive market legislation
C) Racism, discrimination and sexism
D) Increased private consumption and investment and reduced government ?expenditures

Question 40

Discuss Chandler and Cortada's (2000)claim that the driving force of the U.S.economy has always been information.