Question 1

A mixed economy is one that combines public and private ownership of property.

Accepted Answer

A) True 
 B)False  True

Question 2

When government defines and enforces property rights,this is an example of government as

Accepted Answer

A) referee. 
B) regulator of business. 
C) buyer of goods and services. 
D) tax collector. 
E) redistributor. 
A) referee. 
B) regulator of business. 
C) buyer of goods and services. 
D) tax collector. 
E) redistributor. A

Question 3

Recessions are periods of declining economic activity.

Accepted Answer

A) True 
 B)False  True

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

A central government collected taxes totaling $120 billion in the previous year.It's expenditure during the year was roughly the same.This is an example of a

Accepted Answer

A) balanced budget. 
B) surplus budget. 
C) deficit budget. 
D) zero budget. 
A) balanced budget. 
B) surplus budget. 
C) deficit budget. 
D) zero budget.

Question 6

What you mean by business cycles? What are their consequences?

Accepted Answer

Business cycles are periodic upswings an

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

The United States has the largest economy in the world because

Accepted Answer

A) it has the most land to work with. 
B) it has a large population. 
C) American workers are very productive. 
D) both b and c are correct. 
A) it has the most land to work with. 
B) it has a large population. 
C) American workers are very productive. 
D) both b and c are correct.

Question 9

What is the approximate number of Americans who have jobs?

Accepted Answer

A) 145 million 
B) 200 million 
C) 290 million 
D) 310 million 
E) 3.1 billion 
A) 145 million 
B) 200 million 
C) 290 million 
D) 310 million 
E) 3.1 billion

Question 10

Government is unnecessary in a free enterprise economy such as the United States.

Accepted Answer

A) True 
 B)False

Question 11

Gross domestic product is the money value of all final goods and services produced in an economy in a year.

Accepted Answer

A) True 
 B)False

Question 12

Why does unemployment tend to change when the level of output changes?

Accepted Answer

A) Persons wish to buy things, and if output falls, people need to work less to earn the income to buy the smaller output. 
B) Labor is an input, and if output falls, employers need fewer workers to make it, so the employment falls. 
C) When output rises, persons are more interested in buying, and will work more to earn the income to buy things. 
D) Persons face the option of buying or working, so that when they do more of one, the other necessarily falls. 
E) When companies replace workers with machines, output rises, and people take time off from work to buy before returning to employment. 
A) Persons wish to buy things, and if output falls, people need to work less to earn the income to buy the smaller output. 
B) Labor is an input, and if output falls, employers need fewer workers to make it, so the employment falls. 
C) When output rises, persons are more interested in buying, and will work more to earn the income to buy things. 
D) Persons face the option of buying or working, so that when they do more of one, the other necessarily falls. 
E) When companies replace workers with machines, output rises, and people take time off from work to buy before returning to employment.

Question 13

An industry can be defined as

Accepted Answer

A) the group of all firms that sell a product. 
B) any company that produces and sells something. 
C) the set of buyers of a particular good or service. 
D) the top companies that sell something. 
A) the group of all firms that sell a product. 
B) any company that produces and sells something. 
C) the set of buyers of a particular good or service. 
D) the top companies that sell something.

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

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 16

The majority of American workers are employed in the service sector of the economy.

Accepted Answer

A) True 
 B)False

Question 17

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 18

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

Accepted Answer

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

Question 19

The United States is a fairly good example of

Accepted Answer

A) a mixed economy. 
B) a pure market system. 
C) a government-dominated economy. 
D) a manufacturing economy. 
E) a transitioning economy. 
A) a mixed economy. 
B) a pure market system. 
C) a government-dominated economy. 
D) a manufacturing economy. 
E) a transitioning economy.

Question 20

During fiscal year 2009,the most recent mentioned in the text,the federal government spent approximately

Accepted Answer

A) $1.7 billion 
B) $1.8 trillion 
C) $3.5 trillion 
D) $14.0 trillion 
A) $1.7 billion 
B) $1.8 trillion 
C) $3.5 trillion 
D) $14.0 trillion

Exam 2: The Economy: Myth and Reality

A mixed economy is one that combines public and private ownership of property.

When government defines and enforces property rights,this is an example of government as

Recessions are periods of declining economic activity.

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

A central government collected taxes totaling $120 billion in the previous year.It's expenditure during the year was roughly the same.This is an example of a

What you mean by business cycles? What are their consequences?

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

The United States has the largest economy in the world because

What is the approximate number of Americans who have jobs?

Government is unnecessary in a free enterprise economy such as the United States.

Gross domestic product is the money value of all final goods and services produced in an economy in a year.

Why does unemployment tend to change when the level of output changes?

An industry can be defined as

Which of the following illustrates government acting as a referee?

Per capita GDP can be defined as

The majority of American workers are employed in the service sector of the economy.

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

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

The United States is a fairly good example of

During fiscal year 2009,the most recent mentioned in the text,the federal government spent approximately

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 Markets 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

International Trade and Comparative Advantage

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