Exam 2: The Economy: Myth and Reality

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

Over the past several years and until recently, the United States has had lower unemployment rates than most European countries.

Outputs include goods but not services.

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

Since the 1970s, unemployment rates in the United States have generally been

What important changes have occurred in the composition of the labor force since 1960? Is the popular image of the American worker as a factory worker accurate? Describe the types of jobs Americans are working in today.

A tax is progressive if it raises a greater fraction of total tax revenue every year.

In a mixed economy, the government plays some role in the working of free markets.

Government spending plays no role in meeting our social and public needs.

Capitalism and free enterprise are common, and the United States

Workers in the United States receive significantly higher compensation than almost all other western European nations.

The United States has the biggest national economy in the world solely because of the U.S. population.

A firm that conducts business all over the world is called a(n)

The United States relies heavily on markets and so cannot be characterized as a mixed economy.

America's antitrust laws are used to protect competition against possible encroachment by monopoly. This is an example of government as

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.

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

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

Unemployment in the United States varies considerably over time.

In a mixed economy,