Question 1

Which of the following has been the bigger contributor to increases in the quantity of labor in the Unites States during the past 50 years?

Accepted Answer

A)  The proportion of men taking paid jobs has trended up. 
B)  The proportion of women taking paid jobs has trended up. 
C)  The proportion of young adults entering college has trended down. 
D)  The proportion of seniors taking early retirement has trended down. 
E)  Total population growth has increased dramatically. 
A)  The proportion of men taking paid jobs has trended up. 
B)  The proportion of women taking paid jobs has trended up. 
C)  The proportion of young adults entering college has trended down. 
D)  The proportion of seniors taking early retirement has trended down. 
E)  Total population growth has increased dramatically.

Question 2

Tax revenues are transferred from

Accepted Answer

A)  state governments to the federal government. 
B)  local governments to state and federal governments. 
C)  one state government to other state governments. 
D)  the federal government to state and local governments. 
E)  the state and local governments to the federal government. 
A)  state governments to the federal government. 
B)  local governments to state and federal governments. 
C)  one state government to other state governments. 
D)  the federal government to state and local governments. 
E)  the state and local governments to the federal government.

Question 3

Physical capital differences across countries can be seen in the fact that

Accepted Answer

A)  more advanced economies typically have more sophisticated technology. 
B)  furniture factories in China use machines like those in North Carolina. 
C)  students in India study the same subjects as those in the United States. 
D)  advanced economies produce 53 percent of the world's income. 
E)  the iPhone's components are produced in 30 countries. 
A)  more advanced economies typically have more sophisticated technology. 
B)  furniture factories in China use machines like those in North Carolina. 
C)  students in India study the same subjects as those in the United States. 
D)  advanced economies produce 53 percent of the world's income. 
E)  the iPhone's components are produced in 30 countries.

Question 4

The circular flow model shows the

Accepted Answer

A)  distribution of income and consumption goods across income levels. 
B)  combinations of the factors of production needed to produce goods and services. 
C)  flow of expenditure and incomes that arise from the households', firms', and governments' decisions. 
D)  flow of natural resources from firms to the private market to government and back to firms. 
E)  distribution of income to the different factors of production. 
A)  distribution of income and consumption goods across income levels. 
B)  combinations of the factors of production needed to produce goods and services. 
C)  flow of expenditure and incomes that arise from the households', firms', and governments' decisions. 
D)  flow of natural resources from firms to the private market to government and back to firms. 
E)  distribution of income to the different factors of production.

Question 5

The percentage of the world's population that lives in the advanced economies is

Accepted Answer

A)  more than 71 percent. 
B)  between 51 percent and 70 percent. 
C)  between 31 percent and 50 percent. 
D)  between 20 percent and 30 percent. 
E)  less than 20 percent. 
A)  more than 71 percent. 
B)  between 51 percent and 70 percent. 
C)  between 31 percent and 50 percent. 
D)  between 20 percent and 30 percent. 
E)  less than 20 percent.

Question 6

Human capital can be increased through

Accepted Answer

A)  investment in new technology. 
B)  education, on-the-job training, and work experience. 
C)  investment in new machinery. 
D)  decreases in population. 
E)  increasing the nation's production of consumption goods. 
A)  investment in new technology. 
B)  education, on-the-job training, and work experience. 
C)  investment in new machinery. 
D)  decreases in population. 
E)  increasing the nation's production of consumption goods.

Question 7

How are the roles of the household different in the goods market and in the factor markets?

Accepted Answer

In the goods market,households are buyer

Question 8

The figure above shows governments in the circular flow
-In the figure above,which of the following is true?
i.Governments coordinate economic activities of households and firms.
ii.Governments buy goods and services in goods markets.
iii.Households pay taxes directly to firms.

Accepted Answer

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

Question 9

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

Accepted Answer

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

Question 10

An example of a real flow in the circular flow diagram is

Accepted Answer

A)  a household's supply of work effort at its new business. 
B)  the government's payment of wages to a soldier. 
C)  Nike's payment of wages to workers in China. 
D)  your county's collection of property taxes. 
E)  a teacher's salary at the local high school. 
A)  a household's supply of work effort at its new business. 
B)  the government's payment of wages to a soldier. 
C)  Nike's payment of wages to workers in China. 
D)  your county's collection of property taxes. 
E)  a teacher's salary at the local high school.

Question 11

Identify the four factors of production,and tell what type of income is earned by each factor.

Accepted Answer

The factors of production are land,which

Question 12

An export good is a good produced

Accepted Answer

A)  in the United States and sold to foreigners living in the United States. 
B)  by foreigners in the United States and purchased by U.S. households. 
C)  in another country and purchased by U.S. residents. 
D)  in the United States and sold in other countries. 
E)  in another country and purchased by foreigners not residing in the United States. 
A)  in the United States and sold to foreigners living in the United States. 
B)  by foreigners in the United States and purchased by U.S. households. 
C)  in another country and purchased by U.S. residents. 
D)  in the United States and sold in other countries. 
E)  in another country and purchased by foreigners not residing in the United States.

