Question 1

Since the U.S. is organized as a market economy, the government sector does not play any role in economic activity.

Accepted Answer

A) True 
 B)False

Question 2

A household consists of only related family members like a father, mother, and children and not unrelated members like two students sharing a rented apartment.

Accepted Answer

A) True 
 B)False

Question 3

Scenario 4-1?In a given year, country A exported $12 million worth of goods to country B and $6 million worth of goods to country C; country B exported $4 million worth of goods to country A and $7 million worth of goods to country C; and country C exported $5 million worth of goods to country A and $2 million worth of goods to country B.
-According to Scenario 4-1, country B is running a:

Accepted Answer

A)  trade deficit with country A and a trade surplus with country C. 
B)  trade surplus with both countries A and C. 
C)  trade surplus with country A and a trade deficit with country C. 
D)  trade deficit with both countries A and C. 
E)  balanced trade with country A and a trade deficit with country C. 
A)  trade deficit with country A and a trade surplus with country C. 
B)  trade surplus with both countries A and C. 
C)  trade surplus with country A and a trade deficit with country C. 
D)  trade deficit with both countries A and C. 
E)  balanced trade with country A and a trade deficit with country C.

Question 4

Which of the following is true of households?

Accepted Answer

A)  It consists of the employed members of the family. 
B)  It can comprise of either related members or unrelated individuals. 
C)  It refers to only the owners of rented apartments. 
D)  It comprises of a family of at least four members. 
E)  It generally describes a family that has two earning members. 
A)  It consists of the employed members of the family. 
B)  It can comprise of either related members or unrelated individuals. 
C)  It refers to only the owners of rented apartments. 
D)  It comprises of a family of at least four members. 
E)  It generally describes a family that has two earning members.

Question 5

The income transferred by the government from a citizen who is earning income to another citizen is referred to as:

Accepted Answer

A)  fiscal spending. 
B)  transfer payment. 
C)  budgetary allowance. 
D)  taxation. 
E)  internal debt. 
A)  fiscal spending. 
B)  transfer payment. 
C)  budgetary allowance. 
D)  taxation. 
E)  internal debt.

Question 6

Which of the following is true of fiscal spending at the federal, state, and local levels of the U.S. government?

Accepted Answer

A)  In 2009, total government spending equalled around $1 billion. 
B)  Investment expenditure in the U.S. exceeds the total spending at all levels of government. 
C)  Government spending at federal, state, and local levels declined steadily from the 1960s until about 1980. 
D)  Through the 1950s and 1960s, the U.S. government maintained a balanced budget. 
E)  Federal government spending exceeds state and local government spending in the U.S. 
A)  In 2009, total government spending equalled around $1 billion. 
B)  Investment expenditure in the U.S. exceeds the total spending at all levels of government. 
C)  Government spending at federal, state, and local levels declined steadily from the 1960s until about 1980. 
D)  Through the 1950s and 1960s, the U.S. government maintained a balanced budget. 
E)  Federal government spending exceeds state and local government spending in the U.S.

Question 7

When a household owns shares of stock, _____.

Accepted Answer

A)  it has ownership rights in that firm 
B)  it is entitled to the majority of the firm's profits 
C)  it is liable to bear the entire loss faced by the firm 
D)  it can consume the firm's products without paying for it 
E)  it is responsible for correcting any defect in the product identified by the customers 
A)  it has ownership rights in that firm 
B)  it is entitled to the majority of the firm's profits 
C)  it is liable to bear the entire loss faced by the firm 
D)  it can consume the firm's products without paying for it 
E)  it is responsible for correcting any defect in the product identified by the customers

Question 8

The government sector sells resource services to households and buys goods and services from firms.

Accepted Answer

A) True 
 B)False

Question 9

The public sector of the U.S. economy includes:

Accepted Answer

A)  the federal, state, and local government. 
B)  multinational corporations and the federal government. 
C)  the Federal Reserve bank of the U.S. 
D)  the judiciary and the federal government. 
E)  households. 
A)  the federal, state, and local government. 
B)  multinational corporations and the federal government. 
C)  the Federal Reserve bank of the U.S. 
D)  the judiciary and the federal government. 
E)  households.

Question 10

Total government spending in the U.S. economy was around _____ of the GDP in the financial year 2010.

Accepted Answer

A)  5 percent 
B)  36 percent 
C)  25 percent 
D)  44 percent 
E)  16 percent 
A)  5 percent 
B)  36 percent 
C)  25 percent 
D)  44 percent 
E)  16 percent

Question 11

A country is categorized as a low-income economy by the World Bank if its per capita income is below:

Accepted Answer

A)  $1,000. 
B)  $100. 
C)  $10,000. 
D)  $50. 
E)  $5,000. 
A)  $1,000. 
B)  $100. 
C)  $10,000. 
D)  $50. 
E)  $5,000.

