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 one of the most marketized economies in the world.

Answer 2

True

Question 3

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

Answer 3

False

Question 4

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

Question 5

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

Question 6

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

Question 7

The U.S.economy rarely grows.

Question 8

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

Question 9

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

Question 10

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

Question 11

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

Question 12

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

Question 13

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

Question 14

Outputs include goods but not services.

Question 15

Population density varies little between the fifty states.

Question 16

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

Question 17

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

Question 18

In the United States,all property is privately owned.

Question 19

Real GDP per capita in the U.S.grows over time.

Question 20

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

Question 21

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

Question 22

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

Question 23

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

Question 24

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

Question 25

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

Question 26

Recessions are periods of declining economic activity.

Question 27

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

Question 28

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

Question 29

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

Question 30

In 2009,per capita real GDP was roughly half its value in 1960.

Question 31

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

Question 32

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

Question 33

Unemployment in the United States varies considerably over time.

Question 34

Consumer spending accounts for about 70 percent of GDP.

Question 35

A minority of American women work outside of the home.

Question 36

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

Question 37

Over the last several years the United States has had lower unemployment rates than most European countries.

Question 38

Roughly 145 million people in the United States hold jobs.

Question 39

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

Question 40

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

Question 41

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

Question 42

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

Question 43

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

Question 44

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

Question 45

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

Question 46

Transfer payments are money received as grants from government.

Question 47

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

Question 48

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

Question 49

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

Question 50

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

Question 51

In a mixed economy,there is some public influence over the workings of free markets.

Question 52

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

Question 53

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

Question 54

Multinational businesses produce and sell goods around the world.

Question 55

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 56

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

Question 57

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

Question 58

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

Question 59

Antitrust laws are designed to promote competition.

Question 60

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

Question 61

Which of the following is the most closed economy?

A) the Netherlands
B) the United States
C) Germany
D) Russia
E) Canada

Question 62

Which of the following is the best definition of openness?

A) The average of imports expressed as a share of GDP.
B) The average of goods traded in markets expressed as a share of GDP.
C) The average of imports and exports expressed as a share of GDP.
D) The average trade balance expressed as a share of GDP.
E) The average of exports expressed as a share of GDP.

Question 63

The working population of the United States is approximately

A) 145 million
B) 290 million
C) 300 million
D)1.3 billion

Question 64

If California were a separate economy,it would be the ____ largest economy on earth.

A) second
B) third
C) fifth
D) eighth

Question 65

In 2009,about what percentage of goods and services sold in the United States was imported?

A) 4%
B) 13%
C) 20%
D) 88%

Question 66

How does the United States compare to other advanced,industrialized economies on the issue of openness?

A) It is completely closed.
B) It is one of the less open of them.
C) It is about average in openness.
D) It is one of the more open of them.
E) It is the most open of them.

Question 67

Government ownership of property and resources in the United States is

A) about as common as it is in European countries.
B) widespread; the United States is a leader in the amount of government ownership of resources.
C) relatively rare; the United States is mostly privatized.
D) rare, but has been increasing rapidly as the United States catches up to other countries.

Question 68

The United States economy is

A) the third largest in the world.
B) larger than all other national economies combined.
C) second largest in the world, behind Japan.
D) largest in the world.

Question 69

The United States produces ____ of what it consumes,and consumes ____ of what it produces.

A) little, little
B) little, most
C) most, little
D) most, most

Question 70

Imports from China represent ____ of total U.S.imports.

A) less than 20%
B) approximately 40%
C) approximately 60%
D) more than 80%

Question 71

Which of the following is the most open economy?

A) Germany
B) the Netherlands
C) the United States
D) Japan
E) Canada

Question 72

Capitalism and free enterprise are common,and the United States

A) has just begun to move in that direction after years of central planning.
B) has gone further in that direction than almost any other country.
C) is becoming more "free," but is not as capitalistic as many others.
D) is considering a major change to "free up" its economy as many others have.
E) is leading the move toward greater central planning and control.

Question 73

The United States is an example of a mixed economy.

Question 74

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

Question 75

On a world scale,how populous is the U.S.economy?

A) first
B) second
C) third
D) fourth
E) fifth

Question 76

Inputs,or factors of production,include

A) labor.
B) machinery.
C) natural resources.
D) all of the above.

Question 77

Gross domestic product is

A) the largest industry in an economy.
B) the money value of all final goods and services produced in a year.
C) the volume of goods and services which are subject to international trade.
D) goods and services produced by private companies.
E) non-market production of goods and services.

Question 78

The United States has the largest economy in the world because

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 79

As of 2009,annual imports to the U.S.were approximately ____ and annual exports from the U.S.were approximately ____.

A) $0.6 trillion; $1.5 trillion
B) $2.0 trillion; $0.6 trillion
C) $2.0 trillion; $1.5 trillion
D) $1.5 trillion; $2.0 trillion
E) $2.0 trillion; $2.0 trillion

Question 80

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

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