Question 1

In the U.S., the share of taxes ____ during the early years of George W.Bush's presidency and ____ since then.

Accepted Answer

A)  decreased; increased somewhat 
B)  decreased; further decreased 
C)  increased; further increased 
D)  increased; decreased somewhat 
E)  increased; remained constant 
A)  decreased; increased somewhat 
B)  decreased; further decreased 
C)  increased; further increased 
D)  increased; decreased somewhat 
E)  increased; remained constant

Question 2

In 2005, President Bush promoted a plan to privatize Social Security through allowing workers to create personal savings accounts.How will this affect the government's role as a redistributor of income?

Accepted Answer

A)  it will be diminished. 
B)  it will not be affected. 
C)  it will be strengthened. 
D)  the government does not redistribute income in the U.S. 
A)  it will be diminished. 
B)  it will not be affected. 
C)  it will be strengthened. 
D)  the government does not redistribute income in the U.S.

Question 3

Annual incomes of James, Jack, and Stanley are $30,000, $50,000, and $80,000 and their tax rates are 10%, 20%, and 30% respectively.Which tax structure is this an example of?

Accepted Answer

A)  Proportional tax 
B)  Progressive tax 
C)  Regressive tax 
D)  Digressive tax 
A)  Proportional tax 
B)  Progressive tax 
C)  Regressive tax 
D)  Digressive tax

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

The total market value of capital assets in the United States is over $30 trillion dollars.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

For those workers who are given fringe benefits such as health insurance and pensions, the additional income this amounts to over and above the average hourly wage is approximately

Accepted Answer

A)  12% 
B)  30% 
C)  51% 
D)  70% 
A)  12% 
B)  30% 
C)  51% 
D)  70%

Question 8

A recession is a period of time in which the total output of the economy falls.

Accepted Answer

A) True 
 B)False

Question 9

Nonconsumption spending accounts for roughly what percent of total output of goods and services?

Accepted Answer

A)  20% 
B)  30% 
C)  40% 
D)  60% 
A)  20% 
B)  30% 
C)  40% 
D)  60%

Question 10

Gross domestic product is the money value of manufacturing production in a year.

Accepted Answer

A) True 
 B)False

Question 11

Government is unnecessary in a free enterprise economy such as the United States.

Accepted Answer

A) True 
 B)False

Question 12

The corporate income tax is the single largest source of revenue for the federal government.

Accepted Answer

A) True 
 B)False

Question 13

Workers earn less than half of the income generated by the production process.

Accepted Answer

A) True 
 B)False

Question 14

During fiscal year 2009, the most recent mentioned in the text, the federal government spent approximately

Accepted Answer

A)  $1.7 billion 
B)  $1.8 trillion 
C)  $3.5 trillion 
D)  $14.0 trillion 
A)  $1.7 billion 
B)  $1.8 trillion 
C)  $3.5 trillion 
D)  $14.0 trillion

Question 15

When government defines and enforces property rights, this is an example of government as

Accepted Answer

A)  referee. 
B)  regulator of business. 
C)  buyer of goods and services. 
D)  tax collector. 
E)  redistributor. 
A)  referee. 
B)  regulator of business. 
C)  buyer of goods and services. 
D)  tax collector. 
E)  redistributor.

Question 16

Comparing the United States to other economies, the United States is one of the ____ economy in the world.

Accepted Answer

A)  most government-supervised 
B)  most privatized 
C)  most government-owned 
D)  least privatized 
A)  most government-supervised 
B)  most privatized 
C)  most government-owned 
D)  least privatized

Question 17

The United States produces ____ of what it consumes, and consumes ____ of what it produces.

Accepted Answer

A)  little, little 
B)  little, most 
C)  most, little 
D)  most, most 
A)  little, little 
B)  little, most 
C)  most, little 
D)  most, most

Question 18

How does the United States compare to other advanced, industrialized economies on the issue of openness?

Accepted Answer

A)  It is completely closed. 
B)  It is one of the less open of them. 
C)  It is about average in openness. 
D)  It is one of the more open of them. 
E)  It is the most open of them. 
A)  It is completely closed. 
B)  It is one of the less open of them. 
C)  It is about average in openness. 
D)  It is one of the more open of them. 
E)  It is the most open of them.

Question 19

The working population of the United States is approximately

Accepted Answer

A)  145 million 
B)  290 million 
C)  300 million 
D)  1.3 billion 
A)  145 million 
B)  290 million 
C)  300 million 
D)  1.3 billion

Question 20

The government's budget accounts for about 80 percent of GDP in the United States.

Accepted Answer

A) True 
 B)False

Exam 2: The Economy: Myth and Reality

In the U.S., the share of taxes ____ during the early years of George W.Bush's presidency and ____ since then.

In 2005, President Bush promoted a plan to privatize Social Security through allowing workers to create personal savings accounts.How will this affect the government's role as a redistributor of income?

Annual incomes of James, Jack, and Stanley are $30,000, $50,000, and $80,000 and their tax rates are 10%, 20%, and 30% respectively.Which tax structure is this an example of?

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

The total market value of capital assets in the United States is over $30 trillion dollars.

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

For those workers who are given fringe benefits such as health insurance and pensions, the additional income this amounts to over and above the average hourly wage is approximately

A recession is a period of time in which the total output of the economy falls.

Nonconsumption spending accounts for roughly what percent of total output of goods and services?

Gross domestic product is the money value of manufacturing production in a year.

Government is unnecessary in a free enterprise economy such as the United States.

The corporate income tax is the single largest source of revenue for the federal government.

Workers earn less than half of the income generated by the production process.

During fiscal year 2009, the most recent mentioned in the text, the federal government spent approximately

When government defines and enforces property rights, this is an example of government as

Comparing the United States to other economies, the United States is one of the ____ economy in the world.

The United States produces ____ of what it consumes, and consumes ____ of what it produces.

How does the United States compare to other advanced, industrialized economies on the issue of openness?

The working population of the United States is approximately

The government's budget accounts for about 80 percent of GDP in the United States.

What Is Economics?

The Fundamental Economic Problem: Scarcity and Choice

Supply and Demand: An Initial Look

Consumer Choice: Individual and Market Demand

Demand and Elasticity

Production, Inputs, and Cost: Building Blocks for Supply Analysis

Output, Price, and Profit: The Importance of Marginal Analysis

Securities: Business Finance, and the Economy: The Tail that Wags the Dog?

The Firm and the Industry under Perfect Competition

Monopoly

Between Competition and Monopoly

Limiting Market Power: Regulation and Antitrust

The Case for Free Markets I: The Price System

The Shortcomings of Free Markets

The Market's Prime Achievement: Innovation and Growth

Externalities, the Environment, and Natural Resources

Taxation and Resource Allocation

Pricing the Factors of Production

Labor and Entrepreneurship: The Human Inputs

Poverty, Inequality, and Discrimination

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

In the U.S., the share of taxes during the early years of George W.Bush's presidency and since then.

The United States produces of what it consumes, and consumes of what it produces.