c.
an inexpensive patent system
d.
All of the above are correct.
Easy
DISC: Productivity and growth
United States – BPROG: Analytic
Productivity and growth
Entrepreneurship
45. In 2013, the U.S. spending on research and development was:
a.
the lowest among developed countries
b.
more than any other country
c.
more than most countries, but not China
d.
consistent with spending on R&D in 2012
Moderate
DISC: Productivity and growth
United States – BPROG: Analytic
Productivity and growth
Innovation
46. For the average American, innovation has led to:
a.
an average income that is below many countries because of monies spent on R&D
b.
an average income that is not paralleled anywhere in the world
c.
an average income that exceeds that of all but the richest countries
d.
None of the above is correct.
Moderate
DISC: Productivity and growth
United States – BPROG: Reflective Thinking – BPROG: Analysis
Productivity and growth
Innovation
47. Before the Industrial Revolution, per capita income in the U.S. was about:
a.
b.
c.
d.
DISC: Productivity and growth
United States – BPROG: Analytic
Productivity and growth
48. In fiscal year 2014, the U.S. federal budget deficit amounted to about:
a.
1.2% of GDP
b.
3.7% of GDP
c.
4.5% of GDP
d.
10% of GDP
DISC: Monetary and fiscal policy
United States – BPROG: Analytic
Monetary and fiscal policy
The Budget Deficit and Public Debt
49. The U.S. government has accumulated a net national debt of almost 60% of GDP. Compared to other countries, this is:
a.
smaller than that of many fiscally healthy countries
b.
larger than that of many fiscally healthy countries
c.
about the same as that of troubled debtor nations
d.
larger than that of troubled debtor nations
DISC: Monetary and fiscal policy
United States – BPROG: Analytic
Monetary and fiscal policy
The Budget Deficit and Public Debt
50. Regarding the financial crisis of 2008-2009, and Americans’ spending habits, it is correct to say that:
a.
After 2000, the ratio of consumer debt to GDP dropped steadily.
b.
After the financial crisis of 2008-2009, many U.S. consumers incurred more debt.
c.
Since 2009, the ratio of consumer debt to GDP has come down notably.
d.
None of these is correct.
DISC: Measuring the Economy
United States – BPROG: Reflective Thinking – BPROG: Analysis
Measuring the Economy
The Budget Deficit and Public Debt
51. During periods of U.S. prosperity,
a.
imports from other countries are undesirable
b.
imports from other countries are sought out
c.
countries importing goods to the U.S. may use their earnings to buy American goods
d.
countries importing goods to the U.S. are unable to buy American goods
DISC: International trade and fi – DISC: International trade and finance
United States – BPROG: Reflective Thinking – BPROG: Analysis
International trade and finance
The Trade Deficit
52. If countries where wages are far lower than those in the U.S. manufacture similar but vastly cheaper products, then:
a.
U.S. consumers will buy those cheaper products
b.
U.S. producers will lose customers
c.
There will be a downward pressure on U.S. wages, and reduced employment
d.
All of the above statements are true.
DISC: International trade and fi – DISC: International trade and finance
United States – BPROG: Reflective Thinking – BPROG: Analysis
International trade and finance
The Trade Deficit
53. The U.S. switched from being a creditor nation to a debtor nation in:
a.
the 1970s
b.
the 1980s
c.
the 1990s
d.
2008-2009
DISC: International trade and fi – DISC: International trade and finance
United States – BPROG: Analytic
International trade and finance
The Trade Deficit
54. Life expectancy in the U.S.:
a.
is the highest in the world
b.
is the lowest in the world
c.
ranks about 100th in the world
d.
ranks about 40th in the world
United States – BPROG: Analytic
The study of economics, and defi – The study of economics, and definitions of economics
Health Care
55. In 2012, about _____% of all Americans under the age of 65 did not have health insurance.
a.
10%
b.
12%
c.
17%
d.
20%
United States – BPROG: Analytic
The study of economics, and defi – The study of economics, and definitions of economics
Health Care
56. Regarding U.S. health care costs, it is correct to say that:
a.
Americans pay more for health care than people in other developed countries.
b.
U.S. health care costs are growing faster than the growth in other countries.
c.
The level of health care costs are the source of fiscal pain that societies around the globe are experiencing.
d.
All of these statements are true.
