Question 1

According to economists,which of the following is NOT a factor of production?

Accepted Answer

A) Land. 
B) Labor. 
C) Money. 
D) Entrepreneurship. 
A) Land. 
B) Labor. 
C) Money. 
D) Entrepreneurship.

Question 2

As a nation's average education level increases,the nation's level of productivity

Accepted Answer

A) Increases,and the production possibilities curve shifts to the right. 
B) Decreases,and the nation's production possibilities curve shifts to the left. 
C) Increases,and the nation moves to a new point on the same production possibilities curve. 
D) Decreases,and the nation moves to a new point on the same production possibilities curve. 
A) Increases,and the production possibilities curve shifts to the right. 
B) Decreases,and the nation's production possibilities curve shifts to the left. 
C) Increases,and the nation moves to a new point on the same production possibilities curve. 
D) Decreases,and the nation moves to a new point on the same production possibilities curve.

Question 3

As the U.S.economy relies more and more heavily on the production of services rather than goods,

Accepted Answer

A) GDP will decrease since there will be less real production. 
B) International trade will become more difficult. 
C) Mass unemployment will result. 
D) Nearly all future job growth will be in service-producing industries. 
A) GDP will decrease since there will be less real production. 
B) International trade will become more difficult. 
C) Mass unemployment will result. 
D) Nearly all future job growth will be in service-producing industries.

Question 4

Which of the following is an indicator of how much output the average person would get if all output were divided up evenly among the population?

Accepted Answer

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

Question 5

A monopoly exists when

Accepted Answer

A) A small number of firms are the only producers of a good. 
B) A large number of firms are producing a good. 
C) The government intervenes on behalf of consumers. 
D) One firm produces all the output for a particular good or service. 
A) A small number of firms are the only producers of a good. 
B) A large number of firms are producing a good. 
C) The government intervenes on behalf of consumers. 
D) One firm produces all the output for a particular good or service.

Question 6

Externalities measure

Accepted Answer

A) Only costs of a market activity borne by a third party. 
B) Only benefits of a market activity borne by a third party. 
C) Either costs or benefits of a market activity borne by a third party. 
D) None of the choices are correct. 
A) Only costs of a market activity borne by a third party. 
B) Only benefits of a market activity borne by a third party. 
C) Either costs or benefits of a market activity borne by a third party. 
D) None of the choices are correct.

Question 7

As of 2010,per capita GDP in the United States was approximately how many times the world average?

Accepted Answer

A) 3. 
B) 5. 
C) 7. 
D) 9. 
A) 3. 
B) 5. 
C) 7. 
D) 9.

Question 8

Which component(s)of U.S.real GDP decreased in size relative to total U.S.real GDP from 1950 to 2000?

Accepted Answer

A) Only agriculture. 
B) Only manufacturing. 
C) Agriculture and manufacturing. 
D) Only services. 
A) Only agriculture. 
B) Only manufacturing. 
C) Agriculture and manufacturing. 
D) Only services.

Question 9

As of the year 2000,services accounted for what percentage of total U.S.output?

Accepted Answer

A) 25 percent. 
B) 50 percent. 
C) 80 percent. 
D) 90 percent. 
A) 25 percent. 
B) 50 percent. 
C) 80 percent. 
D) 90 percent.

Question 10

The relative decline in goods production compared to services produced means that we're producing fewer goods than in earlier decades.

Accepted Answer

A) True 
 B)False

Question 11

When the government provides a legal framework,

Accepted Answer

A) Private market transactions suffer and government market transactions suffer. 
B) Private market transactions suffer and government market transactions benefit. 
C) Private market transactions benefit and government market transactions benefit. 
D) None of the choices are correct. 
A) Private market transactions suffer and government market transactions suffer. 
B) Private market transactions suffer and government market transactions benefit. 
C) Private market transactions benefit and government market transactions benefit. 
D) None of the choices are correct.

Question 12

If population growth is less than output growth for a country,

Accepted Answer

A) Real GDP has decreased. 
B) Average living standards will decrease. 
C) GDP must have fallen at a fairly rapid rate. 
D) The per capita living standard will increase. 
A) Real GDP has decreased. 
B) Average living standards will decrease. 
C) GDP must have fallen at a fairly rapid rate. 
D) The per capita living standard will increase.

Question 13

The richest fifth of U.S.households get nearly half of all U.S.income.

