Question 1

In the United States, all property is privately owned.

Accepted Answer

A) True 
 B)False

Question 2

Government ownership of property and resources in the United States is

Accepted Answer

A)  about as common as it is in European countries. 
B)  widespread; the United States is a leader in the amount of government ownership of resources. 
C)  relatively rare; the United States is mostly privatized. 
D)  rare, but has been increasing rapidly as the United States catches up to other countries. 
A)  about as common as it is in European countries. 
B)  widespread; the United States is a leader in the amount of government ownership of resources. 
C)  relatively rare; the United States is mostly privatized. 
D)  rare, but has been increasing rapidly as the United States catches up to other countries.

Question 3

The largest single portion of the federal budget is devoted to

Accepted Answer

A)  National defense. 
B)  Medicare and Medicaid. 
C)  Social Security and unemployment compensation. 
D)  Education. 
E)  Interest payments on the national debt. 
A)  National defense. 
B)  Medicare and Medicaid. 
C)  Social Security and unemployment compensation. 
D)  Education. 
E)  Interest payments on the national debt.

Question 4

The majority of American workers are employed in the manufacturing sector.

Accepted Answer

A) True 
 B)False

Question 5

The United States is a fairly good example of

Accepted Answer

A)  a mixed economy. 
B)  a pure market system. 
C)  a government-dominated economy. 
D)  a manufacturing economy. 
E)  a transitioning economy. 
A)  a mixed economy. 
B)  a pure market system. 
C)  a government-dominated economy. 
D)  a manufacturing economy. 
E)  a transitioning economy.

Question 6

A mixed economy is one in which

Accepted Answer

A)  a mixture of businesses exist and function. 
B)  there is a mixture of public influence over government. 
C)  government plays a dominant role, and private markets are secondary. 
D)  there is some public influence over free markets. 
A)  a mixture of businesses exist and function. 
B)  there is a mixture of public influence over government. 
C)  government plays a dominant role, and private markets are secondary. 
D)  there is some public influence over free markets.

Question 7

Gross domestic product is the money value of all final goods and services produced in an economy in a year.

Accepted Answer

A) True 
 B)False

Question 8

The factors of production include all goods and services produced in an economy.

Accepted Answer

A) True 
 B)False

Question 9

What is the approximate number of Americans who have jobs?

Accepted Answer

A)  145 million 
B)  200 million 
C)  290 million 
D)  310 million 
E)  3.1 billion 
A)  145 million 
B)  200 million 
C)  290 million 
D)  310 million 
E)  3.1 billion

Question 10

A tax is progressive if the ratio of taxes to income rises as income rises.

Accepted Answer

A) True 
 B)False

Question 11

An open economy is one in which exports and imports constitute a large share of GDP.

Accepted Answer

A) True 
 B)False

Question 12

Progressive income taxes are designed to

Accepted Answer

A)  make the distribution of income less equal. 
B)  leave unchanged the distribution of income. 
C)  let the market determine the distribution of income after taxes. 
D)  make the distribution of income more equal. 
A)  make the distribution of income less equal. 
B)  leave unchanged the distribution of income. 
C)  let the market determine the distribution of income after taxes. 
D)  make the distribution of income more equal.

Question 13

Antitrust laws are designed to

Accepted Answer

A)  preserve competition. 
B)  protect the environment. 
C)  protect the public's trust in the government. 
D)  all of the above. 
A)  preserve competition. 
B)  protect the environment. 
C)  protect the public's trust in the government. 
D)  all of the above.

Question 14

The U.S.economy is relatively open in terms of economic activity related to international trade.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

It is often asserted that the United States no long manufactures anything, instead it imports manufactured goods from countries like China.Critically evaluate this claim.

Accepted Answer

If the claim were true then the share of

Question 17

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 18

The U.S.economy is the largest in the world.What two factors primarily explain this? What makes the U.S.economy unique?

Accepted Answer

Sheer size of the country, with a popula

Question 19

What important changes have occurred in the composition of the labor force since 1960? Is the popular image of the American worker as a factory worker accurate? Describe the types of jobs Americans are working in today.

Accepted Answer

The most important change is the increas

Question 20

Most American workers

Accepted Answer

A)  are employed in the goods-producing sector. 
B)  are employed by government. 
C)  are employed in the service-producing sector. 
D)  are employed in the agricultural sector. 
A)  are employed in the goods-producing sector. 
B)  are employed by government. 
C)  are employed in the service-producing sector. 
D)  are employed in the agricultural sector.

Exam 2: The Economy: Myth and Reality

In the United States, all property is privately owned.

Government ownership of property and resources in the United States is

The largest single portion of the federal budget is devoted to

The majority of American workers are employed in the manufacturing sector.

The United States is a fairly good example of

A mixed economy is one in which

Gross domestic product is the money value of all final goods and services produced in an economy in a year.

The factors of production include all goods and services produced in an economy.

What is the approximate number of Americans who have jobs?

A tax is progressive if the ratio of taxes to income rises as income rises.

An open economy is one in which exports and imports constitute a large share of GDP.

Progressive income taxes are designed to

Antitrust laws are designed to

The U.S.economy is relatively open in terms of economic activity related to international trade.

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

It is often asserted that the United States no long manufactures anything, instead it imports manufactured goods from countries like China.Critically evaluate this claim.

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

The U.S.economy is the largest in the world.What two factors primarily explain this? What makes the U.S.economy unique?

What important changes have occurred in the composition of the labor force since 1960? Is the popular image of the American worker as a factory worker accurate? Describe the types of jobs Americans are working in today.

Most American workers

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