Ch 5 The US Economy: Private And Public Sectors

10 Questions

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Economy Quizzes & Trivia

The private sector is the part of a country's economic system that is run by individuals and companies. In a good business economy, the public sector should not suffocate private sectors. How well do you understand the public and private sector in the US economy? Take the quiz to find out.


Questions and Answers
  • 1. 
    The personal distribution of income describes the manner in which society's total personal income is divided among wages and salaries, corporate profits, proprietors' income, interest, and rents.
    • A. 

      True

    • B. 

      False

  • 2. 
    Personal taxes have risen in relative terms since World War II.
    • A. 

      True

    • B. 

      False

  • 3. 
    Most of the personal saving in the US economy is done by those households in the top 10% of its income receivers.
    • A. 

      True

    • B. 

      False

  • 4. 
    Dissaving means that personal consumption expenditures exceed after-tax income.
    • A. 

      True

    • B. 

      False

  • 5. 
    A durable good is defined as a good that last has an expected life of 3 years or more.
    • A. 

      True

    • B. 

      False

  • 6. 
    A plant is defined as a group of firms under a single management.
    • A. 

      True

    • B. 

      False

  • 7. 
    An industry is a group of firms that produce the same or nearly the same product.
    • A. 

      True

    • B. 

      False

  • 8. 
    Limited liability refers to the fact that all members of a partnership are liable for the debts incurred by one another.
    • A. 

      True

    • B. 

      False

  • 9. 
    The corporate form of organization is the least used by firms in the US.
    • A. 

      True

    • B. 

      False

  • 10. 
    The corporation in the US has a tax advantage over other legal forms of business organization.
    • A. 

      True

    • B. 

      False