Question 1

What important changes have occurred in the composition of the labor force since 1960? Is the popular image of the American worker as a factory worker accurate? Describe the types of jobs Americans are working in today.

Accepted Answer

The answer of What important changes have occurred in the...

Question 2

Which of the following nations can be called a mixed economy?

Accepted Answer

All of these nations are considered mixed economies as they have elements of both free market capitalism and government intervention/regulation. The United States has a relatively free market economy with some government regulations and interventions, Italy has a mixed economy with a strong government role in some industries like healthcare and banking, Sweden has a strong welfare state with high taxation and government intervention in areas like education and healthcare, and France has a mixed economy with some state-owned enterprises and government regulations in industries like energy and transportation.

Question 3

How does the United States compare to other nations on a per capita scale as far as government production and taxation?

Accepted Answer

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Question 4

The largest share of the typical American family budget goes to

Accepted Answer

According to the Bureau of Labor Statistics, housing accounts for approximately 33% of the average American's budget, making it the largest expense category. This includes expenses such as rent/mortgage payments, utilities, and home maintenance.

Question 5

Progressive income taxes are designed to

Accepted Answer

Progressive income taxes mean that those who earn more pay a higher percentage of their income in taxes, which results in a more equal distribution of income. Therefore, the answer is D, making the distribution of income more equal.

Question 6

Since the 1970s, unemployment rates in the United States have generally been

Accepted Answer

Since the 1970s, unemployment rates in the United States have generally been lower than in Europe.

Question 7

Annual incomes of James, Jack, and Stanley are $30,000, $50,000, and $80,000 and their tax rates are 10 percent, 20 percent, and 30 percent respectively. Which tax structure is this an example of?

Accepted Answer

This tax structure is an example of a progressive tax because the tax rates increase as the income of the taxpayers increases. The higher-income earner, Stanley, has a higher tax rate than James and Jack, who earn less.

Question 8

Is the image of the typical American worker as a blue-collar worker true? Substantiate your answer with facts.

Accepted Answer

The answer of Is the image of the typical American...

Question 9

A mixed economy is one in which

Accepted Answer

In a mixed economy, the government plays a role in the operation of private markets. Private businesses are allowed to operate freely, but the government also regulates and intervenes in certain areas to promote fairness, competition, and public goods.

Question 10

The United States provides a reasonable illustration of

Accepted Answer

The United States has a mixed economy, characterized by elements of both market-based economic systems and government-intervened economic systems. While the majority of the economy operates based on the laws of supply and demand, the government plays a significant role in regulating markets, providing public goods and services, and managing economic stability.

Question 11

The government redistributes income to the poor, primarily through

Accepted Answer

Transfer payments, such as welfare and food stamps, are direct payments from the government to individuals and families in need, which primarily benefits the poor. These transfer payments are funded in part by progressive taxes, which are taxes that require higher-income individuals to pay a higher percentage of their income. This redistribution of income helps to decrease income inequality and provide a safety net for the most vulnerable members of society.

Question 12

In a mixed economy,

Accepted Answer

In a mixed economy, there is a mixture of both private and public involvement in the economy, but the government still has some control and influence over the workings of the free market. This allows for some regulation and intervention, but also allows for the free market to operate to a certain extent. Therefore, choice C is the correct answer. Choices A and B are incorrect because not all economies have the same mix of private and public involvement, and the government is not necessarily more important than the private sector in generating output. Choice D is incorrect because only choice C is correct.

Question 13

Between 1960 and 2017 U.S. GDP, measured in dollars of constant purchasing power, expanded by a factor of 5. However, the standard of living only increased by 3 times over this period. Explain the difference.

Accepted Answer

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Question 14

All of the following are associated with a mixed economy except

Accepted Answer

The concept of a mixed economy involves a combination of both public and private ownership of productive resources, with some level of public influence over markets. However, it does not involve complete public ownership of all productive resources within a society. Therefore, choice C is not associated with a mixed economy.

Question 15

A typical American family sends about _____ percent of its budget on services.

Accepted Answer

According to the Bureau of Labor Statistics, as of 2019, a typical American family spends around 66% of its budget on services which includes things like housing, transportation, healthcare, and entertainment.

Question 16

The U.S. economy is the largest in the world. What two factors primarily explain this? What makes the U.S. economy unique?

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Question 17

Differentiate between an open and a closed economy? Do you agree that the U.S. economy is more open among the advanced industrial countries in the world?

Accepted Answer

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Question 18

Based on data from 2016, which of the following countries has the lowest tax burden?

Accepted Answer

According to 2016 data, the United States has the lowest tax burden among the given options.

Question 19

Since the mid-1970s, compared to the United States, European unemployment rates are/is

Accepted Answer

Since the mid-1970s, European unemployment rates have been consistently higher than those in the United States.

Question 20

List five major economic activities of government, and give an example of each.

Accepted Answer

The answer of List five major economic activities of government,...

Quiz 2: The Economy: Myth and Reality