Econ 010 - Economic History of the United States » Fall 2021 » Homework 3

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Question #1
Which of the following is true about economic development?
A.   It did not occur in America during the colonial period
B.   It is defined as a country’s level of per capita income
C.   It tends to occur if there is economic growth particularly GDP per capita growth
D.   It is a concept made up by your instructor
E.   None of the above
Question #2
According to the lecture slides, the overall annual agricultural productivity growth in the Middle Colonies in the 18th century was about 0.3% per year. At that pace and if we started with agricultural output in 2021, in what year would agricultural output double?
A.   The year 2036
B.   The year 2044
C.   The year 2138
D.   The year 2254
E.   Never
Question #3
In the colonial period, productivity growth in transportation and distribution was…
A.   Doubling every 14 years
B.   Behind the fast GDP growth of the colonies
C.   Due to other factors like the decline in piracy and decreasing the time stuck at ports
D.   Faster in the South during the 18th century than in the Middle Colonies
E.   Due to technological advances like faster speeds
Question #4
Recall the concept of the price elasticity of demand (PED) which tells us how much quantity demanded falls with an increase in price. For example, the PED for a necessity like milk would be low (in absolute value) while the PED for a luxury like an automatic pencil sharpener would be high. For Native Americans during the colonial period, the PED for horses would likely have been low (in absolute value).
A.   FALSE
B.   TRUE
Question #5
Which of the following statements about wealth is valid?
A.   Wealth inequality was absent in the Southern region of America during the colonial period
B.   Wealth inequality was present from the very founding of the colonies
C.   Wealth inequality was very low in America during the colonial period
D.   Wealth and income are the same thing
E.   None of the above
Question #6
How would you describe the level of autonomy for American colonists in the 17th century and much of the 18th century?
A.   High because of the governors having a strong incentive to please the colonists and the monarchy having little interest in colonial policy
B.   Very low due to the power of the English and later British monarchy who always watched and tightly controlled colonial policy
C.   Very low due to the power of the colonial governors
D.   High until 1685 when King James II was deposed and power moved from the monarchy to Parliament
E.   None of the above
Question #7
Recall how the British Parliament backed down in the first crisis. As a result, tariffs declined for American imports of molasses. What would the effect have been on the price of rum made in America?
A.   Increase
B.   Unclear
C.   Unchanged
D.   Decrease
E.   None of the above
Question #8
In terms of the three crises leading up to the American Revolution, a major reason the Parliament would rescind new taxes in the colonies was the lobbying of British landowners.
A.   FALSE
B.   TRUE
Question #9
How would we describe the economic effect on colonists of the land policies enacted by Britain after 1763?
A.   No difference as the policies before 1763 were the same as those after
B.   All the colonists would have gained for a few years and then all the colonists would have lost out afterwards
C.   All the colonists gained
D.   All the colonists were harmed
E.   Some were harmed and some gained
Question #10
Which of the following is FALSE about the Tea Act of 1773?
A.   It would have benefited the political elite in Britain at the expense of American importers
B.   It was meant to help a company that was at the time considered important to the British political elite’s financial interests
C.   It would have benefited American consumers with lower prices
D.   It hurt Dutch smugglers
E.   All of the above are true

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