Question 1

Real GDP is the dollar value of all goods and services produced in an economy.

Accepted Answer

A) True 
 B)False  False

Question 2

All industrialized countries have become "service economies." Which factor helps explain this shift?

Accepted Answer

A) Trade unionism and failure of the manufacturing sector to grow. 
B) Information age and labor saving innovation in manufacturing. 
C) Non availability of industrial labor with required skills. 
D) Absence of competition in the service sector. 
A) Trade unionism and failure of the manufacturing sector to grow. 
B) Information age and labor saving innovation in manufacturing. 
C) Non availability of industrial labor with required skills. 
D) Absence of competition in the service sector. B

Question 3

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

Accepted Answer

A) True 
 B)False  False

Question 4

On a world scale, how populous is the U.S.economy?

Accepted Answer

A) first 
B) second 
C) third 
D) fourth 
E) fifth 
A) first 
B) second 
C) third 
D) fourth 
E) fifth

Question 5

Government ownership of property and resources in the United States is

Accepted Answer

A) about as common as it is in European countries. 
B) widespread; the United States is a leader in the amount of government ownership of resources. 
C) relatively rare; the United States is mostly privatized. 
D) rare, but has been increasing rapidly as the United States catches up to other countries. 
A) about as common as it is in European countries. 
B) widespread; the United States is a leader in the amount of government ownership of resources. 
C) relatively rare; the United States is mostly privatized. 
D) rare, but has been increasing rapidly as the United States catches up to other countries.

Question 6

If California were a separate economy, it would be the ____ largest economy on earth.

Accepted Answer

A) second 
B) third 
C) fifth 
D) eighth 
A) second 
B) third 
C) fifth 
D) eighth

Question 7

For those workers who are given fringe benefits such as health insurance and pensions, the additional income this amounts to over and above the average hourly wage can be as much as (for some workers)

Accepted Answer

A) 10-12% 
B) 30-40% 
C) 51-62%% 
D) 70% or more 
A) 10-12% 
B) 30-40% 
C) 51-62%% 
D) 70% or more

Question 8

It is often asserted that the United States no longer manufactures anything, and that instead it imports manufactured goods from countries like China.Critically evaluate this claim.

Accepted Answer

If the claim were true then the share of

Question 9

A mixed economy is one in which

Accepted Answer

A) a mixture of businesses exist and function. 
B) there is a mixture of public influence over government. 
C) government plays a dominant role, and private markets are secondary. 
D) there is some public influence over free markets. 
A) a mixture of businesses exist and function. 
B) there is a mixture of public influence over government. 
C) government plays a dominant role, and private markets are secondary. 
D) there is some public influence over free markets.

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Capitalism and free enterprise are common, and the United States

Accepted Answer

A) has just begun to move in that direction after years of central planning. 
B) has gone further in that direction than almost any other country. 
C) is becoming more "free," but is not as capitalistic as many others. 
D) is considering a major change to "free up" its economy as many others have. 
E) is leading the move toward greater central planning and control. 
A) has just begun to move in that direction after years of central planning. 
B) has gone further in that direction than almost any other country. 
C) is becoming more "free," but is not as capitalistic as many others. 
D) is considering a major change to "free up" its economy as many others have. 
E) is leading the move toward greater central planning and control.

Question 12

How do the wages in the United States compare to those in northern Europe?

Accepted Answer

A) U.S.wage rates are higher than those of all northern European nations. 
B) Northern Europe's average wage rates are higher. 
C) U.S.wage rates are higher than those in Germany and the Netherlands. 
D) they are similar. 
A) U.S.wage rates are higher than those of all northern European nations. 
B) Northern Europe's average wage rates are higher. 
C) U.S.wage rates are higher than those in Germany and the Netherlands. 
D) they are similar.

Question 13

An industry can be defined as

Accepted Answer

A) the group of all firms that sell a product. 
B) any company that produces and sells something. 
C) the set of buyers of a particular good or service. 
D) the top companies that sell something. 
A) the group of all firms that sell a product. 
B) any company that produces and sells something. 
C) the set of buyers of a particular good or service. 
D) the top companies that sell something.

Question 14

List five major economic activities of government, and give an example of each.

Accepted Answer

1.Government as referee.Example: enforci

Question 15

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 16

The total market value of capital assets in the United States is about $30 trillion dollars.

Accepted Answer

A) True 
 B)False

Question 17

What you mean by business cycles? What are their consequences?

Accepted Answer

Business cycles are periodic upswings an

Question 18

In the U.S., the share of taxes ____ during the early years of George W.Bush's presidency and ____ since then.

Accepted Answer

A) decreased; increased somewhat 
B) decreased; further decreased 
C) increased; further increased 
D) increased; decreased somewhat 
E) increased; remained constant 
A) decreased; increased somewhat 
B) decreased; further decreased 
C) increased; further increased 
D) increased; decreased somewhat 
E) increased; remained constant

Question 19

The federal government receives most of its revenue from personal income taxes and payroll taxes.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 2: The Economy: Myth and Reality

Real GDP is the dollar value of all goods and services produced in an economy.

All industrialized countries have become "service economies." Which factor helps explain this shift?

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

On a world scale, how populous is the U.S.economy?

Government ownership of property and resources in the United States is

If California were a separate economy, it would be the ____ largest economy on earth.

For those workers who are given fringe benefits such as health insurance and pensions, the additional income this amounts to over and above the average hourly wage can be as much as (for some workers)

It is often asserted that the United States no longer manufactures anything, and that instead it imports manufactured goods from countries like China.Critically evaluate this claim.

A mixed economy is one in which

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

Capitalism and free enterprise are common, and the United States

How do the wages in the United States compare to those in northern Europe?

An industry can be defined as

List five major economic activities of government, and give an example of each.

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

The total market value of capital assets in the United States is about $30 trillion dollars.

What you mean by business cycles? What are their consequences?

In the U.S., the share of taxes ____ during the early years of George W.Bush's presidency and ____ since then.

The federal government receives most of its revenue from personal income taxes and payroll taxes.

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

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

Securities: Business Finance and the Economy: the Tail That Wags the Dog

The Firm and the Industry Under Perfect Competition

Monopoly

Between Competition and Monopoly

Limiting Market Power: Regulation and Antitrust

The Case for Free Markets: the Price System

The Shortcomings of Free Markets

Externalities, the Environment, and Natural Resources

Taxation and Resource Allocation

Pricing the Factors of Production

Labor and Entrepreneurship: the Human Inputs

Poverty, Inequality, and Discrimination

Is Useconomic Leadership Threatened

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

He 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

In the U.S., the share of taxes during the early years of George W.Bush's presidency and since then.