Deck 2: The Economony: Myth and Reality

Question 1

Outputs include goods but not services.

Answer 1

False

Question 2

GDP is a measure of the total output of an economy.

Answer 2

True

Question 3

Government production accounts for about half of all GDP in the United States.

Answer 3

False

Question 4

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

Question 5

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

Question 6

In the United States, all property is privately owned.

Question 7

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

Question 8

An open economy is one in which exports and imports constitute a large share of GDP.

Question 9

Prosperity in the United States is evenly distributed across the 50 states.

Question 10

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

Question 11

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

Question 12

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

Question 13

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

Question 14

An open economy produces most of the goods and services that it needs, with few imports and exports.

Question 15

Real GDP is the dollar value of all goods and services produced in an economy.

Question 16

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

Question 17

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

Question 18

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

Question 19

Population density varies little between the 50 states.

Question 20

The U.S.economy is unique for both its size and prosperity.

Question 21

Since 1960, per capita real GDP in the United States has nearly tripled.

Question 22

A recession is a period of time in which the total output of the economy rises.

Question 23

Teenage workforce participation as a percentage of the total workforce has fallen in the United States in recent years.

Question 24

The U.S.economy has grown constantly over the years.

Question 25

During a recession, unemployment rises and total output of the economy rises.

Question 26

Unemployment in the United States varies considerably over time.

Question 27

Teenage employment in the United States has risen in the past two decades.

Question 28

In 2017, per capita real GDP was roughly half its value in 1960.

Question 29

Economic growth in the United States has increased consistently since the 1950s.

Question 30

Recessions are periods of declining economic activity.

Question 31

Since the 1950s, the percentage of women working in the United States has held relatively steady.

Question 32

A closed economy is one in which exports and imports constitute a large share of GDP.

Question 33

A minority of American women work outside the home.

Question 34

A recession is a period of time in which the total output of the economy falls.

Question 35

The U.S.economy rarely grows.

Question 36

Roughly 160 million people in the United States hold jobs.

Question 37

Since the 1970s, the United States has had higher unemployment rates than most European countries.

Question 38

A recession is a period of time in which real GDP falls.

Question 39

Real GDP per capita in the United States grows over time.

Question 40

Over the past several years and until recently, the United States has had lower unemployment rates than most European countries.

Question 41

Workers earn more than half of the income generated by the production process.

Question 42

There is no role for government in a free enterprise economy such as the United States.

Question 43

Multinational businesses produce and sell goods around the world.

Question 44

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

Question 45

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

Question 46

Consumer spending accounts for nearly two-thirds percent of U.S.GDP.

Question 47

The total market value of capital assets in the United States is about $30 trillion dollars.

Question 48

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

Question 49

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

Question 50

Workers in the United States receive significantly higher compensation than almost all other western European nations.

Question 51

Investment spending accounts for nearly 60 percent of U.S.GDP.

Question 52

The nationality of a company and a product is easily determined.

Question 53

American households spend more of their incomes on goods than on services.

Question 54

Profits account for about 30 cents out of each dollar spent on goods in the United States.

Question 55

The percentage of the American workforce employed in the manufacturing sector has been steadily declining over the past 50 years.

Question 56

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

Question 57

Approximately half of all U.S.workers are employed by various levels of government.

Question 58

Workers earn less than half of the income generated by the production process.

Question 59

Consumer spending accounts for about 50 percent of GDP.

Question 60

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

Question 61

One important role for government as referee is in defining and enforcing property rights.

Question 62

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

Question 63

Government in the United States spends more as a percentage of GDP than in most other industrialized nations.

Question 64

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

Question 65

A tax is progressive if the ratio of taxes to income rises as income rises.

Question 66

Government spending plays no role in meeting our social and public needs.

Question 67

The personal income tax is the single largest source of revenue for the federal government.

Question 68

In a mixed economy, the government plays some role in the working of free markets.

Question 69

Expenditures on social programs, such as health care and income security, constitute more than half of U.S.federal expenditures in 2016.

Question 70

The corporate income tax is the single largest source of revenue for the federal government.

Question 71

Education accounts for the largest share of state and local government spending.

Question 72

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.

Question 73

A tax must be progressive if an individual with a higher income pays more dollars in taxes than an individual with a lower income.

Question 74

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

Question 75

The United States is an example of a mixed economy.

Question 76

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

Question 77

The government's budget accounts for about 80 percent of GDP in the United States.

Question 78

Antitrust laws are designed to promote competition.

Question 79

Transfer payments are money received as grants from government.

Question 80

The federal government receives most of its revenue from personal income taxes and payroll taxes.