The Cold War was of overriding importance during the period after World War II for all of the following reasons except
(a) It was an automatic "pump primer" which helped keep spending levels high in the overall economy.
(b) It helped fuel growth of key sectors of the economy, such as aircraft manufacturing and computers.
(c) It fostered economic growth and urbanization in many parts of the nation where military bases and defense factories were built.
(d) It put people to work who would otherwise have been unemployed because without high levels of defense spending, the economy almost certainly would have lapsed back into a depression like the one of the 1930s.
(d)
You might also like to view...
Public goods are characterized by the free-rider problem because
A) no one can be excluded from the benefits of public goods once they are produced. B) public goods are usually things that people really do not want to consume. C) public goods are characterized by the principle of rival consumption. D) public goods can easily be subdivided into small units.
In the market for fossil-fuel-based electric power,
a. the MEC is horizontal b. the competitive equilibrium is efficient c. the MSC is exactly equal to the MPC d. none of the above
Explain the concept of diminishing marginal utility, and describe the role that it plays in the utilitarian argument for the redistribution of income
Fiat money has value because it
a. is backed by gold. b. can be used to buy goods and services. c. can be exchanged for precious metals at a fixed price. d. can be divided into smaller units. e. All of the above are correct.