Question 1

A market is defined as

Accepted Answer

A)  the physical place where goods (but not services) are sold. 
B)  the physical place where goods and services are sold. 
C)  any arrangement that brings buyers and sellers together. 
D)  a place where money is exchanged for goods. 
E)  another name for a store. 
A)  the physical place where goods (but not services) are sold. 
B)  the physical place where goods and services are sold. 
C)  any arrangement that brings buyers and sellers together. 
D)  a place where money is exchanged for goods. 
E)  another name for a store.

Question 2

The personal distribution of income in the United States shows that

Accepted Answer

A)  income is equally distributed. 
B)  the poorest 20 percent of individuals receive approximately 20 percent of total income. 
C)  the richest 20 percent of individuals receive approximately 50 percent of total income. 
D)  the poorest 60 percent of individuals receive approximately 50 percent of total income. 
E)  the richest 20 percent of individuals receive approximately 25 percent of total income. 
A)  income is equally distributed. 
B)  the poorest 20 percent of individuals receive approximately 20 percent of total income. 
C)  the richest 20 percent of individuals receive approximately 50 percent of total income. 
D)  the poorest 60 percent of individuals receive approximately 50 percent of total income. 
E)  the richest 20 percent of individuals receive approximately 25 percent of total income.

Question 3

A newspaper printing press is an example of

Accepted Answer

A)  a capital good. 
B)  a factor of production. 
C)  something that influences labor productivity. 
D)  a good that was once an output of the production process. 
E)  All of the above are correct. 
A)  a capital good. 
B)  a factor of production. 
C)  something that influences labor productivity. 
D)  a good that was once an output of the production process. 
E)  All of the above are correct.

Question 4

The largest component of federal government spending is for

Accepted Answer

A)  national defense. 
B)  Medicare and Medicaid. 
C)  education. 
D)  prisons. 
E)  interest on the national debt. 
A)  national defense. 
B)  Medicare and Medicaid. 
C)  education. 
D)  prisons. 
E)  interest on the national debt.

Question 5

Human capital is

Accepted Answer

A)  solely the innate ability we are born with. 
B)  the money humans have saved. 
C)  the knowledge humans accumulate through education and experience. 
D)  machinery that needs human supervision. 
E)  any type of machinery. 
A)  solely the innate ability we are born with. 
B)  the money humans have saved. 
C)  the knowledge humans accumulate through education and experience. 
D)  machinery that needs human supervision. 
E)  any type of machinery.

Question 6

When the total U.S.production of goods and services is divided into consumption goods and services,capital goods,government goods and services,and export goods and services,the largest component is

Accepted Answer

A)  consumption goods and services. 
B)  capital goods. 
C)  government goods and services. 
D)  export goods and services. 
E)  capital goods and government goods and services tie for the largest component. 
A)  consumption goods and services. 
B)  capital goods. 
C)  government goods and services. 
D)  export goods and services. 
E)  capital goods and government goods and services tie for the largest component.

Question 7

________ the owners of the factors of production,while ________ what amounts of those factors to hire.

Accepted Answer

A)  Households are; firms determine 
B)  Households are; the government determines 
C)  The government is; firms determine 
D)  Firms are; households determine 
E)  Firms are; the government determines 
A)  Households are; firms determine 
B)  Households are; the government determines 
C)  The government is; firms determine 
D)  Firms are; households determine 
E)  Firms are; the government determines

Question 8

Describe the government's flows in the circular flow model of the economy.

Accepted Answer

The government has several flows in the

Question 9

Which of the following is NOTa function of the federal government?

Accepted Answer

A)  collecting property taxes 
B)  making Social Security and welfare payments 
C)  making transfers to state and local governments 
D)  providing public goods and services 
E)  imposing a personal income tax 
A)  collecting property taxes 
B)  making Social Security and welfare payments 
C)  making transfers to state and local governments 
D)  providing public goods and services 
E)  imposing a personal income tax

Question 10

The most people live in ________ economies and the fewest people live in ________ economies.

Accepted Answer

A)  developing; emerging market 
B)  advanced; emerging market 
C)  advanced; developing 
D)  emerging market; developing 
E)  developing; advanced 
A)  developing; emerging market 
B)  advanced; emerging market 
C)  advanced; developing 
D)  emerging market; developing 
E)  developing; advanced

Question 11

As the circular flow model shows,the factors of production flow from

Accepted Answer

A)  firms to households through the factor market. 
B)  households to firms through the factor market. 
C)  firms to households through the goods market. 
D)  households to firms through the goods market. 
E)  the goods market through firms to the factor markets. 
A)  firms to households through the factor market. 
B)  households to firms through the factor market. 
C)  firms to households through the goods market. 
D)  households to firms through the goods market. 
E)  the goods market through firms to the factor markets.

Question 12

________ are the largest components of state and local government revenue.

Accepted Answer

A)  Transfers from federal government and corporate income taxes 
B)  Transfers from federal government and sales taxes 
C)  Individual income taxes and corporate income taxes 
D)  Individual income taxes and sales taxes 
E)  Corporate income taxes and lottery income 
A)  Transfers from federal government and corporate income taxes 
B)  Transfers from federal government and sales taxes 
C)  Individual income taxes and corporate income taxes 
D)  Individual income taxes and sales taxes 
E)  Corporate income taxes and lottery income

Question 13

Explain the structure of the circular flow model.

