Question 1

Roughly 160 million people in the United States hold jobs.

Accepted Answer

A) True 
 B)False

Question 2

The government redistributes income to the poor, primarily through

Accepted Answer

A) regressive taxes and disability payments. 
B) transfer payments and progressive taxes. 
C) government purchases. 
D) higher wages. 
A) regressive taxes and disability payments. 
B) transfer payments and progressive taxes. 
C) government purchases. 
D) higher wages.

Question 3

Approximately 1 in 12 business firms fail each year in the Unites States.

Accepted Answer

A) True 
 B)False

Question 4

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 5

All of the following are associated with a mixed economy except

Accepted Answer

A) some public influence over the workings of free markets. 
B) public ownership mixed in with private property. 
C) public ownership of the society's productive resources. 
D) different countries blending the state and market sectors in different ways. 
A) some public influence over the workings of free markets. 
B) public ownership mixed in with private property. 
C) public ownership of the society's productive resources. 
D) different countries blending the state and market sectors in different ways.

Question 6

A reason that the United States has the largest economy in the world because

Accepted Answer

A) it has the most land to work with. 
B) it has a smaller population to support. 
C) American workers are very productive. 
D) All of the responses are correct. 
A) it has the most land to work with. 
B) it has a smaller population to support. 
C) American workers are very productive. 
D) All of the responses are correct.

Question 7

Relative to the situation in many other nations, the United States government plays a _______ role in its economy.

Accepted Answer

A) small 
B) large 
C) comparable 
D) nonexistent 
A) small 
B) large 
C) comparable 
D) nonexistent

Question 8

The United States has approximately

Accepted Answer

A) 100,000 businesses. 
B) 5.1 million businesses. 
C) 14 million businesses. 
D) 30 million businesses. 
A) 100,000 businesses. 
B) 5.1 million businesses. 
C) 14 million businesses. 
D) 30 million businesses.

Question 9

How do the wages in the United States compare to those in northern Europe?

Accepted Answer

A) U.S.wage rates are higher than those of all northern European nations. 
B) Northern Europe's average wage rates are higher. 
C) U.S.wage rates are higher than those in Germany and the Netherlands. 
D) They are similar. 
A) U.S.wage rates are higher than those of all northern European nations. 
B) Northern Europe's average wage rates are higher. 
C) U.S.wage rates are higher than those in Germany and the Netherlands. 
D) They are similar.

Question 10

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 when the unemployment rate rises 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 when the unemployment rate rises above and below zero.

Question 11

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 12

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 13

In 2017, per capita real GDP was roughly half its value in 1960.

Accepted Answer

A) True 
 B)False

Question 14

A mixed economy blends private and public elements.

Accepted Answer

A) True 
 B)False

Question 15

Currently, well over half of the American workforce is comprised of women.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following multinational firms would not be defined as strictly an American corporation?

Accepted Answer

A) Apple. 
B) Ford Motor Company. 
C) Honda Motor Company. 
D) Nissan Motor Company. 
E) All of these would not be defined as strictly an American corporation. 
A) Apple. 
B) Ford Motor Company. 
C) Honda Motor Company. 
D) Nissan Motor Company. 
E) All of these would not be defined as strictly an American corporation.

Question 17

What is the approximate number of Americans who have jobs?

Accepted Answer

A) 160 million 
B) 240 million 
C) 290 million 
D) 330 million 
E) 3.1 billion 
A) 160 million 
B) 240 million 
C) 290 million 
D) 330 million 
E) 3.1 billion

Question 18

Spending on items other than consumption represents about what percent of total output of goods and services?

Accepted Answer

A) 20 percent 
B) 30 percent 
C) 40 percent 
D) 60 percent 
A) 20 percent 
B) 30 percent 
C) 40 percent 
D) 60 percent

Question 19

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 20

All industrialized countries have become "service economies" in recent decades.Explain the reasons behind this shift.

Accepted Answer

To a considerable degree, this shift to

Exam 2: The Economony: Myth and Reality

Roughly 160 million people in the United States hold jobs.

The government redistributes income to the poor, primarily through

Approximately 1 in 12 business firms fail each year in the Unites States.

Most Americans

All of the following are associated with a mixed economy except

A reason that the United States has the largest economy in the world because

Relative to the situation in many other nations, the United States government plays a _______ role in its economy.

The United States has approximately

How do the wages in the United States compare to those in northern Europe?

Economic fluctuations are defined as

Government ownership of property and resources in the United States is

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

In 2017, per capita real GDP was roughly half its value in 1960.

A mixed economy blends private and public elements.

Currently, well over half of the American workforce is comprised of women.

Which of the following multinational firms would not be defined as strictly an American corporation?

What is the approximate number of Americans who have jobs?

Spending on items other than consumption represents about what percent of total output of goods and services?

Which of the following is the best definition of openness?

All industrialized countries have become "service economies" in recent decades.Explain the reasons behind this shift.

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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