Question 1

________ is the human resource that organizes labor,land,and capital.

Accepted Answer

A)  Human capital 
B)  Human skill 
C)  A gift of nature 
D)  Entrepreneurship 
E)  Profit 
A)  Human capital 
B)  Human skill 
C)  A gift of nature 
D)  Entrepreneurship 
E)  Profit

Question 2

If a product becomes more popular and consumers want more produced,which of the following best describes what happens to move more factors of production into that industry?

Accepted Answer

A)  An agency of the Federal government directs the movement of factors. 
B)  The chief executive officers or presidents of corporations require that factors leave one industry and move to the other industry. 
C)  Factor owners voluntarily move their factors because they want to satisfy the interests of consumers. 
D)  Wages, rent, interest, and profit increase in that industry, thereby giving factors the incentive to move to that industry. 
E)  Consumers increase their demand for the products and, as a result, the taxes the producers must pay decrease enabling the producers to hire more factors of production. 
A)  An agency of the Federal government directs the movement of factors. 
B)  The chief executive officers or presidents of corporations require that factors leave one industry and move to the other industry. 
C)  Factor owners voluntarily move their factors because they want to satisfy the interests of consumers. 
D)  Wages, rent, interest, and profit increase in that industry, thereby giving factors the incentive to move to that industry. 
E)  Consumers increase their demand for the products and, as a result, the taxes the producers must pay decrease enabling the producers to hire more factors of production.

Question 3

Dividing the nation's income among the factors of production,the largest percentage is paid to

Accepted Answer

A)  labor. 
B)  land. 
C)  capital. 
D)  entrepreneurship. 
E)  labor and capital, with each receiving about 41 percent of the total income. 
A)  labor. 
B)  land. 
C)  capital. 
D)  entrepreneurship. 
E)  labor and capital, with each receiving about 41 percent of the total income.

Question 4

What is the largest source of tax revenue for the U.S.federal government and what is the largest expenditure item of the U.S.federal government?

Accepted Answer

The largest source of tax revenue for th

Question 5

Goods and services bought by the government account for about ________ percent of total production.

Accepted Answer

A)  2 
B)  8 
C)  17 
D)  35 
E)  67 
A)  2 
B)  8 
C)  17 
D)  35 
E)  67

Question 6

Which of the following is not considered a factor of production?

Accepted Answer

A)  money 
B)  capital 
C)  land 
D)  entrepreneurial ideas 
E)  labor 
A)  money 
B)  capital 
C)  land 
D)  entrepreneurial ideas 
E)  labor

Question 7

U.S.exports of goods and services flow to households and firms in ________ and U.S.financial inflows of capital flow to households and firms in ________.

Accepted Answer

A)  the United States; the United States 
B)  the United States; the rest of the world 
C)  the rest of the world; the United States 
D)  the rest of the world; the rest of the world 
E)  the United States; the rest of the world and the United States 
A)  the United States; the United States 
B)  the United States; the rest of the world 
C)  the rest of the world; the United States 
D)  the rest of the world; the rest of the world 
E)  the United States; the rest of the world and the United States

Question 8

Discuss the distribution of income around the world.Which countries have the highest average incomes? Which countries have the lowest average incomes? How has the distribution of income changed in recent years?

Accepted Answer

Income is distributed unequally,with res

Question 9

Of the following,the federal government's largest source of revenue is the

Accepted Answer

A)  sales tax. 
B)  property tax. 
C)  corporate income tax. 
D)  Social Security tax. 
E)  transfers from state and local governments. 
A)  sales tax. 
B)  property tax. 
C)  corporate income tax. 
D)  Social Security tax. 
E)  transfers from state and local governments.

Question 10

Income taxes paid by corporations are

Accepted Answer

A)  the major source of revenue for the federal government. 
B)  the major source of revenue for state governments. 
C)  the major source of revenue for local governments. 
D)  about 9 percent of the federal government's revenue. 
E)  the major source of expenditure by the federal government. 
A)  the major source of revenue for the federal government. 
B)  the major source of revenue for state governments. 
C)  the major source of revenue for local governments. 
D)  about 9 percent of the federal government's revenue. 
E)  the major source of expenditure by the federal government.

Question 11

Which factor of production is paid "interest"?

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 12

Economists classify energy and water as part of which factor of production?

Accepted Answer

A)  land 
B)  labor 
C)  capital 
D)  entrepreneurship 
E)  land if undeveloped and capital if developed 
A)  land 
B)  labor 
C)  capital 
D)  entrepreneurship 
E)  land if undeveloped and capital if developed

Question 13

What two groups of decision makers are represented in the basic circular flow model?

Accepted Answer

A)  governments and financial institutions 
B)  lenders and borrowers 
C)  wholesalers and retailers 
D)  bankers and regulators 
E)  households and firms 
A)  governments and financial institutions 
B)  lenders and borrowers 
C)  wholesalers and retailers 
D)  bankers and regulators 
E)  households and firms

Question 14

________ economies include ________.

Accepted Answer

A)  Developing; Saudi Arabia and South Africa 
B)  Developing; Poland and Russia 
C)  Developing; China and Poland 
D)  Emerging; Poland and Brazil 
E)  Emerging; China and Canada 
A)  Developing; Saudi Arabia and South Africa 
B)  Developing; Poland and Russia 
C)  Developing; China and Poland 
D)  Emerging; Poland and Brazil 
E)  Emerging; China and Canada

Question 15

In the United States,the poorest 20 percent of households earn roughly ________ percent of total income.

Accepted Answer

A)  20 
B)  10 
C)  15 
D)  3 
E)  0.5 
A)  20 
B)  10 
C)  15 
D)  3 
E)  0.5

Question 16

Aaron locked himself out of his house and had to pay $40 to Brianna,who works for Lucky Locksmith,to open his door.Based on this transaction in the economy and using concepts from the circular flow model,which of the following is true?

