Question 1

The largest share of total production in the United States is

Accepted Answer

A)  consumption goods and services. 
B)  capital goods. 
C)  government goods and services. 
D)  exported goods and services. 
E)  imported goods and services. 
A)  consumption goods and services. 
B)  capital goods. 
C)  government goods and services. 
D)  exported goods and services. 
E)  imported goods and services.

Question 2

State and local governments finance expenditures mainly from

Accepted Answer

A)  tax revenue. 
B)  funds provided by the federal government. 
C)  government bonds issued at the state level. 
D)  private bank loans. 
E)  lottery funds. 
A)  tax revenue. 
B)  funds provided by the federal government. 
C)  government bonds issued at the state level. 
D)  private bank loans. 
E)  lottery funds.

Question 3

In the circular flow model with the government sector,transfers

Accepted Answer

A)  flow in the same direction as do taxes. 
B)  flow in the opposite direction as do taxes. 
C)  to households flow in the same direction as do expenditures on goods and services. 
D)  to firms flow in the same direction as do rent, wages, interest, and profits. 
E)  flow only through the goods market. 
A)  flow in the same direction as do taxes. 
B)  flow in the opposite direction as do taxes. 
C)  to households flow in the same direction as do expenditures on goods and services. 
D)  to firms flow in the same direction as do rent, wages, interest, and profits. 
E)  flow only through the goods market.

Question 4

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

Accepted Answer

A)  state and local; borrowed 
B)  federal; taxed U.S. citizens 
C)  state and local; taxed U.S. citizens 
D)  federal; borrowed 
E)  federal; loaned 
A)  state and local; borrowed 
B)  federal; taxed U.S. citizens 
C)  state and local; taxed U.S. citizens 
D)  federal; borrowed 
E)  federal; loaned

Question 5

Canada is classified by the International Monetary Fund as

Accepted Answer

A)  an advanced economy. 
B)  a developing economy. 
C)  a transition economy. 
D)  an emerging market economy. 
E)  a natural-resource based economy. 
A)  an advanced economy. 
B)  a developing economy. 
C)  a transition economy. 
D)  an emerging market economy. 
E)  a natural-resource based economy.

Question 6

Approximately ________ people live in the United States and ________ people live in the world.

Accepted Answer

A)  410 million; 8 billion 
B)  310 million; 7 billion 
C)  210 million; 5 billion 
D)  310 million; 3 billion 
E)  210 million; 6 billion 
A)  410 million; 8 billion 
B)  310 million; 7 billion 
C)  210 million; 5 billion 
D)  310 million; 3 billion 
E)  210 million; 6 billion

Question 7

What effect,if any,will a good college education have on your human capital? Explain your answer.

Accepted Answer

Human capital refers to the sk

Question 8

Of the following,the country with the highest average income per day in the world is

Accepted Answer

A)  Japan. 
B)  the United States. 
C)  France. 
D)  Germany. 
E)  China. 
A)  Japan. 
B)  the United States. 
C)  France. 
D)  Germany. 
E)  China.

Question 9

Physical capital differences across countries can be seen in the fact that

Accepted Answer

A)  more advanced economies typically have more sophisticated technology. 
B)  furniture factories in China use machines like those in North Carolina. 
C)  students in India study the same subjects as those in the United States. 
D)  advanced economies produce 53 percent of the world's income. 
E)  the iPhone's components are produced in 30 countries. 
A)  more advanced economies typically have more sophisticated technology. 
B)  furniture factories in China use machines like those in North Carolina. 
C)  students in India study the same subjects as those in the United States. 
D)  advanced economies produce 53 percent of the world's income. 
E)  the iPhone's components are produced in 30 countries.

Question 10

In the circular flow model,rent,wages,interest,and profit paid flow from ________ through ________ to ________.

Accepted Answer

A)  households; goods markets; firms as payment for goods 
B)  firms; factor markets; households 
C)  firms; goods markets; households 
D)  households; factor markets; firms 
E)  firms; goods market; firms 
A)  households; goods markets; firms as payment for goods 
B)  firms; factor markets; households 
C)  firms; goods markets; households 
D)  households; factor markets; firms 
E)  firms; goods market; firms

Question 11

Over time,the percentage of total employment in services has ________ and in agriculture,employment has ________.

Accepted Answer

A)  increased; increased. 
B)  decreased; increased. 
C)  stayed about the same; decreased. 
D)  stayed about the same; increased. 
E)  increased; decreased. 
A)  increased; increased. 
B)  decreased; increased. 
C)  stayed about the same; decreased. 
D)  stayed about the same; increased. 
E)  increased; decreased.

Question 12

One of the productive resources is capital.Capital includes

Accepted Answer

A)  money borrowed from a bank. 
B)  a company's stocks and bonds. 
C)  tools, buildings, and machine tools. 
D)  toys, t-shirts, CD players, and pencils. 
E)  money in a savings account at a bank. 
A)  money borrowed from a bank. 
B)  a company's stocks and bonds. 
C)  tools, buildings, and machine tools. 
D)  toys, t-shirts, CD players, and pencils. 
E)  money in a savings account at a bank.

Question 13

In the circular flow model,the expenditures on goods and services flow in the

Accepted Answer

A)  same direction as goods and services in all cases. 
B)  same direction as goods and services only if they both flow through the goods market. 
C)  same direction as goods and services only if they both flow through the factor market. 
D)  opposite direction as goods and services. 
E)  same direction as factor markets. 
A)  same direction as goods and services in all cases. 
B)  same direction as goods and services only if they both flow through the goods market. 
C)  same direction as goods and services only if they both flow through the factor market. 
D)  opposite direction as goods and services. 
E)  same direction as factor markets.

