Deck 2: The Economy: Myth and Reality

Question 1

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

Answer 1

False

Question 2

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

Answer 2

True

Question 3

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

Answer 3

True

Question 4

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

Question 5

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

Question 6

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

Question 7

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

Question 8

In the United States, all property is privately owned.

Question 9

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

Question 10

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

Question 11

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

Question 12

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

Question 13

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

Question 14

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

Question 15

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

Question 16

Population density varies little between the 50 states.

Question 17

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

Question 18

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

Question 19

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

Question 20

Outputs include goods but not services.

Question 21

A minority of American women work outside the home.

Question 22

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

Question 23

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

Question 24

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

Question 25

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

Question 26

Recessions are periods of declining economic activity.

Question 27

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

Question 28

The U.S. economy rarely grows.

Question 29

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

Question 30

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

Question 31

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

Question 32

Roughly 160 million people in the United States hold jobs.

Question 33

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

Question 34

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

Question 35

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

Question 36

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

Question 37

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

Question 38

Unemployment in the United States varies considerably over time.

Question 39

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

Question 40

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

Question 41

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

Question 42

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

Question 43

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

Question 44

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

Question 45

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

Question 46

Multinational businesses produce and sell goods around the world.

Question 47

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

Question 48

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

Question 49

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

Question 50

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

Question 51

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

Question 52

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

Question 53

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

Question 54

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

Question 55

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

Question 56

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

Question 57

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

Question 58

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

Question 59

Consumer spending accounts for about 50 percent of GDP.

Question 60

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

Question 61

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 62

Antitrust laws are designed to promote competition.

Question 63

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

Question 64

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

Question 65

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

Question 66

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

Question 67

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

Question 68

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

Question 69

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

Question 70

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

Question 71

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

Question 72

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

Question 73

Transfer payments are money received as grants from government.

Question 74

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

Question 75

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

Question 76

The United States is an example of a mixed economy.

Question 77

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

Question 78

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

Question 79

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

Question 80

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.