Question 1

During fiscal year 2017, the most recent mentioned in the text, the federal government spent approximately

Accepted Answer

A) $1.2 billion. 
B) $1.9 trillion. 
C) $4.0 trillion. 
D) $15.0 trillion. 
A) $1.2 billion. 
B) $1.9 trillion. 
C) $4.0 trillion. 
D) $15.0 trillion.

Question 2

The U. S. budget has

Accepted Answer

A) always been in deficit since World War II. 
B) usually been in deficit, with a few periods of surpluses. 
C) always in balance. 
D) in balance, with some period of deficit. 
A) always been in deficit since World War II. 
B) usually been in deficit, with a few periods of surpluses. 
C) always in balance. 
D) in balance, with some period of deficit.

Question 3

According to the data on real U.S. GDP,

Accepted Answer

A) economic growth has been irregular, with some periods of downturns. 
B) economic growth has been consistent, but with a few downturns. 
C) economic growth has been extremely rapid, but also includes major collapses. 
D) economic growth has been slight, but downturns have also been eliminated. 
A) economic growth has been irregular, with some periods of downturns. 
B) economic growth has been consistent, but with a few downturns. 
C) economic growth has been extremely rapid, but also includes major collapses. 
D) economic growth has been slight, but downturns have also been eliminated.

Question 4

The U.S. economy is the largest in the world. What two factors primarily explain this? What makes the U.S. economy unique?

Accepted Answer

Sheer size of the country, with a popula

Question 5

The nationality of a company and a product is easily determined.

Accepted Answer

A) True 
 B)False

Question 6

Perhaps the best measure of economic progress is

Accepted Answer

A) the annual inflation rate, since it accounts for what is happening to prices. 
B) the growth rate of real GDP per capita, since it takes into account both price changes and population growth. 
C) the amount of working time needed for an individual worker to afford certain goods and services. 
D) the annual growth rate in the population. 
A) the annual inflation rate, since it accounts for what is happening to prices. 
B) the growth rate of real GDP per capita, since it takes into account both price changes and population growth. 
C) the amount of working time needed for an individual worker to afford certain goods and services. 
D) the annual growth rate in the population.

Question 7

In the United States, most workers now

Accepted Answer

A) work for some level of government. 
B) work in the manufacturing sector. 
C) work in the agricultural sector. 
D) work in the service sector. 
A) work for some level of government. 
B) work in the manufacturing sector. 
C) work in the agricultural sector. 
D) work in the service sector.

Question 8

In a mixed economy,

Accepted Answer

A) all economies choose an identical mix of private and public involvement in the economy. 
B) the government is more important than the private sector in generating output. 
C) there is some government influence over the workings of the free market. 
D) All of the responses are correct. 
A) all economies choose an identical mix of private and public involvement in the economy. 
B) the government is more important than the private sector in generating output. 
C) there is some government influence over the workings of the free market. 
D) All of the responses are correct.

Question 9

Which factor of production accounts for the highest percentage of the income that the production process generates in the United States?

Accepted Answer

A) Capital 
B) Natural resource 
C) Land 
D) Labor 
A) Capital 
B) Natural resource 
C) Land 
D) Labor

Question 10

Roughly 160 million people in the United States hold jobs.

Accepted Answer

A) True 
 B)False

Question 11

Along with changes in the level of economic activity, measured by GDP, what other economic variable tends to rise and fall as a consequence?

Accepted Answer

A) Precipitation 
B) Regulation 
C) Circulation 
D) Unemployment 
A) Precipitation 
B) Regulation 
C) Circulation 
D) Unemployment

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

The majority of American workers are employed in the service sector of the economy.

Accepted Answer

A) True 
 B)False

Question 14

Gross domestic product is the money value of all final goods and services produced in an economy in a year.

Accepted Answer

A) True 
 B)False

Question 15

Teenage workforce participation as a percentage of the total workforce has fallen in the United States in recent years.

Accepted Answer

A) True 
 B)False

Question 16

In a mixed economy, the government plays some role in the working of free markets.

Accepted Answer

A) True 
 B)False

Question 17

America's antitrust laws are used to protect competition against possible encroachment by monopoly. This is an example of government as

Accepted Answer

A) regulator of businesses. 
B) buyer of goods and services. 
C) tax collector. 
D) redistributor. 
A) regulator of businesses. 
B) buyer of goods and services. 
C) tax collector. 
D) redistributor.

Question 18

The proportion of income which is earned in the form of wages for labor is currently about

Accepted Answer

A) 15 percent. 
B) 35 percent. 
C) 51 percent. 
D) 60 percent. 
A) 15 percent. 
B) 35 percent. 
C) 51 percent. 
D) 60 percent.

Question 19

The percentage of the American workforce employed in the manufacturing sector has been steadily declining over the past 50 years.

Accepted Answer

A) True 
 B)False

Question 20

The factors of production include all goods and services produced in an economy.

Accepted Answer

A) True 
 B)False

Exam 2: The Economy: Myth and Reality

During fiscal year 2017, the most recent mentioned in the text, the federal government spent approximately

The U. S. budget has

According to the data on real U.S. GDP,

The U.S. economy is the largest in the world. What two factors primarily explain this? What makes the U.S. economy unique?

The nationality of a company and a product is easily determined.

Perhaps the best measure of economic progress is

In the United States, most workers now

In a mixed economy,

Which factor of production accounts for the highest percentage of the income that the production process generates in the United States?

Roughly 160 million people in the United States hold jobs.

Along with changes in the level of economic activity, measured by GDP, what other economic variable tends to rise and fall as a consequence?

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

The majority of American workers are employed in the service sector of the economy.

Gross domestic product is the money value of all final goods and services produced in an economy in a year.

Teenage workforce participation as a percentage of the total workforce has fallen in the United States in recent years.

In a mixed economy, the government plays some role in the working of free markets.

America's antitrust laws are used to protect competition against possible encroachment by monopoly. This is an example of government as

The proportion of income which is earned in the form of wages for labor is currently about

The percentage of the American workforce employed in the manufacturing sector has been steadily declining over the past 50 years.

The factors of production include all goods and services produced in an economy.

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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