Question 1

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

Accepted Answer

A) True 
 B)False  False

Question 2

Health and public welfare expenditures account for the largest share of state and local government spending.

Accepted Answer

A) True 
 B)False  False

Question 3

The U.S. economy is relatively closed in terms of economic activity related to exports and imports.

Accepted Answer

A) True 
 B)False  True

Question 4

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 5

Unemployment in the United States varies considerably over time.

Accepted Answer

A) True 
 B)False

Question 6

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.

Question 7

Outputs include goods but not services.

Accepted Answer

A) True 
 B)False

Question 8

The government redistributes income to the poor, primarily through

Accepted Answer

A) regressive taxes and disability payments. 
B) transfer payments and progressive taxes. 
C) government purchases. 
D) higher wages. 
A) regressive taxes and disability payments. 
B) transfer payments and progressive taxes. 
C) government purchases. 
D) higher wages.

Question 9

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 10

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

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

The majority of American workers are employed in the manufacturing sector.

Accepted Answer

A) True 
 B)False

Question 13

The largest single portion of the federal budget is devoted to

Accepted Answer

A) national defense. 
B) Medicare and Medicaid. 
C) Social Security and unemployment compensation. 
D) education. 
E) interest payments on the national debt. 
A) national defense. 
B) Medicare and Medicaid. 
C) Social Security and unemployment compensation. 
D) education. 
E) interest payments on the national debt.

Question 14

Currently, well over half of the American workforce is comprised of women.

Accepted Answer

A) True 
 B)False

Question 15

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 16

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 17

The U.S. economy has become a less closed economy over the past 50 years.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) $7.25 
B) $15.50 
C) $20.00 
D) $26.00 
A) $7.25 
B) $15.50 
C) $20.00 
D) $26.00

Question 19

The typical American family spends about ____ percent of its budget on goods and the remainder on services.

Accepted Answer

A) 22 
B) 32 
C) 66 
D) 80 
A) 22 
B) 32 
C) 66 
D) 80

Question 20

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

Exam 2: The Economy: Myth and Reality

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

Health and public welfare expenditures account for the largest share of state and local government spending.

The U.S. economy is relatively closed in terms of economic activity related to exports and imports.

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

Unemployment in the United States varies considerably over time.

Economic progress is best measured by

Outputs include goods but not services.

The government redistributes income to the poor, primarily through

The largest share of the typical American family budget goes to

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

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

The majority of American workers are employed in the manufacturing sector.

The largest single portion of the federal budget is devoted to

Currently, well over half of the American workforce is comprised of women.

What is the approximate number of Americans who have jobs?

A transfer payment is a sum of money

The U.S. economy has become a less closed economy over the past 50 years.

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

The typical American family spends about ____ percent of its budget on goods and the remainder on services.

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

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

The Financial Markets and the Economy: the Tail That Wags the Dog

The Firm and the Industry Under Perfect Competition

The Case for Free Markets: the Price System

Monopoly

Between Competition and Monopoly

Limiting Market Power: Antitrust and Regulation

The Shortcomings of Free Markets

Externalities, Externaliteis, the Environment, and Natural Resources

Taxation and Resource Allocation

Pricing the Factors of Production

Labor and Entrepreneurship: the Human Inputs

Poverty, Inequality, and Discrimination

International Trade and Comparative Advantage

Contemporary Issues in the Us Economy

Filters