Accepted Answer

A) True 
 B)False

Question 14

A country that increased its literacy rate and thereby its average human capital would probably

Accepted Answer

A) Decrease GDP. 
B) Increase GDP. 
C) Have not impact on GDP. 
D) None of the choices are correct. 
A) Decrease GDP. 
B) Increase GDP. 
C) Have not impact on GDP. 
D) None of the choices are correct.

Question 15

The United States has roughly how much of the world's population?

Accepted Answer

A) 5 percent. 
B) 10 percent. 
C) 15 percent. 
D) 20 percent. 
A) 5 percent. 
B) 10 percent. 
C) 15 percent. 
D) 20 percent.

Question 16

The role of the government in establishing how private business can operate includes all of the following except

Accepted Answer

A) Providing a legal framework. 
B) Providing raw materials to business. 
C) Protecting the environment. 
D) Protecting consumers from defective products. 
A) Providing a legal framework. 
B) Providing raw materials to business. 
C) Protecting the environment. 
D) Protecting consumers from defective products.

Question 17

When the production of a good creates external costs,

Accepted Answer

A) Profits for the producer of the good will be lower. 
B) Production of the good will be lower. 
C) Society's collective well-being will be lower. 
D) The level of environmental pollution will be lower. 
A) Profits for the producer of the good will be lower. 
B) Production of the good will be lower. 
C) Society's collective well-being will be lower. 
D) The level of environmental pollution will be lower.

Question 18

The 'WHAT goods and services does the US produce' question can best be answered using data about which of the following?

Accepted Answer

A) The distribution of output in markets,specifically among manufacturing,services,and agricultural sectors. 
B) Per capita GDP. 
C) Productivity. 
D) The distribution of GDP among different income quintiles. 
A) The distribution of output in markets,specifically among manufacturing,services,and agricultural sectors. 
B) Per capita GDP. 
C) Productivity. 
D) The distribution of GDP among different income quintiles.

Question 19

What is human capital,and how does it affect U.S.productivity?

Accepted Answer

Human capital is the knowledge and skill

Question 20

Which of the following has been a century-long trend in the United States?

Accepted Answer

A) Decline of total value of world trade. 
B) Relative increase in farming to manufacturing. 
C) Relative decline in manufacturing to the service sector. 
D) Relative decline in service sector to manufacturing. 
A) Decline of total value of world trade. 
B) Relative increase in farming to manufacturing. 
C) Relative decline in manufacturing to the service sector. 
D) Relative decline in service sector to manufacturing.

Exam 2: The Useconomy: a Global View

According to economists,which of the following is NOT a factor of production?

As a nation's average education level increases,the nation's level of productivity

As the U.S.economy relies more and more heavily on the production of services rather than goods,

Which of the following is an indicator of how much output the average person would get if all output were divided up evenly among the population?

A monopoly exists when

Externalities measure

As of 2010,per capita GDP in the United States was approximately how many times the world average?

Which component(s)of U.S.real GDP decreased in size relative to total U.S.real GDP from 1950 to 2000?

As of the year 2000,services accounted for what percentage of total U.S.output?

The relative decline in goods production compared to services produced means that we're producing fewer goods than in earlier decades.

When the government provides a legal framework,

If population growth is less than output growth for a country,

The richest fifth of U.S.households get nearly half of all U.S.income.

A country that increased its literacy rate and thereby its average human capital would probably

The United States has roughly how much of the world's population?

The role of the government in establishing how private business can operate includes all of the following except

When the production of a good creates external costs,

The 'WHAT goods and services does the US produce' question can best be answered using data about which of the following?

What is human capital,and how does it affect U.S.productivity?

Which of the following has been a century-long trend in the United States?

Economics: the Core Issues

Supply and Demand

The Role of Government

National Income Accounting

Unemployment

Inflation

The Business Cycle

Aggregate Demand

Self-Adjustment or Instability

Fiscal Policy

Deficits and Debt

Money and Banks

The Federal Reserve System

Monetary Policy

Supply-Side Policy: Short-Run Options

Growth and Productivity: Long-Run Possibilities

Theory Versus Reality

Consumer Choice

Elasticity

The Costs of Production

The Competitive Firm

Competitive Markets

Monopoly

Oligopoly

Monopolistic Competition

Natural Monopolies: Deregulation

Environmental Protection

The Farm Problem

The Labor Market

Labor Unions

Financial Markets

Taxes: Equity Versus Efficiency

Transfer Payments: Welfare and Social Security

International Trade

International Finance

Global Poverty

Filters