Question 1

The U.S.economy is unique for both its size and prosperity.

Accepted Answer

A) True 
 B)False

Question 2

Unemployment in the United States varies considerably over time.

Accepted Answer

A) True 
 B)False

Question 3

National defense made up the largest portion of federal expenditures in 2009.

Accepted Answer

A) True 
 B)False

Question 4

Since 1960, per capita real GDP in the United States has nearly tripled.

Accepted Answer

A) True 
 B)False

Question 5

A transfer payment is a sum of money

Accepted Answer

A) spent by government for new goods and services. 
B) shifted between members of a household. 
C) given by government without a good or service in exchange. 
D) moved between companies for goods and services. 
E) required to pay taxes. 
A) spent by government for new goods and services. 
B) shifted between members of a household. 
C) given by government without a good or service in exchange. 
D) moved between companies for goods and services. 
E) required to pay taxes.

Question 6

The U.S.budget has

Accepted Answer

A) always been in deficit since World War II. 
B) usually been in deficit, with a few periods of surpluses. 
C) always in balance. 
D) in balance, with some period of deficit. 
A) always been in deficit since World War II. 
B) usually been in deficit, with a few periods of surpluses. 
C) always in balance. 
D) in balance, with some period of deficit.

Question 7

The United States is an example of a mixed economy.

Accepted Answer

A) True 
 B)False

Question 8

Among the nations listed, which of the following is the most closed economy?

Accepted Answer

A) The Netherlands 
B) The United States 
C) Germany 
D) Russia 
E) Canada 
A) The Netherlands 
B) The United States 
C) Germany 
D) Russia 
E) Canada

Question 9

The United States produces ____ of what it consumes, and consumes ____ of what it produces.

Accepted Answer

A) little; little 
B) little; most 
C) most; little 
D) most; most 
A) little; little 
B) little; most 
C) most; little 
D) most; most

Question 10

One important role for government as referee is in defining and enforcing property rights.

Accepted Answer

A) True 
 B)False

Question 11

In 2017, about what percentage of goods and services sold in the United States was imported?

Accepted Answer

A) 5 percent 
B) 15 percent 
C) 22 percent 
D) 88 percent 
A) 5 percent 
B) 15 percent 
C) 22 percent 
D) 88 percent

Question 12

Since the mid-1970s, compared to the United States, European unemployment rates are/is

Accepted Answer

A) higher. 
B) much lower. 
C) about the same as in the United States. 
D) not compared to the United States, because there are no unemployed in Europe 
A) higher. 
B) much lower. 
C) about the same as in the United States. 
D) not compared to the United States, because there are no unemployed in Europe

Question 13

The United States is the largest national economy in the world.

Accepted Answer

A) True 
 B)False

Question 14

Differentiate between an open and a closed economy? Do you agree that the U.S.economy is more open among the advanced industrial countries in the world?

Accepted Answer

An economy is called relatively open if

Question 15

American households spend about ____ of the average family budget on services, with the rest spent on goods.

Accepted Answer

A) one-half 
B) two-thirds 
C) one-quarter 
D) one-tenth 
A) one-half 
B) two-thirds 
C) one-quarter 
D) one-tenth

Question 16

Government plays a role in which type of economy?

Accepted Answer

A) Only free-market economies like the United States 
B) Only socialist economies 
C) Only mixed economies 
D) All economies 
A) Only free-market economies like the United States 
B) Only socialist economies 
C) Only mixed economies 
D) All economies

Question 17

Which of the following is a valid reason to consider government regulation?

Accepted Answer

A) Seeking some social objective that markets do not achieve. 
B) Fear that capitalism will prove too productive. 
C) Desire on the part of government to be useful. 
D) Requests for protection for an industry. 
E) All of the responses are correct. 
A) Seeking some social objective that markets do not achieve. 
B) Fear that capitalism will prove too productive. 
C) Desire on the part of government to be useful. 
D) Requests for protection for an industry. 
E) All of the responses are correct.

Question 18

Per capita GDP can be defined as

Accepted Answer

A) GDP per employed worker. 
B) GDP per unit of capital. 
C) GDP per person. 
D) GDP per unit of unemployment. 
A) GDP per employed worker. 
B) GDP per unit of capital. 
C) GDP per person. 
D) GDP per unit of unemployment.

Question 19

The percentage of the American workforce employed in the manufacturing sector has been steadily declining over the past 50 years.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

The so-called Homer Simpson image of the

Exam 2: The Economony: Myth and Reality

The U.S.economy is unique for both its size and prosperity.

Unemployment in the United States varies considerably over time.

National defense made up the largest portion of federal expenditures in 2009.

Since 1960, per capita real GDP in the United States has nearly tripled.

A transfer payment is a sum of money

The U.S.budget has

The United States is an example of a mixed economy.

Among the nations listed, which of the following is the most closed economy?

The United States produces ____ of what it consumes, and consumes ____ of what it produces.

One important role for government as referee is in defining and enforcing property rights.

In 2017, about what percentage of goods and services sold in the United States was imported?

Since the mid-1970s, compared to the United States, European unemployment rates are/is

The United States is the largest national economy in the world.

Differentiate between an open and a closed economy? Do you agree that the U.S.economy is more open among the advanced industrial countries in the world?

American households spend about ____ of the average family budget on services, with the rest spent on goods.

Government plays a role in which type of economy?

Which of the following is a valid reason to consider government regulation?

Per capita GDP can be defined as

The percentage of the American workforce employed in the manufacturing sector has been steadily declining over the past 50 years.

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

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

Filters

The United States produces of what it consumes, and consumes of what it produces.