Question 1

Which of the following economic indicators is used by the World Bank to classify countries as industrial or emerging economies?

Accepted Answer

A)  GDP 
B)  Rate of inflation 
C)  Net exports 
D)  Per capita income 
E)  Budget deficits 
A)  GDP 
B)  Rate of inflation 
C)  Net exports 
D)  Per capita income 
E)  Budget deficits

Question 2

In economics, the term investment refers to:

Accepted Answer

A)  the cost of employing human capital. 
B)  expenditure on expense accounts of employees. 
C)  firms' expenditure on salaries and rent. 
D)  business spending for acquiring capital goods. 
E)  the expenses on the purchase of stocks of a corporation. 
A)  the cost of employing human capital. 
B)  expenditure on expense accounts of employees. 
C)  firms' expenditure on salaries and rent. 
D)  business spending for acquiring capital goods. 
E)  the expenses on the purchase of stocks of a corporation.

Question 3

Households and firms pay taxes to the government to:

Accepted Answer

A)  increase their consumption spending. 
B)  finance the country's import bill. 
C)  increase their savings. 
D)  improve their standard of living. 
E)  finance government expenditures. 
A)  increase their consumption spending. 
B)  finance the country's import bill. 
C)  increase their savings. 
D)  improve their standard of living. 
E)  finance government expenditures.

Question 4

An enterprise that has only one shareholder does not constitute a corporation.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is true of investment spending in the U.S. economy?

Accepted Answer

A)  Investment spending in 2009 was higher than in 2006. 
B)  Investment spending was almost double of household spending. 
C)  Businesses had reduced expenditures on capital goods in 2008 and 2009. 
D)  Investment spending exhibited a more or less steady increase between 1959 and 2009. 
E)  Investment spending fluctuated relatively less than consumption. 
A)  Investment spending in 2009 was higher than in 2006. 
B)  Investment spending was almost double of household spending. 
C)  Businesses had reduced expenditures on capital goods in 2008 and 2009. 
D)  Investment spending exhibited a more or less steady increase between 1959 and 2009. 
E)  Investment spending fluctuated relatively less than consumption.

Question 6

The term "import" refers to:

Accepted Answer

A)  a purchase of goods or services from another country. 
B)  a business transaction between two or more domestic firms. 
C)  a sale of goods or services to another nation. 
D)  a tax on foreign merchandise. 
E)  a trade agreement between two industrial countries. 
A)  a purchase of goods or services from another country. 
B)  a business transaction between two or more domestic firms. 
C)  a sale of goods or services to another nation. 
D)  a tax on foreign merchandise. 
E)  a trade agreement between two industrial countries.

Question 7

If total U.S. trade consists of $10 billion in electronics imports from Japan and $9 billion in automobile exports to Germany, then the U.S. net export account will be negative.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is true of the U.S. government?

Accepted Answer

A)  The government in the United States takes the form of a single-party state where opposition parties are not legally allowed to take power. 
B)  The size of the federal government in the U.S. has been declining since 1930. 
C)  Employment in the government sector currently exceeds employment in the manufacturing sector. 
D)  The U.S. federal government plays a much smaller role than state and local government due to states' rights. 
E)  The service sector of the U.S. economy employs more number of people than the U.S. government. 
A)  The government in the United States takes the form of a single-party state where opposition parties are not legally allowed to take power. 
B)  The size of the federal government in the U.S. has been declining since 1930. 
C)  Employment in the government sector currently exceeds employment in the manufacturing sector. 
D)  The U.S. federal government plays a much smaller role than state and local government due to states' rights. 
E)  The service sector of the U.S. economy employs more number of people than the U.S. government.

Question 9

Which of the following sectors in the economy accounted for about 70% of the spending in the U.S. during 2009?

Accepted Answer

A)  The government 
B)  Firms 
C)  The foreign sector 
D)  Investors 
E)  Households 
A)  The government 
B)  Firms 
C)  The foreign sector 
D)  Investors 
E)  Households

Question 10

Empirical evidence on the U.S. economy suggests that household spending and income have an inverse relationship.

