Deck 21: Is Us Economic Leadership Threatened

Question 1

Currently, the U.S.net national debt is almost 60 percent of GDP, but this percentage is smaller than that of many fiscally healthy countries.

Answer 1

True

Question 2

One protection that encouraged entrepreneurs in the U.S.was the enforceability of contracts by the courts.

Answer 2

True

Question 3

In general, productivity levels are much higher in richer countries like the U.S.

Answer 3

True

Question 4

In the U.S., health care may be expensive, but Americans enjoy the longest life-expectancy of any nation.

Question 5

In the last decade, health care spending in the U.S.nearly doubled.

Question 6

Debt grew faster than GDP during and after the recent Great Recession, when the government had to spend more (as for unemployment benefits), while its tax revenue shrank.

Question 7

If American imports run chronically above our exports, a trade deficit develops.

Question 8

Generally, economists agree that the economic outlook for the U.S.is seriously challenged.

Question 9

One benefit of U.S.society that helped foster entrepreneurship was free public high school education.

Question 10

Previously a creditor nation, in the 1980s the U.S.became a debtor nation.

Question 11

The U.S.remains the world's economic leader in all respects.

Question 12

Chronic trade deficits lead to a growing public debt.

Question 13

One benefit of U.S.society that encouraged entrepreneurship was the inflow of capable immigrants.

Question 14

The growth rates of capital, workforce skills and technology are higher in rich countries.

Question 15

In the last decade, spending on education has been slowing.

Question 16

At the beginning of the 20th century, average U.S.income was less than $6,000; as of 2013, the average income was nearly $53,000.

Question 17

Americans will benefit if China has enough purchasing power to enable its people to buy American products.

Question 18

In 2013, the U.S.spent more on research and development than any other country in the world.

Question 19

The cost of a hospital stay has been going down slowly.

Question 20

The U.S.debt problem is caused by the government only; individuals don't go into debt.

Question 21

In some respects, the U.S.has fallen behind other nations.

Question 22

The continued position of the United States as the world's economic leader is:

A)​assured
B)predictable
C)​automatic
D)​uncertain

Question 23

A country like the U.S., which is operating at the technological frontier, can improve its technology only by:

A)​repurposing
B)​redeveloping
C)​innovating
D)​purchasing

Question 24

Poverty is a mainstream event experienced by a majority of Americans.

Question 25

In early 2013, two economists debated the question of whether:

A)​the trade deficit should be reduced rapidly or steadily
B)​the United States was past its prime
C)​the percentage of health care to GDP was a warning sign for the economy
D)​none of these

Question 26

America's prosperity and economic growth is secure for the foreseeable future.

Question 27

It is urgent that the U.S.improve in certain economic arenas.

Question 28

Poverty and inequality in the U.S.are well below the OECD average.​​

Question 29

If a poor country can "catch up" to a rich country, its productivity rises more rapidly than the productivity of the rich country.

Question 30

American high school students' test scores, especially in math and science, are higher than those in OECD countries.

Question 31

In recent decades, other countries have caught up to the U.S.and even surpassed it in some important economic arenas.

Question 32

Some economists believe that our best years of economic growth are behind us.

Question 33

Productivity levels in rich countries are:

A)​higher than in poor countries
B)​lower than in poor countries
C)​about the same as in poor countries
D)​not related to those in poor countries

Question 34

Chronic trade deficits lead to a growing national debt.

Question 35

In recent decades, other countries have:

A)​caught up to the U.S.in several important economic arenas
B)​surpassed the U.S.in several important economic arenas
C)​both of the above are true

Question 36

In terms of innovation and growth, the U.S.economic system has far exceeded the achievements of any other type of economy, even in ancient history.

Question 37

The subject of borrowing by the U.S.from its citizens and from other countries, has resulted in one of the fiercest policy debates in recent years.

Question 38

While it is not certain that U.S.leadership will continue into the next generation, the nation will continue to enjoy the abundance it has enjoyed in the past.

Question 39

Piketty's analysis concludes that unequal ownership of capital, rather than unequal pay, is responsible for notably high levels of inequality in the decades since the 1980s.

Question 40

In the U.S.the percentage of the population that directly encounters poverty is exceedingly high.

Question 41

A less advanced country can improve its productivity by:

A)​repurposing
B)​imitating
C)reusing
D)​redeveloping

Question 42

As a share of GDP, U.S.spending on education is:

A)​comparable to that of other wealthy nations in the OECD
B)​about 26% higher than the average of wealthy nations in the OECD
C)​about 26% lower than the average of wealthy nations in the OECD
D)​rising slowly, but steadily

Question 43

In fiscal year 2014, the U.S.federal budget deficit amounted to about:

A)​1.2% of GDP
B)​3.7% of GDP
C)​4.5% of GDP
D)​10% of GDP

Question 44

In 2012, about _____% of all Americans under the age of 65 did not have health insurance.

A)​10%
B)​12%
C)​17%
D)​20%

Question 45

Regarding U.S.health care costs, it is correct to say that:

A)​Americans pay more for health care than people in other developed countries.
B)​U.S.health care costs are growing faster than the growth in other countries.
C)​The level of health care costs are the source of fiscal pain that societies around the globe are experiencing.
D)​All of these statements are true.

Question 46

Life expectancy in the U.S.:

A)​is the highest in the world
B)​is the lowest in the world
C)ranks about 100th in the world
D)​ranks about 40th in the world

Question 47

Compared to OECD countries, in the U.S.

