Exam 2: The Economy: Myth and Reality

Teenage employment in the United States has risen in the past two decades.

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

Which factor of production accounts for the highest percentage of the income that the production process generates in the United States?

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

All industrialized countries have become "service economies." Which factor helps explain this shift?

The U. S. budget has

American households spend more of their incomes on goods than on services.

Since the 1970s, the United States has had higher unemployment rates than most European countries.

In the United States each year,

Multinational businesses produce and sell goods around the world.

Approximately half of all U.S. workers are employed by various levels of government.

The United States is an example of a mixed economy.

Teenage workforce participation as a percentage of the total workforce has fallen in the United States in recent years.

Expenditures on social programs, such as health care and income security, constitute more than half of U.S. federal expenditures in 2016.

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

Consumer spending accounts for nearly two-thirds percent of U.S. GDP.

The government redistributes income to the poor, primarily through

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

The U.S. economy rarely grows.

The U.S. economy has become a less closed economy over the past 50 years.