Question 1

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 2

The data show that more than 60 percent of the total income earned in the United States goes to

Accepted Answer

A) labor. 
B) land. 
C) capital. 
D) entrepreneurship. 
E) profit. 
A) labor. 
B) land. 
C) capital. 
D) entrepreneurship. 
E) profit.

Question 3

The percentage of the world's population that lives in the advanced economies is

Accepted Answer

A) more than 71 percent. 
B) between 51 percent and 70 percent. 
C) between 31 percent and 50 percent. 
D) between 20 percent and 30 percent. 
E) less than 20 percent. 
A) more than 71 percent. 
B) between 51 percent and 70 percent. 
C) between 31 percent and 50 percent. 
D) between 20 percent and 30 percent. 
E) less than 20 percent.

Question 4

Of the following, the largest source of revenue for the federal government is

Accepted Answer

A) personal income taxes. 
B) sales taxes. 
C) corporate income taxes. 
D) property taxes. 
E) lottery revenue. 
A) personal income taxes. 
B) sales taxes. 
C) corporate income taxes. 
D) property taxes. 
E) lottery revenue.

Question 5

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 6

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 7

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 8

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 9

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 10

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 11

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 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

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 14

Explain how the largest sources of state tax revenues differs from the largest sources of federal tax revenues.

Accepted Answer

The two largest sources of federal tax r

Question 15

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

Accepted Answer

"Capital" is the actual physical good, s

Question 16

In the circular flow model, which of the following owns the factors of production?

Accepted Answer

A) only federal, state, and local governments 
B) only households 
C) only firms 
D) both firms and households 
E) firms, households, and all levels of government 
A) only federal, state, and local governments 
B) only households 
C) only firms 
D) both firms and households 
E) firms, households, and all levels of government

Question 17

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 18

The largest category of state and local government expenditures is

Accepted Answer

A) public welfare. 
B) highways. 
C) education. 
D) interest on their debt. 
E) social security. 
A) public welfare. 
B) highways. 
C) education. 
D) interest on their debt. 
E) social security.

Question 19

________ choose the quantities of goods and services to produce, while ________ choose the quantities of goods and services to buy

Accepted Answer

A) Households; firms 
B) Firms; households and the government 
C) The government; firms 
D) Firms; only households 
E) Households; the government 
A) Households; firms 
B) Firms; households and the government 
C) The government; firms 
D) Firms; only households 
E) Households; the government

Question 20

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

Accepted Answer

A) exports. 
B) imports. 
C) foreign goods. 
D) capital goods. 
E) capital account goods. 
A) exports. 
B) imports. 
C) foreign goods. 
D) capital goods. 
E) capital account goods.

Which of the following is NOT considered capital?

The data show that more than 60 percent of the total income earned in the United States goes to

The percentage of the world's population that lives in the advanced economies is

Of the following, the largest source of revenue for the federal government is

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

Most countries in the world are classified as

One of the productive resources is capital.Capital includes

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

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

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

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

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

Explain how the largest sources of state tax revenues differs from the largest sources of federal tax revenues.

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

In the circular flow model, which of the following owns the factors of production?

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

The largest category of state and local government expenditures is

choose the quantities of goods and services to produce, while choose the quantities of goods and services to buy

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

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

Which of the following is NOT considered capital?

The data show that more than 60 percent of the total income earned in the United States goes to

The percentage of the world's population that lives in the advanced economies is

Of the following, the largest source of revenue for the federal government is

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

Most countries in the world are classified as

One of the productive resources is capital.Capital includes

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

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

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

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

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

Explain how the largest sources of state tax revenues differs from the largest sources of federal tax revenues.

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

In the circular flow model, which of the following owns the factors of production?

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

The largest category of state and local government expenditures is

________ choose the quantities of goods and services to produce, while ________ choose the quantities of goods and services to buy

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

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

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

choose the quantities of goods and services to produce, while choose the quantities of goods and services to buy