Question 1

The United States produces ____ of what it consumes, and consumes ____ of what it produces.

Accepted Answer

A)  little; little 
B)  little; most 
C)  most; little 
D)  most; most 
A)  little; little 
B)  little; most 
C)  most; little 
D)  most; most

Question 2

A recession is a period of time in which the total output of the economy rises.

Accepted Answer

A) True 
 B)False

Question 3

The role of government in a market economy would include all of the following except

Accepted Answer

A)  providing services such as national defense. 
B)  collecting taxes. 
C)  extensive ownership of productive resources. 
D)  making and enforcing laws. 
A)  providing services such as national defense. 
B)  collecting taxes. 
C)  extensive ownership of productive resources. 
D)  making and enforcing laws.

Question 4

Relative to the situation in many other nations, the United States government plays a _______ role in its economy.

Accepted Answer

A)  small 
B)  large 
C)  comparable 
D)  nonexistent 
A)  small 
B)  large 
C)  comparable 
D)  nonexistent

Question 5

When government defines and enforces property rights, this is an example of government as

Accepted Answer

A)  referee. 
B)  regulator of business. 
C)  buyer of goods and services. 
D)  tax collector. 
E)  redistributor. 
A)  referee. 
B)  regulator of business. 
C)  buyer of goods and services. 
D)  tax collector. 
E)  redistributor.

Question 6

There is no role for government in a free enterprise economy such as the United States.

Accepted Answer

A) True 
 B)False

Question 7

Consumer spending accounts for what share of GDP?

Accepted Answer

A)  20 percent 
B)  40 percent 
C)  70 percent 
D)  90 percent 
A)  20 percent 
B)  40 percent 
C)  70 percent 
D)  90 percent

Question 8

The government's budget accounts for about 80 percent of GDP in the United States.

Accepted Answer

A) True 
 B)False

Question 9

The United States is one of the least "marketized" economies in the world.

Accepted Answer

A) True 
 B)False

Question 10

An open economy produces most of the goods and services that it needs, with few imports and exports.

Accepted Answer

A) True 
 B)False

Question 11

A mixed economy blends private and public elements.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

The largest single portion of the federal budget is devoted to

Accepted Answer

A)  national defense. 
B)  Medicare and Medicaid. 
C)  Social Security and unemployment compensation. 
D)  education. 
E)  interest payments on the national debt. 
A)  national defense. 
B)  Medicare and Medicaid. 
C)  Social Security and unemployment compensation. 
D)  education. 
E)  interest payments on the national debt.

Question 14

If total population is measured, where does the United States rank?

Accepted Answer

A)  First 
B)  Second 
C)  Third 
D)  Fourth 
E)  Fifth 
A)  First 
B)  Second 
C)  Third 
D)  Fourth 
E)  Fifth

Question 15

Per capita GDP can be defined as

Accepted Answer

A)  GDP per employed worker. 
B)  GDP per unit of capital. 
C)  GDP per person. 
D)  GDP per unit of unemployment. 
A)  GDP per employed worker. 
B)  GDP per unit of capital. 
C)  GDP per person. 
D)  GDP per unit of unemployment.

Question 16

List five major economic activities of government, and give an example of each.

Accepted Answer

1. Government as referee. Example: enfor

Question 17

Progressive income taxes are designed to

Accepted Answer

A)  make the distribution of income less equal. 
B)  leave unchanged the distribution of income. 
C)  let the market determine the distribution of income after taxes. 
D)  make the distribution of income more equal. 
A)  make the distribution of income less equal. 
B)  leave unchanged the distribution of income. 
C)  let the market determine the distribution of income after taxes. 
D)  make the distribution of income more equal.

Question 18

Currently, well over half of the American workforce is comprised of women.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following nations can be called a mixed economy?

Accepted Answer

A)  The United States. 
B)  Italy. 
C)  Sweden. 
D)  France. 
E)  All of these nations are mixed economies. 
A)  The United States. 
B)  Italy. 
C)  Sweden. 
D)  France. 
E)  All of these nations are mixed economies.

Question 20

Comparing the United States to other economies, the United States is one of the ____ economies in the world.

Accepted Answer

A)  most government-supervised 
B)  most privatized 
C)  most government-owned 
D)  least privatized 
A)  most government-supervised 
B)  most privatized 
C)  most government-owned 
D)  least privatized

Exam 2: The Economy: Myth and Reality

The United States produces ____ of what it consumes, and consumes ____ of what it produces.

A recession is a period of time in which the total output of the economy rises.

The role of government in a market economy would include all of the following except

Relative to the situation in many other nations, the United States government plays a _______ role in its economy.

When government defines and enforces property rights, this is an example of government as

There is no role for government in a free enterprise economy such as the United States.

Consumer spending accounts for what share of GDP?

The government's budget accounts for about 80 percent of GDP in the United States.

The United States is one of the least "marketized" economies in the world.

An open economy produces most of the goods and services that it needs, with few imports and exports.

A mixed economy blends private and public elements.

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

The largest single portion of the federal budget is devoted to

If total population is measured, where does the United States rank?

Per capita GDP can be defined as

List five major economic activities of government, and give an example of each.

Progressive income taxes are designed to

Currently, well over half of the American workforce is comprised of women.

Which of the following nations can be called a mixed economy?

Comparing the United States to other economies, the United States is one of the ____ economies in the world.

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

Filters

The United States produces of what it consumes, and consumes of what it produces.