Question 1

A recession is a period of time in which real GDP falls.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

An open economy produces most of the goods and services that it needs, with few imports and exports.

Accepted Answer

A) True 
 B)False

Question 4

In 2013, per capita real GDP was roughly half its value in 1960.

Accepted Answer

A) True 
 B)False

Question 5

The nationality of a company and a product is easily determined.

Accepted Answer

A) True 
 B)False

Question 6

Most Americans

Accepted Answer

A) have accurate perceptions of the level of corporate profits. 
B) underestimate corporate profits. 
C) overestimate corporate profits. 
D) believe that corporations earn zero profit. 
A) have accurate perceptions of the level of corporate profits. 
B) underestimate corporate profits. 
C) overestimate corporate profits. 
D) believe that corporations earn zero profit.

Question 7

What is the approximate number of Americans who have jobs?

Accepted Answer

A) 144 million 
B) 200 million 
C) 290 million 
D) 310 million 
E) 3.1 billion 
A) 144 million 
B) 200 million 
C) 290 million 
D) 310 million 
E) 3.1 billion

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

A nation's citizens often dislike the economy's distribution of income.Explain two methods for creating a more equal distribution of income.

Accepted Answer

One method is to override the market dis

Question 10

A typical American family sends about _____% of its budget on services.​

Accepted Answer

A) ​20% 
B) ​32% 
C) ​66% 
D) ​70% 
A) ​20% 
B) ​32% 
C) ​66% 
D) ​70%

Question 11

The United States is a fairly good example of

Accepted Answer

A) a mixed economy. 
B) a pure market system. 
C) a government-dominated economy. 
D) a manufacturing economy. 
E) a transitioning economy. 
A) a mixed economy. 
B) a pure market system. 
C) a government-dominated economy. 
D) a manufacturing economy. 
E) a transitioning economy.

Question 12

Which of the following is the best definition of openness?

Accepted Answer

A) The average of imports expressed as a share of GDP. 
B) The average of goods traded in markets expressed as a share of GDP. 
C) The average of imports and exports expressed as a share of GDP. 
D) The average trade balance expressed as a share of GDP. 
E) The average of exports expressed as a share of GDP. 
A) The average of imports expressed as a share of GDP. 
B) The average of goods traded in markets expressed as a share of GDP. 
C) The average of imports and exports expressed as a share of GDP. 
D) The average trade balance expressed as a share of GDP. 
E) The average of exports expressed as a share of GDP.

Question 13

One important role for government as referee is in defining and enforcing property rights.

Accepted Answer

A) True 
 B)False

Question 14

Multinational businesses produce and sell goods around the world.

Accepted Answer

A) True 
 B)False

Question 15

All industrialized countries have become "service economies" in recent decades.Explain the reasons behind this shift.

Accepted Answer

To a considerable degree, this shift to

Question 16

The U.S.economy has grown steadily over the years.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

The average hourly wage (excluding benefits) in the United States is currently

Accepted Answer

A) $7.50 
B) $9.95 
C) $15.00 
D) $20.00 
A) $7.50 
B) $9.95 
C) $15.00 
D) $20.00

Question 19

Comparing the United States to other economies, the United States is one of the ____ economy in the world.

Accepted Answer

A) most government-supervised 
B) most privatized 
C) most government-owned 
D) least privatized 
A) most government-supervised 
B) most privatized 
C) most government-owned 
D) least privatized

Question 20

The largest share of the typical American family budget goes to: ​

Accepted Answer

A) ​goods 
B) ​health care 
C) ​housing 
D) ​transportation 
A) ​goods 
B) ​health care 
C) ​housing 
D) ​transportation

Exam 2: The Economy: Myth and Reality

A recession is a period of time in which real GDP falls.

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

An open economy produces most of the goods and services that it needs, with few imports and exports.

In 2013, per capita real GDP was roughly half its value in 1960.

The nationality of a company and a product is easily determined.

Most Americans

What is the approximate number of Americans who have jobs?

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

A nation's citizens often dislike the economy's distribution of income.Explain two methods for creating a more equal distribution of income.

A typical American family sends about _____% of its budget on services.​

The United States is a fairly good example of

Which of the following is the best definition of openness?

One important role for government as referee is in defining and enforcing property rights.

Multinational businesses produce and sell goods around the world.

All industrialized countries have become "service economies" in recent decades.Explain the reasons behind this shift.

The U.S.economy has grown steadily over the years.

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

The average hourly wage (excluding benefits) in the United States is currently

Comparing the United States to other economies, the United States is one of the ____ economy in the world.

The largest share of the typical American family budget goes to: ​

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

A typical American family sends about _____% of its budget on services.

The largest share of the typical American family budget goes to: