Question 1

In order to measure what a country produces,we:

Accepted Answer

A)   Summarize total output in physical terms.
B)   Count units of output.
C)   Count the weight of different products.
D)   Summarize the monetary value of output.

Question 2

Which of the following is NOT viewed as a role for the U.S.government?

Accepted Answer

A)   Providing a legal framework for business.
B)   Owning the factors of production.
C)   Protecting consumers from exploitation.
D)   Protecting the environment.

Question 3

What does the government do to protect consumers from monopolies? List specific steps the government takes to protect consumers.

Accepted Answer

Government tries to prevent individual f...

Question 4

The value of output produced in the United States in current prices measures:

Accepted Answer

A)   GDP growth.
B)   Real GDP.
C)   Per capita GDP.
D)   Nominal GDP.

Question 5

Over the last century in the United States there has been an increase in _______ as a percentage of total output.

Accepted Answer

A)   Construction and mining
B)   Farming
C)   Manufacturing
D)   Services

Question 6

The goods and services sold to foreign buyers are:

Accepted Answer

A)   Imports.
B)   Exports.
C)   Income transfers.
D)   Externalities.

Question 7

The term externalities refers to:

Accepted Answer

A)   Black-market economic activity.
B)   Some costs and benefits of a market activity borne by a third party.
C)   The impact on markets of goods imported from foreign countries.
D)   Illegal economic activity.

Question 8

If output growth exceeds population growth for a country,then:

Accepted Answer

A)   Average living standards will increase.
B)   GDP must have grown at a very rapid rate.
C)   Per capita GDP will decrease.
D)   This country must have overcome the problem of scarcity.

Question 9

Changes in real GDP serve as a better measure of the health of the economy than changes in nominal GDP because real GDP is affected by changes in:

Accepted Answer

A)   Output only.
B)   Prices and output.
C)   Prices only.
D)   Average wages.

Question 10

Imports:

Accepted Answer

A)   Are goods and services sold to foreigners.
B)   Increase the value of GDP.
C)   Are a larger dollar value than exports for the United States.
D)   Equal exports in dollar value for most countries.

Question 11

If an individual purchases stock in the stock market,this is included in the economic definition of investment as a component of GDP.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following expenditures is the most important in expanding a country's production possibilities?

Accepted Answer

A)   Consumer goods.
B)   Investment goods.
C)   Government services.
D)   Net exports.

Question 13

Which of the following is NOT an example of investment,according to economists?

Accepted Answer

A)   A business builds a new factory.
B)   A private college buys a new copy machine to replace an old worn out machine.
C)   A family buys $10,000 worth of bonds.
D)   A department store buys additional men's jeans just before Christmas.

Question 14

If government intervention forces the economy inside the production possibilities curve,there is:

Accepted Answer

A)   Market failure.
B)   Government failure.
C)   An externality.
D)   Income inequality.

Question 15

Investment includes all of the following EXCEPT:

Accepted Answer

A)   The production of new factories.
B)   The purchase of new machinery and equipment.
C)   Money in a retirement fund.
D)   Business inventories.

Question 16

A market characterized as a monopoly:

Accepted Answer

A)   Prices tend to be lower and output tends to be higher.
B)   Output tends to be lower and prices tend to be higher.
C)   Quality and output tend to be higher.
D)   Prices tend to be lower and quality tends to be higher.

Question 17

Which of the following statements is true?

Accepted Answer

A)   A country's GDP includes all output produced by its factors of production.
B)   A country's GDP includes all output produced within its borders.
C)   A country's GDP is equal to its exports minus its imports.
D)   A country's GDP is equal to all output produced and consumed within its borders.

Question 18

Most businesses in the U.S.are classified as:

Accepted Answer

A)   Corporations.
B)   Partnerships.
C)   Proprietorships.
D)   Non-profit.

Question 19

Government income transfers are NOT included in the calculation of GDP because:

Accepted Answer

A)   It is difficult to measure the value of these payments.
B)   Most of these payments are paid to foreign immigrants.
C)   These payments do not have an impact on the WHAT question.
D)   These payments do not reflect the production of goods and services.

Question 20

The U.S.tax-transfer system gives more output to lower-income households than does the market alone.

Accepted Answer

A) True 
 B)False

Exam 2: The US Economy

Which of the following is NOT viewed as a role for the U.S.government?

Correct AnswerverifiedShow Answer

Government income transfers are NOT included in the calculation of GDP because:

Correct AnswerverifiedShow Answer

Investment includes all of the following EXCEPT:

Correct AnswerverifiedShow Answer

In order to measure what a country produces,we:

Correct AnswerverifiedShow Answer

The goods and services sold to foreign buyers are:

Correct AnswerverifiedShow Answer

Which of the following expenditures is the most important in expanding a country's production possibilities?

Correct AnswerverifiedShow Answer

The U.S.tax-transfer system gives more output to lower-income households than does the market alone.

Correct AnswerverifiedShow Answer

Most businesses in the U.S.are classified as:

Correct AnswerverifiedShow Answer

The term externalities refers to:

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Imports:

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What does the government do to protect consumers from monopolies? List specific steps the government takes to protect consumers.

Correct AnswerverifiedGovernment tries to prevent individual f...View AnswerShow Answer

Over the last century in the United States there has been an increase in _______ as a percentage of total output.

Correct AnswerverifiedShow Answer

If government intervention forces the economy inside the production possibilities curve,there is:

Correct AnswerverifiedShow Answer

The value of output produced in the United States in current prices measures:

Correct AnswerverifiedShow Answer

Which of the following is NOT an example of investment,according to economists?

Correct AnswerverifiedShow Answer

Changes in real GDP serve as a better measure of the health of the economy than changes in nominal GDP because real GDP is affected by changes in:

Correct AnswerverifiedShow Answer

A market characterized as a monopoly:

Correct AnswerverifiedShow Answer

If an individual purchases stock in the stock market,this is included in the economic definition of investment as a component of GDP.

Correct AnswerverifiedShow Answer

Which of the following statements is true?

Correct AnswerverifiedShow Answer

If output growth exceeds population growth for a country,then:

Correct AnswerverifiedShow Answer

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Government tries to prevent individual f...
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