Question 1

What is a market? Must a market have a single physical location?

Accepted Answer

A market is any arrangement that allows

Question 2

The circular flow model is used to show the

Accepted Answer

A)  flow of renewable natural resources. 
B)  recycling process of production materials. 
C)  expansions and contractions of economic activity. 
D)  flow of expenditures and incomes in the economy. 
E)  flow of supply and the flow of demand. 
A)  flow of renewable natural resources. 
B)  recycling process of production materials. 
C)  expansions and contractions of economic activity. 
D)  flow of expenditures and incomes in the economy. 
E)  flow of supply and the flow of demand.

Question 3

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 4

Draw a circular flow diagram with households and firms and without government.Label the markets and the flows in the circular flow diagram.

Accepted Answer

@#IMG-DLM& A circular flow dia

Question 5

In the United States,which factor of production earns the largest share of the nation's total income?

Accepted Answer

The largest fraction of the na

Question 6

An example of a real flow in the circular flow diagram is

Accepted Answer

A)  a household's supply of work effort at its new business. 
B)  the government's payment of wages to a soldier. 
C)  Nike's payment of wages to workers in China. 
D)  your county's collection of property taxes. 
E)  a teacher's salary at the local high school. 
A)  a household's supply of work effort at its new business. 
B)  the government's payment of wages to a soldier. 
C)  Nike's payment of wages to workers in China. 
D)  your county's collection of property taxes. 
E)  a teacher's salary at the local high school.

Question 7

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.

Question 8

What are the two largest sources of tax revenues for the U.S.federal government?

Accepted Answer

The largest source of tax revenue for th

Question 9

It is conventional to divide the nation's total production into four categories.Name and explain the four categories.In the United States,which category accounts for the largest share and the smallest share of the nation's total production?

Accepted Answer

The four categories of production are co

Question 10

________ 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 11

What is meant by the term "human capital"?

Accepted Answer

Human capital refers to the skills peopl

Question 12

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 13

What are the payments each factor of production receives?

Accepted Answer

Rent is paid for the use of la

Question 14

Which of the following correctly describes how the "global pie is baked"?

Accepted Answer

A)  Advanced economies account for about 50 percent of the value of the world's production. 
B)  The U.S.'s share of economic pie is increasing while China's share is decreasing. 
C)  The increase in manufacturing has taken place in mainly the advanced economies. 
D)  Asia accounts for about 40 percent of the global pie. 
E)  Emerging economies account for about 25 percent of the global pie. 
A)  Advanced economies account for about 50 percent of the value of the world's production. 
B)  The U.S.'s share of economic pie is increasing while China's share is decreasing. 
C)  The increase in manufacturing has taken place in mainly the advanced economies. 
D)  Asia accounts for about 40 percent of the global pie. 
E)  Emerging economies account for about 25 percent of the global pie.

Question 15

Most countries in the world are classified as

Accepted Answer

A)  advanced. 
B)  in transition. 
C)  developing. 
D)  industrialized. 
E)  emerging market. 
A)  advanced. 
B)  in transition. 
C)  developing. 
D)  industrialized. 
E)  emerging market.

Question 16

Economists classify energy and water as part of which factor of production?

Accepted Answer

A)  land 
B)  labor 
C)  capital 
D)  entrepreneurship 
E)  land if undeveloped and capital if developed 
A)  land 
B)  labor 
C)  capital 
D)  entrepreneurship 
E)  land if undeveloped and capital if developed

Question 17

Capital is a factor of production.An example of capital as a factor of production is

Accepted Answer

A)  money. 
B)  stocks. 
C)  bonds. 
D)  machines. 
E)  education. 
A)  money. 
B)  stocks. 
C)  bonds. 
D)  machines. 
E)  education.

Question 18

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 19

The figure above shows the circular flow model.
-In the figure above,which of the following transactions take place in the factor markets?
i.Michael,a student,orders a computer from Dell online.
ii.Peter gets a job at a Wal-Mart store.
iii.Apple Computer opens a new store in Georgia.

Accepted Answer

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

Question 20

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.

What is a market? Must a market have a single physical location?

The circular flow model is used to show the

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.

Draw a circular flow diagram with households and firms and without government.Label the markets and the flows in the circular flow diagram.

In the United States,which factor of production earns the largest share of the nation's total income?

An example of a real flow in the circular flow diagram is

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

What are the two largest sources of tax revenues for the U.S.federal government?

It is conventional to divide the nation's total production into four categories.Name and explain the four categories.In the United States,which category accounts for the largest share and the smallest share of the nation's total production?

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

What is meant by the term "human capital"?

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

What are the payments each factor of production receives?

Which of the following correctly describes how the "global pie is baked"?

Most countries in the world are classified as

Economists classify energy and water as part of which factor of production?

Capital is a factor of production.An example of capital as a factor of production is

The largest component of federal government spending is for

The figure above shows the circular flow model. -In the figure above,which of the following transactions take place in the factor markets? i.Michael,a student,orders a computer from Dell online. ii.Peter gets a job at a Wal-Mart store. iii.Apple Computer opens a new store in Georgia.

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

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

What is a market? Must a market have a single physical location?

The circular flow model is used to show the

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.

Draw a circular flow diagram with households and firms and without government.Label the markets and the flows in the circular flow diagram.

In the United States,which factor of production earns the largest share of the nation's total income?

An example of a real flow in the circular flow diagram is

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

What are the two largest sources of tax revenues for the U.S.federal government?

It is conventional to divide the nation's total production into four categories.Name and explain the four categories.In the United States,which category accounts for the largest share and the smallest share of the nation's total production?

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

What is meant by the term "human capital"?

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

What are the payments each factor of production receives?

Which of the following correctly describes how the "global pie is baked"?

Most countries in the world are classified as

Economists classify energy and water as part of which factor of production?

Capital is a factor of production.An example of capital as a factor of production is

The largest component of federal government spending is for

The figure above shows the circular flow model. -In the figure above,which of the following transactions take place in the factor markets? i.Michael,a student,orders a computer from Dell online. ii.Peter gets a job at a Wal-Mart store. iii.Apple Computer opens a new store in Georgia.

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

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