Question 1

Consumer spending accounts for about 70 percent of GDP.

Accepted Answer

A) True 
 B)False

Question 2

All industrialized countries have become "service economies." Which factor helps explain this shift?

Accepted Answer

A)  Trade unionism and failure of the manufacturing sector to grow. 
B)  Information age and labor saving innovation in manufacturing. 
C)  Non availability of industrial labor with required skills. 
D)  Absence of competition in the service sector. 
A)  Trade unionism and failure of the manufacturing sector to grow. 
B)  Information age and labor saving innovation in manufacturing. 
C)  Non availability of industrial labor with required skills. 
D)  Absence of competition in the service sector.

Question 3

The U.S.economy has grown steadily over the years.

Accepted Answer

A) True 
 B)False

Question 4

According to Robert Reich,secretary of Labor in the Clinton administration,

Accepted Answer

A)  the identity of American companies is clear,and laws should be written accordingly. 
B)  foreign companies are clearly different from American companies. 
C)  multinational companies have clear bases of operations,which form their identity. 
D)  it is almost impossible to define the nationality of a multinational company. 
E)  identifying the country of origin of a product is almost impossible,but essential for proper regulation. 
A)  the identity of American companies is clear,and laws should be written accordingly. 
B)  foreign companies are clearly different from American companies. 
C)  multinational companies have clear bases of operations,which form their identity. 
D)  it is almost impossible to define the nationality of a multinational company. 
E)  identifying the country of origin of a product is almost impossible,but essential for proper regulation.

Question 5

The United States economy is

Accepted Answer

A)  the third largest in the world. 
B)  larger than all other national economies combined. 
C)  second largest in the world,behind Japan. 
D)  largest in the world. 
A)  the third largest in the world. 
B)  larger than all other national economies combined. 
C)  second largest in the world,behind Japan. 
D)  largest in the world.

Question 6

Which of the following is the most closed economy?.

Accepted Answer

A)  Germany 
B)  Canada 
C)  Mexico 
D)  the United States 
A)  Germany 
B)  Canada 
C)  Mexico 
D)  the United States

Question 7

A recession can best be defined as a period of time in which

Accepted Answer

A)  total output of the economy falls. 
B)  total output of the economy rises very slowly. 
C)  total unemployment falls. 
D)  total international trade fails to rise. 
E)  Both a and c 
A)  total output of the economy falls. 
B)  total output of the economy rises very slowly. 
C)  total unemployment falls. 
D)  total international trade fails to rise. 
E)  Both a and c

Question 8

The issue of inequality has become prominent because of:

Accepted Answer

A)  an increased sense of justice 
B)  a decrease in the strength of capitalism 
C)  the widening wage disparity 
D)  none of these 
A)  an increased sense of justice 
B)  a decrease in the strength of capitalism 
C)  the widening wage disparity 
D)  none of these

Question 9

Despite the monies spent by the federal and state governments,many observers believe which of the following?

Accepted Answer

A)  public infrastructure such as bridges and roads is only adequate 
B)  our educational system is lacking 
C)  not enough monies are spent on homeland defense 
D)  all of these are correct 
A)  public infrastructure such as bridges and roads is only adequate 
B)  our educational system is lacking 
C)  not enough monies are spent on homeland defense 
D)  all of these are correct

Question 10

Real GDP per capita in the U.S.grows over time.

Accepted Answer

A) True 
 B)False

Question 11

The United States is the largest national economy in the world.

Accepted Answer

A) True 
 B)False

Question 12

Approximately half of all U.S.workers are employed by various levels of government.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is true about the United States?

Accepted Answer

A)  There has only been one recession in U.S.history. 
B)  There have been recessions every couple of years throughout U.S.history. 
C)  Recessions have never occurred in the United States. 
D)  Recessions have occurred periodically in U.S.history. 
E)  Recessions in the United States have generally been worse than in other countries. 
A)  There has only been one recession in U.S.history. 
B)  There have been recessions every couple of years throughout U.S.history. 
C)  Recessions have never occurred in the United States. 
D)  Recessions have occurred periodically in U.S.history. 
E)  Recessions in the United States have generally been worse than in other countries.

Question 14

Why does unemployment tend to change when the level of output changes?

Accepted Answer

A)  Persons wish to buy things,and if output falls,people need to work less to earn the income to buy the smaller output. 
B)  Labor is an input,and if output falls,employers need fewer workers to make it,so the employment falls. 
C)  When output rises,persons are more interested in buying,and will work more to earn the income to buy things. 
D)  Persons face the option of buying or working,so that when they do more of one,the other necessarily falls. 
E)  When companies replace workers with machines,output rises,and people take time off from work to buy before returning to employment. 
A)  Persons wish to buy things,and if output falls,people need to work less to earn the income to buy the smaller output. 
B)  Labor is an input,and if output falls,employers need fewer workers to make it,so the employment falls. 
C)  When output rises,persons are more interested in buying,and will work more to earn the income to buy things. 
D)  Persons face the option of buying or working,so that when they do more of one,the other necessarily falls. 
E)  When companies replace workers with machines,output rises,and people take time off from work to buy before returning to employment.

Question 15

How does the U.S.economy rank in size?

