Practice%20Second%20Exam%20_1 - Second Exam, Practice Test...

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1 Second Exam, Practice Test #1 The correct answers to the multiple-choice and short-answer questions are at the end of the exam. Most of the questions have four alternative answers; a few have five. It doesn’t mean very much. I just wanted to make the question a little harder by giving you a bit more to think about. There are a few questions on topics that I have not stressed in lecture this semester, and have not pointed to with the reading questions. Questions on these topics will not be on the exam. American Economic History Professor Rockoff Instructions. Answer the questions by marking the appropriate blocks on your scantron, or filling in the short answers on the question sheet. There is one best answer to each question in the sense of the one that appears to be most generally true in the light of class discussions and assigned readings. Sign both the question sheet and the scantron and turn in both. Try not to get hung up looking for special cases or trick questions. The idea is simply to see if you have learned the main points presented in the class lectures and in the text. There are 40 multiple-choice questions worth 2 points each and 6 short-answer questions worth 3 or 4 points each. Name ____________________________________ Rutgers ID# __________________________ 1. During the Populist era the terms of trade turned against the farmer. Given the class discussion, which of the following would best measure the terms of trade for wheat growers in the United States? a. the exchange rate between dollars and pounds (because Britain was the major importer of wheat) b. the total value of output on wheat farms divided by the consumer price index c. the real value of output on wheat farms divided by the real value of non-farm output d. the price of wheat divided by the consumer price index 2. During the Populist era many farmers moved to Kansas and only to go bankrupt a few years later. In class I argued that one major cause of these failures was that a. farmers had despoiled the environment b. slow growth of the money supply had worsened the farmer's terms of trade c. farmers had overestimated the average annual rainfall d. New York bankers decided to raise interest rates in order to pull capital into the growing stock and bond markets
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2 Note: The correct answer is c. b sounds right, but is wrong because money growth tends to affect all prices in the same proportion. It will probably not affect the terms of trade, but will affect the value of farm mortgages. 3. In class I argued that agricultural markets were more understandable to farmers before the Civil War than after because before the War a. transport cost were generally lower before the War b. poor harvests were more likely to be offset by higher prices c. cooperative societies were commonly the major marketer of agricultural products after the war, while individual farmers were more important before the war. d. government price and marketing programs did not exist
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This note was uploaded on 09/25/2011 for the course ECONOMICS 305 taught by Professor Hughrockoff during the Spring '11 term at Rutgers.

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Practice%20Second%20Exam%20_1 - Second Exam, Practice Test...

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