Right here’s a pop quiz. Some questions are conceptual, others ask about specific information. The proper solutions are equipped on the finish. (However don’t cheat by peeking beforehand on the solutions!) Good luck!

1) As we speak, roughly 5 billion hectares of the earth’s land is dedicated to agriculture. Which of the next occurrences would economically double the quantity of land dedicated to agriculture?

A) Bringing into agricultural use a further 5 billion hectares of land which can be, on common, equal in fertility to the land at present used for agriculture.

B) Bringing into agricultural use a further ten billion hectares of land which can be, on common, solely half as fertile as is the land at present used for agriculture.

C) Bettering agricultural expertise to double the yield on the 5 billion hectares of land at present dedicated to agriculture.

D) All the above.

2) Which of the next occurrences would improve the productiveness of — and, therefore, elevate the wages paid to — staff in Acme, Inc.’s machine-tool manufacturing unit in Michigan?

A) Michiganders improve their financial savings, and use these financial savings to modernize Acme, Inc.’s Michigan manufacturing unit.

B) Missourians and Marylanders improve their financial savings, and use these financial savings to modernize Acme, Inc.’s Michigan manufacturing unit.

C) Mexicans and Mozambiqueans improve their financial savings, and use these financial savings to modernize Acme, Inc.’s Michigan manufacturing unit.

D) All the above.

3) Which of the next is the least-likely method that homeowners of motels will reply if authorities raises the minimal wage to a stage above the wages that motels pay lots of their housekeeping employees?

A) Motel homeowners will do nothing, however elevate the pay of all housekeeping staffers as much as the minimal wage and study to stay with the ensuing greater value of labor.

B) Motel homeowners will provide motel friends reductions for agreeing to not have their rooms cleaned each day, enabling motels to function utilizing fewer housekeeping employees.

C) Motel homeowners will lay off — that’s, fireplace — housekeeping staffers who work most slowly and demand that housekeeping staffers who stay on the job work quicker.

D) Motel homeowners will scale back the worth of fringe advantages paid to housekeeping employees.

4) True or false: Authorities-enforced prohibitions on all however probably the most extremely certified and authorized electricians promoting their companies to most people have resulted in fewer unintended electrocutions.

A) True

B) False

5) All different issues unchanged, a rise within the US commerce deficit means:

A) the American economic system is changing into much less aggressive.

B) foreigners are buying and selling unfairly with People.

C) foreigners have gotten extra impressed with the US as a spot to take a position their financial savings.

D) People’ indebtedness to foreigners is essentially growing.

6) In what 12 months did the share of American staff employed within the service sector turn into larger than the share of American staff employed in both manufacturing, or in agriculture and extraction industries?

A) 1916

B) 1966

C) 1986

D) 1996

E) 2006

7) The typical family within the high one-fifth — that’s, the highest “quintile” — of income-earning households in America as we speak pays how rather more in taxes (measured in absolute {dollars}) than is paid by the common family within the backside one-fifth of income-earning households in America?

A) The typical family within the high quintile truly pays much less in taxes, measured in absolute {dollars}, than does the common family within the backside quintile.

B) The typical family within the high quintile pays roughly the identical quantity of taxes, measured in absolute {dollars}, as does the common family within the backside quintile.

C) The typical family within the high quintile pays about 2.68 instances extra in taxes, measured in absolute {dollars}, than is paid in taxes by the common family within the backside quintile.

D) The typical family within the high quintile pays about 26.8 instances extra in taxes, measured in absolute {dollars}, than is paid in taxes by the common family within the backside quintile.

8) One of many functions of making the Federal Reserve Financial institution in 1913 was to keep up the worth of the US greenback — a forex that had, from 1790 till 1913 misplaced about eight p.c of its worth. Since 1913, the worth of the US greenback has:

A) remained secure; the Fed has succeeded in its effort to maintain the greenback’s worth.

B) declined by 25 p.c.

C) declined by 75 p.c.

D) declined by greater than 95 p.c.

9) Since China entered the World Commerce Group (WTO) in December 2001, America’s industrial capability has:

A) shrunk by 10 p.c.

B) shrunk by 5 p.c.

C) remained just about the identical.

D) expanded by 5 p.c.

E) expanded by 10 p.c.

10) The Nice Despair led to the US:

A) quickly after Franklin Roosevelt’s New Deal started to be applied.

B) with America’s entry into World Conflict II.

C) not till quickly after the finish of World Conflict II — round 1946 — when it turned clear that Pres. Truman and the fast post-WWII Congress weren’t as ideologically dedicated as FDR had more and more turn into, over the course of the Thirties, to ever-greater centralization of management over the peacetime economic system.

D Trick query: The Nice Despair is legendary. The Federal Reserve, having been created a decade and a half previous to the beginning of the legendary Nice Despair, used its professional talent at controlling the provision of cash to make sure that the economic system by no means fell into recession.

ANSWERS

1) D

2) D

3) A

4) B

The extra strict are occupational-licensing necessities for electricians, the less would be the variety of electricians for rent, and the upper would be the charges of these electricians who can be found. Due to this fact, the extra strict occupational-licensing necessities are for electricians, the extra inclined individuals might be to delay making repairs to electrical wiring of their properties and small companies. As well as, householders and small-business homeowners might be extra vulnerable to do their very own electrical work. In an April 1981 Southern Financial Journal paper, Sidney Carroll and Robert Gaston reported that “the proof helps the findings that restrictions that scale back the density of electricians are considerably related to an increase within the price of demise from unintended electrocution.”

5) C

6) A

7) D (See web page 27 of Phil Gramm’s, Robert Ekelund’s, and John Early’s essential 2022 e book, The Fantasy of American Inequality.)

8) D

9) E

10) C (See Chapter 1 – titled “Regime Uncertainty: Why the Nice Despair Lasted So Lengthy and Why Prosperity Resumed after the Conflict” – of Robert Higgs’s pathbreaking 2006 e book, Despair, Conflict, and Chilly Conflict. Higgs additionally paperwork convincingly that there is no such thing as a sound foundation for believing that People within the years 1941-1945 had been having fun with any so-called “wartime prosperity.”)