Question 1

Of the following,the largest source of revenue for the federal government is the

Accepted Answer

A)  personal income tax. 
B)  transfers from state and local governments. 
C)  corporation income tax. 
D)  lottery. 
E)  revenue from the sale of public lands. 
A)  personal income tax. 
B)  transfers from state and local governments. 
C)  corporation income tax. 
D)  lottery. 
E)  revenue from the sale of public lands.

Question 2

Of the following,the country with the highest average income per day in the world is

Accepted Answer

A)  Japan. 
B)  the United States. 
C)  France. 
D)  Germany. 
E)  China. 
A)  Japan. 
B)  the United States. 
C)  France. 
D)  Germany. 
E)  China.

Question 3

Factors of production are the

Accepted Answer

A)  goods that are bought by individuals and used to provide personal enjoyment. 
B)  goods that are bought by businesses to produce productive resources. 
C)  productive resources used to produce goods and services. 
D)  productive resources used by government to increase the productivity of consumption. 
E)  goods and services produced by the economy. 
A)  goods that are bought by individuals and used to provide personal enjoyment. 
B)  goods that are bought by businesses to produce productive resources. 
C)  productive resources used to produce goods and services. 
D)  productive resources used by government to increase the productivity of consumption. 
E)  goods and services produced by the economy.

Question 4

The circular flow model shows that goods and services flow from

Accepted Answer

A)  businesses to households. 
B)  households to business. 
C)  the factor market to businesses. 
D)  the goods market to businesses. 
E)  the factor markets to the goods markets. 
A)  businesses to households. 
B)  households to business. 
C)  the factor market to businesses. 
D)  the goods market to businesses. 
E)  the factor markets to the goods markets.

Question 5

Compared to the developing economies,the advanced economies have ________ human capital and ________ physical capital.

Accepted Answer

A)  more; more 
B)  more; less 
C)  the same; the same 
D)  less; more 
E)  less; less 
A)  more; more 
B)  more; less 
C)  the same; the same 
D)  less; more 
E)  less; less

Question 6

What is a market? Must a market have a single physical location?

Accepted Answer

A market is any arrangement that allows

Question 7

The world population is approximately ________ people.

Accepted Answer

A)  6.8 million 
B)  2 trillion 
C)  6.8 billion 
D)  6.8 trillion 
E)  680 million 
A)  6.8 million 
B)  2 trillion 
C)  6.8 billion 
D)  6.8 trillion 
E)  680 million

Question 8

Canada is classified by the International Monetary Fund as

Accepted Answer

A)  an advanced economy. 
B)  a developing economy. 
C)  a transition economy. 
D)  an emerging market economy. 
E)  a natural-resource based economy. 
A)  an advanced economy. 
B)  a developing economy. 
C)  a transition economy. 
D)  an emerging market economy. 
E)  a natural-resource based economy.

Question 9

The emerging market economies are

Accepted Answer

A)  the largest grouping including the nations of China and India. 
B)  in transition from state-owned production to free markets. 
C)  most of the nations of Western Europe. 
D)  the nations that are currently agricultural in nature. 
E)  the nations with the highest standards of living. 
A)  the largest grouping including the nations of China and India. 
B)  in transition from state-owned production to free markets. 
C)  most of the nations of Western Europe. 
D)  the nations that are currently agricultural in nature. 
E)  the nations with the highest standards of living.

Question 10

Over time,the percentage of total employment in services has ________ and in agriculture,employment has ________.

Accepted Answer

A)  increased; increased 
B)  decreased; increased 
C)  stayed about the same; decreased 
D)  stayed about the same; increased 
E)  increased; decreased 
A)  increased; increased 
B)  decreased; increased 
C)  stayed about the same; decreased 
D)  stayed about the same; increased 
E)  increased; decreased

Question 11

In the circular flow model,the factors of production flow in the

Accepted Answer

A)  same direction as do the rents, wages, interest, and profits. 
B)  opposite direction as do the rents, wages, interest, and profits. 
C)  opposite direction as does the government. 
D)  same direction as does the goods market. 
E)  opposite direction as does the goods market. 
A)  same direction as do the rents, wages, interest, and profits. 
B)  opposite direction as do the rents, wages, interest, and profits. 
C)  opposite direction as does the government. 
D)  same direction as does the goods market. 
E)  opposite direction as does the goods market.

Question 12

What would be an example of consumption good?

Accepted Answer

A)  Antonio, the manager of the local Taco Hut, purchases a new deep fryer. 
B)  The local driver's license office purchases a new digital camera and printer. 
C)  Rhianna gets a haircut. 
D)  Jake buys an iPhone. 
E)  Donald Trump purchases furniture for his office. 
A)  Antonio, the manager of the local Taco Hut, purchases a new deep fryer. 
B)  The local driver's license office purchases a new digital camera and printer. 
C)  Rhianna gets a haircut. 
D)  Jake buys an iPhone. 
E)  Donald Trump purchases furniture for his office.

Question 13

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

Accepted Answer

A)  collect taxes. 
B)  coordinate economic activities of households and firms. 
C)  hire factors of production. 
D)  own factors of production. 
E)  sell goods and services to household. 
A)  collect taxes. 
B)  coordinate economic activities of households and firms. 
C)  hire factors of production. 
D)  own factors of production. 
E)  sell goods and services to household.