Accepted Answer

A)  Brianna earned income from supplying her labor services. 
B)  Aaron earned income from supplying his labor services. 
C)  Brianna purchased goods and services. 
D)  Aaron acted as a firm in this transaction. 
E)  Aaron supplied goods and services. 
A)  Brianna earned income from supplying her labor services. 
B)  Aaron earned income from supplying his labor services. 
C)  Brianna purchased goods and services. 
D)  Aaron acted as a firm in this transaction. 
E)  Aaron supplied goods and services.

Question 17

Which of the following transactions takes place in factor markets?

Accepted Answer

A)  Henry receives a commission from his employer for selling a new automobile. 
B)  Jake purchases 1,000 shares of stock in the Wal-Mart Corporation through his online trading account. 
C)  Sam enters the winning bid on a grand piano at a local auction. 
D)  Justin receives $30 in exchange for mowing his neighbor's lawn. 
E)  Lucille receives a $500 check from the U.S. Social Security Administration. 
A)  Henry receives a commission from his employer for selling a new automobile. 
B)  Jake purchases 1,000 shares of stock in the Wal-Mart Corporation through his online trading account. 
C)  Sam enters the winning bid on a grand piano at a local auction. 
D)  Justin receives $30 in exchange for mowing his neighbor's lawn. 
E)  Lucille receives a $500 check from the U.S. Social Security Administration.

Question 18

The figure above shows the circular flow model.
-In the figure above,which of the following represents a money flow?

Accepted Answer

A)  Goods purchased 
B)  Interest 
C)  Capital 
D)  Services sold 
E)  Goods supplied 
A)  Goods purchased 
B)  Interest 
C)  Capital 
D)  Services sold 
E)  Goods supplied

Question 19

The figure above shows the circular flow model.
-In the figure above,which of the following represents a real flow of a factor of production?

Accepted Answer

A)  Labor 
B)  Wages 
C)  Goods bought 
D)  Services sold 
E)  Firms' expenditures on factors of production 
A)  Labor 
B)  Wages 
C)  Goods bought 
D)  Services sold 
E)  Firms' expenditures on factors of production

Question 20

Which of the following is NOTdirectly related to human capital?

Accepted Answer

A)  a college education 
B)  a summer internship 
C)  knowledge of computer programing 
D)  an MRI machine 
E)  an understanding of real estate markets 
A)  a college education 
B)  a summer internship 
C)  knowledge of computer programing 
D)  an MRI machine 
E)  an understanding of real estate markets

________ is the human resource that organizes labor,land,and capital.

If a product becomes more popular and consumers want more produced,which of the following best describes what happens to move more factors of production into that industry?

Dividing the nation's income among the factors of production,the largest percentage is paid to

What is the largest source of tax revenue for the U.S.federal government and what is the largest expenditure item of the U.S.federal government?

Goods and services bought by the government account for about ________ percent of total production.

Which of the following is not considered a factor of production?

U.S.exports of goods and services flow to households and firms in and U.S.financial inflows of capital flow to households and firms in .

Discuss the distribution of income around the world.Which countries have the highest average incomes? Which countries have the lowest average incomes? How has the distribution of income changed in recent years?

Of the following,the federal government's largest source of revenue is the

Income taxes paid by corporations are

Which factor of production is paid "interest"?

Economists classify energy and water as part of which factor of production?

What two groups of decision makers are represented in the basic circular flow model?

economies include .

In the United States,the poorest 20 percent of households earn roughly ________ percent of total income.

Aaron locked himself out of his house and had to pay $40 to Brianna,who works for Lucky Locksmith,to open his door.Based on this transaction in the economy and using concepts from the circular flow model,which of the following is true?

Which of the following transactions takes place in factor markets?

The figure above shows the circular flow model. -In the figure above,which of the following represents a money flow?

The figure above shows the circular flow model. -In the figure above,which of the following represents a real flow of a factor of production?

Which of the following is NOTdirectly related to human capital?

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

________ is the human resource that organizes labor,land,and capital.

If a product becomes more popular and consumers want more produced,which of the following best describes what happens to move more factors of production into that industry?

Dividing the nation's income among the factors of production,the largest percentage is paid to

What is the largest source of tax revenue for the U.S.federal government and what is the largest expenditure item of the U.S.federal government?

Goods and services bought by the government account for about ________ percent of total production.

Which of the following is not considered a factor of production?

U.S.exports of goods and services flow to households and firms in ________ and U.S.financial inflows of capital flow to households and firms in ________.

Discuss the distribution of income around the world.Which countries have the highest average incomes? Which countries have the lowest average incomes? How has the distribution of income changed in recent years?

Of the following,the federal government's largest source of revenue is the

Income taxes paid by corporations are

Which factor of production is paid "interest"?

Economists classify energy and water as part of which factor of production?

What two groups of decision makers are represented in the basic circular flow model?

________ economies include ________.

In the United States,the poorest 20 percent of households earn roughly ________ percent of total income.

Aaron locked himself out of his house and had to pay $40 to Brianna,who works for Lucky Locksmith,to open his door.Based on this transaction in the economy and using concepts from the circular flow model,which of the following is true?

Which of the following transactions takes place in factor markets?

The figure above shows the circular flow model. -In the figure above,which of the following represents a money flow?

The figure above shows the circular flow model. -In the figure above,which of the following represents a real flow of a factor of production?

Which of the following is NOTdirectly related to human capital?

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

U.S.exports of goods and services flow to households and firms in and U.S.financial inflows of capital flow to households and firms in .

economies include .