Question 1

In 2013, about what percentage of goods and services sold in the United States was imported?

Accepted Answer

A) 5% 
B) 16% 
C) 22% 
D) 88% 
A) 5% 
B) 16% 
C) 22% 
D) 88%

Question 2

The U.S.economy is relatively closed in terms of economic activity related to exports and imports.

Accepted Answer

A) True 
 B)False

Question 3

The issue of inequality has become prominent because of:

Accepted Answer

A) an increased sense of justice 
B) a decrease in the strength of capitalism 
C) the widening wage disparity 
D) none of these 
A) an increased sense of justice 
B) a decrease in the strength of capitalism 
C) the widening wage disparity 
D) none of these

Question 4

What important changes have occurred in the composition of the labor force since 1960? Is the popular image of the American worker as a factory worker accurate? Describe the types of jobs Americans are working in today.

Accepted Answer

The most important change is the increas

Question 5

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 6

Inputs, or factors of production, include

Accepted Answer

A) labor. 
B) machinery. 
C) natural resources. 
D) all of the above. 
A) labor. 
B) machinery. 
C) natural resources. 
D) all of the above.

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Roughly 144 million people in the United States hold jobs.

Accepted Answer

A) True 
 B)False

Question 10

The United States is the largest national economy in the world.

Accepted Answer

A) True 
 B)False

Question 11

Teenage employment in the United States has risen in the last two decades.

Accepted Answer

A) True 
 B)False

Question 12

Per capita GDP can be defined as

Accepted Answer

A) GDP per working person. 
B) GDP per unit of capital. 
C) GDP per person. 
D) GDP per unit of unemployment. 
A) GDP per working person. 
B) GDP per unit of capital. 
C) GDP per person. 
D) GDP per unit of unemployment.

Question 13

America's antitrust laws are used to protect competition against possible encroachment by monopoly.This is an example of government as

Accepted Answer

A) regulator of businesses. 
B) buyer of goods and services. 
C) tax collector. 
D) redistributor. 
A) regulator of businesses. 
B) buyer of goods and services. 
C) tax collector. 
D) redistributor.

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

National defense made up the largest portion of federal expenditures in 2009.

Accepted Answer

A) True 
 B)False

Question 16

Most American workers

Accepted Answer

A) are employed in the goods-producing sector. 
B) are employed by government. 
C) are employed in the service-producing sector. 
D) are employed in the agricultural sector. 
A) are employed in the goods-producing sector. 
B) are employed by government. 
C) are employed in the service-producing sector. 
D) are employed in the agricultural sector.

Question 17

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 18

In the United States, most workers

Accepted Answer

A) work for government of some sort. 
B) produce raw materials for manufacturing. 
C) work in agriculture and farming. 
D) produce services rather than goods. 
A) work for government of some sort. 
B) produce raw materials for manufacturing. 
C) work in agriculture and farming. 
D) produce services rather than goods.

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Workers earn more than half of the income generated by the production process.

Accepted Answer

A) True 
 B)False

Exam 2: The Economy: Myth and Reality

In 2013, about what percentage of goods and services sold in the United States was imported?

The U.S.economy is relatively closed in terms of economic activity related to exports and imports.

The issue of inequality has become prominent because of:

What important changes have occurred in the composition of the labor force since 1960? Is the popular image of the American worker as a factory worker accurate? Describe the types of jobs Americans are working in today.

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

Inputs, or factors of production, include

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

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

Roughly 144 million people in the United States hold jobs.

The United States is the largest national economy in the world.

Teenage employment in the United States has risen in the last two decades.

Per capita GDP can be defined as

America's antitrust laws are used to protect competition against possible encroachment by monopoly.This is an example of government as

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

National defense made up the largest portion of federal expenditures in 2009.

Most American workers

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

In the United States, most workers

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

Workers earn more than half of the income generated by the production process.

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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