Question 1

The income paid for the use of land is called

Accepted Answer

A)  rent. 
B)  wages. 
C)  interest. 
D)  profit. 
E)  land capital. 
A)  rent. 
B)  wages. 
C)  interest. 
D)  profit. 
E)  land capital.

Question 2

What is meant by the term "human capital"?

Accepted Answer

Human capital refers to the skills peopl

Question 3

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

Accepted Answer

A)  state and local; are less than 
B)  federal; are less than 
C)  federal; exceed 
D)  state and local; exceed 
E)  federal; are equal to 
A)  state and local; are less than 
B)  federal; are less than 
C)  federal; exceed 
D)  state and local; exceed 
E)  federal; are equal to

Question 4

The majority of the income earned in the United States is paid in

Accepted Answer

A)  rent. 
B)  wages. 
C)  interest. 
D)  profit. 
E)  dividends. 
A)  rent. 
B)  wages. 
C)  interest. 
D)  profit. 
E)  dividends.

Question 5

Which of the following correctly lists the categories of factors of production?

Accepted Answer

A)  land, labor, capital, and entrepreneurship 
B)  land, buildings, capital, and entrepreneurship 
C)  labor, machines, buildings, capital, and entrepreneurship 
D)  forests, fish, buildings, capital, and entrepreneurship 
E)  labor, money, stocks, and bonds 
A)  land, labor, capital, and entrepreneurship 
B)  land, buildings, capital, and entrepreneurship 
C)  labor, machines, buildings, capital, and entrepreneurship 
D)  forests, fish, buildings, capital, and entrepreneurship 
E)  labor, money, stocks, and bonds

Question 6

A real flow in the circular flow diagram is
i.a firm's payments of wages to its workers.
ii.a household's purchase of a new car.
iii.a farmer's use of land to grow corn.

Accepted Answer

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

Question 7

In the circular flow model,which of the following is on the buying side in the goods market?
i.firms
ii.households
iii.federal,state,and local governments

Accepted Answer

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

Question 8

The owners of the resource ________ are paid ________.

Accepted Answer

A)  land; wages 
B)  labor; profit 
C)  capital; rent 
D)  capital; interest 
E)  entrepreneurship; wages 
A)  land; wages 
B)  labor; profit 
C)  capital; rent 
D)  capital; interest 
E)  entrepreneurship; wages

Question 9

Which of the following statements is true?

Accepted Answer

A)  Income inequality within most countries has increased during the past 20 years. 
B)  Income inequality across the entire world has decreased during the past 20 years. 
C)  Income inequality within most countries and across the entire world has not changed much during the past 20 years. 
D)  Both A and B are correct. 
E)  None of the above is correct. 
A)  Income inequality within most countries has increased during the past 20 years. 
B)  Income inequality across the entire world has decreased during the past 20 years. 
C)  Income inequality within most countries and across the entire world has not changed much during the past 20 years. 
D)  Both A and B are correct. 
E)  None of the above is correct.

Question 10

Which of the following is NOT classified as an advanced economy?

Accepted Answer

A)  South Korea 
B)  Australia 
C)  Russia 
D)  Hong Kong 
E)  the United Kingdom 
A)  South Korea 
B)  Australia 
C)  Russia 
D)  Hong Kong 
E)  the United Kingdom

Question 11

Which of the following is an example of an effort to decrease physical capital differences between an advanced and a developing economy?

Accepted Answer

A)  American troops build roads in Afghanistan. 
B)  Through World Vision, women and children in Africa receive education. 
C)  Peace Corps volunteers teach English around the world. 
D)  Creating Hope International trains women in Afghanistan to become tailors. 
E)  Habitat for Humanity builds houses for low income families in the United States. 
A)  American troops build roads in Afghanistan. 
B)  Through World Vision, women and children in Africa receive education. 
C)  Peace Corps volunteers teach English around the world. 
D)  Creating Hope International trains women in Afghanistan to become tailors. 
E)  Habitat for Humanity builds houses for low income families in the United States.

Question 12

Which of the following are sources of revenue for state and local governments?
i.property taxes
ii.sales taxes
iii.transfers from the federal government

Accepted Answer

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

Question 13

The concept of human capital describes

Accepted Answer

A)  human skills, that is, the quality of labor. 
B)  human population, that is, the quantity of labor. 
C)  the number of machines per employed worker. 
D)  the number of workers per operating machine. 
E)  the number of machines (capital) that have been produced by people (humans). 
A)  human skills, that is, the quality of labor. 
B)  human population, that is, the quantity of labor. 
C)  the number of machines per employed worker. 
D)  the number of workers per operating machine. 
E)  the number of machines (capital) that have been produced by people (humans).

