Question 1

Consumer spending accounts for about 70 percent of GDP.

Accepted Answer

A) True 
 B)False

Question 2

A central government collected taxes totaling $120 billion in the previous year.It's expenditure during the year was roughly the same.This is an example of a

Accepted Answer

A)  balanced budget. 
B)  surplus budget. 
C)  deficit budget. 
D)  zero budget. 
A)  balanced budget. 
B)  surplus budget. 
C)  deficit budget. 
D)  zero budget.

Question 3

Over the last several years the United States has had lower unemployment rates than most European countries.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following illustrates government acting as a referee?

Accepted Answer

A)  taxing high income persons 
B)  enforcing contract provisions between buyer and seller 
C)  buying new weapons for defense 
D)  mailing checks to social security recipients 
E)  collecting data on imports and exports 
A)  taxing high income persons 
B)  enforcing contract provisions between buyer and seller 
C)  buying new weapons for defense 
D)  mailing checks to social security recipients 
E)  collecting data on imports and exports

Question 5

Consumer spending accounts for what share of GDP?

Accepted Answer

A)  20% 
B)  40% 
C)  70% 
D)  90% 
A)  20% 
B)  40% 
C)  70% 
D)  90%

Question 6

How does the U.S.economy rank in size?

Accepted Answer

A)  first in economic output 
B)  second in economic output 
C)  third in economic output 
D)  fourth in economic output 
E)  fifth in economic output 
A)  first in economic output 
B)  second in economic output 
C)  third in economic output 
D)  fourth in economic output 
E)  fifth in economic output

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

Why does unemployment tend to change when the level of output changes?

Accepted Answer

A)  Persons wish to buy things, and if output falls, people need to work less to earn the income to buy the smaller output. 
B)  Labor is an input, and if output falls, employers need fewer workers to make it, so the employment falls. 
C)  When output rises, persons are more interested in buying, and will work more to earn the income to buy things. 
D)  Persons face the option of buying or working, so that when they do more of one, the other necessarily falls. 
E)  When companies replace workers with machines, output rises, and people take time off from work to buy before returning to employment. 
A)  Persons wish to buy things, and if output falls, people need to work less to earn the income to buy the smaller output. 
B)  Labor is an input, and if output falls, employers need fewer workers to make it, so the employment falls. 
C)  When output rises, persons are more interested in buying, and will work more to earn the income to buy things. 
D)  Persons face the option of buying or working, so that when they do more of one, the other necessarily falls. 
E)  When companies replace workers with machines, output rises, and people take time off from work to buy before returning to employment.

Question 9

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 large population. 
C)  American workers are very productive. 
D)  both b and c are correct. 
A)  it has the most land to work with. 
B)  it has a large population. 
C)  American workers are very productive. 
D)  both b and c are correct.

Question 10

A tax is progressive if the ratio of taxes to income rises as income rises.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

The U.S.economy is relatively open in terms of economic activity related to international trade.

Accepted Answer

A) True 
 B)False

Question 14

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)  Both a and c 
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)  Both a and c

Question 15

The FairTax idea centers on a national sales tax to replace other taxes including federal income tax.If such a flat tax were enacted,what would happen to the role of government as redistributor?

Accepted Answer

A)  It would decrease as tax rates increased and income taxes became more progressive. 
B)  It would increase as tax rates decreased and income taxes became more representative. 
C)  It would decrease as progressive income taxes ended. 
D)  It would increase as regressive income taxes ended. 
E)  It would be largely unchanged. 
A)  It would decrease as tax rates increased and income taxes became more progressive. 
B)  It would increase as tax rates decreased and income taxes became more representative. 
C)  It would decrease as progressive income taxes ended. 
D)  It would increase as regressive income taxes ended. 
E)  It would be largely unchanged.

Question 16

Which of the following is the most closed economy?

Accepted Answer

A)  the Netherlands 
B)  the United States 
C)  Germany 
D)  Russia 
E)  Canada 
A)  the Netherlands 
B)  the United States 
C)  Germany 
D)  Russia 
E)  Canada

Question 17

Compared to people in other nations,people in the United States pay

Accepted Answer

A)  much higher taxes. 
B)  somewhat higher taxes, on average. 
C)  about the same amount taxes. 
D)  lower taxes. 
A)  much higher taxes. 
B)  somewhat higher taxes, on average. 
C)  about the same amount taxes. 
D)  lower taxes.

