Question

1. Which of the following occurred during World War I (1914 – 1918)?

a. Corporates voluntarily financed 100% of the war expenditure.

b. New income taxes financed 100% of the war expenditure.

c. Government imposed price controls and took over resource allocation in some sectors of the economy.

d. Private market dominated resource allocation and no government intervention at all.

2.A feature unique to the English colonies in North America that gave them an advantage was:

a. the use of slave labor.

b. all of these.

c. use of the system of indentured servitude.

d. the existence of extensive gold and silver deposits.

Answer 1

1) Government imposed price controls and took over resource allocation in some sectors of the economy.

( During the first world war, in US price control was imposed on food .prices varied significantly.

* 100% of the war was not funded by corporates or income taxes and government intervention was there.)

2) All of these

( The north american economy was characterized by indentured servitude. The hands that worked in goldmines and plantations belonged to African slaves. They were treated as a commodity rather than human beings.)