Question 1

The United States is an example of a mixed economy.

Accepted Answer

A) True 
 B)False

Question 2

The federal government employs more civilians than state and local governments.

Accepted Answer

A) True 
 B)False

Question 3

The United States economy is

Accepted Answer

A) the third largest in the world. 
B) larger than all other national economies combined. 
C) the second largest in the world, behind Japan. 
D) the largest in the world. 
A) the third largest in the world. 
B) larger than all other national economies combined. 
C) the second largest in the world, behind Japan. 
D) the largest in the world.

Question 4

Consumer spending accounts for nearly two-thirds percent of U.S. GDP.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is the best definition of openness?

Accepted Answer

A) The average of imports expressed as a share of GDP. 
B) The average of goods traded in markets expressed as a share of GDP. 
C) The average of imports and exports expressed as a share of GDP. 
D) The average trade balance expressed as a share of GDP. 
E) The average of exports expressed as a share of GDP. 
A) The average of imports expressed as a share of GDP. 
B) The average of goods traded in markets expressed as a share of GDP. 
C) The average of imports and exports expressed as a share of GDP. 
D) The average trade balance expressed as a share of GDP. 
E) The average of exports expressed as a share of GDP.

Question 6

Despite the outlays by the federal and state governments, many observers believe which of the following is true?

Accepted Answer

A) Public infrastructure, such as bridges and roads, is only adequate. 
B) Our educational system is lacking. 
C) Too little is spent on homeland defense. 
D) All of these are correct. 
A) Public infrastructure, such as bridges and roads, is only adequate. 
B) Our educational system is lacking. 
C) Too little is spent on homeland defense. 
D) All of these are correct.

Question 7

Annual incomes of James, Jack, and Stanley are $30,000, $50,000, and $80,000 and their tax rates are 10 percent, 20 percent, and 30 percent respectively. Which tax structure is this an example of?

Accepted Answer

A) Proportional tax 
B) Progressive tax 
C) Regressive tax 
D) Digressive tax 
A) Proportional tax 
B) Progressive tax 
C) Regressive tax 
D) Digressive tax

Question 8

An open economy is one in which exports and imports constitute a large share of GDP.

Accepted Answer

A) True 
 B)False

Question 9

A recession is a period of time in which real GDP falls.

Accepted Answer

A) True 
 B)False

Question 10

Most American workers

Accepted Answer

A) are employed in the goods-producing sector. 
B) are employed by government. 
C) are employed in the service-producing sector. 
D) are employed in the agricultural sector. 
A) are employed in the goods-producing sector. 
B) are employed by government. 
C) are employed in the service-producing sector. 
D) are employed in the agricultural sector.

Question 11

All of the following are associated with a mixed economy except

Accepted Answer

A) some public influence over the workings of free markets. 
B) public ownership mixed in with private property. 
C) public ownership of the society's productive resources. 
D) different countries blending the state and market sectors in different ways. 
A) some public influence over the workings of free markets. 
B) public ownership mixed in with private property. 
C) public ownership of the society's productive resources. 
D) different countries blending the state and market sectors in different ways.

Question 12

During a recession, unemployment rises and total output of the economy rises.

Accepted Answer

A) True 
 B)False

Question 13

How does the United States compare to other advanced, industrialized economies on the issue of openness?

Accepted Answer

A) The U.S. economy is completely closed. 
B) The U.S. economy is at the low end of openness. 
C) The U.S. economy is above average in openness. 
D) The U.S. economy is among the most open. 
E) The U.S. economy is the most open of any economy. 
A) The U.S. economy is completely closed. 
B) The U.S. economy is at the low end of openness. 
C) The U.S. economy is above average in openness. 
D) The U.S. economy is among the most open. 
E) The U.S. economy is the most open of any economy.

Question 14

A tax is progressive if it raises a greater fraction of total tax revenue every year.

Accepted Answer

A) True 
 B)False

Question 15

Based on data from 2016, which of the following countries has the lowest tax burden?

Accepted Answer

A) The United Kingdom 
B) The United States 
C) Italy 
D) Sweden 
A) The United Kingdom 
B) The United States 
C) Italy 
D) Sweden

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Define the following terms: 
a.Recession 
b.Mixed economy 
c. Transfer payments 
d.Progressive taxation

Accepted Answer

A.A recession is a period of time during

Question 19

Teenage employment in the United States has risen in the past two decades.

Accepted Answer

A) True 
 B)False

Question 20

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 workers who work full-time out of their own homes. 
B) the drop in the number of men who only work part-time. 
C) the pattern of increase in the number of women in the labor force. 
D) the increase in the ratio of male workers to female workers. 
E) the major increase in the number of men who work in other countries. 
A) the major increase in the number of workers who work full-time out of their own homes. 
B) the drop in the number of men who only work part-time. 
C) the pattern of increase in the number of women in the labor force. 
D) the increase in the ratio of male workers to female workers. 
E) the major increase in the number of men who work in other countries.

Exam 2: The Economy: Myth and Reality

The United States is an example of a mixed economy.

The federal government employs more civilians than state and local governments.

The United States economy is

Consumer spending accounts for nearly two-thirds percent of U.S. GDP.

Which of the following is the best definition of openness?

Despite the outlays by the federal and state governments, many observers believe which of the following is true?

Annual incomes of James, Jack, and Stanley are $30,000, $50,000, and $80,000 and their tax rates are 10 percent, 20 percent, and 30 percent respectively. Which tax structure is this an example of?

An open economy is one in which exports and imports constitute a large share of GDP.

A recession is a period of time in which real GDP falls.

Most American workers

All of the following are associated with a mixed economy except

During a recession, unemployment rises and total output of the economy rises.

How does the United States compare to other advanced, industrialized economies on the issue of openness?

A tax is progressive if it raises a greater fraction of total tax revenue every year.

Based on data from 2016, which of the following countries has the lowest tax burden?

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

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

Define the following terms: a.Recession b.Mixed economy c. Transfer payments d.Progressive taxation

Teenage employment in the United States has risen in the past two decades.

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

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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