Question 1

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 2

Government ownership of property and resources in the United States is

Accepted Answer

A) about as common as it is in European countries. 
B) widespread; the United States is a leader in the amount of government ownership of resources. 
C) relatively rare; the United States is mostly privatized. 
D) rare but has been increasing rapidly as the United States catches up to other countries. 
A) about as common as it is in European countries. 
B) widespread; the United States is a leader in the amount of government ownership of resources. 
C) relatively rare; the United States is mostly privatized. 
D) rare but has been increasing rapidly as the United States catches up to other countries.

Question 3

According to Robert Reich, Secretary of Labor in the Clinton administration,

Accepted Answer

A) the identity of American companies is clear, and laws should be written accordingly. 
B) foreign companies are clearly different from American companies. 
C) multinational companies have clear bases of operations, which form their identity. 
D) it is almost impossible to define the nationality of a multinational company. 
E) identifying the country of origin of a product is almost impossible but essential for proper regulation. 
A) the identity of American companies is clear, and laws should be written accordingly. 
B) foreign companies are clearly different from American companies. 
C) multinational companies have clear bases of operations, which form their identity. 
D) it is almost impossible to define the nationality of a multinational company. 
E) identifying the country of origin of a product is almost impossible but essential for proper regulation.

Question 4

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

Accepted Answer

A) Trade unionism and failure of the manufacturing sector to grow 
B) Information age and laborsaving innovation in manufacturing 
C) The decline in the number of workers possessing the required skills for industrial production 
D) The lack of competition in the service sector 
A) Trade unionism and failure of the manufacturing sector to grow 
B) Information age and laborsaving innovation in manufacturing 
C) The decline in the number of workers possessing the required skills for industrial production 
D) The lack of competition in the service sector

Question 5

Transfer payments are money received as grants from government.

Accepted Answer

A) True 
 B)False

Question 6

A recession can best be defined as a period of time in which

Accepted Answer

A) total output of the economy falls. 
B) total output of the economy rises very slowly. 
C) total unemployment falls. 
D) total international trade fails to rise. 
E) the rate of inflation falls below zero. 
A) total output of the economy falls. 
B) total output of the economy rises very slowly. 
C) total unemployment falls. 
D) total international trade fails to rise. 
E) the rate of inflation falls below zero.

Question 7

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 8

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 9

Recessions are periods of declining economic activity.

Accepted Answer

A) True 
 B)False

Question 10

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.

Accepted Answer

If the claim were true then the share of

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) multinational corporation. 
B) international conglomerate. 
C) competitive corporation. 
D) government-owned business. 
A) multinational corporation. 
B) international conglomerate. 
C) competitive corporation. 
D) government-owned business.

Question 13

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 14

Since the 1950s, the percentage of women working in the United States has held relatively steady.

Accepted Answer

A) True 
 B)False

Question 15

In the United States, most workers

Accepted Answer

A) work for government of some sort. 
B) produce raw materials for manufacturing. 
C) work in agriculture and farming. 
D) produce services rather than goods. 
A) work for government of some sort. 
B) produce raw materials for manufacturing. 
C) work in agriculture and farming. 
D) produce services rather than goods.

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

What is the level of openness of the United States economy, based on 2016 data?

Accepted Answer

A) 13.3 percent 
B) 23.1 percent 
C) 52.0 percent 
D) 63.9 percent 
E) 77.8 percent 
A) 13.3 percent 
B) 23.1 percent 
C) 52.0 percent 
D) 63.9 percent 
E) 77.8 percent

Question 18

The largest single portion of state and local budgets is devoted to

Accepted Answer

A) state and local defense. 
B) health and public welfare programs. 
C) state and local unemployment compensation. 
D) education. 
E) interest payments on state and local debt. 
A) state and local defense. 
B) health and public welfare programs. 
C) state and local unemployment compensation. 
D) education. 
E) interest payments on state and local debt.

Question 19

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 20

Which of the following is true about the United States?

Accepted Answer

A) There has only been one recession in U.S. history. 
B) There have been recessions every couple of years throughout U.S. history. 
C) Recessions have never occurred in the United States. 
D) Recessions have occurred periodically in U.S. history. 
E) Recessions in the United States have generally been worse than in other countries. 
A) There has only been one recession in U.S. history. 
B) There have been recessions every couple of years throughout U.S. history. 
C) Recessions have never occurred in the United States. 
D) Recessions have occurred periodically in U.S. history. 
E) Recessions in the United States have generally been worse than in other countries.

Exam 2: The Economy: Myth and Reality

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

Government ownership of property and resources in the United States is

According to Robert Reich, Secretary of Labor in the Clinton administration,

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

Transfer payments are money received as grants from government.

A recession can best be defined as a period of time in which

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

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

Recessions are periods of declining economic activity.

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.

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

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

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

Since the 1950s, the percentage of women working in the United States has held relatively steady.

In the United States, most workers

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

What is the level of openness of the United States economy, based on 2016 data?

The largest single portion of state and local budgets is devoted to

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

Which of the following is true about the United States?

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

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