Question 1

On a world scale, how populous is the U.S.economy?

Accepted Answer

A)  first 
B)  second 
C)  third 
D)  fourth 
E)  fifth 
A)  first 
B)  second 
C)  third 
D)  fourth 
E)  fifth

Question 2

Which of the following is the best definition of openness?

Accepted Answer

A)  The average of imports expressed as a share of GDP. 
B)  The average of goods traded in markets expressed as a share of GDP. 
C)  The average of imports and exports expressed as a share of GDP. 
D)  The average trade balance expressed as a share of GDP. 
E)  The average of exports expressed as a share of GDP. 
A)  The average of imports expressed as a share of GDP. 
B)  The average of goods traded in markets expressed as a share of GDP. 
C)  The average of imports and exports expressed as a share of GDP. 
D)  The average trade balance expressed as a share of GDP. 
E)  The average of exports expressed as a share of GDP.

Question 3

A tax must be progressive if an individual with a higher income pays more dollars in taxes than an individual with a lower income.

Accepted Answer

A) True 
 B)False

Question 4

The federal government receives most of its revenue from personal income taxes and payroll taxes.

Accepted Answer

A) True 
 B)False

Question 5

What you mean by business cycles? What are their consequences?

Accepted Answer

Business cycles are periodic upswings an

Question 6

As Americans have become more health conscious, rules about food labels have become more complex and stringent.This is an example of government acting as

Accepted Answer

A)  regulator. 
B)  redistributor. 
C)  taxer. 
D)  defender. 
E)  referee. 
A)  regulator. 
B)  redistributor. 
C)  taxer. 
D)  defender. 
E)  referee.

Question 7

The U.S.economy is relatively closed in terms of economic activity related to exports and imports.

Accepted Answer

A) True 
 B)False

Question 8

Gross domestic product is

Accepted Answer

A)  the largest industry in an economy. 
B)  the money value of all final goods and services produced in a year. 
C)  the volume of goods and services which are subject to international trade. 
D)  goods and services produced by private companies. 
E)  non-market production of goods and services. 
A)  the largest industry in an economy. 
B)  the money value of all final goods and services produced in a year. 
C)  the volume of goods and services which are subject to international trade. 
D)  goods and services produced by private companies. 
E)  non-market production of goods and services.

Question 9

Define the following terms:a.Recession
b.Mixed economy
c.Transfer payments
d.Progressive taxation

Accepted Answer

a.A recession is a period of time during

Question 10

Antitrust laws are designed to promote competition.

Accepted Answer

A) True 
 B)False

Question 11

A firm that does business all over the world is called a(n)

Accepted Answer

A)  multinational corporation. 
B)  international conglomerate. 
C)  competitive corporation. 
D)  government-owned business. 
A)  multinational corporation. 
B)  international conglomerate. 
C)  competitive corporation. 
D)  government-owned business.

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

The payments to owners of capital include

Accepted Answer

A)  interest and profits. 
B)  debt and taxes. 
C)  wages and salaries. 
D)  expenses and bonuses. 
E)  All of the above are correct. 
A)  interest and profits. 
B)  debt and taxes. 
C)  wages and salaries. 
D)  expenses and bonuses. 
E)  All of the above are correct.

Question 14

The government redistributes income to the poor, primarily through

Accepted Answer

A)  progressive taxes. 
B)  transfer payments. 
C)  government purchases. 
D)  both a and b 
A)  progressive taxes. 
B)  transfer payments. 
C)  government purchases. 
D)  both a and b

Question 15

Which factor of production accounts for the highest percentage of the income that the production process generates in the US?

Accepted Answer

A)  Capital 
B)  Natural Resource 
C)  Land 
D)  Labor 
A)  Capital 
B)  Natural Resource 
C)  Land 
D)  Labor

Question 16

A minority of American women work outside of the home.

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

Profits account for about 30 cents out of each dollar spent on goods in the United States.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following illustrates government acting as a referee?

Accepted Answer

A)  taxing high income persons 
B)  enforcing contract provisions between buyer and seller 
C)  buying new weapons for defense 
D)  mailing checks to social security recipients 
E)  collecting data on imports and exports 
A)  taxing high income persons 
B)  enforcing contract provisions between buyer and seller 
C)  buying new weapons for defense 
D)  mailing checks to social security recipients 
E)  collecting data on imports and exports

Question 20

Government plays a role in which type of economy?

Accepted Answer

A)  only free market economies like the United States 
B)  only socialist economies 
C)  only mixed economies 
D)  all economies 
A)  only free market economies like the United States 
B)  only socialist economies 
C)  only mixed economies 
D)  all economies

Exam 2: The Economy: Myth and Reality

On a world scale, how populous is the U.S.economy?

Which of the following is the best definition of openness?

A tax must be progressive if an individual with a higher income pays more dollars in taxes than an individual with a lower income.

The federal government receives most of its revenue from personal income taxes and payroll taxes.

What you mean by business cycles? What are their consequences?

As Americans have become more health conscious, rules about food labels have become more complex and stringent.This is an example of government acting as

The U.S.economy is relatively closed in terms of economic activity related to exports and imports.

Gross domestic product is

Define the following terms:a.Recession b.Mixed economy c.Transfer payments d.Progressive taxation

Antitrust laws are designed to promote competition.

A firm that does business all over the world is called a(n)

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

The payments to owners of capital include

The government redistributes income to the poor, primarily through

Which factor of production accounts for the highest percentage of the income that the production process generates in the US?

A minority of American women work outside of the home.

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

Profits account for about 30 cents out of each dollar spent on goods in the United States.

Which of the following illustrates government acting as a referee?

Government plays a role in which type of economy?

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

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