1. The U.S. remains the world’s economic leader in all respects.
a.
True
b.
False
False
Easy
2. Americans will benefit if China has enough purchasing power to enable its people to buy American products.
a.
True
b.
False
True
Easy
3. Generally, economists agree that the economic outlook for the U.S. is seriously challenged.
a.
True
b.
False
False
Moderate
4. In general, productivity levels are much higher in richer countries like the U.S.
a.
True
b.
False
True
Moderate
5. The growth rates of capital, workforce skills and technology are higher in rich countries.
a.
True
b.
False
False
Moderate
6. One protection that encouraged entrepreneurs in the U.S. was the enforceability of contracts by the courts.
a.
True
b.
False
True
Difficult
Entrepreneurship
7. One benefit of U.S. society that helped foster entrepreneurship was free public high school education.
a.
True
b.
False
True
Moderate
Entrepreneurship
8. One benefit of U.S. society that encouraged entrepreneurship was the inflow of capable immigrants.
a.
True
b.
False
True
Moderate
Entrepreneurship
9. In 2013, the U.S. spent more on research and development than any other country in the world.
a.
True
b.
False
True
Moderate
Innovation
10. At the beginning of the 20th century, average U.S. income was less than $6,000; as of 2013, the average income was
nearly $53,000.
a.
True
b.
False
True
Moderate
Innovation
11. Currently, the U.S. net national debt is almost 60 percent of GDP, but this percentage is smaller than that of many
fiscally healthy countries.
a.
True
b.
False
True
Difficult
12. Debt grew faster than GDP during and after the recent Great Recession, when the government had to spend more (as
for unemployment benefits), while its tax revenue shrank.
a.
True
b.
False
True
Moderate
13. The U.S. debt problem is caused by the government only; individuals don’t go into debt.
a.
True
b.
False
False
Easy
14. If American imports run chronically above our exports, a trade deficit develops.
a.
True
b.
False
15. Chronic trade deficits lead to a growing public debt.
a.
True
b.
False
16. Previously a creditor nation, in the 1980s the U.S. became a debtor nation.
a.
True
b.
False
17. The cost of a hospital stay has been going down slowly.
a.
True
b.
False
False
Easy
18. In the last decade, health care spending in the U.S. nearly doubled.
a.
True
b.
False
True
Easy
economics
19. In the U.S., health care may be expensive, but Americans enjoy the longest life-expectancy of any nation.
a.
True
b.
False
False
Moderate
economics
20. In the last decade, spending on education has been slowing.
a.
True
b.
False
False
Easy
Education
21. American high school students’ test scores, especially in math and science, are higher than those in OECD countries.
a.
True
b.
False
False
Moderate
Education
22. Poverty and inequality in the U.S. are well below the OECD average.
a.
True
b.
False
False
Moderate
23. In the U.S. the percentage of the population that directly encounters poverty is exceedingly high.
a.
True
b.
False
True
Moderate
24. Poverty is a mainstream event experienced by a majority of Americans.
a.
True
b.
False
False
Difficult
25. Piketty’s analysis concludes that unequal ownership of capital, rather than unequal pay, is responsible for notably high
levels of inequality in the decades since the 1980s.
a.
True
b.
False
True
Moderate
26. While it is not certain that U.S. leadership will continue into the next generation, the nation will continue to enjoy the
abundance it has enjoyed in the past.
a.
True
b.
False
False
27. America’s prosperity and economic growth is secure for the foreseeable future.
a.
True
b.
False
False
Difficult
28. In recent decades, other countries have caught up to the U.S. and even surpassed it in some important economic
arenas.
a.
True
b.
False
False
Difficult
29. It is urgent that the U.S. improve in certain economic arenas.
a.
True
b.
False
False
Difficult
30. In some respects, the U.S. has fallen behind other nations.
a.
True
b.
False
True
Moderate
31. Some economists believe that our best years of economic growth are behind us.
a.
True
b.
False
True
Difficult
32. If a poor country can “catch up” to a rich country, its productivity rises more rapidly than the productivity of the rich
country.
a.
True
b.
False
True
Difficult
33. In terms of innovation and growth, the U.S. economic system has far exceeded the achievements of any other type of
economy, even in ancient history.
a.
True
b.
False
True
Moderate
Innovation
34. The subject of borrowing by the U.S. from its citizens and from other countries, has resulted in one of the fiercest
policy debates in recent years.
a.
True
b.
False
True
Easy
United States – BPROG: Analytic
Monetary and fiscal policy
The Budget Deficit and Public Debt
35. Chronic trade deficits lead to a growing national debt.
a.
True
b.
False
True
Moderate
DISC: Monetary and fiscal policy
United States – BPROG: Reflective Thinking – BPROG: Analysis
Monetary and fiscal policy
The Trade Deficit
36. The continued position of the United States as the world’s economic leader is:
a.
assured
b.
predictable
c.
automatic
d.
uncertain
Moderate
DISC: Productivity and growth
United States – BPROG: Analytic
Productivity and growth
37. In recent decades, other countries have:
a.
caught up to the U.S. in several important economic arenas
b.
surpassed the U.S. in several important economic arenas
c.
both of the above are true
c
Difficult
DISC: Productivity and growth
United States – BPROG: Reflective Thinking – BPROG: Analysis
Productivity and growth
38. In early 2013, two economists debated the question of whether:
a.
the trade deficit should be reduced rapidly or steadily
b.
the United States was past its prime
c.
the percentage of health care to GDP was a warning sign for the economy
d.
none of these
Moderate
DISC: Productivity and growth
United States – BPROG: Analytic
Productivity and growth
39. Productivity levels in rich countries are:
a.
higher than in poor countries
b.
lower than in poor countries
c.
about the same as in poor countries
d.
not related to those in poor countries
a
Moderate
DISC: Productivity and growth
United States – BPROG: Reflective Thinking – BPROG: Analysis
Productivity and growth
Productivity Growth
40. A country like the U.S., which is operating at the technological frontier, can improve its technology only by:
a.
repurposing
b.
redeveloping
c.
innovating
d.
purchasing
c
Moderate
DISC: Productivity and growth
United States – BPROG: Reflective Thinking – BPROG: Analysis
Productivity and growth
Productivity Growth
41. A less advanced country can improve its productivity by:
a.
repurposing
b.
imitating
c.
reusing
d.
redeveloping
Moderate
DISC: Productivity and growth
United States – BPROG: Analytic
Productivity and growth
Productivity Growth
42. Which of the following statements is true of entrepreneurs?
a.
They have a talent for spotting new profit-making opportunities.
b.
They are an indispensable ingredient to the U.S.’s unprecedented growth performance
c.
They are an indispensable ingredient to the U.S.’s success over the centuries.
d.
All of the above are true.
Easy
DISC: Productivity and growth
United States – BPROG: Analytic
Productivity and growth
Entrepreneurship
43. Which of the following encourage(s) entrepreneurs to innovate?
a.
the patent system
b.
the enforcement of contracts by the courts
c.
private property rights
d.
All of the above are correct.
Easy
DISC: Productivity and growth
United States – BPROG: Analytic
Productivity and growth
Entrepreneurship
44. Innovation in the U.S. was spurred by:
a.
a free high school education in the U.S.
b.
an influx of capable immigrants