Question 1

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.

Question 2

Which of the following is true about the United States?

Accepted Answer

A) There have been recessions approximately every ten years. 
B) The pattern of recessions does not occur on a regular basis. 
C) Periods of economic growth and recessions occur in two-year patterns. 
D) Recessions always last less than one year. 
E) Recessions in the United States are generally more severe than they are in other countries. 
A) There have been recessions approximately every ten years. 
B) The pattern of recessions does not occur on a regular basis. 
C) Periods of economic growth and recessions occur in two-year patterns. 
D) Recessions always last less than one year. 
E) Recessions in the United States are generally more severe than they are in other countries.

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

The payments to owners of capital include

Accepted Answer

A) interest and profits. 
B) debt and taxes. 
C) wages and salaries. 
D) expenses and bonuses. 
E) All of the responses are correct. 
A) interest and profits. 
B) debt and taxes. 
C) wages and salaries. 
D) expenses and bonuses. 
E) All of the responses are correct.

Question 6

Which of the following groups has had declining labor force participation over the past 30 years?

Accepted Answer

A) Women 
B) Men 
C) Teenagers 
D) Americans 
A) Women 
B) Men 
C) Teenagers 
D) Americans

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

A closed economy is one in which exports and imports constitute a large share of GDP.

Accepted Answer

A) True 
 B)False

Question 9

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.

Accepted Answer

The most important change is the increas

Question 10

Government production accounts for about half of all GDP in the United States.

Accepted Answer

A) True 
 B)False

Question 11

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 12

Economic growth in the United States has increased consistently since the 1950s.

Accepted Answer

A) True 
 B)False

Question 13

Spending on items other than consumption represents about what percent of total output of goods and services?

Accepted Answer

A) 20 percent 
B) 30 percent 
C) 40 percent 
D) 60 percent 
A) 20 percent 
B) 30 percent 
C) 40 percent 
D) 60 percent

Question 14

The working population of the United States is approximately

Accepted Answer

A) 160 million. 
B) 290 million. 
C) 340 million. 
D) 1.3 billion. 
A) 160 million. 
B) 290 million. 
C) 340 million. 
D) 1.3 billion.

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

1.Government as referee. Example: enforc

Question 17

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 18

The United States is the largest national economy in the world.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

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.

Exam 2: The Economy: Myth and Reality

Most Americans

Which of the following is true about the United States?

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

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

The payments to owners of capital include

Which of the following groups has had declining labor force participation over the past 30 years?

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

A closed economy is one in which exports and imports constitute a large share of GDP.

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.

Government production accounts for about half of all GDP in the United States.

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)

Economic growth in the United States has increased consistently since the 1950s.

Spending on items other than consumption represents about what percent of total output of goods and services?

The working population of the United States is approximately

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

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

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

The United States is the largest national economy in the world.

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

The concept of government as redistributor is

What Is Economics

The Fundamental Economic Problem: Scarcity and Choice

Supply and Demand: an Initial Look

Consumer Choice: Individual and Market Demand

Demand and Elasticity

Production, Inputs, and Cost: Building Blocks for Supply Analysis

Output, Price, and Profit: the Importance of Marginal Analysis

The Financial Markets and the Economy: the Tail That Wags the Dog

The Firm and the Industry Under Perfect Competition

The Case for Free Markets: the Price System

Monopoly

Between Competition and Monopoly

Limiting Market Power: Antitrust and Regulation

The Shortcomings of Free Markets

Externalities, Externaliteis, the Environment, and Natural Resources

Taxation and Resource Allocation

Pricing the Factors of Production

Labor and Entrepreneurship: the Human Inputs

Poverty, Inequality, and Discrimination

International Trade and Comparative Advantage

Contemporary Issues in the Us Economy

Filters

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