Exam 2: The Economy: Myth and Reality

In the United States, most workers now

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

A minority of American women work outside the home.

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?

The largest single portion of state and local budgets is devoted to

The federal government employs more civilians than state and local governments.

A typical American family sends about _____ percent of its budget on services.

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

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

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

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

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

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

During a recession, unemployment rises and total output of the economy rises.

All of the following are associated with a mixed economy except

Define the following terms: a. Recession b. Mixed economy c. Transfer payments d. Progressive taxation

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

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

According to the data on real U.S. GDP,

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