Question 1

There are about 5 million business firms in the Unites States.

Accepted Answer

A) True 
 B)False  False

Question 2

Compared to people in other nations, people in the United States pay

Accepted Answer

A) much higher taxes. 
B) somewhat higher taxes, on average. 
C) about the same amount taxes. 
D) lower taxes. 
A) much higher taxes. 
B) somewhat higher taxes, on average. 
C) about the same amount taxes. 
D) lower taxes. D

Question 3

A minority of American women work outside of the home.

Accepted Answer

A) True 
 B)False  False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

The United States has approximately

Accepted Answer

A)  	80,000 businesses. 
B)  	5.1 million businesses. 
C)  	12.5 million businesses. 
D)  	28.million businesses. 
A)  	80,000 businesses. 
B)  	5.1 million businesses. 
C)  	12.5 million businesses. 
D)  	28.million businesses.

Question 6

Economic fluctuations are defined as

Accepted Answer

A) alternating periods of significant GDP growth and decline. 
B) events only encountered in developing countries. 
C) periods of stable economic growth. 
D) alternating periods of unemployment falling above and below zero. 
A) alternating periods of significant GDP growth and decline. 
B) events only encountered in developing countries. 
C) periods of stable economic growth. 
D) alternating periods of unemployment falling above and below zero.

Question 7

How does the U.S.economy rank in size?

Accepted Answer

A) first in economic output 
B) second in economic output 
C) third in economic output 
D) fourth in economic output 
E) fifth in economic output 
A) first in economic output 
B) second in economic output 
C) third in economic output 
D) fourth in economic output 
E) fifth in economic output

Question 8

A recession can best be defined as a period of time in which

Accepted Answer

A) total output of the economy falls. 
B) total output of the economy rises very slowly. 
C) total unemployment falls. 
D) total international trade fails to rise. 
E) Both a and c 
A) total output of the economy falls. 
B) total output of the economy rises very slowly. 
C) total unemployment falls. 
D) total international trade fails to rise. 
E) Both a and c

Question 9

The payments to owners of capital include

Accepted Answer

A) interest and profits. 
B) debt and taxes. 
C) wages and salaries. 
D) expenses and bonuses. 
E) All of the above are correct. 
A) interest and profits. 
B) debt and taxes. 
C) wages and salaries. 
D) expenses and bonuses. 
E) All of the above are correct.

Question 10

Roughly 144 million people in the United States hold jobs.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is the most open economy?

Accepted Answer

A) Germany 
B) the Netherlands 
C) the United States 
D) Japan 
E) Canada 
A) Germany 
B) the Netherlands 
C) the United States 
D) Japan 
E) Canada

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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 14

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 15

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 16

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 17

The factors of production include all goods and services produced in an economy.

Accepted Answer

A) True 
 B)False

Question 18

Despite the monies spent by the federal and state governments, many observers believe which of the following?

Accepted Answer

A) public infrastructure such as bridges and roads is only adequate 
B) our educational system is lacking 
C) not enough monies are spent on homeland defense 
D) all of these are correct 
A) public infrastructure such as bridges and roads is only adequate 
B) our educational system is lacking 
C) not enough monies are spent on homeland defense 
D) all of these are correct

Question 19

Antitrust laws are designed to promote competition.

Accepted Answer

A) True 
 B)False

Question 20

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.

Exam 2: The Economy Myth and Reality

There are about 5 million business firms in the Unites States.

Compared to people in other nations, people in the United States pay

A minority of American women work outside of the home.

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

The United States has approximately

Economic fluctuations are defined as

How does the U.S.economy rank in size?

A recession can best be defined as a period of time in which

The payments to owners of capital include

Roughly 144 million people in the United States hold jobs.

Which of the following is the most open economy?

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

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)

Inputs, or factors of production, include

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

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

The factors of production include all goods and services produced in an economy.

Despite the monies spent by the federal and state governments, many observers believe which of the following?

Antitrust laws are designed to promote competition.

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

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 Us Economic Leadership Threatened

International Trade and Comparative Advantage

Filters

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