History of the American Economy 12th Edition by Gary M. Walton - Test Bank

History of the American Economy 12th Edition by Gary M. Walton – Test Bank

 

Instant Download – Complete Test Bank With Answers

 

 

Sample Questions Are Posted Below

 

Chapter 5

Economic Progress and Wealth

 

General Questions

1. The primary source of colonial productivity growth in agriculture was:
2. learning by doing.
3. an increased capital-labor ratio.
4. technology improvements.
5. the introduction of hybrid seeds and fertilizer.

ANSWER:  a. learning by doing.

 

2. Between 1620 and 1710, the price of tobacco in the colonies:
3. rose rapidly.
4. remained fairly stable due to monopolistic competition.
5. fell from over 20 pence sterling to roughly one pence per pound.
6. fell from over 20 pence sterling to roughly 10 pence per pound.

ANSWER:  c. fell from over 20 pence sterling to roughly one pence per pound.

 

3. According to Allan Kulikoff, between 1630 and 1670, major surges in productivity caused tobacco output per worker to increase by a factor of:
4. two (doubling).
5. three (tripling).
6. four (400%).
7. five (500%).
8. Tobacco productivity held steady during these years.

ANSWER:  a. two (doubling).

 

4. According to data on Pennsylvania agriculture in the 18^th century, the average size of a farm _________, while the number of cleared acres per farm ______________.
5. increased; decreased
6. decreased; increased
7. decreased; remained fairly stable
8. remained fairly stable; increased

ANSWER: c. decreased; remained fairly stable

 

5. According to data on Pennsylvania agriculture in the 18^th century, the average size of a farm _________, while the output per farm ______________.
6. increased; decreased
7. decreased; increased
8. decreased; remained fairly stable
9. remained fairly stable; increased

ANSWER: b. decreased; increased

 

6. According to data on Pennsylvania agriculture in the 18^th century, increases in productivity were primarily due to:
7. increases in average farm size.
8. increases in the amount of labor per farm.
9. decreases in the land-labor ratio
10. increases in the capital-labor ratio.

ANSWER:  d. increases in the capital-labor ratio.

 

7. In the early decades of the 18^th century, English goods sold for as much as 80 to 140 percent more in the colonies than in England primarily due to:
8. high tariffs on English goods imported to the colonies.
9. a limited supply of English goods available for shipment to the colonies.
10. high transportation costs for goods shipped from England to the colonies.
11. legally established price floors on English goods sold in the colonies.

ANSWER: c. high transportation costs for goods shipped from England to the colonies.

 

8. According to the text, in the century prior to the Revolution, ____________ were a “strategic factor in the overall economic advance of the colonies.”
9. advances in technology
10. advances in manufacturing
11. advances in farm equipment
12. advances in shipping

ANSWER: d. advances in shipping

 

9. Eighteenth century declines in Atlantic and Caribbean shipping costs were due to:
10. the reduction in armaments on commercial vessels.
11. decreased crew sizes.
12. falling insurance rates.
13. reduced layover times in ports.
14. All of the above.

ANSWER: e. All of the above.

 

10. The largest productivity gains in colonial shipping were from:
11. decreased layover times in ports.
12. lower costs associated with the increase in size of the vessels.
13. the increased speed of the ships.
14. the use of larger ships

ANSWER: a. decreased layover times in ports.

12. The smallest productivity gains from colonial shipping were from:
13. shorter layover times in ports.
14. lower insurance rates.
15. the increased speed of the ships.
16. fewer wars.

ANSWER: c. the increased speed of the ships.

 

13. During the 100 years before the Revolutionary war, shipping costs were reduced by nearly:
14. 10 percent.
15. 25 percent.
16. 50 percent.
17. 70 percent.
18. Shipping costs increased during that period.

ANSWER: c. 50 percent.

 

14. Compared with the 19th century, during the colonial period technological changes that raised output relative to inputs:
15. were slow and steady.
16. increased in the early part of the period, but fell off dramatically after 1643.
17. remained minor and sporadic.
18. increased dramatically after 1643.

ANSWER: c. remained minor and sporadic

 

15. Compared to English and colonial vessels, Dutch flyboats:
16. were lighter.
17. required smaller crew.
18. carried fewer armaments.
19. cheaper to build and operate.
20. All of the above.

ANSWER:  e. All of the above.

 

16. From 1680 to 1770 average ship speeds:
17. increased by 100 percent.
18. increased by 80 percent.
19. increased by 75 percent.
20. decreased by 50 percent.
21. did not change appreciably.

ANSWER: e. did not change appreciably.

 

17. Low-cost flyboats offered an attractive alternative to heavier, more costly ships; however, their use was limited in many areas due to:
18. privateering and piracy.
19. colonial laws that specified minimum crew sizes for many voyages.
20. the Navigation Acts.
21. the inability of New England shipbuilders to manufacture flyboats.

ANSWER:  a. privateering and piracy.

 

18. During the colonial period, the U.S. and other countries relied on “privateers.” Which of the following most accurately describes privateers?
19. Privateers were also known as pirates.
20. Privateers were citizens who owned ships that attacked vessels from rival nations.
21. Privateers were groups of convicts who stole from American sailing vessels.
22. Privateers were a formal group part of the American Navy.

ANSWER: b. Privateers were citizens who owned ships that attacked vessels from other nations.

