Exam 2: The Economy: Myth and Reality

Outputs include goods but not services.

Which of the following is the most open economy?

A mixed economy is one that combines public and private ownership of property.

During fiscal year 2009,the most recent mentioned in the text,the federal government spent approximately

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

Government is unnecessary in a free enterprise economy such as the United States.

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

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

The typical American family spends about ____ percent of its budget on goods,and the remainder on services.

Government in the United States spends more as a percentage of GDP than in most other industrialized nations.