Question 1

Which statement is true?

Accepted Answer

The federal government played a significant role during Dwight Eisenhower's presidency, especially through his creation of the Interstate Highway System.

All other statements are false. A) There were two recessions during the 1980s. B) The 1920s is often referred to as the "Roaring Twenties" due to its economic prosperity. D) The longest recession since World War II began in 2007, known as the Great Recession.

Question 2

Statement I. There was a sharp recession in 1937-1938. Statement II. In 1933 our unemployment rate was about 25 percent.

Accepted Answer

Both statements are true. There was indeed a sharp recession in 1937-1938, which is known as the "Roosevelt Recession." Additionally, the unemployment rate in 1933 was about 25 percent, which was one of the highest levels of unemployment in US history.

Question 3

In the 1970s, the main economic problem was

Accepted Answer

Stagflation was the main economic problem in the 1970s, as it combined the high unemployment rates of a recession with the high inflation rates of an overheated economy. This was a unique challenge for policymakers, as traditional measures to combat one problem (such as cutting interest rates to boost employment) could worsen the other (by adding fuel to inflation). The other options listed (budget surpluses, slow money supply growth, and rapid economic expansion) were not major concerns during this time period.

Question 4

What got our economy out of the Depression in the early 1940s?

Accepted Answer

Spending on the war provided a massive stimulus to the economy, creating jobs and demand for goods and services. The production of war material also helped modernize and expand the economy, laying the foundation for future growth. The New Deal and tax cuts provided some relief from the Depression, but the scale of spending during the war was unmatched. Suburbanization did not play a major role in ending the Depression in the early 1940s.

Question 5

What was the most important consequence of suburbanization?

Accepted Answer

Suburbanization led to a significant migration of middle and upper-income families from cities to suburbs, leaving behind a higher concentration of poverty in urban areas. This shift often resulted in decreased tax revenues for cities and increased social and economic challenges.

Question 6

Which president had to cope with both rising deficits and a rising rate of inflation?

Accepted Answer

Jimmy Carter had to cope with both rising deficits and a rising rate of inflation during his presidency in the late 1970s. This period is often referred to as the "stagflation" era, as it was marked by sluggish economic growth, high unemployment, and high inflation. Carter implemented policies such as the creation of the Department of Energy and a voluntary wage and price control program, but these efforts were largely ineffective in curbing inflation and reducing deficits.

Question 7

Statement I. The generation that came of age in the 21st century did better economically than their parents' generation. Statement II. The American economic picture was brighter in the 1980s than the 1990s.

Accepted Answer

Statement I is generally false because many reports and studies indicate that the generation that came of age in the 21st century, often referred to as Millennials, are facing more economic challenges than their parents' generation, including higher levels of student debt, difficulties in the housing market, and wage stagnation. Statement II is false because the American economy experienced significant growth during the 1990s, characterized by a long period of economic expansion, a booming stock market, and low unemployment, making it generally considered a brighter period economically than the 1980s.

Question 8

Statement I. Suburbanization increased our dependence on foreign oil. Statement II. Once returning World War II veterans found new housing in the suburbs, the process of suburbanization came to a halt.

Accepted Answer

Statement I is true because suburbanization led to the increase in automobile ownership, which in turn increased the demand for oil. Statement II is false because suburbanization continued to grow after World War II, particularly in the 1950s and 1960s.

Question 9

The longest and most severe of these recessions was in

Accepted Answer

The recession of 2007-2009, also known as the Great Recession, was the longest and most severe recession since the Great Depression of the 1930s. It lasted for 18 months and had a significant impact on the global economy, leading to high unemployment rates and a decline in stock markets.

Question 10

Which is the most accurate statement?

Accepted Answer

In Levittowns built in New York, New Jersey, Pennsylvania, and Maryland, no new homes were sold to black families. This was due to redlining and racial discrimination in housing practices. While some blacks did move to the suburbs in the years after World War II, it was not on a large scale and they often faced discriminatory housing practices. The claim in option C is also not entirely accurate, as not all Levitt communities are overwhelmingly black. Option D is incorrect as racial discrimination continued in housing well beyond the early 1960s.

Question 11

Which is the most accurate statement?

Accepted Answer

While there were some efforts by the administration to undo certain New Deal policies, it would be inaccurate to say that they undid "much of what remained." Suburbanization actually accelerated during this time period. While there were no major economic crises, there was a recession in 1958. However, Eisenhower did prioritize controlling inflation and successfully brought it down during his time in office.

