Deck 2: The Economy Myth and Reality

Question 1

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

Answer 1

False

Question 2

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

Answer 2

True

Question 3

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

Answer 3

False

Question 4

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

Question 5

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

Question 6

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

Question 7

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

Question 8

The U.S.economy rarely grows.

Question 9

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

Question 10

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

Question 11

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

Question 12

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

Question 13

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

Question 14

In the United States,all property is privately owned.

Question 15

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

Question 16

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

Question 17

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

Question 18

Outputs include goods but not services.

Question 19

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

Question 20

Population density varies little between the fifty states.

Question 21

A minority of American women work outside of the home.

Question 22

Recessions are periods of declining economic activity.

Question 23

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

Question 24

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

Question 25

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

Question 26

Roughly 144 million people in the United States hold jobs.

Question 27

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

Question 28

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

Question 29

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

Question 30

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

Question 31

In 2013,per capita real GDP was roughly half its value in 1960.

Question 32

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

Question 33

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

Question 34

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

Question 35

Unemployment in the United States varies considerably over time.

Question 36

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

Question 37

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

Question 38

Consumer spending accounts for about 70 percent of GDP.

Question 39

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

Question 40

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

Question 41

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

Question 42

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

Question 43

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

Question 44

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

Question 45

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

Question 46

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 47

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

Question 48

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

Question 49

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

Question 50

Antitrust laws are designed to promote competition.

Question 51

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

Question 52

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

Question 53

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

Question 54

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

Question 55

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

Question 56

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

Question 57

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

Question 58

Multinational businesses produce and sell goods around the world.

Question 59

Transfer payments are money received as grants from government.

Question 60

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

Question 61

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

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

Question 62

The United States is an example of a mixed economy.

Question 63

Inputs,or factors of production,include

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

Question 64

The working population of the United States is approximately

A) 144 million
B) 290 million
C) 300 million
D) 1.3 billion

Question 65

A mixed economy blends private and public elements.​

Question 66

In 2013,about what percentage of goods and services sold in the United States was imported?

A) 5%
B) 16%
C) 22%
D) 88%

Question 67

The U.S.has the biggest national economy in the world solely because of the U.S.population.

Question 68

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 69

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 70

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

Question 71

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 72

As of 2013,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) $2.2 trillion; $0.7 trillion
C) $2.7 trillion; $2.3 trillion
D) $1.5 trillion; $2.0 trillion
E) $2.0 trillion; $2.0 trillion

Question 73

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 74

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 75

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

Question 76

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

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

Question 77

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

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

Question 78

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 79

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 80

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