Question 1

Gross domestic product is a measure of

Accepted Answer

A)  the size of the largest industry in an economy. 
B)  the money value of all final goods and services produced in a year by the economy. 
C)  the volume of goods and services, which involved in international trade. 
D)  the goods and services produced strictly by corporations. 
E)  the nonmarket production of goods and services. 
A)  the size of the largest industry in an economy. 
B)  the money value of all final goods and services produced in a year by the economy. 
C)  the volume of goods and services, which involved in international trade. 
D)  the goods and services produced strictly by corporations. 
E)  the nonmarket production of goods and services.

Question 2

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

Accepted Answer

A)  the major increase in the number of women who work outside the home. 
B)  the drop in the number of men who only work part-time. 
C)  the steady decline in the number of women who work. 
D)  the increase in the ratio of male workers to female workers. 
E)  the major increase in the number of men who work away from the home or farm. 
A)  the major increase in the number of women who work outside the home. 
B)  the drop in the number of men who only work part-time. 
C)  the steady decline in the number of women who work. 
D)  the increase in the ratio of male workers to female workers. 
E)  the major increase in the number of men who work away from the home or farm.

Question 3

The concept of government as redistributor is

Accepted Answer

A)  approved by many but questioned by many as well. 
B)  generally rejected as against "the American way." 
C)  largely approved by a vast majority of Americans. 
D)  unnecessary in the United States because income disparities are small. 
E)  a conservative idea that many liberals reject. 
A)  approved by many but questioned by many as well. 
B)  generally rejected as against "the American way." 
C)  largely approved by a vast majority of Americans. 
D)  unnecessary in the United States because income disparities are small. 
E)  a conservative idea that many liberals reject.

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Investment spending accounts for nearly 60 percent of U.S. GDP.

Accepted Answer

A) True 
 B)False

Question 6

Compared to people in other nations, people in the United States pay

Accepted Answer

A)  much higher taxes. 
B)  somewhat higher taxes, on average. 
C)  about the same amount taxes. 
D)  lower taxes. 
A)  much higher taxes. 
B)  somewhat higher taxes, on average. 
C)  about the same amount taxes. 
D)  lower taxes.

Question 7

According to polling data, Americans believe that after-tax corporate profits are

Accepted Answer

A)  less than 10 percent of corporate product prices. 
B)  nearly 50 percent of the corporate product price. 
C)  approximately 36 percent of corporate product prices. 
D)  approximately 25 percent of corporate product prices. 
A)  less than 10 percent of corporate product prices. 
B)  nearly 50 percent of the corporate product price. 
C)  approximately 36 percent of corporate product prices. 
D)  approximately 25 percent of corporate product prices.

Question 8

Education accounts for the largest share of state and local government spending.

Accepted Answer

A) True 
 B)False

Question 9

A reason that the United States has the largest economy in the world because

Accepted Answer

A)  it has the most land to work with. 
B)  it has a smaller population to support. 
C)  American workers are very productive. 
D)  All of the responses are correct. 
A)  it has the most land to work with. 
B)  it has a smaller population to support. 
C)  American workers are very productive. 
D)  All of the responses are correct.

Question 10

What you mean by business cycles? What are their consequences?

Accepted Answer

Business cycles are periodic upswings an

Question 11

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

Accepted Answer

A) True 
 B)False

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

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

Accepted Answer

A) True 
 B)False

Question 14

Between 1960 and 2017 U.S. GDP, measured in dollars of constant purchasing power, expanded by a factor of 5. However, the standard of living only increased by 3 times over this period. Explain the difference.

Accepted Answer

GDP growth includes the effects of infla

Question 15

Profits account for about 30 cents out of each dollar spent on goods in the United States.

Accepted Answer

A) True 
 B)False

Question 16

Real GDP per capita in the United States grows over time.

Accepted Answer

A) True 
 B)False

Question 17

The majority of American workers are employed in the service sector of the economy.

Accepted Answer

A) True 
 B)False

Question 18

Transfer payments are money received as grants from government.

Accepted Answer

A) True 
 B)False

Question 19

Government in the United States spends more as a percentage of GDP than in most other industrialized nations.

Accepted Answer

A) True 
 B)False

Question 20

Most Americans

Accepted Answer

A)  have accurate perceptions of the level of corporate profits. 
B)  underestimate corporate profits. 
C)  overestimate corporate profits. 
D)  believe that corporations earn zero profit. 
A)  have accurate perceptions of the level of corporate profits. 
B)  underestimate corporate profits. 
C)  overestimate corporate profits. 
D)  believe that corporations earn zero profit.

Exam 2: The Economy: Myth and Reality

Gross domestic product is a measure of

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

The concept of government as redistributor is

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

Investment spending accounts for nearly 60 percent of U.S. GDP.

Compared to people in other nations, people in the United States pay

According to polling data, Americans believe that after-tax corporate profits are

Education accounts for the largest share of state and local government spending.

A reason that the United States has the largest economy in the world because

What you mean by business cycles? What are their consequences?

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

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

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

Between 1960 and 2017 U.S. GDP, measured in dollars of constant purchasing power, expanded by a factor of 5. However, the standard of living only increased by 3 times over this period. Explain the difference.

Profits account for about 30 cents out of each dollar spent on goods in the United States.

Real GDP per capita in the United States grows over time.

The majority of American workers are employed in the service sector of the economy.

Transfer payments are money received as grants from government.

Government in the United States spends more as a percentage of GDP than in most other industrialized nations.

Most Americans

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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