Question 1

How does the United States compare to other advanced, industrialized economies on the issue of openness?

Accepted Answer

A)  The U.S. economy is completely closed. 
B)  The U.S. economy is at the low end of openness. 
C)  The U.S. economy is above average in openness. 
D)  The U.S. economy is among the most open. 
E)  The U.S. economy is the most open of any economy. 
A)  The U.S. economy is completely closed. 
B)  The U.S. economy is at the low end of openness. 
C)  The U.S. economy is above average in openness. 
D)  The U.S. economy is among the most open. 
E)  The U.S. economy is the most open of any economy. B

Question 2

Among the nations listed, which of the following has 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 B

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)  a consistent fall in incomes. 
A)  an increased sense of justice. 
B)  a decrease in the strength of capitalism. 
C)  the widening wage disparity. 
D)  a consistent fall in incomes. C

Question 4

GDP tends to rise and fall during economic fluctuations but other measures follow the same pattern. One of these measures is

Accepted Answer

A)  the annual precipitation rate. 
B)  the growth of the money supply. 
C)  the inflation rate. 
D)  the unemployment rate. 
A)  the annual precipitation rate. 
B)  the growth of the money supply. 
C)  the inflation rate. 
D)  the unemployment rate.

Question 5

Gross domestic product is the money value of manufacturing production in a year.

Accepted Answer

A) True 
 B)False

Question 6

What is the approximate number of Americans who have jobs?

Accepted Answer

A)  160 million 
B)  240 million 
C)  290 million 
D)  330 million 
E)  3.1 billion 
A)  160 million 
B)  240 million 
C)  290 million 
D)  330 million 
E)  3.1 billion

Question 7

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)  the rate of inflation falls below zero. 
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)  the rate of inflation falls below zero.

Question 8

Government plays a role in which type of economy?

Accepted Answer

A)  Only free-market economies like the United States 
B)  Only socialist economies 
C)  Only mixed economies 
D)  All economies 
A)  Only free-market economies like the United States 
B)  Only socialist economies 
C)  Only mixed economies 
D)  All economies

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Which of the following groups has had declining labor force participation over the past 30 years?

Accepted Answer

A)  Women 
B)  Men 
C)  Teenagers 
D)  Americans 
A)  Women 
B)  Men 
C)  Teenagers 
D)  Americans

Question 11

Approximately 1 in 12 business firms fail each year in the Unites States.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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

Question 14

Which of the following illustrates government acting as a referee?

Accepted Answer

A)  Taxing high income persons 
B)  Enforcing contract provisions between buyer and seller 
C)  Buying new weapons for defense 
D)  Mailing checks to Social Security recipients 
E)  Collecting data on imports and exports 
A)  Taxing high income persons 
B)  Enforcing contract provisions between buyer and seller 
C)  Buying new weapons for defense 
D)  Mailing checks to Social Security recipients 
E)  Collecting data on imports and exports

Question 15

Which of the following multinational firms would not be defined as strictly an American corporation?

Accepted Answer

A)  Apple. 
B)  Ford Motor Company. 
C)  Honda Motor Company. 
D)  Nissan Motor Company. 
E)  All of these would not be defined as strictly an American corporation. 
A)  Apple. 
B)  Ford Motor Company. 
C)  Honda Motor Company. 
D)  Nissan Motor Company. 
E)  All of these would not be defined as strictly an American corporation.

Question 16

If California were a separate nation, its economy would rank where among nations of the world?

Accepted Answer

A)  Second 
B)  Third 
C)  Fifth 
D)  Sixth 
A)  Second 
B)  Third 
C)  Fifth 
D)  Sixth

Question 17

The tax burden in the United States, measured as a percentage of GDP, represents a much larger share spend compared to most other industrialized nations.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

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

Question 19

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 20

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 working time needed for an individual worker to afford certain goods and services. 
D)  the annual 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 working time needed for an individual worker to afford certain goods and services. 
D)  the annual growth rate in the population.

Exam 2: The Economy: Myth and Reality

How does the United States compare to other advanced, industrialized economies on the issue of openness?

Among the nations listed, which of the following has the most open economy?

The issue of inequality has become prominent because of

GDP tends to rise and fall during economic fluctuations but other measures follow the same pattern. One of these measures is

Gross domestic product is the money value of manufacturing production in a year.

What is the approximate number of Americans who have jobs?

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

Government plays a role in which type of economy?

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

Which of the following groups has had declining labor force participation over the past 30 years?

Approximately 1 in 12 business firms fail each year in the Unites States.

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

The largest share of the typical American family budget goes to

Which of the following illustrates government acting as a referee?

Which of the following multinational firms would not be defined as strictly an American corporation?

If California were a separate nation, its economy would rank where among nations of the world?

The tax burden in the United States, measured as a percentage of GDP, represents a much larger share spend compared to most other industrialized nations.

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

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

Economic progress is best measured by

What Is Economics

The Fundamental Economic Problem: Scarcity and Choice

Supply and Demand: an Initial Look

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

Contemporary Issues in the Us Economy

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