Question 1

Outsourcing is a source of increased U.S.output.

Accepted Answer

A) True 
 B)False

Question 2

Factor mobility refers to

Accepted Answer

A) Technological change in the use of capital. 
B) The ease of reallocating resources. 
C) Technological change in the use of labor. 
D) The increase in labor productivity. 
A) Technological change in the use of capital. 
B) The ease of reallocating resources. 
C) Technological change in the use of labor. 
D) The increase in labor productivity.

Question 3

In a market economy with no government intervention,the HOW to produce question is based on

Accepted Answer

A) Production costs alone. 
B) Production costs plus environmental considerations. 
C) Environmental considerations only. 
D) Consumer demand. 
A) Production costs alone. 
B) Production costs plus environmental considerations. 
C) Environmental considerations only. 
D) Consumer demand.

Question 4

The term factor of production refers to

Accepted Answer

A) Only those goods that are produced and then used to produce other goods and services. 
B) Labor only. 
C) Any resource input used to produce goods and services. 
D) Factories and machinery only. 
A) Only those goods that are produced and then used to produce other goods and services. 
B) Labor only. 
C) Any resource input used to produce goods and services. 
D) Factories and machinery only.

Question 5

Income inequality is

Accepted Answer

A) Often greatest in the richest countries. 
B) An issue because households in the lowest quintile receive more than their share of income. 
C) Often greatest in the poorest countries. 
D) Not an issue in the United States because of the redistribution of income through the federal tax system. 
A) Often greatest in the richest countries. 
B) An issue because households in the lowest quintile receive more than their share of income. 
C) Often greatest in the poorest countries. 
D) Not an issue in the United States because of the redistribution of income through the federal tax system.

Question 6

According to the World View article that compares GDP per capita figures for several nations,which of the following nations has the highest GDP per capita?

Accepted Answer

A) Japan. 
B) Great Britain. 
C) United States. 
D) China. 
A) Japan. 
B) Great Britain. 
C) United States. 
D) China.

Question 7

As of 2013,to be in the top quintile for income distribution in the United States,a household needed in income at least

Accepted Answer

A) $52,000. 
B) $85,000. 
C) $117,000. 
D) $140,000. 
A) $52,000. 
B) $85,000. 
C) $117,000. 
D) $140,000.

Question 8

To an economist,the four factors of production are

Accepted Answer

A) Labor,workers,profit,and services. 
B) Land,labor,capital,and entrepreneurship. 
C) Entrepreneurship,machinery,workers,and profit. 
D) None of the choices are correct. 
A) Labor,workers,profit,and services. 
B) Land,labor,capital,and entrepreneurship. 
C) Entrepreneurship,machinery,workers,and profit. 
D) None of the choices are correct.

Question 9

Which of the following definitely means productivity has increased?

Accepted Answer

A) More output from fewer workers. 
B) Less output from fewer workers. 
C) More output from more workers. 
D) Less output from more workers. 
A) More output from fewer workers. 
B) Less output from fewer workers. 
C) More output from more workers. 
D) Less output from more workers.

Question 10

Per capita GDP will rise if GDP

Accepted Answer

A) Increases more rapidly than the population increases. 
B) Increases at the same rate as the population increases. 
C) Decreases and the population increases. 
D) Increases more slowly than the population increases. 
A) Increases more rapidly than the population increases. 
B) Increases at the same rate as the population increases. 
C) Decreases and the population increases. 
D) Increases more slowly than the population increases.

Question 11

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

Accepted Answer

A) United States,Japan,France,Canada,China. 
B) United States,China,Japan,Germany,Russia. 
C) United States,Canada,Germany,Japan,South Korea. 
D) United States,China,India,Jordan,Germany,Japan,Russia. 
A) United States,Japan,France,Canada,China. 
B) United States,China,Japan,Germany,Russia. 
C) United States,Canada,Germany,Japan,South Korea. 
D) United States,China,India,Jordan,Germany,Japan,Russia.