Question 13

Dan missed class the day the professor covered the circular flow model.Dan asked his friend Joan to explain markets to him.Joan correctly stated that a market

Accepted Answer

A)  requires a physical location for buyers and sellers to get together. 
B)  is any arrangement that brings buyers and sellers together. 
C)  must include a written contract between buyers and sellers. 
D)  is only a place to purchase groceries. 
E)  must have many buyers and only one seller, who is willing to sell to all the buyers. 
A)  requires a physical location for buyers and sellers to get together. 
B)  is any arrangement that brings buyers and sellers together. 
C)  must include a written contract between buyers and sellers. 
D)  is only a place to purchase groceries. 
E)  must have many buyers and only one seller, who is willing to sell to all the buyers.

Question 14

Items that are purchased by individuals for their own enjoyment are called

Accepted Answer

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

Question 15

In the United States,the productive factor that,as a group,receives the largest fraction of the nation's total income is

Accepted Answer

A)  labor. 
B)  capital. 
C)  consumption goods and services. 
D)  entrepreneurship. 
E)  land. 
A)  labor. 
B)  capital. 
C)  consumption goods and services. 
D)  entrepreneurship. 
E)  land.

Question 16

What effect,if any,will a good college education have on your human capital? Explain your answer.

Accepted Answer

Human capital refers to the sk

Question 17

The functional distribution of income measures which of the following?

Accepted Answer

A)  how federal tax revenues are related to the business function that employs taxpayers 
B)  the distribution of earnings by the factors of production 
C)  the proportion of income generated by the four types of expenditures on goods and services 
D)  the distribution of income among households 
E)  the distribution of income among nations 
A)  how federal tax revenues are related to the business function that employs taxpayers 
B)  the distribution of earnings by the factors of production 
C)  the proportion of income generated by the four types of expenditures on goods and services 
D)  the distribution of income among households 
E)  the distribution of income among nations

Question 18

Which of the following isNOT considered one of the factors of production?

Accepted Answer

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

Question 19

Which of the following isNOT considered capital?

Accepted Answer

A)  an assembly line at a General Motors plant 
B)  a computer used by your instructor for presentations in class 
C)  stocks and bonds that are sold by Pepsico 
D)  the furniture in the President's office 
E)  a nail gun used for building houses 
A)  an assembly line at a General Motors plant 
B)  a computer used by your instructor for presentations in class 
C)  stocks and bonds that are sold by Pepsico 
D)  the furniture in the President's office 
E)  a nail gun used for building houses

Question 20

Over the past 70 years,which of the following has occurred?
i.The service sector has grown so that now about 80 percent of workers are now employed in the service industry.
ii.The manufacturing sector has shrunk,so now about 20 percent of workers are now employed in the production of goods.
iii.The percentage of workers employed in the service industry has increased steadily.

Accepted Answer

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

Which of the following has been the bigger contributor to increases in the quantity of labor in the Unites States during the past 50 years?

Tax revenues are transferred from

Physical capital differences across countries can be seen in the fact that

The circular flow model shows the

The percentage of the world's population that lives in the advanced economies is

Human capital can be increased through

How are the roles of the household different in the goods market and in the factor markets?

The figure above shows governments in the circular flow -In the figure above,which of the following is true? i.Governments coordinate economic activities of households and firms. ii.Governments buy goods and services in goods markets. iii.Households pay taxes directly to firms.

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

An example of a real flow in the circular flow diagram is

Identify the four factors of production,and tell what type of income is earned by each factor.

An export good is a good produced

Dan missed class the day the professor covered the circular flow model.Dan asked his friend Joan to explain markets to him.Joan correctly stated that a market

Items that are purchased by individuals for their own enjoyment are called

In the United States,the productive factor that,as a group,receives the largest fraction of the nation's total income is

What effect,if any,will a good college education have on your human capital? Explain your answer.

The functional distribution of income measures which of the following?

Which of the following isNOT considered one of the factors of production?

Which of the following isNOT considered 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

Which of the following has been the bigger contributor to increases in the quantity of labor in the Unites States during the past 50 years?

Tax revenues are transferred from

Physical capital differences across countries can be seen in the fact that

The circular flow model shows the

The percentage of the world's population that lives in the advanced economies is

Human capital can be increased through

How are the roles of the household different in the goods market and in the factor markets?

The figure above shows governments in the circular flow -In the figure above,which of the following is true? i.Governments coordinate economic activities of households and firms. ii.Governments buy goods and services in goods markets. iii.Households pay taxes directly to firms.

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

An example of a real flow in the circular flow diagram is

Identify the four factors of production,and tell what type of income is earned by each factor.

An export good is a good produced

Dan missed class the day the professor covered the circular flow model.Dan asked his friend Joan to explain markets to him.Joan correctly stated that a market

Items that are purchased by individuals for their own enjoyment are called

In the United States,the productive factor that,as a group,receives the largest fraction of the nation's total income is

What effect,if any,will a good college education have on your human capital? Explain your answer.

The functional distribution of income measures which of the following?

Which of the following isNOT considered one of the factors of production?

Which of the following isNOT considered 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