Exam 2: The Economony: Myth and Reality

Recessions are periods of declining economic activity.

All industrialized countries have become "service economies." Which factor helps explain this shift?

Consumer spending accounts for what share of GDP?

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

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

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

Since the 1970s, the United States has had higher unemployment rates than most European countries.

A tax is progressive if it raises a greater fraction of total tax revenue every year.

Which of the following is true about the United States?

The concept of government as redistributor is

Expenditures on social programs, such as health care and income security, constitute more than half of U.S.federal expenditures in 2016.

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

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

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

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

The role of government in a market economy would include all of the following except

The United States provides a reasonable illustration of

Consumer spending accounts for nearly two-thirds percent of U.S.GDP.

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

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