Accepted Answer

A) True 
 B)False

Question 11

An unmarried couple holding joint title to their condominium constitutes a household.

Accepted Answer

A) True 
 B)False

Question 12

According to the World Bank, developing countries greatly outnumber industrial countries.

Accepted Answer

A) True 
 B)False

Question 13

Spending on goods and services by all levels of government in the U.S. combined is smaller than investment spending but larger than consumption.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following statements about transfer payments is true?

Accepted Answer

A)  Transfer payments are not included in total government expenditures. 
B)  Transfer payments involve the international remittance of funds. 
C)  Transfer payments refer to the transfer of money by the commercial banks to the people. 
D)  Transfer payments are made by the government to taxpayers. 
E)  Transfer payments are made when governments purchase goods and services. 
A)  Transfer payments are not included in total government expenditures. 
B)  Transfer payments involve the international remittance of funds. 
C)  Transfer payments refer to the transfer of money by the commercial banks to the people. 
D)  Transfer payments are made by the government to taxpayers. 
E)  Transfer payments are made when governments purchase goods and services.

Question 15

In a market economy, _____ own(s) all the basic resources or factors of production.

Accepted Answer

A)  households 
B)  the federal government 
C)  the Federal Reserve bank 
D)  the local government 
E)  business firms 
A)  households 
B)  the federal government 
C)  the Federal Reserve bank 
D)  the local government 
E)  business firms

Question 16

Households interact with business firms by:

Accepted Answer

A)  buying resource services from business firms. 
B)  paying wages for the use of labor. 
C)  selling goods and services to firms. 
D)  receiving payments from firms for use of resource services. 
E)  paying rent to firms for the use of land. 
A)  buying resource services from business firms. 
B)  paying wages for the use of labor. 
C)  selling goods and services to firms. 
D)  receiving payments from firms for use of resource services. 
E)  paying rent to firms for the use of land.

Question 17

Scenario 4-1?In a given year, country A exported $12 million worth of goods to country B and $6 million worth of goods to country C; country B exported $4 million worth of goods to country A and $7 million worth of goods to country C; and country C exported $5 million worth of goods to country A and $2 million worth of goods to country B.
-According to Scenario 4-1, country C has net exports of:

Accepted Answer

A)  zero. 
B)  $13 million. 
C)  $6 million. 
D)  −$13 million. 
E)  −$6 million. 
A)  zero. 
B)  $13 million. 
C)  $6 million. 
D)  −$13 million. 
E)  −$6 million.

Question 18

Which of the following is true of Western Europe, Japan, Canada, Mexico, and China taken together?

Accepted Answer

A)  All these countries are classified as high-income countries by the World Bank. 
B)  They are all members of the North American Free Trade Agreement [NAFTA]. 
C)  All these countries are considered developing countries by the World Bank. 
D)  They are collectively the largest trade partners of the U.S. 
E)  They are the five largest exporters of agricultural produce in the world. 
A)  All these countries are classified as high-income countries by the World Bank. 
B)  They are all members of the North American Free Trade Agreement [NAFTA]. 
C)  All these countries are considered developing countries by the World Bank. 
D)  They are collectively the largest trade partners of the U.S. 
E)  They are the five largest exporters of agricultural produce in the world.

Question 19

In 2009, household spending was the smallest component of total spending in the U.S. economy.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is a defining feature of a multinational firm?

Accepted Answer

A)  It exports goods and services to foreign nations. 
B)  It develops joint ventures with foreign firms. 
C)  It owns and operates production facilities in more than one country. 
D)  It employs agents in various countries to sell their products abroad. 
E)  It holds patents on its products and services. 
A)  It exports goods and services to foreign nations. 
B)  It develops joint ventures with foreign firms. 
C)  It owns and operates production facilities in more than one country. 
D)  It employs agents in various countries to sell their products abroad. 
E)  It holds patents on its products and services.

Which of the following economic indicators is used by the World Bank to classify countries as industrial or emerging economies?