Question 12

Annual expenditures by the federal government exhibited an upward trend, rising from $3 billion in 1930 to more than $1 trillion in 2010.

Accepted Answer

A) True 
 B)False

Question 13

Empirical evidence suggests that the federal budget has remained more or less in surplus between 1990 and 2002.

Accepted Answer

A) True 
 B)False

Question 14

According to the World Bank, low-income economies are heavily concentrated in:

Accepted Answer

A)  Europe and Africa. 
B)  Europe and Asia. 
C)  Asia and Africa. 
D)  Asia and Australia. 
E)  North America and Australia. 
A)  Europe and Africa. 
B)  Europe and Asia. 
C)  Asia and Africa. 
D)  Asia and Australia. 
E)  North America and Australia.

Question 15

A trade deficit occurs when:

Accepted Answer

A)  a country imposes a price floor on the good in which it has a comparative advantage. 
B)  a country's imports exceed its exports. 
C)  a country imposes a price ceiling on the good in which it has a comparative advantage. 
D)  a country's exports exceed its imports. 
E)  the domestic product market is in disequilibrium. 
A)  a country imposes a price floor on the good in which it has a comparative advantage. 
B)  a country's imports exceed its exports. 
C)  a country imposes a price ceiling on the good in which it has a comparative advantage. 
D)  a country's exports exceed its imports. 
E)  the domestic product market is in disequilibrium.

Question 16

Which of the following is true of U.S. net exports prior to the 1960s?

Accepted Answer

A)  Since most of the oil needs of the U.S. were met through imports, imports exceeded exports prior to the 1960s in the U.S. 
B)  Prior to the 1960s, exports from the U.S. more or less equalled imports into the U.S. 
C)  The U.S. was running a trade surplus prior to the 1960s. 
D)  Prior to the 1960s, the U.S. ran twin deficits- both a current account deficit as well as a budget deficit. 
E)  Since the U.S. dollar was overvalued prior to the 1960s, the U.S. neither exported nor imported any goods and services. 
A)  Since most of the oil needs of the U.S. were met through imports, imports exceeded exports prior to the 1960s in the U.S. 
B)  Prior to the 1960s, exports from the U.S. more or less equalled imports into the U.S. 
C)  The U.S. was running a trade surplus prior to the 1960s. 
D)  Prior to the 1960s, the U.S. ran twin deficits- both a current account deficit as well as a budget deficit. 
E)  Since the U.S. dollar was overvalued prior to the 1960s, the U.S. neither exported nor imported any goods and services.

Question 17

A trade deficit involves:

Accepted Answer

A)  net flows of goods from foreign countries to the domestic government. 
B)  net money flows from the foreign firms to the domestic government. 
C)  net money flows from the domestic firms to the domestic government. 
D)  net money flows from the foreign firms to the domestic firms. 
E)  net flows of goods from foreign countries to the domestic firms. 
A)  net flows of goods from foreign countries to the domestic government. 
B)  net money flows from the foreign firms to the domestic government. 
C)  net money flows from the domestic firms to the domestic government. 
D)  net money flows from the foreign firms to the domestic firms. 
E)  net flows of goods from foreign countries to the domestic firms.

Question 18

Which of the following is a valid difference between sole proprietorship and partnership?

Accepted Answer

A)  Partnerships require a written agreement while sole proprietorships do not. 
B)  Partnerships require a state charter while sole proprietorships do not. 
C)  Partnerships generate lower profits than sole proprietorships. 
D)  Partnerships are characterized by unlimited liability, while sole proprietorships are not. 
E)  Partnerships consist of two or more partners sharing the responsibility of the firm, while sole proprietorship consists of a single individual. 
A)  Partnerships require a written agreement while sole proprietorships do not. 
B)  Partnerships require a state charter while sole proprietorships do not. 
C)  Partnerships generate lower profits than sole proprietorships. 
D)  Partnerships are characterized by unlimited liability, while sole proprietorships are not. 
E)  Partnerships consist of two or more partners sharing the responsibility of the firm, while sole proprietorship consists of a single individual.

