Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

A firm that conducts 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 3

A recession can best be defined as a period of time in which

Accepted Answer

A) total output of the economy falls. 
B) total output of the economy rises very slowly. 
C) total unemployment falls. 
D) total international trade fails to rise. 
E) the rate of inflation falls below zero. 
A) total output of the economy falls. 
B) total output of the economy rises very slowly. 
C) total unemployment falls. 
D) total international trade fails to rise. 
E) the rate of inflation falls below zero.

Question 4

A mixed economy is one that combines both public and private ownership of property.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following areas employed more workers as of 2016?

Accepted Answer

A) Educational and health services 
B) Business and professional services 
C) Retail trade 
D) Manufacturing companies 
A) Educational and health services 
B) Business and professional services 
C) Retail trade 
D) Manufacturing companies

Question 6

Capitalism and free enterprise are common, and the United States

Accepted Answer

A) has just begun to move in that direction after years of central planning. 
B) has gone further in that direction than almost any other country. 
C) is becoming more "free," but is not as capitalistic as many others. 
D) is considering a major change to "free up" its economy as many others have. 
E) is leading the move toward greater central planning and control. 
A) has just begun to move in that direction after years of central planning. 
B) has gone further in that direction than almost any other country. 
C) is becoming more "free," but is not as capitalistic as many others. 
D) is considering a major change to "free up" its economy as many others have. 
E) is leading the move toward greater central planning and control.

Question 7

Economic progress is best measured by

Accepted Answer

A) the growth rate of prices over time. 
B) the growth rate of GDP per capita. 
C) the amount of working time needed for an individual worker to afford certain goods and services. 
D) the annual growth rate in the population. 
A) the growth rate of prices over time. 
B) the growth rate of GDP per capita. 
C) the amount of working time needed for an individual worker to afford certain goods and services. 
D) the annual growth rate in the population.

Question 8

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 9

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

Question 10

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

Accepted Answer

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

Question 11

Economic growth in the United States has increased consistently since the 1950s.

Accepted Answer

A) True 
 B)False

Question 12

GDP is a measure of the total output of an economy.

Accepted Answer

A) True 
 B)False

Question 13

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 14

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

Accepted Answer

A) True 
 B)False

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

Government production accounts for about half of all GDP in the United States.

Accepted Answer

A) True 
 B)False

Question 17

Government in the United States spends more as a percentage of GDP than in most other industrialized nations.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

For those workers who receive fringe benefits, such as health insurance and pensions, the additional income this results in-over and above the average hourly wage-is as much as (for some workers)

Accepted Answer

A) 10-12 percent. 
B) 30-40 percent. 
C) 51-62 percent 
D) 70 percent or more. 
A) 10-12 percent. 
B) 30-40 percent. 
C) 51-62 percent 
D) 70 percent or more.

Question 20

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 responses are correct. 
A) preserve competition. 
B) protect the environment. 
C) protect the public's trust in the government. 
D) All of the responses are correct.

Exam 2: The Economony: Myth and Reality

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

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

A recession can best be defined as a period of time in which

A mixed economy is one that combines both public and private ownership of property.

Which of the following areas employed more workers as of 2016?

Capitalism and free enterprise are common, and the United States

Economic progress is best measured by

Which of the following illustrates government acting as a referee?

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

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

Economic growth in the United States has increased consistently since the 1950s.

GDP is a measure of the total output of an economy.

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.

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

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

Government production accounts for about half of all GDP in the United States.

Government in the United States spends more as a percentage of GDP than in most other industrialized nations.

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

For those workers who receive fringe benefits, such as health insurance and pensions, the additional income this results in-over and above the average hourly wage-is as much as (for some workers)

Antitrust laws are designed to

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

The Financial Markets and the Economy: the Tail That Wags the Dog

The Firm and the Industry Under Perfect Competition

The Case for Free Markets: the Price System

Monopoly

Between Competition and Monopoly

Limiting Market Power: Antitrust and Regulation

The Shortcomings of Free Markets

The Economics of 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

Contemporary Issues in the Useconomy

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