Question 1

When government defines and enforces property rights, this is an example of government as

Accepted Answer

A) referee. 
B) regulator of business. 
C) buyer of goods and services. 
D) tax collector. 
E) redistributor. 
A) referee. 
B) regulator of business. 
C) buyer of goods and services. 
D) tax collector. 
E) redistributor.

Question 2

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

Accepted Answer

A) 22 
B) 34 
C) 68 
D) 74 
A) 22 
B) 34 
C) 68 
D) 74

Question 3

Differentiate between an open and a closed economy? Do you agree that US economy is more open among the advanced industrial countries in the world?

Accepted Answer

An economy is called relatively open if

Question 4

The working population of the United States is approximately

Accepted Answer

A) 144 million 
B) 290 million 
C) 300 million 
D) 1.3 billion 
A) 144 million 
B) 290 million 
C) 300 million 
D) 1.3 billion

Question 5

Between 1960 and 2013 U.S.GDP, measured in dollars of constant purchasing power, expanded about 5.0 times.However, the standard of living only increased by 4 times over this period.Explain the difference.

Accepted Answer

GDP growth includes the effects of infla

Question 6

Approximately half of all U.S.workers are employed by various levels of government.

Accepted Answer

A) True 
 B)False

Question 7

Recessions are periods of declining economic activity.

Accepted Answer

A) True 
 B)False

Question 8

Antitrust laws are designed to

Accepted Answer

A) preserve competition. 
B) protect the environment. 
C) protect the public's trust in the government. 
D) all of the above. 
A) preserve competition. 
B) protect the environment. 
C) protect the public's trust in the government. 
D) all of the above.

Question 9

Government production accounts for about half of all GDP in the United States.

Accepted Answer

A) True 
 B)False

Question 10

A minority of American women work outside of the home.

Accepted Answer

A) True 
 B)False

Question 11

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 12

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

Accepted Answer

A) 15% 
B) 35% 
C) 51% 
D) 60% 
A) 15% 
B) 35% 
C) 51% 
D) 60%

Question 13

The largest single portion of the federal budget is devoted to

Accepted Answer

A) National defense. 
B) Medicare and Medicaid. 
C) Social Security and unemployment compensation. 
D) Education. 
E) Interest payments on the national debt. 
A) National defense. 
B) Medicare and Medicaid. 
C) Social Security and unemployment compensation. 
D) Education. 
E) Interest payments on the national debt.

Question 14

Gross domestic product is the money value of manufacturing production in a year.

Accepted Answer

A) True 
 B)False

Question 15

The largest single portion of state and local budgets is devoted to

Accepted Answer

A) State and local defense. 
B) Health and public welfare programs. 
C) State and local unemployment compensation. 
D) Education. 
E) Interest payments on state and local debt. 
A) State and local defense. 
B) Health and public welfare programs. 
C) State and local unemployment compensation. 
D) Education. 
E) Interest payments on state and local debt.

Question 16

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

Accepted Answer

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

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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 19

The majority of American workers are employed in the manufacturing sector.

Accepted Answer

A) True 
 B)False

Question 20

In the United States each year, approximately

Accepted Answer

A) 50% of all businesses fail. 
B) 25% of all businesses fail. 
C) 10% of all businesses fail. 
D) 5% of all businesses fail. 
A) 50% of all businesses fail. 
B) 25% of all businesses fail. 
C) 10% of all businesses fail. 
D) 5% of all businesses fail.

Exam 2: The Economy: Myth and Reality

When government defines and enforces property rights, this is an example of government as

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

Differentiate between an open and a closed economy? Do you agree that US economy is more open among the advanced industrial countries in the world?

The working population of the United States is approximately

Between 1960 and 2013 U.S.GDP, measured in dollars of constant purchasing power, expanded about 5.0 times.However, the standard of living only increased by 4 times over this period.Explain the difference.

Approximately half of all U.S.workers are employed by various levels of government.

Recessions are periods of declining economic activity.

Antitrust laws are designed to

Government production accounts for about half of all GDP in the United States.

A minority of American women work outside of the home.

Which of the following illustrates government acting as a referee?

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

The largest single portion of the federal budget is devoted to

Gross domestic product is the money value of manufacturing production in a year.

The largest single portion of state and local budgets is devoted to

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

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

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

The majority of American workers are employed in the manufacturing sector.

In the United States each year, approximately

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

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