Question 1

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 2

Explain the structure of the circular flow model.

Accepted Answer

Households own the factors of production

Question 3

Which of the following is NOT shown explicitly in the circular flow model?

Accepted Answer

A)  the governments' purchases in the goods market 
B)  the taxes the governments collect from households 
C)  the governments' interaction with firms 
D)  the legal system 
E)  the transfers the governments make to households 
A)  the governments' purchases in the goods market 
B)  the taxes the governments collect from households 
C)  the governments' interaction with firms 
D)  the legal system 
E)  the transfers the governments make to households

Question 4

________ economies include ____________.

Accepted Answer

A)  Advanced; France, Australia and South Korea 
B)  Advanced; the U.S., Taiwan and Russia 
C)  Advanced; Russia, Canada and Singapore 
D)  Emerging; Taiwan, Russia and Singapore 
E)  Emerging; Saudi Arabia, Poland and Taiwan 
A)  Advanced; France, Australia and South Korea 
B)  Advanced; the U.S., Taiwan and Russia 
C)  Advanced; Russia, Canada and Singapore 
D)  Emerging; Taiwan, Russia and Singapore 
E)  Emerging; Saudi Arabia, Poland and Taiwan

Question 5

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 6

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 7

What would be an example of government good?

Accepted Answer

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

Question 8

Discuss the distribution of income around the world.Which countries have the highest average incomes? Which countries have the lowest average incomes? How has the distribution of income changed in recent years?

Accepted Answer

Income is distributed unequally,with res

Question 9

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 10

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 11

Margo orders a MacBook Pro computer from The Apple Store online to use it in her graphic design business.How will this be reflected in the figure above?

Accepted Answer

A)  As a flow of a factor of production 
B)  As a flow of goods and services bought 
C)  As expenditures on goods and services 
D)  As goods and services supplied 
E)  It won't be shown in the figure because this transaction takes place neither in goods markets nor in factor markets. 
A)  As a flow of a factor of production 
B)  As a flow of goods and services bought 
C)  As expenditures on goods and services 
D)  As goods and services supplied 
E)  It won't be shown in the figure because this transaction takes place neither in goods markets nor in factor markets.

Question 12

In the circular flow model,consumption goods are bought and sold in the

Accepted Answer

A)  goods market. 
B)  financial market. 
C)  factor markets. 
D)  government market. 
E)  monetary flows. 
A)  goods market. 
B)  financial market. 
C)  factor markets. 
D)  government market. 
E)  monetary flows.

Question 13

________ choose the quantities of factors of production to hire and ________ choose the quantities of goods and services to produce.

Accepted Answer

A)  Entrepreneurs; firms 
B)  Firms; firms 
C)  Markets; markets 
D)  Factor markets; goods markets 
E)  Firms; households 
A)  Entrepreneurs; firms 
B)  Firms; firms 
C)  Markets; markets 
D)  Factor markets; goods markets 
E)  Firms; households

Question 14

When Ethan continues his education beyond high school he is increasing his

Accepted Answer

A)  capital. 
B)  wage rate. 
C)  human capital. 
D)  quantity of labor. 
E)  rent. 
A)  capital. 
B)  wage rate. 
C)  human capital. 
D)  quantity of labor. 
E)  rent.

Question 15

Capital is a factor of production.Which of the following is an example of capital?
i.$1,000 in money
ii.100 shares of Microsoft stock
iii.$10,000 in bonds issued by General Motors
iv.A drill press in your local machine shop

Accepted Answer

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

Question 16

The income paid to labor is called

Accepted Answer

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

Question 17

What would be an example of consumption service?

Accepted Answer

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

Question 18

Items bought by businesses to help produce other goods and services are called

Accepted Answer

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

Question 19

When describing the IMF broad country classification,the most accurate statement is that

Accepted Answer

A)  the category with the greatest number of countries is the advanced economies. 
B)  the emerging market economies are countries that were, until the early 1990s, part of the Soviet Union or its satellites. 
C)  most of the nations in Western Europe are considered emerging market economies. 
D)  most of the world's population lives in advanced economies. 
E)  about 50 percent of the world's population live in the advanced economies and the other 50 percent live in the emerging market and developing economies. 
A)  the category with the greatest number of countries is the advanced economies. 
B)  the emerging market economies are countries that were, until the early 1990s, part of the Soviet Union or its satellites. 
C)  most of the nations in Western Europe are considered emerging market economies. 
D)  most of the world's population lives in advanced economies. 
E)  about 50 percent of the world's population live in the advanced economies and the other 50 percent live in the emerging market and developing economies.

Question 20

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

The emerging market economies are

Explain the structure of the circular flow model.

Which of the following is NOT shown explicitly in the circular flow model?

economies include ____.

The circular flow model shows that goods and services flow from

Tax revenues are transferred from

What would be an example of government good?

Discuss the distribution of income around the world.Which countries have the highest average incomes? Which countries have the lowest average incomes? How has the distribution of income changed in recent years?

The total value of capital in the United States is around

The income paid for the use of land is called

Margo orders a MacBook Pro computer from The Apple Store online to use it in her graphic design business.How will this be reflected in the figure above?

In the circular flow model,consumption goods are bought and sold in the

choose the quantities of factors of production to hire and choose the quantities of goods and services to produce.

When Ethan continues his education beyond high school he is increasing his

Capital is a factor of production.Which of the following is an example of capital? i.$1,000 in money ii.100 shares of Microsoft stock iii.$10,000 in bonds issued by General Motors iv.A drill press in your local machine shop

The income paid to labor is called

What would be an example of consumption service?

Items bought by businesses to help produce other goods and services are called

When describing the IMF broad country classification,the most accurate statement is that

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

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 Usand Global Economies

The emerging market economies are

Explain the structure of the circular flow model.

Which of the following is NOT shown explicitly in the circular flow model?

________ economies include ____________.

The circular flow model shows that goods and services flow from

Tax revenues are transferred from

What would be an example of government good?

Discuss the distribution of income around the world.Which countries have the highest average incomes? Which countries have the lowest average incomes? How has the distribution of income changed in recent years?

The total value of capital in the United States is around

The income paid for the use of land is called

Margo orders a MacBook Pro computer from The Apple Store online to use it in her graphic design business.How will this be reflected in the figure above?

In the circular flow model,consumption goods are bought and sold in the

________ choose the quantities of factors of production to hire and ________ choose the quantities of goods and services to produce.

When Ethan continues his education beyond high school he is increasing his

Capital is a factor of production.Which of the following is an example of capital? i.$1,000 in money ii.100 shares of Microsoft stock iii.$10,000 in bonds issued by General Motors iv.A drill press in your local machine shop

The income paid to labor is called

What would be an example of consumption service?

Items bought by businesses to help produce other goods and services are called

When describing the IMF broad country classification,the most accurate statement is that

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

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

economies include ____.

choose the quantities of factors of production to hire and choose the quantities of goods and services to produce.