Question 1

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 2

Goods and services bought by the government account for about ________ percent of total production.

Accepted Answer

A) 2 
B) 8 
C) 17 
D) 35 
E) 67 
A) 2 
B) 8 
C) 17 
D) 35 
E) 67

Question 3

The income paid to labor is called

Accepted Answer

A) rent. 
B) wages. 
C) interest. 
D) profit. 
E) human capital. 
A) rent. 
B) wages. 
C) interest. 
D) profit. 
E) human capital.

Question 4

________ 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 5

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 6

Which of the following is not considered one of the factors of production?

Accepted Answer

A) Land 
B) Labor 
C) Capital 
D) Technology 
E) Entrepreneurship 
A) Land 
B) Labor 
C) Capital 
D) Technology 
E) Entrepreneurship

Question 7

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.

Question 8

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 9

The world population is approximately ________ people.

Accepted Answer

A) 6.8 million 
B) 2 trillion 
C) 6.8 billion 
D) 6.8 trillion 
E) 680 million 
A) 6.8 million 
B) 2 trillion 
C) 6.8 billion 
D) 6.8 trillion 
E) 680 million

Question 10

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 11

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 12

What is meant by the term "human capital"?

Accepted Answer

Human capital refers to the skills peopl

Question 13

Aaron locked himself out of his house and had to pay $40 to Brianna, who works for Lucky Locksmith, to open his door.Based on this transaction in the economy and using concepts from the circular flow model, which of the following is true?

Accepted Answer

A) Brianna earned income from supplying her labor services. 
B) Aaron earned income from supplying his labor services. 
C) Brianna purchased goods and services. 
D) Aaron acted as a firm in this transaction. 
E) Aaron supplied goods and services. 
A) Brianna earned income from supplying her labor services. 
B) Aaron earned income from supplying his labor services. 
C) Brianna purchased goods and services. 
D) Aaron acted as a firm in this transaction. 
E) Aaron supplied goods and services.

Question 14

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 15

The two biggest items of the U.S.federal government revenue that together account for over approximately 80 percent of total federal government revenue are

Accepted Answer

A) personal income taxes and Social Security taxes. 
B) personal income taxes and corporate income taxes. 
C) corporate income taxes and Social Security taxes. 
D) corporate income taxes and property taxes. 
E) personal income taxes and sales taxes. 
A) personal income taxes and Social Security taxes. 
B) personal income taxes and corporate income taxes. 
C) corporate income taxes and Social Security taxes. 
D) corporate income taxes and property taxes. 
E) personal income taxes and sales taxes.

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

Dividing the nation's income among the factors of production, the largest percentage is paid to

Accepted Answer

A) labor. 
B) land. 
C) capital. 
D) entrepreneurship. 
E) labor and capital, with each receiving about 41 percent of the total income. 
A) labor. 
B) land. 
C) capital. 
D) entrepreneurship. 
E) labor and capital, with each receiving about 41 percent of the total income.

Question 18

Dan missed class the day the professor covered the circular flow model.Dan asked his friend Joan to explain markets to him.Joan correctly stated that a market

Accepted Answer

A) requires a physical location for buyers and sellers to get together. 
B) is any arrangement that brings buyers and sellers together. 
C) must include a written contract between buyers and sellers. 
D) is only a place to purchase groceries. 
E) must have many buyers and only one seller, who is willing to sell to all the buyers. 
A) requires a physical location for buyers and sellers to get together. 
B) is any arrangement that brings buyers and sellers together. 
C) must include a written contract between buyers and sellers. 
D) is only a place to purchase groceries. 
E) must have many buyers and only one seller, who is willing to sell to all the buyers.

Question 19

In the United States, the productive factor that, as a group, receives the largest fraction of the nation's total income was

Accepted Answer

A) labor. 
B) capital. 
C) consumption goods and services. 
D) entrepreneurship. 
E) land. 
A) labor. 
B) capital. 
C) consumption goods and services. 
D) entrepreneurship. 
E) land.

Question 20

The productive resource that organizes labor, land, and capital is

Accepted Answer

A) human capital. 
B) financial capital. 
C) entrepreneurship. 
D) government. 
E) capital. 
A) human capital. 
B) financial capital. 
C) entrepreneurship. 
D) government. 
E) capital.

Items bought by individuals to provide personal enjoyment are termed

Goods and services bought by the government account for about ________ percent of total production.

The income paid to labor is called

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

The personal distribution of income shows

Which of the following is not considered one of the factors of production?

Entrepreneurship, as a factor of production, refers to

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

The world population is approximately ________ people.

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.

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

What is meant by the term "human capital"?

Aaron locked himself out of his house and had to pay $40 to Brianna, who works for Lucky Locksmith, to open his door.Based on this transaction in the economy and using concepts from the circular flow model, which of the following is true?

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

The two biggest items of the U.S.federal government revenue that together account for over approximately 80 percent of total federal government revenue are

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

Dividing the nation's income among the factors of production, the largest percentage is paid to

Dan missed class the day the professor covered the circular flow model.Dan asked his friend Joan to explain markets to him.Joan correctly stated that a market

In the United States, the productive factor that, as a group, receives the largest fraction of the nation's total income was

The productive resource that organizes labor, land, and capital 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

Items bought by individuals to provide personal enjoyment are termed

Goods and services bought by the government account for about ________ percent of total production.

The income paid to labor is called

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

The personal distribution of income shows

Which of the following is not considered one of the factors of production?

Entrepreneurship, as a factor of production, refers to

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

The world population is approximately ________ people.

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.

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

What is meant by the term "human capital"?

Aaron locked himself out of his house and had to pay $40 to Brianna, who works for Lucky Locksmith, to open his door.Based on this transaction in the economy and using concepts from the circular flow model, which of the following is true?

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

The two biggest items of the U.S.federal government revenue that together account for over approximately 80 percent of total federal government revenue are

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

Dividing the nation's income among the factors of production, the largest percentage is paid to

Dan missed class the day the professor covered the circular flow model.Dan asked his friend Joan to explain markets to him.Joan correctly stated that a market

In the United States, the productive factor that, as a group, receives the largest fraction of the nation's total income was

The productive resource that organizes labor, land, and capital 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.