Question 1

________ the owners of the factors of production,while ________ what amounts of those factors to hire.

Accepted Answer

A)  Households are; firms determine 
B)  Households are; the government determines 
C)  The government is; firms determine 
D)  Firms are; households determine 
E)  Firms are; the government determines 
A)  Households are; firms determine 
B)  Households are; the government determines 
C)  The government is; firms determine 
D)  Firms are; households determine 
E)  Firms are; the government determines

Question 2

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 3

Which of the following is NOT a function of the federal government?

Accepted Answer

A)  collecting property taxes 
B)  making social security and welfare payments 
C)  making transfers to state and local governments 
D)  providing public goods and services 
E)  imposing a personal income tax. 
A)  collecting property taxes 
B)  making social security and welfare payments 
C)  making transfers to state and local governments 
D)  providing public goods and services 
E)  imposing a personal income tax.

Question 4

What would be an example of consumption good?

Accepted Answer

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

Question 5

Explain the differences between "human capital," "financial capital," and "capital."

Accepted Answer

Human capital is the knowledge and skill

Question 6

Capital,as a factor of production,refers to

Accepted Answer

A)  money, stocks, and bonds. 
B)  the production technology used by firms. 
C)  the tools and instruments used to produce other goods and services. 
D)  the production factors imported from abroad. 
E)  stocks and bonds but not money. 
A)  money, stocks, and bonds. 
B)  the production technology used by firms. 
C)  the tools and instruments used to produce other goods and services. 
D)  the production factors imported from abroad. 
E)  stocks and bonds but not money.

Question 7

Identify the four factors of production,and tell what type of income is earned by each factor.

Accepted Answer

The factors of production are land,which

Question 8

The total amount the federal government has borrowed to make expenditures that exceed tax revenue is called

Accepted Answer

A)  personal income taxes. 
B)  federal expenditures. 
C)  total government spending. 
D)  the net government revenue. 
E)  the national debt. 
A)  personal income taxes. 
B)  federal expenditures. 
C)  total government spending. 
D)  the net government revenue. 
E)  the national debt.

Question 9

Of the following,the largest single component of U.S.federal government expenditures is spent on

Accepted Answer

A)  interest paid on the national debt. 
B)  Medicare and Medicaid. 
C)  national defense. 
D)  purchases of goods and services for purposes other than national defense. 
E)  transfers to state and local governments. 
A)  interest paid on the national debt. 
B)  Medicare and Medicaid. 
C)  national defense. 
D)  purchases of goods and services for purposes other than national defense. 
E)  transfers to state and local governments.

Question 10

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 11

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 12

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

Accepted Answer

A)  Goods purchased 
B)  Interest 
C)  Capital 
D)  Services sold 
E)  Goods supplied 
A)  Goods purchased 
B)  Interest 
C)  Capital 
D)  Services sold 
E)  Goods supplied

Question 13

Explain how public goods provided by the federal government differ from public goods provided by the state and local governments.

Accepted Answer

The federal government provides goods an

Question 14

The personal distribution of income shows

Accepted Answer

A)  that labor receives the largest percentage of total income. 
B)  how profit accounts for the largest fraction of total income. 
C)  that the richest 20 percent of households receive 23 percent of total income. 
D)  that interest accounts for most of the income of the richest 20 percent of households. 
E)  that the poorest 20 percent of households receive less than 4 percent of total income. 
A)  that labor receives the largest percentage of total income. 
B)  how profit accounts for the largest fraction of total income. 
C)  that the richest 20 percent of households receive 23 percent of total income. 
D)  that interest accounts for most of the income of the richest 20 percent of households. 
E)  that the poorest 20 percent of households receive less than 4 percent of total income.

Question 15

State and local governments spend about ________ of their expenditures on education.

Accepted Answer

A)  14 percent 
B)  19 percent 
C)  34 percent 
D)  59 percent 
E)  74 percent 
A)  14 percent 
B)  19 percent 
C)  34 percent 
D)  59 percent 
E)  74 percent

Question 16

Items bought by individuals to provide personal enjoyment are termed

Accepted Answer

A)  consumption goods. 
B)  personal goods. 
C)  consumption or investment goods. 
D)  standard goods. 
E)  pleasure goods. 
A)  consumption goods. 
B)  personal goods. 
C)  consumption or investment goods. 
D)  standard goods. 
E)  pleasure goods.

Question 17

As the circular flow model points out,a choice that households make is how

Accepted Answer

A)  many resources a firm will hire. 
B)  many goods and services are produced. 
C)  many goods and services are purchased. 
D)  much labor is hired. 
E)  much the government will collect in taxes and how much the government will spend on transfer payments. 
A)  many resources a firm will hire. 
B)  many goods and services are produced. 
C)  many goods and services are purchased. 
D)  much labor is hired. 
E)  much the government will collect in taxes and how much the government will spend on transfer payments.

Question 18

Items that are purchased by individuals for their own enjoyment are called

Accepted Answer

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

Question 19

Goods and services produced in the United States and sold in other countries are called

Accepted Answer

A)  consumption goods and services. 
B)  capital goods. 
C)  government goods and services. 
D)  export goods and services. 
E)  import goods and services. 
A)  consumption goods and services. 
B)  capital goods. 
C)  government goods and services. 
D)  export goods and services. 
E)  import goods and services.

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 owners of the factors of production,while what amounts of those factors to hire.

The owners of the resource are paid .

Which of the following is NOT a function of the federal government?

What would be an example of consumption good?

Explain the differences between "human capital," "financial capital," and "capital."

Capital,as a factor of production,refers to

Identify the four factors of production,and tell what type of income is earned by each factor.

The total amount the federal government has borrowed to make expenditures that exceed tax revenue is called

Of the following,the largest single component of U.S.federal government expenditures is spent on

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

The concept of human capital describes

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

Explain how public goods provided by the federal government differ from public goods provided by the state and local governments.

The personal distribution of income shows

State and local governments spend about ________ of their expenditures on education.

Items bought by individuals to provide personal enjoyment are termed

As the circular flow model points out,a choice that households make is how

Items that are purchased by individuals for their own enjoyment are called

Goods and services produced in the United States and sold in other countries are called

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 Usand Global Economies

________ the owners of the factors of production,while ________ what amounts of those factors to hire.

The owners of the resource ________ are paid ________ .

Which of the following is NOT a function of the federal government?

What would be an example of consumption good?

Explain the differences between "human capital," "financial capital," and "capital."

Capital,as a factor of production,refers to

Identify the four factors of production,and tell what type of income is earned by each factor.

The total amount the federal government has borrowed to make expenditures that exceed tax revenue is called

Of the following,the largest single component of U.S.federal government expenditures is spent on

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

The concept of human capital describes

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

Explain how public goods provided by the federal government differ from public goods provided by the state and local governments.

The personal distribution of income shows

State and local governments spend about ________ of their expenditures on education.

Items bought by individuals to provide personal enjoyment are termed

As the circular flow model points out,a choice that households make is how

Items that are purchased by individuals for their own enjoyment are called

Goods and services produced in the United States and sold in other countries are called

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 owners of the factors of production,while what amounts of those factors to hire.

The owners of the resource are paid .

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