Question 1

How does the U.S. economy rank in size?

Accepted Answer

A)  First in economic output 
B)  Second in economic output 
C)  Third in economic output 
D)  Fourth in economic output 
E)  Fifth in economic output 
A)  First in economic output 
B)  Second in economic output 
C)  Third in economic output 
D)  Fourth in economic output 
E)  Fifth in economic output

Question 2

The average hourly wage (excluding benefits) in the United States is currently around

Accepted Answer

A)  $7.25 
B)  $15.50 
C)  $20.00 
D)  $26.00 
A)  $7.25 
B)  $15.50 
C)  $20.00 
D)  $26.00

Question 3

The U.S. economy has grown constantly over the years.

Accepted Answer

A) True 
 B)False

Question 4

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 5

The U.S. economy is relatively closed in terms of economic activity related to exports and imports.

Accepted Answer

A) True 
 B)False

Question 6

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 7

The total market value of capital assets in the United States is about $30 trillion dollars.

Accepted Answer

A) True 
 B)False

Question 8

There are about 5 million business firms in the Unites States.

Accepted Answer

A) True 
 B)False

Question 9

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 10

Based on data from 2016, which of the following countries has the lowest tax burden?

Accepted Answer

A)  The United Kingdom 
B)  The United States 
C)  Italy 
D)  Sweden 
A)  The United Kingdom 
B)  The United States 
C)  Italy 
D)  Sweden

Question 11

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 12

During fiscal year 2017, the most recent mentioned in the text, the federal government spent approximately

Accepted Answer

A)  $1.2 billion. 
B)  $1.9 trillion. 
C)  $4.0 trillion. 
D)  $15.0 trillion. 
A)  $1.2 billion. 
B)  $1.9 trillion. 
C)  $4.0 trillion. 
D)  $15.0 trillion.

Question 13

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 14

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 15

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 16

Antitrust laws are designed to promote competition.

Accepted Answer

A) True 
 B)False

Question 17

The factors of production include all goods and services produced in an economy.

Accepted Answer

A) True 
 B)False

Question 18

The United States economy is

Accepted Answer

A)  the third largest in the world. 
B)  larger than all other national economies combined. 
C)  the second largest in the world, behind Japan. 
D)  the largest in the world. 
A)  the third largest in the world. 
B)  larger than all other national economies combined. 
C)  the second largest in the world, behind Japan. 
D)  the largest in the world.

Question 19

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.

Question 20

In the United States, all property is privately owned.

Accepted Answer

A) True 
 B)False

Exam 2: The Economy: Myth and Reality

How does the U.S. economy rank in size?

The average hourly wage (excluding benefits) in the United States is currently around

The U.S. economy has grown constantly over the years.

Economic fluctuations are defined as

The U.S. economy is relatively closed in terms of economic activity related to exports and imports.

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

The total market value of capital assets in the United States is about $30 trillion dollars.

There are about 5 million business firms in the Unites States.

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

Based on data from 2016, which of the following countries has the lowest tax burden?

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

During fiscal year 2017, the most recent mentioned in the text, the federal government spent approximately

A mixed economy is one in which

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)

In the United States, most workers

Antitrust laws are designed to promote competition.

The factors of production include all goods and services produced in an economy.

The United States economy is

Antitrust laws are designed to

In the United States, all property is privately owned.

What Is Economics

The Fundamental Economic Problem: Scarcity and Choice

Supply and Demand: an Initial Look

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 Us Economy

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