Economics 1740VERSION A - MARK ON YOUR SCANTRON ANSWER SHEET

fall, 2002

Dr. Alston

Quiz #2, Walton and Rockoff, Chapters 3 & 4

1.All of the following were important colonial industries except:

a.fishing and fish packing.

b.production of ships’ stores.

c.manufacturing of finished iron goods.

d.shipbuilding.

2.Which was the least prominent crop grown in the colonial United States?

a.tobacco

b.sugar

c.wheat

d.rice

3.What was not true about the New England colonial economy?

a.It was the leading fishing industry in the colonies.

b.It was a net importer of food.

c.It was the leading colonial shipping industry in the colonies.

d.It was the most productive area in terms of agriculture.

4.During the colonial period, which region specialized in grain production, primarily using family farms?

a. the Middle colonies

b. the Southern colonies

c. the New England colonies

d. Newfoundland

5.If a product exhibits increasing returns to scale, then the average cost of making the product will ______as a company produces more of it.

a.increase

b.decrease

c.remain the same

d.There is insufficient information provided to answer the question.

6.Which of the following most accurately describes what the text says about mercantilists?

a.They tried to build up the military power of their economies.

b.They tried to produce full employment.

c.They confused gold and silver with true wealth.

d.They were merely spokesmen for special interest groups.

7.Under the British Navigation Acts, enumerated goods were a list of colonial

a.exports showing how dependent the British were on the colonies.

b.imports showing how dependent the colonies were on Britain.

c.exports that had to be shipped through British middlemen.

d.exports that were reserved for the crown.

8.Colonists owned the vast majority of the tonnage shipped between

a.New England and the West Indies.

b.England and the West Indies.

c.the Middle colonies and England.

d.the South and the West Indies.

9.Problems with the use of commodity money include:

a.quality control.

b.storage difficulties.

c.inconvenience.

d.spoilage.

e.all of the above.

10.The colonies as a whole had a significant commodity import deficit in their trade with England. The most important source of foreign exchange earnings to offset this trade deficit was

a.commodity trading with the West Indies.

b. the sale of colonial shipping services.

c. commodity trading with Africa.

d. British government spending in the colonies.

Answers: Quiz No. 2, Econ 1740 Fall, 2002, Walton and Rockoff, Chapters 3 & 4, Version A

1. ANSWER: c. manufacturing of finished iron goods.

2. ANSWER: b. sugar

3. ANSWER: d. It was the most productive area in terms of agriculture.

4. ANSWER: a. the Middle colonies

5. ANSWER: b. decrease

6. ANSWER: c. They confused gold and silver with true wealth.

7. ANSWER: c. exports that had to be shipped through British middlemen.

8. ANSWER: a. New England and the West Indies.

9. ANSWER: e. all of the above.

10. ANSWER: b. the sale of colonial shipping service

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