In economics, the term investment refers to:

Households and firms pay taxes to the government to:

An enterprise that has only one shareholder does not constitute a corporation.

Which of the following is true of investment spending in the U.S. economy?

The term "import" refers to:

If total U.S. trade consists of $10 billion in electronics imports from Japan and $9 billion in automobile exports to Germany, then the U.S. net export account will be negative.

Which of the following is true of the U.S. government?

Which of the following sectors in the economy accounted for about 70% of the spending in the U.S. during 2009?

Empirical evidence on the U.S. economy suggests that household spending and income have an inverse relationship.

An unmarried couple holding joint title to their condominium constitutes a household.

According to the World Bank, developing countries greatly outnumber industrial countries.

Spending on goods and services by all levels of government in the U.S. combined is smaller than investment spending but larger than consumption.

Which of the following statements about transfer payments is true?

In a market economy, _____ own(s) all the basic resources or factors of production.

Households interact with business firms by:

Which of the following is true of Western Europe, Japan, Canada, Mexico, and China taken together?

In 2009, household spending was the smallest component of total spending in the U.S. economy.

Which of the following is a defining feature of a multinational firm?

The Wealth of Nations: Ownership and Economic Freedom

Scarcity and Opportunity Costs

The Market and Price System

National Income Accounting

An Introduction to the Foreign Exchapterange Market and the Balance of Payments

Unemployment and Inflation

Macroeconomic Equilibrium: Aggregate Demand and Supply

Aggregate Expenditures

Income and Expenditures Equilibrium

Fiscal Policy

Money and Banking

Monetary Policy

Macroeconomic Policy: Tradeoffs, Expectations, Credibility, and Sources of Business Cycles

Macroeconomic Viewpoints: New Keynesian, Monetarist, and New Classical

Economic Growth

Development Economics

Globalization

World Trade Equilibrium

International Trade Restrictions

Exchapterange Rates and Financial Links Between Countries

Filters

Exam 4: The Aggregate Economy

Which of the following economic indicators is used by the World Bank to classify countries as industrial or emerging economies?

In economics, the term investment refers to:

Households and firms pay taxes to the government to:

An enterprise that has only one shareholder does not constitute a corporation.

Which of the following is true of investment spending in the U.S. economy?

The term "import" refers to:

If total U.S. trade consists of $10 billion in electronics imports from Japan and $9 billion in automobile exports to Germany, then the U.S. net export account will be negative.

Which of the following is true of the U.S. government?

Which of the following sectors in the economy accounted for about 70% of the spending in the U.S. during 2009?

Empirical evidence on the U.S. economy suggests that household spending and income have an inverse relationship.

An unmarried couple holding joint title to their condominium constitutes a household.

According to the World Bank, developing countries greatly outnumber industrial countries.

Spending on goods and services by all levels of government in the U.S. combined is smaller than investment spending but larger than consumption.

Which of the following statements about transfer payments is true?

In a market economy, _____ own(s) all the basic resources or factors of production.

Households interact with business firms by:

Which of the following is true of Western Europe, Japan, Canada, Mexico, and China taken together?

In 2009, household spending was the smallest component of total spending in the U.S. economy.

Which of the following is a defining feature of a multinational firm?

The Wealth of Nations: Ownership and Economic Freedom

Scarcity and Opportunity Costs

The Market and Price System

National Income Accounting

An Introduction to the Foreign Exchapterange Market and the Balance of Payments

Unemployment and Inflation

Macroeconomic Equilibrium: Aggregate Demand and Supply

Aggregate Expenditures

Income and Expenditures Equilibrium

Fiscal Policy

Money and Banking

Monetary Policy

Macroeconomic Policy: Tradeoffs, Expectations, Credibility, and Sources of Business Cycles

Macroeconomic Viewpoints: New Keynesian, Monetarist, and New Classical

Economic Growth

Development Economics

Globalization

World Trade Equilibrium

International Trade Restrictions

Exchapterange Rates and Financial Links Between Countries

Filters