Question 14

Of the following,the federal government's largest source of revenue is the

Accepted Answer

A)  sales tax. 
B)  property tax. 
C)  corporate income tax. 
D)  social security tax. 
E)  transfers from state and local governments. 
A)  sales tax. 
B)  property tax. 
C)  corporate income tax. 
D)  social security tax. 
E)  transfers from state and local governments.

Question 15

The figure above shows governments in the circular flow.
-In the figure above,which of the following is true?
i.Governments coordinate economic activities of households and firms.
ii.Governments buy goods and services in goods markets.
iii.Households pay taxes directly to firms.

Accepted Answer

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

Question 16

An item that is purchased to increase businesses' productive resources is

Accepted Answer

A)  an export. 
B)  a government good. 
C)  a capital good. 
D)  a consumption good. 
E)  a productive good. 
A)  an export. 
B)  a government good. 
C)  a capital good. 
D)  a consumption good. 
E)  a productive good.

Question 17

The figure above shows governments in the circular flow.
-In the figure above,households

Accepted Answer

A)  receive transfers directly from governments. 
B)  buy goods and services from governments in goods markets. 
C)  receive transfers from governments through factor markets. 
D)  sell factors of production to governments. 
E)  pay taxes to governments through factor markets. 
A)  receive transfers directly from governments. 
B)  buy goods and services from governments in goods markets. 
C)  receive transfers from governments through factor markets. 
D)  sell factors of production to governments. 
E)  pay taxes to governments through factor markets.

Question 18

Households and firms in the U.S.economy interact with those in the rest of the world in the ________ market and in the ________ market.

Accepted Answer

A)  goods; factor 
B)  goods; financial 
C)  government; goods 
D)  financial; factor 
E)  firm; government 
A)  goods; factor 
B)  goods; financial 
C)  government; goods 
D)  financial; factor 
E)  firm; government

Question 19

In the advanced economies,________ of the factories use advanced capital equipment and in the developing economies ________ of the factories use advanced capital equipment

Accepted Answer

A)  virtually all; virtually all 
B)  some; some 
C)  virtually all; none 
D)  some; none of 
E)  virtually all; some 
A)  virtually all; virtually all 
B)  some; some 
C)  virtually all; none 
D)  some; none of 
E)  virtually all; some

Question 20

In the circular flow model,which of the following flows in the opposite direction from the flow of factors of production?

Accepted Answer

A)  finished goods and services 
B)  wages, rent, interest, and profit 
C)  interests payments of Federal, state, and local governments 
D)  firm's profit incentives 
E)  the goods market 
A)  finished goods and services 
B)  wages, rent, interest, and profit 
C)  interests payments of Federal, state, and local governments 
D)  firm's profit incentives 
E)  the goods market

The largest share of total production in the United States is

State and local governments finance expenditures mainly from

In the circular flow model with the government sector,transfers

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

Canada is classified by the International Monetary Fund as

Approximately people live in the United States and people live in the world.

What effect,if any,will a good college education have on your human capital? Explain your answer.

Of the following,the country with the highest average income per day in the world is

Physical capital differences across countries can be seen in the fact that

In the circular flow model,rent,wages,interest,and profit paid flow from through to .

Over time,the percentage of total employment in services has and in agriculture,employment has .

One of the productive resources is capital.Capital includes

In the circular flow model,the expenditures on goods and services flow in the

Of the following,the federal government's largest source of revenue is the

The figure above shows governments in the circular flow. -In the figure above,which of the following is true? i.Governments coordinate economic activities of households and firms. ii.Governments buy goods and services in goods markets. iii.Households pay taxes directly to firms.

An item that is purchased to increase businesses' productive resources is

The figure above shows governments in the circular flow. -In the figure above,households

Households and firms in the U.S.economy interact with those in the rest of the world in the market and in the market.

In the advanced economies, of the factories use advanced capital equipment and in the developing economies of the factories use advanced capital equipment

In the circular flow model,which of the following flows in the opposite direction from the flow of factors of production?

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 largest share of total production in the United States is

State and local governments finance expenditures mainly from

In the circular flow model with the government sector,transfers

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

Canada is classified by the International Monetary Fund as

Approximately ________ people live in the United States and ________ people live in the world.

What effect,if any,will a good college education have on your human capital? Explain your answer.

Of the following,the country with the highest average income per day in the world is

Physical capital differences across countries can be seen in the fact that

In the circular flow model,rent,wages,interest,and profit paid flow from ________ through ________ to ________.

Over time,the percentage of total employment in services has ________ and in agriculture,employment has ________.

One of the productive resources is capital.Capital includes

In the circular flow model,the expenditures on goods and services flow in the

Of the following,the federal government's largest source of revenue is the

The figure above shows governments in the circular flow. -In the figure above,which of the following is true? i.Governments coordinate economic activities of households and firms. ii.Governments buy goods and services in goods markets. iii.Households pay taxes directly to firms.

An item that is purchased to increase businesses' productive resources is

The figure above shows governments in the circular flow. -In the figure above,households

Households and firms in the U.S.economy interact with those in the rest of the world in the ________ market and in the ________ market.

In the advanced economies,________ of the factories use advanced capital equipment and in the developing economies ________ of the factories use advanced capital equipment

In the circular flow model,which of the following flows in the opposite direction from the flow of factors of production?

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

Approximately people live in the United States and people live in the world.

In the circular flow model,rent,wages,interest,and profit paid flow from through to .

Over time,the percentage of total employment in services has and in agriculture,employment has .

Households and firms in the U.S.economy interact with those in the rest of the world in the market and in the market.

In the advanced economies, of the factories use advanced capital equipment and in the developing economies of the factories use advanced capital equipment