Question 19

The term net exports refers to:

Accepted Answer

A)  the situation in which a country's exports exceed its imports. 
B)  the situation in which a country's imports exceed its exports. 
C)  the shortages that result when a country imposes a price ceiling. 
D)  the shortages that result when a country imposes a price floor. 
E)  the difference between the value of exports and the value of imports. 
A)  the situation in which a country's exports exceed its imports. 
B)  the situation in which a country's imports exceed its exports. 
C)  the shortages that result when a country imposes a price ceiling. 
D)  the shortages that result when a country imposes a price floor. 
E)  the difference between the value of exports and the value of imports.

Question 20

National economic policies are usually set by the local government in the U.S., making it the focus of economic discussions.

Accepted Answer

A) True 
 B)False

Since the U.S. is organized as a market economy, the government sector does not play any role in economic activity.

A household consists of only related family members like a father, mother, and children and not unrelated members like two students sharing a rented apartment.

Which of the following is true of households?

The income transferred by the government from a citizen who is earning income to another citizen is referred to as:

Which of the following is true of fiscal spending at the federal, state, and local levels of the U.S. government?

When a household owns shares of stock, _____.

The government sector sells resource services to households and buys goods and services from firms.

The public sector of the U.S. economy includes:

Total government spending in the U.S. economy was around _____ of the GDP in the financial year 2010.

A country is categorized as a low-income economy by the World Bank if its per capita income is below:

Annual expenditures by the federal government exhibited an upward trend, rising from $3 billion in 1930 to more than $1 trillion in 2010.

Empirical evidence suggests that the federal budget has remained more or less in surplus between 1990 and 2002.

According to the World Bank, low-income economies are heavily concentrated in:

A trade deficit occurs when:

Which of the following is true of U.S. net exports prior to the 1960s?

A trade deficit involves:

Which of the following is a valid difference between sole proprietorship and partnership?

The term net exports refers to:

National economic policies are usually set by the local government in the U.S., making it the focus of economic discussions.

The Wealth of Nations: Ownership and Economic Freedom

Scarcity and Opportunity Costs

The Market and Price System

National Income Accounting

An Introduction to the Foreign Exchapterange Market and the Balance of Payments

Unemployment and Inflation

Macroeconomic Equilibrium: Aggregate Demand and Supply

Aggregate Expenditures

Income and Expenditures Equilibrium

Fiscal Policy

Money and Banking

Monetary Policy

Macroeconomic Policy: Tradeoffs, Expectations, Credibility, and Sources of Business Cycles

Macroeconomic Viewpoints: New Keynesian, Monetarist, and New Classical

Economic Growth

Development Economics

Globalization

World Trade Equilibrium

International Trade Restrictions

Exchapterange Rates and Financial Links Between Countries

Filters

Exam 4: The Aggregate Economy

Since the U.S. is organized as a market economy, the government sector does not play any role in economic activity.

A household consists of only related family members like a father, mother, and children and not unrelated members like two students sharing a rented apartment.

Which of the following is true of households?

The income transferred by the government from a citizen who is earning income to another citizen is referred to as:

Which of the following is true of fiscal spending at the federal, state, and local levels of the U.S. government?

When a household owns shares of stock, _____.

The government sector sells resource services to households and buys goods and services from firms.

The public sector of the U.S. economy includes:

Total government spending in the U.S. economy was around _____ of the GDP in the financial year 2010.

A country is categorized as a low-income economy by the World Bank if its per capita income is below:

Annual expenditures by the federal government exhibited an upward trend, rising from $3 billion in 1930 to more than $1 trillion in 2010.

Empirical evidence suggests that the federal budget has remained more or less in surplus between 1990 and 2002.

According to the World Bank, low-income economies are heavily concentrated in:

A trade deficit occurs when:

Which of the following is true of U.S. net exports prior to the 1960s?

A trade deficit involves:

Which of the following is a valid difference between sole proprietorship and partnership?

The term net exports refers to:

National economic policies are usually set by the local government in the U.S., making it the focus of economic discussions.

The Wealth of Nations: Ownership and Economic Freedom

Scarcity and Opportunity Costs

The Market and Price System

National Income Accounting

An Introduction to the Foreign Exchapterange Market and the Balance of Payments

Unemployment and Inflation

Macroeconomic Equilibrium: Aggregate Demand and Supply

Aggregate Expenditures

Income and Expenditures Equilibrium

Fiscal Policy

Money and Banking

Monetary Policy

Macroeconomic Policy: Tradeoffs, Expectations, Credibility, and Sources of Business Cycles

Macroeconomic Viewpoints: New Keynesian, Monetarist, and New Classical

Economic Growth

Development Economics

Globalization

World Trade Equilibrium

International Trade Restrictions

Exchapterange Rates and Financial Links Between Countries

Filters