Question 1

Roughly 145 million people in the United States hold jobs.

Accepted Answer

A) True 
 B)False  True

Question 2

Unemployment in the United States varies considerably over time.

Accepted Answer

A) True 
 B)False  True

Question 3

Capitalism and free enterprise are common, and the United States

Accepted Answer

A)  has just begun to move in that direction after years of central planning. 
B)  has gone further in that direction than almost any other country. 
C)  is becoming more "free," but is not as capitalistic as many others. 
D)  is considering a major change to "free up" its economy as many others have. 
E)  is leading the move toward greater central planning and control. 
A)  has just begun to move in that direction after years of central planning. 
B)  has gone further in that direction than almost any other country. 
C)  is becoming more "free," but is not as capitalistic as many others. 
D)  is considering a major change to "free up" its economy as many others have. 
E)  is leading the move toward greater central planning and control. B

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Transfer payments are money received as grants from government.

Accepted Answer

A) True 
 B)False

Question 6

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 7

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 8

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 9

According to the data on real U.S.GDP,

Accepted Answer

A)  economic growth has been irregular, with periodic downturns. 
B)  economic growth has been consistent, with few downturns. 
C)  economic growth has been extremely rapid, but with major collapses. 
D)  economic growth has been elusive, but downturns have been eliminated. 
A)  economic growth has been irregular, with periodic downturns. 
B)  economic growth has been consistent, with few downturns. 
C)  economic growth has been extremely rapid, but with major collapses. 
D)  economic growth has been elusive, but downturns have been eliminated.

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

In 2009, about what percentage of goods and services sold in the United States was imported?

Accepted Answer

A)  4% 
B)  13% 
C)  20% 
D)  88% 
A)  4% 
B)  13% 
C)  20% 
D)  88%

Question 12

Prosperity in the United States is evenly distributed across the fifty states.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

According to Robert Reich, secretary of Labor in the Clinton administration,

Accepted Answer

A)  the identity of American companies is clear, and laws should be written accordingly. 
B)  foreign companies are clearly different from American companies. 
C)  multinational companies have clear bases of operations, which form their identity. 
D)  it is almost impossible to define the nationality of a multinational company. 
E)  identifying the country of origin of a product is almost impossible, but essential for proper regulation. 
A)  the identity of American companies is clear, and laws should be written accordingly. 
B)  foreign companies are clearly different from American companies. 
C)  multinational companies have clear bases of operations, which form their identity. 
D)  it is almost impossible to define the nationality of a multinational company. 
E)  identifying the country of origin of a product is almost impossible, but essential for proper regulation.

Question 15

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.

Question 16

Which of the following is the most closed economy?.

Accepted Answer

A)  Germany 
B)  Canada 
C)  Mexico 
D)  the United States 
A)  Germany 
B)  Canada 
C)  Mexico 
D)  the United States

Question 17

All of the following are associated with a mixed economy except

Accepted Answer

A)  some public influence over the workings of free markets. 
B)  public ownership mixed in with private property. 
C)  homogenization. 
D)  different countries blending the state and market sectors in different ways. 
A)  some public influence over the workings of free markets. 
B)  public ownership mixed in with private property. 
C)  homogenization. 
D)  different countries blending the state and market sectors in different ways.

Question 18

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 19

Imports from China represent ____ of total U.S.imports.

Accepted Answer

A)  less than 20% 
B)  approximately 40% 
C)  approximately 60% 
D)  more than 80% 
A)  less than 20% 
B)  approximately 40% 
C)  approximately 60% 
D)  more than 80%

Question 20

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

Accepted Answer

A)  12% 
B)  30% 
C)  51% 
D)  70% 
A)  12% 
B)  30% 
C)  51% 
D)  70%

Exam 2: The Economy: Myth and Reality

Roughly 145 million people in the United States hold jobs.

Unemployment in the United States varies considerably over time.

Capitalism and free enterprise are common, and the United States

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

Transfer payments are money received as grants from government.

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?

Per capita GDP can be defined as

Economic progress is best measured by

According to the data on real U.S.GDP,

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

In 2009, about what percentage of goods and services sold in the United States was imported?

Prosperity in the United States is evenly distributed across the fifty states.

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

According to Robert Reich, secretary of Labor in the Clinton administration,

In the United States each year, approximately

Which of the following is the most closed economy?.

All of the following are associated with a mixed economy except

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

Imports from China represent ____ of total U.S.imports.

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

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 I: The Price System

The Shortcomings of Free Markets

The Market's Prime Achievement: Innovation and Growth

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

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

The 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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