United States – BPROG: Reflective Thinking – BPROG: Analysis
The study of economics, and defi – The study of economics, and definitions of economics
Health Care
57. As a share of GDP, U.S. spending on education is:
a.
comparable to that of other wealthy nations in the OECD
b.
about 26% higher than the average of wealthy nations in the OECD
c.
about 26% lower than the average of wealthy nations in the OECD
d.
rising slowly, but steadily
United States – BPROG: Analytic
The study of economics, and defi – The study of economics, and definitions of economics
58. The U.S. spends more on education, and achieves far worse results. The underling cause of this disparity may have to
do with:
a.
the cost per student spent
b.
the high degree of inequality in the U.S.
c.
the difference in property tax rates
d.
both the high degree of inequality in the U.S. and the difference in property tax rates
United States – BPRPOG: Analysis
The study of economics, and defi – The study of economics, and definitions of economics
59. Compared to OECD countries, in the U.S.
a.
the poverty level is above the OECD average, but inequality is below the average
b.
the poverty level is below the OECD average, but inequality is above the average
c.
both poverty and inequality levels are below the OECD average
d.
both poverty and inequality levels are above the OECD average
DISC: Efficiency and equity
United States – BPROG: Analytic
Efficiency and equity
Poverty and Inequality
60. Regarding poverty in U.S. society, it is correct to say that:
a.
Poverty affects a relatively small number of Americans.
b.
Poverty results from a failure to work hard.
c.
Most of the poor live in inner cities.
d.
None of these statements is true.
DISC: Efficiency and equity
United States – BPROG: Reflective Thinking – BPROG: Analysis
Efficiency and equity
Poverty and Inequality
61. About _____% of Americans between the ages of 25 and 60 will experience at least one year below the official
poverty line.
a.
3%
b.
10%
c.
27%
d.
40%
DISC: Efficiency and equity
United States – BPROG: Analytic
Efficiency and equity
Poverty and Inequality
62. The gains made against poverty by President Lyndon Johnson’s “War on Poverty” were largely reversed by:
a.
welfare cuts
b.
an elimination of many jobs to overseas manufacturing facilities
c.
slower economic growth
d.
all of the above.
e.
a and c only
DISC: Efficiency and equity
United States – BPROG: Reflective Thinking – BPROG: Analysis
Efficiency and equity
Poverty and Inequality
63. According to Piketty, economic history is the story of a race between:
a.
capital accumulation
b.
population growth
c.
technological progress
d.
all of the above
e.
a and c only
Difficult
DISC: Efficiency and equity
United States – BPRPOG: Analysis
Efficiency and equity
Poverty and Inequality
64. The future of the U.S as leader of the economic world:
a.
is likely to continue for generations to come
b.
will be sustained in the next generation, but not beyond
c.
requires U.S. action in several critical economic areas
d.
requires a return of manufacturing to the U.S.
c
Moderate
DISC: Monetary and fiscal policy
United States – BPRPOG: Analysis
Monetary and fiscal policy
Conclusions: Mixed Prospects for Future U.S. Growth
65. The best hope for continued growth of the U.S. economy probably lies in:
a.
a return of manufacturing to the U.S.
b.
innovation
c.
patents
d.
decreasing poverty
Difficult
DISC: Productivity and growth
United States – BPRPOG: Analysis
Productivity and growth
66. Professor Gordon posits that the best years of U.S. growth are behind us because of four “headwinds,” which are:
a.
lackluster growth and poverty
b.
demographids and education
c.
debt and inequality
d.
a and b only
e.
b and c only
e
Difficult
DISC: Productivity and growth
United States – BPROG: Reflective Thinking – BPROG: Analysis
Productivity and growth
67. According to economist Schumpeter, the first step in entrepreneurial growth is:
a.
little competition
b.
monopoly power
c.
zero economic profits
d.
creative destruction
Difficult
DISC: Productivity and growth
United States – BPRPOG: Analysis
Productivity and growth
Productivity Growth
68. In 2013, which of the following countries spent the most on Research and Development?
a.
China
b.
Germany
c.
Japan
d.
the U.S.
Moderate
DISC: Productivity and growth
United States – BPROG: Reflective Thinking – BPROG: Analysis
Productivity and growth
Innovation
69. From 2012-2013, which of the following countries increased its expenditures by more than 10%?
a.
China
b.
Germany
c.
Japan
d.
the U.S.
a
Moderate
DISC: Productivity and growth
United States – BPROG: Reflective Thinking – BPROG: Analysis
Productivity and growth
70. Among young Americans aged 19 to 25, _____% have no health insurance.
a.
11%
b.
17%
c.
22%
d.
26%
71. According to Professor Robert Gordon of Northwestern University, what are the four “headwinds” facing the U.S.
economy, and how do they interact with innovation?
72. Explain what protections and rules are in place for entrepreneurs, which encourages them to innovate.
73. One of the most controversial public policy issues in recent decades is the size and growth of the U.S. budget deficit
and public debt. Discuss where we are, compared to other countries, and how we got here.
74. Compare the U.S. health care system to that of other countries. Are we getting superior health care for the money we
spend?
75. How can it be that the U.S. spends more on education than many other nations, and achieves far worse results? What
may be the underlying reason?