Question 1

Which of the following nations can be called a mixed economy?

Accepted Answer

A) The United States. 
B) Italy. 
C) Sweden. 
D) France. 
E) All of these nations are mixed economies. 
A) The United States. 
B) Italy. 
C) Sweden. 
D) France. 
E) All of these nations are mixed economies.

Question 2

How does the United States compare to other advanced, industrialized economies on the issue of openness?

Accepted Answer

A) The U.S.economy is completely closed. 
B) The U.S.economy is at the low end of openness. 
C) The U.S.economy is above average in openness. 
D) The U.S.economy is among the most open. 
E) The U.S.economy is the most open of any economy. 
A) The U.S.economy is completely closed. 
B) The U.S.economy is at the low end of openness. 
C) The U.S.economy is above average in openness. 
D) The U.S.economy is among the most open. 
E) The U.S.economy is the most open of any economy.

Question 3

An open economy is one in which exports and imports constitute a large share of GDP.

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

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

Question 6

Investment spending accounts for nearly 60 percent of U.S.GDP.

Accepted Answer

A) True 
 B)False

Question 7

The corporate income tax is the single largest source of revenue for the federal government.

Accepted Answer

A) True 
 B)False

Question 8

Between 1960 and 2017 U.S.GDP, measured in dollars of constant purchasing power, expanded by a factor of 5.However, the standard of living only increased by 3 times over this period.Explain the difference.

Accepted Answer

GDP growth includes the effects of infla

Question 9

It is often asserted that the United States no longer manufactures anything, and that instead it imports manufactured goods from countries like China.Critically evaluate this claim.

Accepted Answer

If the claim were true then the share of

Question 10

Gross domestic product is the money value of all final goods and services produced in an economy in a year.

Accepted Answer

A) True 
 B)False

Question 11

One of the most important changes in the composition of the labor force in the United States has been

Accepted Answer

A) the major increase in the number of workers who work full-time out of their own homes. 
B) the drop in the number of men who only work part-time. 
C) the pattern of increase in the number of women in the labor force. 
D) the increase in the ratio of male workers to female workers. 
E) the major increase in the number of men who work in other countries. 
A) the major increase in the number of workers who work full-time out of their own homes. 
B) the drop in the number of men who only work part-time. 
C) the pattern of increase in the number of women in the labor force. 
D) the increase in the ratio of male workers to female workers. 
E) the major increase in the number of men who work in other countries.

Question 12

A mixed economy is one in which

Accepted Answer

A) a mixture of businesses operates and functions. 
B) there is a mixture of public influence over government. 
C) government plays a dominant role, and private markets are minimized in importance. 
D) government plays a role in the operation of private markets. 
A) a mixture of businesses operates and functions. 
B) there is a mixture of public influence over government. 
C) government plays a dominant role, and private markets are minimized in importance. 
D) government plays a role in the operation of private markets.

Question 13

What is the level of openness of the United States economy, based on 2016 data?

Accepted Answer

A) 13.3 percent 
B) 23.1 percent 
C) 52.0 percent 
D) 63.9 percent 
E) 77.8 percent 
A) 13.3 percent 
B) 23.1 percent 
C) 52.0 percent 
D) 63.9 percent 
E) 77.8 percent

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Most American workers

Accepted Answer

A) are employed in the goods-producing sector. 
B) are employed by government. 
C) are employed in the service-producing sector. 
D) are employed in the agricultural sector. 
A) are employed in the goods-producing sector. 
B) are employed by government. 
C) are employed in the service-producing sector. 
D) are employed in the agricultural sector.

Question 16

If California were a separate nation, its economy would rank where among nations of the world?

Accepted Answer

A) Second 
B) Third 
C) Fifth 
D) Sixth 
A) Second 
B) Third 
C) Fifth 
D) Sixth

Question 17

Prosperity in the United States is evenly distributed across the 50 states.

Accepted Answer

A) True 
 B)False

Question 18

The personal income tax is the single largest source of revenue for the federal government.

Accepted Answer

A) True 
 B)False

Question 19

In the United States, most workers

Accepted Answer

A) work for government of some sort. 
B) produce raw materials for manufacturing. 
C) work in agriculture and farming. 
D) produce services rather than goods. 
A) work for government of some sort. 
B) produce raw materials for manufacturing. 
C) work in agriculture and farming. 
D) produce services rather than goods.

Question 20

Despite the outlays by the federal and state governments, many observers believe which of the following is true?

Accepted Answer

A) Public infrastructure, such as bridges and roads, is only adequate. 
B) Our educational system is lacking. 
C) Too little is spent on homeland defense. 
D) All of these are correct. 
A) Public infrastructure, such as bridges and roads, is only adequate. 
B) Our educational system is lacking. 
C) Too little is spent on homeland defense. 
D) All of these are correct.

Exam 2: The Economony: Myth and Reality

Which of the following nations can be called a mixed economy?

How does the United States compare to other advanced, industrialized economies on the issue of openness?

An open economy is one in which exports and imports constitute a large share of GDP.

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

The payments to owners of capital include

Investment spending accounts for nearly 60 percent of U.S.GDP.

The corporate income tax is the single largest source of revenue for the federal government.

Between 1960 and 2017 U.S.GDP, measured in dollars of constant purchasing power, expanded by a factor of 5.However, the standard of living only increased by 3 times over this period.Explain the difference.

It is often asserted that the United States no longer manufactures anything, and that instead it imports manufactured goods from countries like China.Critically evaluate this claim.

Gross domestic product is the money value of all final goods and services produced in an economy in a year.

One of the most important changes in the composition of the labor force in the United States has been

A mixed economy is one in which

What is the level of openness of the United States economy, based on 2016 data?

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

Most American workers

If California were a separate nation, its economy would rank where among nations of the world?

Prosperity in the United States is evenly distributed across the 50 states.

The personal income tax is the single largest source of revenue for the federal government.

In the United States, most workers

Despite the outlays by the federal and state governments, many observers believe which of the following is true?

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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