Deck 2: The Economy: Myth and Reality

Question 1

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

Answer 1

False

Question 2

In the United States, all property is privately owned.

Answer 2

False

Question 3

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

Answer 3

False

Question 4

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

Question 5

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

Question 6

Population density varies little between the 50 states.

Question 7

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

Question 8

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

Question 9

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

Question 10

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

Question 11

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

Question 12

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

Question 13

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

Question 14

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

Question 15

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

Question 16

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

Question 17

Outputs include goods but not services.

Question 18

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

Question 19

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

Question 20

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

Question 21

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

Question 22

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

Question 23

The U.S. economy rarely grows.

Question 24

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

Question 25

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

Question 26

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

Question 27

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

Question 28

Unemployment in the United States varies considerably over time.

Question 29

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

Question 30

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

Question 31

Recessions are periods of declining economic activity.

Question 32

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

Question 33

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

Question 34

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

Question 35

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

Question 36

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

Question 37

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

Question 38

A minority of American women work outside the home.

Question 39

Roughly 160 million people in the United States hold jobs.

Question 40

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

Question 41

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

Question 42

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

Question 43

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

Question 44

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

Question 45

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

Question 46

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

Question 47

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

Question 48

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

Question 49

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

Question 50

Consumer spending accounts for about 50 percent of GDP.

Question 51

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

Question 52

Multinational businesses produce and sell goods around the world.

Question 53

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

Question 54

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

Question 55

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

Question 56

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

Question 57

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

Question 58

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

Question 59

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

Question 60

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

Question 61

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

Question 62

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

Question 63

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

Question 64

The United States is an example of a mixed economy.

Question 65

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

Question 66

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

Question 67

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

Question 68

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 69

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

Question 70

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

Question 71

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 72

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

Question 73

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

Question 74

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

Question 75

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

Question 76

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

Question 77

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

Question 78

Transfer payments are money received as grants from government.

Question 79

Antitrust laws are designed to promote competition.

Question 80

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