Accepted Answer

Households own the factors of production

Question 14

In the circular flow model with the government sector,taxes

Accepted Answer

A)  flow in the opposite direction as do transfers. 
B)  flow in the same direction as do transfers. 
C)  on households flow in the same direction as do the goods and services. 
D)  on firms flow in the same direction as do factors of production. 
E)  flow from the goods market to the factor markets. 
A)  flow in the opposite direction as do transfers. 
B)  flow in the same direction as do transfers. 
C)  on households flow in the same direction as do the goods and services. 
D)  on firms flow in the same direction as do factors of production. 
E)  flow from the goods market to the factor markets.

Question 15

Entrepreneurship,as a factor of production,refers to

Accepted Answer

A)  the technology used by firms. 
B)  the human capital accumulated by workers. 
C)  the value of the firm's stock. 
D)  the human resource that organizes labor, land, and capital. 
E)  the capital the firm uses. 
A)  the technology used by firms. 
B)  the human capital accumulated by workers. 
C)  the value of the firm's stock. 
D)  the human resource that organizes labor, land, and capital. 
E)  the capital the firm uses.

Question 16

In the advanced economies,________ of the factories use advanced capital equipment and in the developing economies ________ of the factories use advanced capital equipment.

Accepted Answer

A)  virtually all; virtually all 
B)  some; some 
C)  virtually all; none 
D)  some; none of 
E)  virtually all; some 
A)  virtually all; virtually all 
B)  some; some 
C)  virtually all; none 
D)  some; none of 
E)  virtually all; some

Question 17

________ earned the highest amount of income among the factors of production in the United States.

Accepted Answer

A)  Labor 
B)  Capital 
C)  Land 
D)  Entrepreneurship 
E)  Investment 
A)  Labor 
B)  Capital 
C)  Land 
D)  Entrepreneurship 
E)  Investment

Question 18

In the circular flow model,

Accepted Answer

A)  the government is represented as a separate market. 
B)  the government buys goods and services from firms. 
C)  goods and services are sold by households and purchased by firms. 
D)  factor markets are where goods rather than services are bought and sold. 
E)  the government has no direct interaction with either households or firms. 
A)  the government is represented as a separate market. 
B)  the government buys goods and services from firms. 
C)  goods and services are sold by households and purchased by firms. 
D)  factor markets are where goods rather than services are bought and sold. 
E)  the government has no direct interaction with either households or firms.

Question 19

Which markets are depicted in the basic circular flow model?

Accepted Answer

A)  the goods market and the stock market 
B)  the factor market and the bond market 
C)  the goods market and the factor market 
D)  the money market and the foreign exchange market 
E)  the stock market and the bond market 
A)  the goods market and the stock market 
B)  the factor market and the bond market 
C)  the goods market and the factor market 
D)  the money market and the foreign exchange market 
E)  the stock market and the bond market

Question 20

Among the United States,Canada,Russia,India,and the United Kingdom,the country with the highest average income per person is

Accepted Answer

A)  the United States. 
B)  Russia. 
C)  India. 
D)  Canada. 
E)  the United Kingdom. 
A)  the United States. 
B)  Russia. 
C)  India. 
D)  Canada. 
E)  the United Kingdom.

A market is defined as

The personal distribution of income in the United States shows that

A newspaper printing press is an example of

The largest component of federal government spending is for

Human capital is

When the total U.S.production of goods and services is divided into consumption goods and services,capital goods,government goods and services,and export goods and services,the largest component is

the owners of the factors of production,while what amounts of those factors to hire.

Describe the government's flows in the circular flow model of the economy.

Which of the following is NOTa function of the federal government?

The most people live in economies and the fewest people live in economies.

As the circular flow model shows,the factors of production flow from

________ are the largest components of state and local government revenue.

Explain the structure of the circular flow model.

In the circular flow model with the government sector,taxes

Entrepreneurship,as a factor of production,refers to

In the advanced economies, of the factories use advanced capital equipment and in the developing economies of the factories use advanced capital equipment.

________ earned the highest amount of income among the factors of production in the United States.

In the circular flow model,

Which markets are depicted in the basic circular flow model?

Among the United States,Canada,Russia,India,and the United Kingdom,the country with the highest average income per person is

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

A market is defined as

The personal distribution of income in the United States shows that

A newspaper printing press is an example of

The largest component of federal government spending is for

Human capital is

When the total U.S.production of goods and services is divided into consumption goods and services,capital goods,government goods and services,and export goods and services,the largest component is

________ the owners of the factors of production,while ________ what amounts of those factors to hire.

Describe the government's flows in the circular flow model of the economy.

Which of the following is NOTa function of the federal government?

The most people live in ________ economies and the fewest people live in ________ economies.

As the circular flow model shows,the factors of production flow from

________ are the largest components of state and local government revenue.

Explain the structure of the circular flow model.

In the circular flow model with the government sector,taxes

Entrepreneurship,as a factor of production,refers to

In the advanced economies,________ of the factories use advanced capital equipment and in the developing economies ________ of the factories use advanced capital equipment.

________ earned the highest amount of income among the factors of production in the United States.

In the circular flow model,

Which markets are depicted in the basic circular flow model?

Among the United States,Canada,Russia,India,and the United Kingdom,the country with the highest average income per person is

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 owners of the factors of production,while what amounts of those factors to hire.

The most people live in economies and the fewest people live in economies.

In the advanced economies, of the factories use advanced capital equipment and in the developing economies of the factories use advanced capital equipment.