Economics 1740 VERSION A - MARK ON YOUR SCANTRON ANSWER SHEET
Fall, 2002
Dr. Alston , Quiz #13, Walton and Rockoff, Chapters 25 & 26
1. In 1940, federal government purchases of goods and services equaled roughly _____
of GDP; by 1943, this figure had risen to ________.
a. 20 percent; 30 percent
b. 8 percent; 50 percent
c. 15 percent; 20 percent
d. 1 percent; 25 percent
2. The draft is analogous to a tax, where the amount of the tax equals the
a. discounted present value of the soldier’s lost private sector income.
b. estimated value of a human life.
c. difference between what a soldier would need to be paid to serve voluntarily and
his actual pay.
d. soldier’s earnings while enlisted.
3. Economists such as James Tobin and Paul Samuelson claimed that _________
provided solid evidence of the effectiveness of Keynesian policies.
a. increases in deficit spending accompanied by extremely low unemployment
during WWII
b. increases in taxes accompanied by rising federal budget surpluses
c. increases in the money supply accompanied by falling interest rates
d. price controls accompanied by inflation
4. According to Robert Higgs,
a. World War II was a period of unique prosperity.
b. World War II was a period of continued depression that did not end until after the
war.
c. measures of GDP during World War II are understated.
d. civilian consumption of most items actually rose during World War II.
5. Which of the following is most accurate about women’s involvement in the labor
force?
a. Over half of the women who entered the labor force between 1940 and 1944 had
dropped out by 1950.
b. Between 1940 and 1950 the number of women employed in the labor force
dropped.
c. After World War II, the supply of young married women available to work
increased.
d. Women made their largest gains in employment in the service and agricultural
sectors.
