Question 1

The United States produces ____ of what it consumes, and consumes ____ of what it produces.

Accepted Answer

A) little, little 
B) little, most 
C) most, little 
D) most, most 
A) little, little 
B) little, most 
C) most, little 
D) most, most

Question 2

The United States economy is

Accepted Answer

A) the third largest in the world. 
B) larger than all other national economies combined. 
C) second largest in the world, behind Japan. 
D) largest in the world. 
A) the third largest in the world. 
B) larger than all other national economies combined. 
C) second largest in the world, behind Japan. 
D) largest in the world.

Question 3

A mixed economy blends private and public elements.​

Accepted Answer

A) True 
 B)False

Question 4

Transfer payments are money received as grants from government.

Accepted Answer

A) True 
 B)False

Question 5

The United States is an example of a mixed economy.

Accepted Answer

A) True 
 B)False

Question 6

The federal government employs more civilians than state and local governments.

Accepted Answer

A) True 
 B)False

Question 7

The U.S.economy rarely grows.

Accepted Answer

A) True 
 B)False

Question 8

Annual incomes of James, Jack, and Stanley are $30,000, $50,000, and $80,000 and their tax rates are 10%, 20%, and 30% respectively.Which tax structure is this an example of?

Accepted Answer

A) Proportional tax 
B) Progressive tax 
C) Regressive tax 
D) Digressive tax 
A) Proportional tax 
B) Progressive tax 
C) Regressive tax 
D) Digressive tax

Question 9

Government in the United States spends more as a percentage of GDP than in most other industrialized nations.

Accepted Answer

A) True 
 B)False

Question 10

GDP is a measure of the total output of an economy.

Accepted Answer

A) True 
 B)False

Question 11

The U.S.economy is relatively open in terms of economic activity related to international trade.

Accepted Answer

A) True 
 B)False

Question 12

Economic progress is best measured by

Accepted Answer

A) the growth rate of prices over time. 
B) the growth rate of GDP per capita 
C) the amount of time it takes a worker to work to afford certain goods and services. 
D) the growth rate in the population. 
A) the growth rate of prices over time. 
B) the growth rate of GDP per capita 
C) the amount of time it takes a worker to work to afford certain goods and services. 
D) the growth rate in the population.

Question 13

A tax must be progressive if an individual with a higher income pays more dollars in taxes than an individual with a lower income.

Accepted Answer

A) True 
 B)False

Question 14

A transfer payment is a sum of money

Accepted Answer

A) spent by government for new goods and services. 
B) shifted between members of a household. 
C) given by government without a good or service in exchange. 
D) moved between companies for goods and services. 
E) required to pay taxes. 
A) spent by government for new goods and services. 
B) shifted between members of a household. 
C) given by government without a good or service in exchange. 
D) moved between companies for goods and services. 
E) required to pay taxes.

Question 15

Nonconsumption spending accounts for roughly what percent of total output of goods and services?

Accepted Answer

A) 20% 
B) 30% 
C) 40% 
D) 60% 
A) 20% 
B) 30% 
C) 40% 
D) 60%

Exam 2: The Economy: Myth and Reality

The United States produces ____ of what it consumes, and consumes ____ of what it produces.

The United States economy is

A mixed economy blends private and public elements.​

Transfer payments are money received as grants from government.

The United States is an example of a mixed economy.

The federal government employs more civilians than state and local governments.

The U.S.economy rarely grows.

Annual incomes of James, Jack, and Stanley are $30,000, $50,000, and $80,000 and their tax rates are 10%, 20%, and 30% respectively.Which tax structure is this an example of?

Government in the United States spends more as a percentage of GDP than in most other industrialized nations.

GDP is a measure of the total output of an economy.

The U.S.economy is relatively open in terms of economic activity related to international trade.

Economic progress is best measured by

A tax must be progressive if an individual with a higher income pays more dollars in taxes than an individual with a lower income.

A transfer payment is a sum of money

Nonconsumption spending accounts for roughly what percent of total output of goods and services?

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

The United States produces of what it consumes, and consumes of what it produces.

A mixed economy blends private and public elements.