Accepted Answer

A)  first in economic output 
B)  second in economic output 
C)  third in economic output 
D)  fourth in economic output 
E)  fifth in economic output 
A)  first in economic output 
B)  second in economic output 
C)  third in economic output 
D)  fourth in economic output 
E)  fifth in economic output

Question 16

The U.S.has the biggest national economy in the world solely because of the U.S.population.

Accepted Answer

A) True 
 B)False

Question 17

Government spending plays no role in meeting our social and public needs.

Accepted Answer

A) True 
 B)False

Question 18

How do the wages in the United States compare to those in northern Europe?

Accepted Answer

A)  U.S.wage rates are higher than those of all northern European nations. 
B)  Northern Europe's average wage rates are higher. 
C)  U.S.wage rates are higher than those in Germany and the Netherlands. 
D)  they are similar. 
A)  U.S.wage rates are higher than those of all northern European nations. 
B)  Northern Europe's average wage rates are higher. 
C)  U.S.wage rates are higher than those in Germany and the Netherlands. 
D)  they are similar.

Question 19

The largest single portion of state and local budgets is devoted to

Accepted Answer

A)  State and local defense. 
B)  Health and public welfare programs. 
C)  State and local unemployment compensation. 
D)  Education. 
E)  Interest payments on state and local debt. 
A)  State and local defense. 
B)  Health and public welfare programs. 
C)  State and local unemployment compensation. 
D)  Education. 
E)  Interest payments on state and local debt.

Question 20

In a mixed economy

Accepted Answer

A)  all economies choose the same mix of private and public involvement in the economy. 
B)  the government is more important than the private sector in generating output. 
C)  there is some government influence over the workings of the free market. 
D)  all of the above. 
A)  all economies choose the same mix of private and public involvement in the economy. 
B)  the government is more important than the private sector in generating output. 
C)  there is some government influence over the workings of the free market. 
D)  all of the above.

Consumer spending accounts for about 70 percent of GDP.

All industrialized countries have become "service economies." Which factor helps explain this shift?

The U.S.economy has grown steadily over the years.

According to Robert Reich,secretary of Labor in the Clinton administration,

The United States economy is

Which of the following is the most closed economy?.

A recession can best be defined as a period of time in which

The issue of inequality has become prominent because of:

Despite the monies spent by the federal and state governments,many observers believe which of the following?

Real GDP per capita in the U.S.grows over time.

The United States is the largest national economy in the world.

Approximately half of all U.S.workers are employed by various levels of government.

Which of the following is true about the United States?

Why does unemployment tend to change when the level of output changes?

How does the U.S.economy rank in size?

The U.S.has the biggest national economy in the world solely because of the U.S.population.

Government spending plays no role in meeting our social and public needs.

How do the wages in the United States compare to those in northern Europe?

The largest single portion of state and local budgets is devoted to

In a mixed economy

What Is Economics

The Fundamental Economic Problem Scarcity and Choice

Supply and Demand An Initial Look

An Introduction To Macroeconomics

The Goals Of Macroeconomic Policy

Economic Growth Theory And Policy

Aggregate Demand and The Powerful Consumer

Demand Side Equilibrium Unemployment Or Inflation

Bringing In The Supply Side Unemployment and Inflation

Managing Aggregate Demand Fiscal Policy

Money and The Banking System

Monetary Policy Conventional and Unconventional

The Financial Crisis and The Great Recession

The Debate Over Monetary and Fiscal Policy

Budget Deficits In The Short and Long Run

The Trade Off Between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System Order Or Disorder

Exchange Rates and The Macroeconomy

Filters

Exam 2: The Economy Myth and Reality

Consumer spending accounts for about 70 percent of GDP.

All industrialized countries have become "service economies." Which factor helps explain this shift?

The U.S.economy has grown steadily over the years.

According to Robert Reich,secretary of Labor in the Clinton administration,

The United States economy is

Which of the following is the most closed economy?.

A recession can best be defined as a period of time in which

The issue of inequality has become prominent because of:

Despite the monies spent by the federal and state governments,many observers believe which of the following?

Real GDP per capita in the U.S.grows over time.

The United States is the largest national economy in the world.

Approximately half of all U.S.workers are employed by various levels of government.

Which of the following is true about the United States?

Why does unemployment tend to change when the level of output changes?

How does the U.S.economy rank in size?

The U.S.has the biggest national economy in the world solely because of the U.S.population.

Government spending plays no role in meeting our social and public needs.

How do the wages in the United States compare to those in northern Europe?

The largest single portion of state and local budgets is devoted to

In a mixed economy

What Is Economics

The Fundamental Economic Problem Scarcity and Choice

Supply and Demand An Initial Look

An Introduction To Macroeconomics

The Goals Of Macroeconomic Policy

Economic Growth Theory And Policy

Aggregate Demand and The Powerful Consumer

Demand Side Equilibrium Unemployment Or Inflation

Bringing In The Supply Side Unemployment and Inflation

Managing Aggregate Demand Fiscal Policy

Money and The Banking System

Monetary Policy Conventional and Unconventional

The Financial Crisis and The Great Recession

The Debate Over Monetary and Fiscal Policy

Budget Deficits In The Short and Long Run

The Trade Off Between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System Order Or Disorder

Exchange Rates and The Macroeconomy

Filters