Exam 2: The Economy: Myth and Reality

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

The U.S.economy rarely grows.

A nation's citizens often dislike the economy's distribution of income.Explain two methods for creating a more equal distribution of income.

The United States is one of the least marketized economies in the world.

Between 1960 and 2009 U.S.GDP, measured in dollars of constant purchasing power, expanded about 5.0 times.However, the standard of living only increased by 2.7 times over this period.Explain the difference.

Gross Domestic Product in 2009 was almost five times larger than it was in 1960 but it is important to note that

As of 2009, annual imports to the U.S.were approximately ____ and annual exports from the U.S.were approximately ____.

GDP is a measure of the total output of an economy.

Which of the following areas employed more workers in 2009?

In 2009, per capita real GDP was roughly half its value in 1960.

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

If California were a separate economy, it would be the ____ largest economy on earth.

The nationality of a company and a product is easily determined.

The typical American family spends about ____ percent of its budget on goods, and the remainder on services.

All industrialized countries have become "service economies" in recent decades.Explain the reasons behind this shift.

Population density varies little between the fifty states.

The United States is an example of a mixed economy.

Consumer spending accounts for about 70 percent of GDP.

The average hourly wage (excluding benefits) in the United States is currently

A transfer payment is a sum of money