Exam 2: The Economy: Myth and Reality

An industry can be defined as

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

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

In 2017, about what percentage of goods and services sold in the United States was imported?

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.

Per capita GDP can be defined as

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

A tax must be progressive if an individual with a higher income pays more dollars in taxes than an individual with a lower income.

Which of the following illustrates government acting as a referee?

A nation's citizens often dislike the economy's distribution of income. Explain two methods for creating a more equal distribution of income.

American households spend about ____ of the average family budget on services, with the rest spent on goods.

A minority of American women work outside the home.

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

Based on data from 2016, annual imports to the United States were approximately ____ and annual exports from the United States were approximately ____.

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

As Americans have become more health conscious, rules about food labels have become more complex and stringent. This is an example of government acting as

Which of the following is a valid reason to consider government regulation?

A mixed economy is one in which

Workers earn less than half of the income generated by the production process.

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