Question 14

The majority of the value of production in the world economy is produced in

Accepted Answer

A)  all of the developing economies taken together. 
B)  all of Africa and the Middle East taken together. 
C)  China and other Asian developing economies. 
D)  all of the advanced economies taken together. 
E)  all of the emerging market economies taken together. 
A)  all of the developing economies taken together. 
B)  all of Africa and the Middle East taken together. 
C)  China and other Asian developing economies. 
D)  all of the advanced economies taken together. 
E)  all of the emerging market economies taken together.

Question 15

The figure above shows governments in the circular flow
-Social Security tax is deducted from your paycheck.In the figure above this will be shown as

Accepted Answer

A)  taxes flowing from households to governments. 
B)  taxes flowing from firms to governments. 
C)  taxes flowing from households to firms. 
D)  wages flowing from firms to households. 
E)  wages flowing from firms to governments. 
A)  taxes flowing from households to governments. 
B)  taxes flowing from firms to governments. 
C)  taxes flowing from households to firms. 
D)  wages flowing from firms to households. 
E)  wages flowing from firms to governments.

Question 16

The total value of capital in the United States is around

Accepted Answer

A)  $50 trillion. 
B)  $10 trillion. 
C)  $79 trillion. 
D)  $100 trillion. 
E)  $145 trillion. 
A)  $50 trillion. 
B)  $10 trillion. 
C)  $79 trillion. 
D)  $100 trillion. 
E)  $145 trillion.

Question 17

Which of the following is a function of the U.S.federal government?

Accepted Answer

A)  providing the legal and social framework for economic activity 
B)  distributing private goods and services 
C)  deciding for whom firms should produce goods and services 
D)  deciding how much to produce of private goods and services 
E)  determining what wages firms will pay their workers. 
A)  providing the legal and social framework for economic activity 
B)  distributing private goods and services 
C)  deciding for whom firms should produce goods and services 
D)  deciding how much to produce of private goods and services 
E)  determining what wages firms will pay their workers.

Question 18

The Colorado Ski Shop sold 60 ski jackets to a Belgian company's headquarters located in Paris,France.The ski jackets are a

Accepted Answer

A)  U.S. export good. 
B)  capital good. 
C)  government good. 
D)  U.S. consumption service. 
E)  U.S. import. 
A)  U.S. export good. 
B)  capital good. 
C)  government good. 
D)  U.S. consumption service. 
E)  U.S. import.

Question 19

The personal distribution of income shows

Accepted Answer

A)  that labor receives the largest percentage of total income. 
B)  how profit accounts for the largest fraction of total income. 
C)  that the richest 20 percent of households receive 23 percent of total income. 
D)  that interest accounts for most of the income of the richest 20 percent of households. 
E)  that the poorest 20 percent of households receive less than 4 percent of total income. 
A)  that labor receives the largest percentage of total income. 
B)  how profit accounts for the largest fraction of total income. 
C)  that the richest 20 percent of households receive 23 percent of total income. 
D)  that interest accounts for most of the income of the richest 20 percent of households. 
E)  that the poorest 20 percent of households receive less than 4 percent of total income.

Question 20

Which of the following is a consumption good or service?

Accepted Answer

A)  a personal computer purchased in order to play games at home 
B)  a United Airline ticket counter 
C)  the Endeavor space shuttle 
D)  a United Parcel Service truck delivering Christmas gifts 
E)  a satellite dish installed by Cox Cable to download programs that are then distributed through its cable system 
A)  a personal computer purchased in order to play games at home 
B)  a United Airline ticket counter 
C)  the Endeavor space shuttle 
D)  a United Parcel Service truck delivering Christmas gifts 
E)  a satellite dish installed by Cox Cable to download programs that are then distributed through its cable system

Of the following,the largest source of revenue for the federal government is the

Of the following,the country with the highest average income per day in the world is

Factors of production are the

The circular flow model shows that goods and services flow from

Compared to the developing economies,the advanced economies have human capital and physical capital.

What is a market? Must a market have a single physical location?

The world population is approximately ________ people.

Canada is classified by the International Monetary Fund as

The emerging market economies are

Over time,the percentage of total employment in services has and in agriculture,employment has .

In the circular flow model,the factors of production flow in the

What would be an example of consumption good?

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

The majority of the value of production in the world economy is produced in

The figure above shows governments in the circular flow -Social Security tax is deducted from your paycheck.In the figure above this will be shown as

The total value of capital in the United States is around

Which of the following is a function of the U.S.federal government?

The Colorado Ski Shop sold 60 ski jackets to a Belgian company's headquarters located in Paris,France.The ski jackets are a

The personal distribution of income shows

Which of the following is a consumption good or service?

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

Of the following,the largest source of revenue for the federal government is the

Of the following,the country with the highest average income per day in the world is

Factors of production are the

The circular flow model shows that goods and services flow from

Compared to the developing economies,the advanced economies have ________ human capital and ________ physical capital.

What is a market? Must a market have a single physical location?

The world population is approximately ________ people.

Canada is classified by the International Monetary Fund as

The emerging market economies are

Over time,the percentage of total employment in services has ________ and in agriculture,employment has ________.

In the circular flow model,the factors of production flow in the

What would be an example of consumption good?

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

The majority of the value of production in the world economy is produced in

The figure above shows governments in the circular flow -Social Security tax is deducted from your paycheck.In the figure above this will be shown as

The total value of capital in the United States is around

Which of the following is a function of the U.S.federal government?

The Colorado Ski Shop sold 60 ski jackets to a Belgian company's headquarters located in Paris,France.The ski jackets are a

The personal distribution of income shows

Which of the following is a consumption good or service?

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

Compared to the developing economies,the advanced economies have human capital and physical capital.

Over time,the percentage of total employment in services has and in agriculture,employment has .