Question 18

The role of government in a market economy includes 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 19

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

Accepted Answer

A)  economic growth has been irregular, with periodic downturns. 
B)  economic growth has been consistent, with few downturns. 
C)  economic growth has been extremely rapid, but with major collapses. 
D)  economic growth has been elusive, but downturns have been eliminated. 
A)  economic growth has been irregular, with periodic downturns. 
B)  economic growth has been consistent, with few downturns. 
C)  economic growth has been extremely rapid, but with major collapses. 
D)  economic growth has been elusive, but downturns have been eliminated.

Question 20

What is the approximate number of Americans who have jobs?

Accepted Answer

A)  145 million 
B)  200 million 
C)  290 million 
D)  310 million 
E) 3.1 billion 
A)  145 million 
B)  200 million 
C)  290 million 
D)  310 million 
E) 3.1 billion

Consumer spending accounts for about 70 percent of GDP.

A central government collected taxes totaling $120 billion in the previous year.It's expenditure during the year was roughly the same.This is an example of a

Over the last several years the United States has had lower unemployment rates than most European countries.

Which of the following illustrates government acting as a referee?

Consumer spending accounts for what share of GDP?

How does the U.S.economy rank in size?

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

Why does unemployment tend to change when the level of output changes?

The United States has the largest economy in the world because

A tax is progressive if the ratio of taxes to income rises as income rises.

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

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

The U.S.economy is relatively open in terms of economic activity related to international trade.

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

The FairTax idea centers on a national sales tax to replace other taxes including federal income tax.If such a flat tax were enacted,what would happen to the role of government as redistributor?

Which of the following is the most closed economy?

Compared to people in other nations,people in the United States pay

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

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

What is the approximate number of Americans who have jobs?

What Is Economics?

The Fundamental Economic Problem: Scarcity and Choice

Supply and Demand: An Initial Look

An Introduction to Macroeconomics

The Goals of Macroeconomic Policy

Economic Growth: Theory and Policy

Aggregate Demand and the Powerful Consumer

Demand-Side Equilibrium: Unemployment or Inflation?

Bringing in the Supply Side: Unemployment and Inflation?

Managing Aggregate Demand: Fiscal Policy

Money and the Banking System

Monetary Policy: Conventional and Unconventional

The Financial Crisis and the Great Recession

The Debate over Monetary and Fiscal Policy

Budget Deficits in the Short and Long Run

The Trade Off between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System: Order or Disorder?

Exchange Rates and the Macroeconomy

Filters

Exam 2: The Economy: Myth and Reality

Consumer spending accounts for about 70 percent of GDP.

A central government collected taxes totaling $120 billion in the previous year.It's expenditure during the year was roughly the same.This is an example of a

Over the last several years the United States has had lower unemployment rates than most European countries.

Which of the following illustrates government acting as a referee?

Consumer spending accounts for what share of GDP?

How does the U.S.economy rank in size?

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

Why does unemployment tend to change when the level of output changes?

The United States has the largest economy in the world because

A tax is progressive if the ratio of taxes to income rises as income rises.

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

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

The U.S.economy is relatively open in terms of economic activity related to international trade.

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

The FairTax idea centers on a national sales tax to replace other taxes including federal income tax.If such a flat tax were enacted,what would happen to the role of government as redistributor?

Which of the following is the most closed economy?

Compared to people in other nations,people in the United States pay

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

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

What is the approximate number of Americans who have jobs?

What Is Economics?

The Fundamental Economic Problem: Scarcity and Choice

Supply and Demand: An Initial Look

An Introduction to Macroeconomics

The Goals of Macroeconomic Policy

Economic Growth: Theory and Policy

Aggregate Demand and the Powerful Consumer

Demand-Side Equilibrium: Unemployment or Inflation?

Bringing in the Supply Side: Unemployment and Inflation?

Managing Aggregate Demand: Fiscal Policy

Money and the Banking System

Monetary Policy: Conventional and Unconventional

The Financial Crisis and the Great Recession

The Debate over Monetary and Fiscal Policy

Budget Deficits in the Short and Long Run

The Trade Off between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System: Order or Disorder?

Exchange Rates and the Macroeconomy

Filters