Question 14

The charitable organization Creating Hope International trains women in Afghanistan to become tailors.This effort reduces

Accepted Answer

A)  physical capital differences between advanced and developing economies. 
B)  entrepreneurship differences between advanced and developing economies. 
C)  agricultural differences between advanced and developing economies. 
D)  manufacturing differences between advanced and developing economies. 
E)  human capital differences between advanced and developing economies. 
A)  physical capital differences between advanced and developing economies. 
B)  entrepreneurship differences between advanced and developing economies. 
C)  agricultural differences between advanced and developing economies. 
D)  manufacturing differences between advanced and developing economies. 
E)  human capital differences between advanced and developing economies.

Question 15

Of the following,the largest source of tax revenue collected by state and local governments comes from

Accepted Answer

A)  individual income taxes. 
B)  corporate income taxes. 
C)  death taxes. 
D)  sales taxes. 
E)  lottery revenues. 
A)  individual income taxes. 
B)  corporate income taxes. 
C)  death taxes. 
D)  sales taxes. 
E)  lottery revenues.

Question 16

Which of the following is NOT considered an example of a capital good?

Accepted Answer

A)  a miner's cap 
B)  a GPS tracking device 
C)  an airport kiosk 
D)  a U.S. government bond 
E)  a stethoscope 
A)  a miner's cap 
B)  a GPS tracking device 
C)  an airport kiosk 
D)  a U.S. government bond 
E)  a stethoscope

Question 17

In the circular flow model,which of the following owns the factors of production?

Accepted Answer

A)  only federal, state, and local governments 
B)  only households 
C)  only firms 
D)  both firms and households 
E)  firms, households, and all levels of government 
A)  only federal, state, and local governments 
B)  only households 
C)  only firms 
D)  both firms and households 
E)  firms, households, and all levels of government

Question 18

Which of the following is true?
i.The advanced economies account for more than half of global production.
ii.Almost four out of every five people in the world live in the developing economies.
iii.In the advanced economies,agriculture accounts for a larger part of total production than in the developing economies.

Accepted Answer

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

Question 19

What is the difference between "capital" and "financial capital"? Which is a factor of production?

Accepted Answer

"Capital" is the actual physical good,su

Question 20

An example of a U.S.export is

Accepted Answer

A)  a TV made in China sold to a buyer in Azerbaijan. 
B)  matchbooks made in Mexico sold to a buyer in New Jersey. 
C)  pasta made in Italy sold to buyers in Spain. 
D)  diamonds mined in Africa sold to buyers in South America. 
E)  a washing machine made in Indiana sold to a buyer in France. 
A)  a TV made in China sold to a buyer in Azerbaijan. 
B)  matchbooks made in Mexico sold to a buyer in New Jersey. 
C)  pasta made in Italy sold to buyers in Spain. 
D)  diamonds mined in Africa sold to buyers in South America. 
E)  a washing machine made in Indiana sold to a buyer in France.

The income paid for the use of land is called

What is meant by the term "human capital"?

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

The majority of the income earned in the United States is paid in

Which of the following correctly lists the categories of factors of production?

A real flow in the circular flow diagram is i.a firm's payments of wages to its workers. ii.a household's purchase of a new car. iii.a farmer's use of land to grow corn.

In the circular flow model,which of the following is on the buying side in the goods market? i.firms ii.households iii.federal,state,and local governments

The owners of the resource are paid .

Which of the following statements is true?

Which of the following is NOT classified as an advanced economy?

Which of the following is an example of an effort to decrease physical capital differences between an advanced and a developing economy?

Which of the following are sources of revenue for state and local governments? i.property taxes ii.sales taxes iii.transfers from the federal government

The concept of human capital describes

The charitable organization Creating Hope International trains women in Afghanistan to become tailors.This effort reduces

Of the following,the largest source of tax revenue collected by state and local governments comes from

Which of the following is NOT considered an example of a capital good?

In the circular flow model,which of the following owns the factors of production?

What is the difference between "capital" and "financial capital"? Which is a factor of production?

An example of a U.S.export 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

The income paid for the use of land is called

What is meant by the term "human capital"?

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

The majority of the income earned in the United States is paid in

Which of the following correctly lists the categories of factors of production?

A real flow in the circular flow diagram is i.a firm's payments of wages to its workers. ii.a household's purchase of a new car. iii.a farmer's use of land to grow corn.

In the circular flow model,which of the following is on the buying side in the goods market? i.firms ii.households iii.federal,state,and local governments

The owners of the resource ________ are paid ________.

Which of the following statements is true?

Which of the following is NOT classified as an advanced economy?

Which of the following is an example of an effort to decrease physical capital differences between an advanced and a developing economy?

Which of the following are sources of revenue for state and local governments? i.property taxes ii.sales taxes iii.transfers from the federal government

The concept of human capital describes

The charitable organization Creating Hope International trains women in Afghanistan to become tailors.This effort reduces

Of the following,the largest source of tax revenue collected by state and local governments comes from

Which of the following is NOT considered an example of a capital good?

In the circular flow model,which of the following owns the factors of production?

What is the difference between "capital" and "financial capital"? Which is a factor of production?

An example of a U.S.export 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 national debt is the total amount the government has borrowed to make expenditures that tax revenue.

The owners of the resource are paid .