 

19. The proliferation of the horse in the 17th century caused Great Plains Indians to:
20. increase their reliance on agricultural work.
21. engage in less tribal warfare.
22. use smaller and more independent hunting groups.
23. kill fewer bison, but make more intensive use of the meat on the carcass.

ANSWER: c. use smaller and more independent hunting groups.

 

20. What was the most immediate impact of introducing the horse to the plains Indians?
21. A decrease in the amount of agricultural work the Indians did
22. A large increase in the size of hunting groups
23. More intensive and more efficient use of animal carcasses.
24. More time was spent in fixed locations

ANSWER: a. A decrease in the amount of agricultural work the Indians did

 

21. What statement best describes the colonial economic experience?
22. The agricultural sector was initially a small portion of the economy, but quickly grew to be the largest sector.
23. By the time of the American Revolution, the U.S. colonial economy was larger than about 70 percent of other nation’s economies.
24. The U.S. colonial economy was particularly hurt during the Seven Year’s War.
25. Economic growth was irregular and averaged about 0.45% per year.

ANSWER: d. Economic growth was irregular and averaged about 0.45% per year.

 

22. In the 1770s the per capita income in the colonies:
23. was higher than the per capita income in developing countries today.
24. was significantly lower than the per capita income in England during the same period.
25. was impossible to determine due to inaccurate and incomplete data.
26. was lower than the current per capita income in developing countries..

ANSWER: a.   was better than the quality of life in developing countries today.

 

23. Based on the analysis of Alice Hanson Jones, what colonial region showed the most unequal distribution of wealth?
24. New England.
25. Middle Colonies.
26. South.
27. Distribution was similar in all colonies.

ANSWER: c. South.

 

24. Which of the following provides an important source for data on colonial wealth?
25. census records
26. newspapers
27. records of charitable contributions
28. probate records

ANSWER:  d. probate records

 

25. Which of the following statements correctly characterizes the distribution of colonial wealth?
26. Colonial wealth was distributed equally across the population.
27. While the distribution wealth was highly concentrated in the South, New England , the Middle colonies had very equal wealth distributions.
28. Wealth inequality tended to be greatest in colonial cities.
29. A permanent underclass of free poor people developed during the colonial period.

ANSWER: c. Wealth inequality tended to be greatest in colonial cities.

 

26. Which of the following statements accurately reflects research findings on the distribution of colonial wealth?
27. The poorest 20 percent of colonist controlled nearly 20 percent of colonial wealth.
28. Distributional inequality tended to be greater in rural areas than in cities, particularly in New England.
29. Colonial wealth was distributed more unequally in the Middle colonies than in the South or New England.
30. The opportunity for income mobility was probably greater in the colonies than in England.

ANSWER: d. The opportunity for income mobility was probably greater in the colonies than in England.

 

Economic Insights

1. What best describes the economic standing of the colonies on the eve of the Revolution?
2. The colonies were one of the richest nations in the world and had very little income inequality because of the many opportunities that existed.
3. The colonies had a low per capita income and had little income inequality.
4. The colonies were one of the richest nations in the world and had a significant amount of income inequality.
5. The colonies had a low per capita income and had a significant amount of income inequality.

ANSWER: c. The colonies were one of the richest nations in the world and had a significant amount of income inequality.

 

2. Today _________ countries generate average income levels that approach the earnings of free Americans on the eve of the revolution.
3. no
4. relatively few
5. many
6. most

ANSWER: b. relatively few

 

3. The standard of living (measured by what one can purchase with after-tax income) of free Americans on the eve of the Revolution was ______.
4. lower than in 18^th -century England, and lower than most people in the “Third World” today.
5. higher than in 18^th -century England, and higher than most people in the “Third World” today.
6. lower than in 18^th century England, but higher than most people in the “Third World” today.
7. higher than in 18^th- century England, but lower than most people in the “Third World” today.

ANSWER: b. higher than in 18^th century England, and higher than most people in the “Third World” today.

 

4. Alice Hanson Jones (1980) finds that private nonhuman physical wealth in New England in 1774 was 36.4 pounds sterling per capita. Thus, assuming a capital output ratio of 3:1, Jones estimates that per capita income in New England in 1774 equaled:
5. about 9 pounds sterling.
6. about 12 pounds sterling.
7. about 45 pounds sterling.
8. about 145 pounds sterling.

ANSWER: b. about 12 pounds sterling.

 

Economic Analysis

1. According to the Rule of 70, if per capita GDP is growing at a rate of 5 percent per year, then it will take __________ years for per capita income to double.
2. 14
3. 28
4. 70
5. 140

ANSWER: a. 14

 

2. Increases in productivity due to changes in technological capacity could be best represented by:
3. Outward shift in the demand curve
4. Outward shift in the supply curve

c Outward shift in both the demand and supply curves

1. Inward shift in the supply curve

ANSWER: b. Outward shift in the supply curve

 

3. If the incomes of New Englanders increased and they demanded more tobacco, then tobacco would be:
4. a normal good.
5. an inferior good.
6. a substitute good.
7. a complementary good.

ANSWER: a. a normal good.

 

4. Tobacco prices fell dramatically in the early 1600s in spite of demand increases because:
5. supply was also increasing.
6. supply was decreasing.
7. new farming machinery was introduced.
8. the colonial government provided agriculture subsidies for tobacco farmers.

ANSWER: a. supply was also increasing.