Question 12

Statement I. The New Deal brought the nation back to full employment within four years. Statement II. The Social Security program was part of the New Deal.

Accepted Answer

Statement II is true, as Social Security was indeed a key part of the New Deal. However, Statement I is false. While the New Deal did improve economic conditions and create jobs, it did not solve the problem of unemployment within four years. In fact, it wasn't until the economic demands of World War II that unemployment levels finally dropped back to pre-Depression levels.

Question 13

Statement I. The baby boom after World War II, along with low gas prices, accelerated the trend toward suburbanization. Statement II. The Japanese and West German industrial production was so damaged or destroyed after World War II that it wasn't until 1960 that these nations could effectively compete in the world market.

Accepted Answer

The answer of Statement I. The baby boom after World...

Question 14

Which presidential candidate made this pledge: "Read my lips: no new taxes"?

Accepted Answer

This famous pledge was made by Republican candidate George H.W. Bush during the 1988 presidential campaign. However, he ultimately broke this promise during his presidency, which contributed to his defeat in the 1992 election.

Question 15

Statement I. Small farmers can still easily survive thanks to government programs. Statement II. During the 19th century, the U.S. government gave away 160-acre plots of land to anyone willing to clear the land and farm on it.

Accepted Answer

Statement II is true. This program was known as the Homestead Act and it allowed for anyone willing to farm the land to receive a parcel of 160 acres from the government. This led to the settlement of millions of acres of land in the western United States. However, statement I is false. While there are government programs to assist farmers, it is not necessarily true that small farmers can easily survive solely because of these programs. The viability of small farms depends on various factors such as market conditions and competition from larger farms.

Question 16

Statement I. In the future the bulk of our food will be grown on huge corporate farms. Statement II. The primary purpose of price-support payments to farmers was to save the family farm.

Accepted Answer

The answer of Statement I. In the future the bulk...

Question 17

Statement I. President Ronald Reagan said that if we cut tax rates, people would have more incentive to work, output would rise, and inflation would subside. Statement II. President Reagan said big government is not the answer to our problem, it is the problem.

Accepted Answer

Both statements are true. Statement I reflects Reagan's belief in supply-side economics, which emphasizes the role of tax cuts in stimulating economic growth. Statement II reflects his conservative philosophy, which favored a smaller government and free-market solutions to economic problems.

Question 18

Which statement is true?

Accepted Answer

The United States has both a larger economy and a larger population than Japan, making option A correct.

Question 19

Which is the most accurate statement?

Accepted Answer

The statement about the output of farm labor doubling twice is the most accurate, as it can be supported by data from the USDA. The other statements are not as accurate or specific.

Question 20

Which statement is false?

Accepted Answer

The statement is false because the 1990s did have a recession in 1990-1991, although it was relatively brief.

Quiz 1: A Brief Economic History of the United States

Which statement is true?

Statement I. There was a sharp recession in 1937-1938. Statement II. In 1933 our unemployment rate was about 25 percent.

In the 1970s, the main economic problem was

What got our economy out of the Depression in the early 1940s?

What was the most important consequence of suburbanization?

Which president had to cope with both rising deficits and a rising rate of inflation?

Statement I. The generation that came of age in the 21st century did better economically than their parents' generation. Statement II. The American economic picture was brighter in the 1980s than the 1990s.

Statement I. Suburbanization increased our dependence on foreign oil. Statement II. Once returning World War II veterans found new housing in the suburbs, the process of suburbanization came to a halt.

The longest and most severe of these recessions was in

Which is the most accurate statement?

Which is the most accurate statement?

Statement I. The New Deal brought the nation back to full employment within four years. Statement II. The Social Security program was part of the New Deal.

Which presidential candidate made this pledge: "Read my lips: no new taxes"?

Statement I. Small farmers can still easily survive thanks to government programs. Statement II. During the 19th century, the U.S. government gave away 160-acre plots of land to anyone willing to clear the land and farm on it.

Statement I. In the future the bulk of our food will be grown on huge corporate farms. Statement II. The primary purpose of price-support payments to farmers was to save the family farm.

Statement I. President Ronald Reagan said that if we cut tax rates, people would have more incentive to work, output would rise, and inflation would subside. Statement II. President Reagan said big government is not the answer to our problem, it is the problem.

Which statement is true?

Which is the most accurate statement?

Which statement is false?