A)the ​poverty level is above the OECD average, but inequality is below the average
B)​the ​poverty level is below the OECD average, but inequality is above the average
C)​both poverty and inequality levels are below the OECD average
D)​​both poverty and inequality levels are above the OECD average

Question 48

For the average American, innovation has led to:

A)​an average income that is below many countries because of monies spent on R&D
B)​an average income that is not paralleled anywhere in the world
C)​an average income that exceeds that of all but the richest countries
D)​None of the above is correct.

Question 49

Which of the following encourage(s) entrepreneurs to innovate?

A)​the patent system
B)​the enforcement of contracts by the courts
C)​private property rights
D)​All of the above are correct.

Question 50

The U.S.spends more on education, and achieves far worse results.The underling cause of this disparity may have to do with:

A)​the cost per student spent
B)​the high degree of inequality in the U.S.
C)​the difference in property tax rates
D)​both the high degree of inequality in the U.S.and the difference in property tax rates

Question 51

Innovation in the U.S.was spurred by:

A)​a free high school education in the U.S.
B)​an influx of capable immigrants
C)​an inexpensive patent system
D)​All of the above are correct.

Question 52

Regarding poverty in U.S.society, it is correct to say that:

A)​Poverty affects a relatively small number of Americans.
B)​Poverty results from a failure to work hard.
C)​Most of the poor live in inner cities.
D)None of these statements is true.

Question 53

Before the Industrial Revolution, per capita income in the U.S.was about:

A)​$4,000
B)​$2,000
C)​$1,000
D)​$0

Question 54

The U.S.switched from being a creditor nation to a debtor nation in:

A)​the 1970s
B)​the 1980s
C)​the 1990s
D)​2008-2009

Question 55

The U.S.government has accumulated a net national debt of almost 60% of GDP.Compared to other countries, this is:​​

A)​smaller than that of many fiscally healthy countries
B)larger than that of many fiscally healthy countries
C)​about the same as that of troubled debtor nations
D)​​larger than that of troubled debtor nations

Question 56

Which of the following statements is true of entrepreneurs?

A)​They have a talent for spotting new profit-making opportunities.
B)​They are an indispensable ingredient to the U.S.'s unprecedented growth performance
C)​They are an indispensable ingredient to the U.S.'s success over the centuries.
D)​All of the above are true.

Question 57

If countries where wages are far lower than those in the U.S.manufacture similar but vastly cheaper products, then:

A)​U.S.consumers will buy those cheaper products
B)​U.S.producers will lose customers
C)​There will be a downward pressure on U.S.wages, and reduced employment
D)​All of the above statements are true.

Question 58

During periods of U.S.prosperity,

A)​imports from other countries are undesirable
B)​imports from other countries are sought out
C)​countries importing goods to the U.S.may use their earnings to buy American goods
D)​countries importing goods to the U.S.are unable to buy American goods

Question 59

Regarding the financial crisis of 2008-2009, and Americans' spending habits, it is correct to say that:

A)​After 2000, the ratio of consumer debt to GDP dropped steadily.
B)​After the financial crisis of 2008-2009, many U.S.consumers incurred more debt.
C)​Since 2009, the ratio of consumer debt to GDP has come down notably.
D)​None of these is correct.

Question 60

In 2013, the U.S.spending on research and development was:

A)​the lowest among developed countries
B)​more than any other country
C)​more than most countries, but not China
D)​consistent with spending on R&D in 2012

Question 61

According to Professor Robert Gordon of Northwestern University, what are the four "headwinds" facing the U.S.economy, and how do they interact with innovation?

Question 62

The best hope for continued growth of the U.S.economy probably lies in:

A)​a return of manufacturing to the U.S.
B)​innovation
C)​patents
D)​decreasing poverty

Question 63

Compare the U.S.health care system to that of other countries.Are we getting superior health care for the money we spend?

Question 64

According to Piketty, economic history is the story of a race between:

A)​capital accumulation
B)​population growth
C)​technological progress
D)​all of the above
E)​a and c only

Question 65

The future of the U.S as leader of the economic world:

A)​is likely to continue for generations to come
B)​will be sustained in the next generation, but not beyond
C)​requires U.S.action in several critical economic areas
D)​requires a return of manufacturing to the U.S.

Question 66

From 2012-2013, which of the following countries increased its expenditures by more than 10%?

A)​China
B)​Germany
C)​Japan
D)​the U.S.

Question 67

The gains made against poverty by President Lyndon Johnson's "War on Poverty" were largely reversed by:

A)​welfare cuts
B)​an elimination of many jobs to overseas manufacturing facilities
C)​slower economic growth
D)​all of the above.
E)​​a and c only

Question 68

Among young Americans aged 19 to 25, _____% have no health insurance.

A)​11%
B)​17%
C)​22%
D)​26%

Question 69

Professor Gordon posits that the best years of U.S.growth are behind us because of four "headwinds," which are:

A)​lackluster growth and poverty
B)​demographids and education
C)​debt and inequality
D)​a and b only
E)​b and c only

Question 70

In 2013, which of the following countries spent the most on Research and Development?

A)​China
B)​Germany
C)​Japan
D)​the U.S.

Question 71

One of the most controversial public policy issues in recent decades is the size and growth of the U.S.budget deficit and public debt.Discuss where we are, compared to other countries, and how we got here.

Question 72

Explain what protections and rules are in place for entrepreneurs, which encourages them to innovate.

Question 73

About _____% of Americans between the ages of 25 and 60 will experience at least one year below the official poverty line.

A)​3%
B)​10%
C)​27%
D)​40%

Question 74

According to economist Schumpeter, the first step in entrepreneurial growth is:

A)​little competition
B)​monopoly power
C)​zero economic profits
D)​creative destruction

Question 75

How can it be that the U.S.spends more on education than many other nations, and achieves far worse results? What may be the underlying reason?