Question 12

A labor-intensive production process is one that

Accepted Answer

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

Question 13

The government establishes the rules of the game for economic transactions in order to

Accepted Answer

A) Legitimatize and enforce contracts. 
B) Discourage the production of capital. 
C) Discourage the ownership of property. 
D) Encourage spillover costs. 
A) Legitimatize and enforce contracts. 
B) Discourage the production of capital. 
C) Discourage the ownership of property. 
D) Encourage spillover costs.

Question 14

A U.S.firm that outsources jobs would be

Accepted Answer

A) Building a factory in Canada and hiring Canadian workers. 
B) Buying raw materials from a Chinese firm instead of a U.S.firm. 
C) Buying computers assembled in Mexico that used U.S.parts. 
D) All of the choices are correct. 
A) Building a factory in Canada and hiring Canadian workers. 
B) Buying raw materials from a Chinese firm instead of a U.S.firm. 
C) Buying computers assembled in Mexico that used U.S.parts. 
D) All of the choices are correct.

Question 15

Which of the following contains the two sectors whose percentage contribution to the real GDP has declined since 1900?

Accepted Answer

A) Farming and manufacturing. 
B) Manufacturing and exports. 
C) Farming and services. 
D) Services and exports. 
A) Farming and manufacturing. 
B) Manufacturing and exports. 
C) Farming and services. 
D) Services and exports.

Question 16

In providing a legal framework,the government

Accepted Answer

A) Protects patents to encourage entrepreneurship. 
B) Protects copyrights to encourage textbook protection. 
C) Protects the ownership of private property to encourage the private sector. 
D) All of the choices are correct. 
A) Protects patents to encourage entrepreneurship. 
B) Protects copyrights to encourage textbook protection. 
C) Protects the ownership of private property to encourage the private sector. 
D) All of the choices are correct.

Question 17

According to the World View excerpt that compares GDP figures for several nations,Japan's real GDP is approximately

Accepted Answer

A) Second only to that of the United States. 
B) More than that of China. 
C) More than that of Germany. 
D) All of the choices are correct. 
A) Second only to that of the United States. 
B) More than that of China. 
C) More than that of Germany. 
D) All of the choices are correct.

Question 18

Which of the following statements about the way markets allocate resources is most accurate from society's perspective?

Accepted Answer

A) The market always allocates resources in the best way. 
B) The market may not always allocate resources in a way that is in society's best interest. 
C) Resource allocation by markets may not be perfect,but it is always better than government allocation of resources. 
D) Markets always fail to allocate resources properly,so we must rely on the government to determine the proper use of our resources. 
A) The market always allocates resources in the best way. 
B) The market may not always allocate resources in a way that is in society's best interest. 
C) Resource allocation by markets may not be perfect,but it is always better than government allocation of resources. 
D) Markets always fail to allocate resources properly,so we must rely on the government to determine the proper use of our resources.

Question 19

The GDP is a measure of the market value of all final goods and services produced in the economy in a given time period.

Accepted Answer

A) True 
 B)False

Question 20

On average,since 1900 U.S.output has grown by roughly ________ percent per year.

Accepted Answer

A) 9 
B) 6 
C) 3 
D) 1 
A) 9 
B) 6 
C) 3 
D) 1

Exam 2: The Useconomy: a Global View

Outsourcing is a source of increased U.S.output.

Factor mobility refers to

In a market economy with no government intervention,the HOW to produce question is based on

The term factor of production refers to

Income inequality is

According to the World View article that compares GDP per capita figures for several nations,which of the following nations has the highest GDP per capita?

As of 2013,to be in the top quintile for income distribution in the United States,a household needed in income at least

To an economist,the four factors of production are

Which of the following definitely means productivity has increased?

Per capita GDP will rise if GDP

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

A labor-intensive production process is one that

The government establishes the rules of the game for economic transactions in order to

A U.S.firm that outsources jobs would be

Which of the following contains the two sectors whose percentage contribution to the real GDP has declined since 1900?

In providing a legal framework,the government

According to the World View excerpt that compares GDP figures for several nations,Japan's real GDP is approximately

Which of the following statements about the way markets allocate resources is most accurate from society's perspective?

The GDP is a measure of the market value of all final goods and services produced in the economy in a given time period.

On average,since 1900 U.S.output has grown by roughly ________ percent per year.

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