Econ 1740
Version A - Mark on your Scantron Answer Sheet
Fall, 2002
Dr. Alston
Quiz #4, Walton and Rockoff, Chapters 7 & 8
1.
The Continental Congress faced several constraints in its effort to finance the Revolutionary War. The
largest source of funds for the war was
a. excise taxes.
b. domestic bond sales.
c. borrowing from foreign powers, such as France.
d. printing money.
2.
Which of the following responsibilities did the Constitution not give to the federal government?
a. the right to set a common foreign policy
b. the sole right to mint coins
c. the right to regulate trade between states
d. the right to tax income
3.
The economic system envisioned by the Constitution
a. embodied Adam Smith’s emphasis on protecting private property.
b. used the Civil Code of France, rather than the English Common Law, as its foundation.
c. enshrined the traditional 18th century model of mercantilism, which allowed the government to
have large control over private ownership of goods and services.
d. fostered Jefferson's idea of a democracy based primarily on agriculture.
4. The Embargo Act (1807)
a. provided some aid to the emerging manufacturing sector in the United States.
b. successfully forced England and France to ease their harassment of neutral ships.
c. reduced U.S. imports, but increased U.S. exports.
d. remained in effect until after the Civil War.
e. All of the above are true.
5.
When the colonies obtained independence they were no longer bound by a number of English laws,
including the Navigation Acts. What best describes the impact of the removal of the Navigation Acts
for commodities that were imported from Europe via England?
a. A shift out of the supply curve and a shift back in the demand curve, which lowered prices.
b. A shift out in the supply curve, which decreased the price and increased the quantity.
c. A shift back in both the supply and demand curves, which decreased quantity.
d. A shift back in the demand curve, which lowered both price and quantity.
6.
What best describes the impact of the cotton gin?
a. a decrease in the price and an increase in the quantity of cotton
b. an increase in the price and a decrease in the quantity of cotton
c. decreases in both the price and quantity of cotton
d. increases in both the price and quantity of cotton
7.
What best describes the westward movement of the population between 1800 and 1860?
a. The largest number of people moved to the west during the 1850s.
b. The large increase in sales during this period was based on speculation.
c. Migrants moved to the west because they were “pushed” out of the east, where conditions were
getting worse.
d. Corn prices were relatively low in the decades when migration to the west was largest.
8.
What best describes Thomas Jefferson’s view of how American Indians should be treated?
a. Tribes should be forced to leave their native lands in the east and move west.
b. Indians should have full property rights that should be respected by whites.
c. Indians could continue to live on their reservations but the federal government should have access
to all mining and natural resources on their land.
9. U.S. cotton production
a. remained concentrated in Georgia and South Carolina until after 1860.
b. was unable to compete with wool production in the antebellum textile industry.
c. accounted for more than half of the dollar value of U.S. exports between 1800 and 1850.
d. faced declining world demand for most of the antebellum period.
10. Land “liberals” in the 19th century
a. believed that the sale of the public domain should provide substantial government revenue.
b. voted against the Homestead Act of 1862.
c. supported the sale of the public domain in small plots.
d. were against the extension of credit to land buyers.
Answers: Quiz #4, Econ 1740 Fall, 2002, Walton and Rockoff, Chapters 7 and 8
1. ANSWER: d. printing money.
2.ANSWER: d. the right to tax income
3. ANSWER: a. embodied Adam Smith’s emphasis on protecting private property.
4. ANSWER: a. provided some aid to the emerging manufacturing sector in the United States.
5. ANSWER: b. A shift out in the supply curve, which decreased the price and increased the quantity. (This
is the exact reverse of Economic Insight p. 133.)
6. ANSWER: a. a decrease in the price and an increase in the quantity of cotton
7. ANSWER: The largest number of people moved to the west during the 1850s.
8. ANSWER: b. Indians should have full property rights that should be respected by whites.
9. ANSWER: c. accounted for more than half of the dollar value of U.S. exports between 1800 and 1850.
10. ANSWER: c. supported the sale of the public domain in small plots.
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