Question 1

Economic fluctuations are defined as

Accepted Answer

A)  alternating periods of significant GDP growth and decline. 
B)  events only encountered in developing countries. 
C)  periods of stable economic growth. 
D)  alternating periods of unemployment falling above and below zero. 
A)  alternating periods of significant GDP growth and decline. 
B)  events only encountered in developing countries. 
C)  periods of stable economic growth. 
D)  alternating periods of unemployment falling above and below zero.

Question 2

Inputs, or factors of production, include

Accepted Answer

A)  labor. 
B)  machinery. 
C)  natural resources. 
D)  all of the above. 
A)  labor. 
B)  machinery. 
C)  natural resources. 
D)  all of the above.

Question 3

Teenage employment in the United States has risen in the last two decades.

Accepted Answer

A) True 
 B)False

Question 4

The concept of government as redistributor is

Accepted Answer

A)  approved by many, but questioned by many as well. 
B)  generally rejected as against "the American way." 
C)  largely approved by a vast majority of Americans. 
D)  unnecessary in the United States because income disparities are small. 
E)  a conservative idea that many liberals reject. 
A)  approved by many, but questioned by many as well. 
B)  generally rejected as against "the American way." 
C)  largely approved by a vast majority of Americans. 
D)  unnecessary in the United States because income disparities are small. 
E)  a conservative idea that many liberals reject.

Question 5

Most Americans

Accepted Answer

A)  have accurate perceptions of the level of corporate profits. 
B)  underestimate corporate profits. 
C)  overestimate corporate profits. 
D)  believe that corporations earn zero profit. 
A)  have accurate perceptions of the level of corporate profits. 
B)  underestimate corporate profits. 
C)  overestimate corporate profits. 
D)  believe that corporations earn zero profit.

Question 6

The United States has approximately

Accepted Answer

A)  80,000 businesses. 
B)  5.1 million businesses. 
C)  12.8 million businesses. 
D)  27.5 million businesses. 
A)  80,000 businesses. 
B)  5.1 million businesses. 
C)  12.8 million businesses. 
D)  27.5 million businesses.

Question 7

Is the image of the typical American worker as a blue-collar worker true? Substantiate your answer with facts.

Accepted Answer

The Homer Simpson image of the typical A

Question 8

Along with changes in the level of economic activity, measured by GDP, what other economic variable tends to rise and fall as a consequence?

Accepted Answer

A)  precipitation 
B)  regulation 
C)  circulation 
D)  unemployment 
A)  precipitation 
B)  regulation 
C)  circulation 
D)  unemployment

Question 9

American households spend more of their incomes on goods than on services.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Exam 2: The Economy: Myth and Reality

Economic fluctuations are defined as

Inputs, or factors of production, include

Teenage employment in the United States has risen in the last two decades.

The concept of government as redistributor is

Most Americans

The United States has approximately

Is the image of the typical American worker as a blue-collar worker true? Substantiate your answer with facts.

Along with changes in the level of economic activity, measured by GDP, what other economic variable tends to rise and fall as a consequence?

American households spend more of their incomes on goods than on services.

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

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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