Question 1

As of 2015,per capita GDP in the United States was approximately

Accepted Answer

A) $26,000. 
B) $37,000. 
C) $56,000. 
D) None of the choices are correct. 
A) $26,000. 
B) $37,000. 
C) $56,000. 
D) None of the choices are correct.

Question 2

Although the necessary role of government in the economy is highly debated,many people agree that it should

Accepted Answer

A) Provide a legal framework. 
B) Protect the environment. 
C) Protect consumers and labor. 
D) All of the choices are correct. 
A) Provide a legal framework. 
B) Protect the environment. 
C) Protect consumers and labor. 
D) All of the choices are correct.

Question 3

When compared to the average household in most low-income countries,poor people in the United States,on average,receive

Accepted Answer

A) About the same amount of goods and services. 
B) Somewhat fewer goods and services. 
C) Far fewer goods and services. 
D) Far more goods and services. 
A) About the same amount of goods and services. 
B) Somewhat fewer goods and services. 
C) Far fewer goods and services. 
D) Far more goods and services.

Question 4

Factor mobility aids in economic development when

Accepted Answer

A) A region suffers a natural disaster such as an earthquake or tornado. 
B) A technological advance causes some firms to go out of business. 
C) There is an increase in both outsourcing and insourcing. 
D) All of the choices are correct. 
A) A region suffers a natural disaster such as an earthquake or tornado. 
B) A technological advance causes some firms to go out of business. 
C) There is an increase in both outsourcing and insourcing. 
D) All of the choices are correct.

Question 5

The current U.S.economy is based primarily on the production of

Accepted Answer

A) Agricultural goods. 
B) Goods for federal government use. 
C) Manufacturing goods. 
D) Services. 
A) Agricultural goods. 
B) Goods for federal government use. 
C) Manufacturing goods. 
D) Services.

Question 6

Average living standards are best measured using

Accepted Answer

A) GDP. 
B) The economic growth of the economy. 
C) Per capita GDP. 
D) The capital stock of the economy. 
A) GDP. 
B) The economic growth of the economy. 
C) Per capita GDP. 
D) The capital stock of the economy.

Question 7

Production processes that use a high ratio of capital to labor inputs are referred to as

Accepted Answer

A) Labor-intensive. 
B) Production-intensive. 
C) Capital-intensive. 
D) Factor-intensive. 
A) Labor-intensive. 
B) Production-intensive. 
C) Capital-intensive. 
D) Factor-intensive.

Question 8

The government intervenes in the economy to protect labor by

Accepted Answer

A) Enforcing child labor laws to prevent child exploitation. 
B) Ensuring workplace safety conditions. 
C) Ensuring minimum wages in addition to overtime provisions. 
D) All of the choices are correct. 
A) Enforcing child labor laws to prevent child exploitation. 
B) Ensuring workplace safety conditions. 
C) Ensuring minimum wages in addition to overtime provisions. 
D) All of the choices are correct.

Question 9

Whenever technology advances,an economy can produce more output with

Accepted Answer

A) Fewer resources. 
B) More resources. 
C) Current resources. 
D) No resources. 
A) Fewer resources. 
B) More resources. 
C) Current resources. 
D) No resources.

Question 10

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

Accepted Answer

A) 14 percent. 
B) 12 percent. 
C) 10 percent. 
D) 8 percent. 
A) 14 percent. 
B) 12 percent. 
C) 10 percent. 
D) 8 percent.

Question 11

A capital-intensive production process is one that

Accepted Answer

A) Has a high ratio of labor to capital. 
B) Has a high ratio of capital to labor. 
C) Is used only in the United States. 
D) All of the choices are correct. 
A) Has a high ratio of labor to capital. 
B) Has a high ratio of capital to labor. 
C) Is used only in the United States. 
D) All of the choices are correct.

Question 12

Economic growth

Accepted Answer

A) Is an increase in output or real GDP. 
B) Causes a contraction in the production possibilities curve. 
C) Involves reduced capacity in the short run. 
D) None of the choices are correct. 
A) Is an increase in output or real GDP. 
B) Causes a contraction in the production possibilities curve. 
C) Involves reduced capacity in the short run. 
D) None of the choices are correct.

Question 13

The term externalities refers to

Accepted Answer

A) Only positive benefits of a market activity borne by a third party. 
B) Only negative costs of a market activity borne by a third party. 
C) The negative costs and positive benefits of a market activity borne by a third party. 
D) None of the choices are correct. 
A) Only positive benefits of a market activity borne by a third party. 
B) Only negative costs of a market activity borne by a third party. 
C) The negative costs and positive benefits of a market activity borne by a third party. 
D) None of the choices are correct.

Question 14

Education and training are examples of investment in human capital.

Accepted Answer

A) True 
 B)False

Question 15

According to the World View chart in the text,from highest to lowest real GDP,which is correct?

Accepted Answer

A) United States,Japan,China,Germany,Britain. 
B) USA,China,Japan,Germany,Britain. 
C) United States,China,Japan,Germany,Britain. 
D) United States,China,Germany,Japan,Canada. 
A) United States,Japan,China,Germany,Britain. 
B) USA,China,Japan,Germany,Britain. 
C) United States,China,Japan,Germany,Britain. 
D) United States,China,Germany,Japan,Canada.

Question 16

Government intervention is sometimes used to reduce the external costs of production.

Accepted Answer

A) True 
 B)False

Question 17

Approximately how much of the world's output does the United States produce?

Accepted Answer

A) 5 percent. 
B) 18 percent. 
C) 30 percent. 
D) 12 percent. 
A) 5 percent. 
B) 18 percent. 
C) 30 percent. 
D) 12 percent.

Question 18

The government regulates food additives

Accepted Answer

A) To keep food producers from dominating their markets. 
B) To restrain the market power of food producers. 
C) To assess their safety. 
D) To prevent externalities. 
A) To keep food producers from dominating their markets. 
B) To restrain the market power of food producers. 
C) To assess their safety. 
D) To prevent externalities.

Question 19

The 20 percent of families with the lowest income in the United States receive approximately ________ percent of total income.

Accepted Answer

A) 1 
B) 3 
C) 15 
D) 20 
A) 1 
B) 3 
C) 15 
D) 20

Question 20

As of 2010,to be in the bottom quintile for income distribution in the United States,a family needed in income no more than

Accepted Answer

A) $15,000. 
B) $23,000. 
C) $27,000. 
D) $35,000. 
A) $15,000. 
B) $23,000. 
C) $27,000. 
D) $35,000.

Exam 2: The Useconomy: a Global View

As of 2015,per capita GDP in the United States was approximately

Although the necessary role of government in the economy is highly debated,many people agree that it should

When compared to the average household in most low-income countries,poor people in the United States,on average,receive

Factor mobility aids in economic development when

The current U.S.economy is based primarily on the production of

Average living standards are best measured using

Production processes that use a high ratio of capital to labor inputs are referred to as

The government intervenes in the economy to protect labor by

Whenever technology advances,an economy can produce more output with

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

A capital-intensive production process is one that

Economic growth

The term externalities refers to

Education and training are examples of investment in human capital.

According to the World View chart in the text,from highest to lowest real GDP,which is correct?

Government intervention is sometimes used to reduce the external costs of production.

Approximately how much of the world's output does the United States produce?

The government regulates food additives

The 20 percent of families with the lowest income in the United States receive approximately ________ percent of total income.

As of 2010,to be in the bottom quintile for income distribution in the United States,a family needed in income no more than

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