Question 1

If there is a national debt,we can conclude that the federal government has

Accepted Answer

A)  borrowed in the past. 
B)  purchased more goods and services than were needed. 
C)  spent money foolishly. 
D)  loaned funds to U.S. taxpayers in the past. 
E)  loaned funds to other nations in the past. 
A)  borrowed in the past. 
B)  purchased more goods and services than were needed. 
C)  spent money foolishly. 
D)  loaned funds to U.S. taxpayers in the past. 
E)  loaned funds to other nations in the past.

Question 2

In the United States,how does the income received by the richest 20 percent of individuals compare with the income received by the other 80 percent?

Accepted Answer

In the United States,the richest 20 perc

Question 3

The figure above shows the circular flow model.
-In the figure above,which of the following represents a real flow?

Accepted Answer

A)  Expenditures on real estate services 
B)  Profit 
C)  Capital 
D)  Wages 
E)  Both B and D 
A)  Expenditures on real estate services 
B)  Profit 
C)  Capital 
D)  Wages 
E)  Both B and D

Question 4

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 5

How many and what fraction of the world's people live in advanced economies? In emerging market and developing economies?

Accepted Answer

There are approximately 7 billion people

Question 6

Income taxes paid by corporations are

Accepted Answer

A)  the major source of revenue for the federal government. 
B)  the major source of revenue for state governments. 
C)  the major source of revenue for local governments. 
D)  about 9 percent of the federal government's revenue. 
E)  the major source of expenditure by the federal government. 
A)  the major source of revenue for the federal government. 
B)  the major source of revenue for state governments. 
C)  the major source of revenue for local governments. 
D)  about 9 percent of the federal government's revenue. 
E)  the major source of expenditure by the federal government.

Question 7

________ paid for the use of land; ________ paid for the services of labor; and ________ paid for the use of capital.

Accepted Answer

A)  Rent is; wages are; interest is 
B)  Rent is; interest is; wages are 
C)  Interest is; wages are; profit is 
D)  Mortgages are; interest is; wages are 
E)  Rent is; wages are; profit is 
A)  Rent is; wages are; interest is 
B)  Rent is; interest is; wages are 
C)  Interest is; wages are; profit is 
D)  Mortgages are; interest is; wages are 
E)  Rent is; wages are; profit is

Question 8

Income equality has

Accepted Answer

A)  increased within countries but has narrowed across countries. 
B)  not changed in the advanced economies over the past 50 years. 
C)  narrowed within countries but increased across countries. 
D)  increased in developing economies as manufacturing has decreased. 
E)  decreased in the United States as manufacturing has increased. 
A)  increased within countries but has narrowed across countries. 
B)  not changed in the advanced economies over the past 50 years. 
C)  narrowed within countries but increased across countries. 
D)  increased in developing economies as manufacturing has decreased. 
E)  decreased in the United States as manufacturing has increased.

Question 9

Which of the following is NOT 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 10

Explain the difference between consumption and capital goods.

Accepted Answer

A difference lies in the identity of the

Question 11

Describe the circular flow of the economy by discussing the two markets where households and firms meet.

Accepted Answer

Firms and households meet in two markets

Question 12

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 13

Households receive transfers from ________ and firms receive transfers from ________.

Accepted Answer

A)  government; government 
B)  firms; households 
C)  government; government and households 
D)  firms and government; government 
E)  government; no one 
A)  government; government 
B)  firms; households 
C)  government; government and households 
D)  firms and government; government 
E)  government; no one

Question 14

In the circular flow model,the factor markets are the markets in which

Accepted Answer

A)  consumption goods and services are bought and sold. 
B)  government goods and services are provided. 
C)  land, labor, capital, and entrepreneurship are bought and sold. 
D)  investment goods and services are bought and sold. 
E)  governments impose all their taxes. 
A)  consumption goods and services are bought and sold. 
B)  government goods and services are provided. 
C)  land, labor, capital, and entrepreneurship are bought and sold. 
D)  investment goods and services are bought and sold. 
E)  governments impose all their taxes.

Question 15

In economics,the factor of production "land" includes all of the following EXCEPT ________.

Accepted Answer

A)  energy 
B)  plastics 
C)  wild plants 
D)  animals, birds, and fish 
E)  oil 
A)  energy 
B)  plastics 
C)  wild plants 
D)  animals, birds, and fish 
E)  oil

Question 16

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 17

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 18

The International Monetary Fund divides nations into three groups.What are the three groups and what are the characteristics of each group?

Accepted Answer

The International Monetary Fund divides

Question 19

Label the flows in the simplified circular flow diagram that ignores the government.

Accepted Answer

@#IMG-DLM& The figur

Question 20

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.

If there is a national debt,we can conclude that the federal government has

In the United States,how does the income received by the richest 20 percent of individuals compare with the income received by the other 80 percent?

The figure above shows the circular flow model. -In the figure above,which of the following represents a real flow?

The personal distribution of income in the United States shows that

How many and what fraction of the world's people live in advanced economies? In emerging market and developing economies?

Income taxes paid by corporations are

paid for the use of land; paid for the services of labor; and paid for the use of capital.

Income equality has

Which of the following is NOT considered capital?

Explain the difference between consumption and capital goods.

Describe the circular flow of the economy by discussing the two markets where households and firms meet.

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

Households receive transfers from and firms receive transfers from .

In the circular flow model,the factor markets are the markets in which

In economics,the factor of production "land" includes all of the following EXCEPT ________.

The functional distribution of income measures which of the following?

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

The International Monetary Fund divides nations into three groups.What are the three groups and what are the characteristics of each group?

Label the flows in the simplified circular flow diagram that ignores the government.

Entrepreneurship,as a factor of production,refers to

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

If there is a national debt,we can conclude that the federal government has

In the United States,how does the income received by the richest 20 percent of individuals compare with the income received by the other 80 percent?

The figure above shows the circular flow model. -In the figure above,which of the following represents a real flow?

The personal distribution of income in the United States shows that

How many and what fraction of the world's people live in advanced economies? In emerging market and developing economies?

Income taxes paid by corporations are

________ paid for the use of land; ________ paid for the services of labor; and ________ paid for the use of capital.

Income equality has

Which of the following is NOT considered capital?

Explain the difference between consumption and capital goods.

Describe the circular flow of the economy by discussing the two markets where households and firms meet.

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

Households receive transfers from ________ and firms receive transfers from ________.

In the circular flow model,the factor markets are the markets in which

In economics,the factor of production "land" includes all of the following EXCEPT ________.

The functional distribution of income measures which of the following?

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

The International Monetary Fund divides nations into three groups.What are the three groups and what are the characteristics of each group?

Label the flows in the simplified circular flow diagram that ignores the government.

Entrepreneurship,as a factor of production,refers to

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

paid for the use of land; paid for the services of labor; and paid for the use of capital.

Households receive transfers from and firms receive transfers from .