Question 1

Income equality has

Accepted Answer

A)  increased within countries but has narrowed across countries. 
B)  not changed in the advanced economies over the past 50 years. 
C)  narrowed within countries but increased across countries. 
D)  increased in developing economies as manufacturing has decreased. 
E)  decreased in the United States as manufacturing has increased. 
A)  increased within countries but has narrowed across countries. 
B)  not changed in the advanced economies over the past 50 years. 
C)  narrowed within countries but increased across countries. 
D)  increased in developing economies as manufacturing has decreased. 
E)  decreased in the United States as manufacturing has increased.

Question 2

Capital is a factor of production.Which of the following is an example of capital?
i.$1,000 in money
ii.100 shares of Microsoft stock
iii.$10,000 in bonds issued by General Motors
iv.a drill press in your local machine shop

Accepted Answer

A)  i and ii 
B)  ii only 
C)  iii only 
D)  iv only 
E)  ii and iii 
A)  i and ii 
B)  ii only 
C)  iii only 
D)  iv only 
E)  ii and iii

Question 3

Items bought by businesses to help produce other goods and services are called

Accepted Answer

A)  consumption goods and services. 
B)  capital goods. 
C)  government goods and services. 
D)  exports of goods and services. 
E)  productive goods. 
A)  consumption goods and services. 
B)  capital goods. 
C)  government goods and services. 
D)  exports of goods and services. 
E)  productive goods.

Question 4

If there is a national debt,we can conclude that the federal government has

Accepted Answer

A)  borrowed in the past. 
B)  purchased more goods and services than were needed. 
C)  spent money foolishly. 
D)  loaned funds to U.S. taxpayers in the past. 
E)  loaned funds to other nations in the past. 
A)  borrowed in the past. 
B)  purchased more goods and services than were needed. 
C)  spent money foolishly. 
D)  loaned funds to U.S. taxpayers in the past. 
E)  loaned funds to other nations in the past.

Question 5

The national debt is the total amount the ________ government has ________ to make expenditures that exceed tax revenue.

Accepted Answer

A)  state and local; borrowed 
B)  federal; taxed U.S. citizens 
C)  state and local; taxed U.S. citizens 
D)  federal; borrowed 
E)  federal; loaned 
A)  state and local; borrowed 
B)  federal; taxed U.S. citizens 
C)  state and local; taxed U.S. citizens 
D)  federal; borrowed 
E)  federal; loaned

Question 6

Which factor of production is paid "profit"?

Accepted Answer

A)  land 
B)  labor 
C)  capital 
D)  entrepreneurship 
E)  human capital 
A)  land 
B)  labor 
C)  capital 
D)  entrepreneurship 
E)  human capital

Question 7

Payments to the factors of production are

Accepted Answer

A)  rent, mortgage, interest, and bonds. 
B)  rent, interest, bonds, and profit or loss. 
C)  rent, wages, interest, and profit or loss. 
D)  rent, wages, profit or loss, and bonus. 
E)  land, labor, capital, and entrepreneurship. 
A)  rent, mortgage, interest, and bonds. 
B)  rent, interest, bonds, and profit or loss. 
C)  rent, wages, interest, and profit or loss. 
D)  rent, wages, profit or loss, and bonus. 
E)  land, labor, capital, and entrepreneurship.

Question 8

Property taxes are a major source of revenue for

Accepted Answer

A)  state and local governments. 
B)  the federal governments. 
C)  the federal, state, and local governments. 
D)  firms wanting to relocate their operations. 
E)  consumers. 
A)  state and local governments. 
B)  the federal governments. 
C)  the federal, state, and local governments. 
D)  firms wanting to relocate their operations. 
E)  consumers.

Question 9

What would be an example of capital good?

Accepted Answer

A)  Jeanette buys a new dress. 
B)  The local driver's license office purchases a new digital camera and printer. 
C)  Antonio, the manager of the local Taco Hut, purchases a new deep fryer. 
D)  Apple sells computers to Japan. 
E)  Rhianna gets a haircut. 
A)  Jeanette buys a new dress. 
B)  The local driver's license office purchases a new digital camera and printer. 
C)  Antonio, the manager of the local Taco Hut, purchases a new deep fryer. 
D)  Apple sells computers to Japan. 
E)  Rhianna gets a haircut.

Question 10

An example of a capital good is

Accepted Answer

A)  a fiber optic cable TV system. 
B)  an insurance policy. 
C)  a haircut. 
D)  an iPod. 
E)  a slice of pizza. 
A)  a fiber optic cable TV system. 
B)  an insurance policy. 
C)  a haircut. 
D)  an iPod. 
E)  a slice of pizza.

Question 11

The figure above shows governments in the circular flow
-In the figure above,households

Accepted Answer

A)  receive transfers directly from governments. 
B)  buy goods and services from governments in goods markets. 
C)  receive transfers from governments through factor markets. 
D)  sell factors of production to governments. 
E)  pay taxes to governments through factor markets. 
A)  receive transfers directly from governments. 
B)  buy goods and services from governments in goods markets. 
C)  receive transfers from governments through factor markets. 
D)  sell factors of production to governments. 
E)  pay taxes to governments through factor markets.

Income equality has

Capital is a factor of production.Which of the following is an example of capital? i.$1,000 in money ii.100 shares of Microsoft stock iii.$10,000 in bonds issued by General Motors iv.a drill press in your local machine shop

Items bought by businesses to help produce other goods and services are called

If there is a national debt,we can conclude that the federal government has

The national debt is the total amount the government has to make expenditures that exceed tax revenue.

Which factor of production is paid "profit"?

Payments to the factors of production are

Property taxes are a major source of revenue for

What would be an example of capital good?

An example of a capital good is

The figure above shows governments in the circular flow -In the figure above,households

Getting Started

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets with Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters

Exam 2: The U.S.and Global Economies

Income equality has

Capital is a factor of production.Which of the following is an example of capital? i.$1,000 in money ii.100 shares of Microsoft stock iii.$10,000 in bonds issued by General Motors iv.a drill press in your local machine shop

Items bought by businesses to help produce other goods and services are called

If there is a national debt,we can conclude that the federal government has

The national debt is the total amount the ________ government has ________ to make expenditures that exceed tax revenue.

Which factor of production is paid "profit"?

Payments to the factors of production are

Property taxes are a major source of revenue for

What would be an example of capital good?

An example of a capital good is

The figure above shows governments in the circular flow -In the figure above,households

Getting Started

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets with Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters

The national debt is the total amount the government has to make expenditures that exceed tax revenue.