Question 1

In the circular flow model, the factors of production flow in the

Accepted Answer

A) same direction as do the rents, wages, interest, and profits. 
B) opposite direction as do the rents, wages, interest, and profits. 
C) opposite direction as does the government. 
D) same direction as does the goods market. 
E) opposite direction as does the goods market. 
A) same direction as do the rents, wages, interest, and profits. 
B) opposite direction as do the rents, wages, interest, and profits. 
C) opposite direction as does the government. 
D) same direction as does the goods market. 
E) opposite direction as does the goods market.

Question 2

Tax revenues are transferred from

Accepted Answer

A) state governments to the federal government. 
B) local governments to state and federal governments. 
C) one state government to other state governments. 
D) the federal government to state and local governments. 
E) the state and local governments to the federal government. 
A) state governments to the federal government. 
B) local governments to state and federal governments. 
C) one state government to other state governments. 
D) the federal government to state and local governments. 
E) the state and local governments to the federal government.

Question 3

________ 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 4

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 5

Poland is classified as

Accepted Answer

A) an advanced economy. 
B) a developing economy. 
C) a transition economy. 
D) an emerging market economy. 
E) private economy. 
A) an advanced economy. 
B) a developing economy. 
C) a transition economy. 
D) an emerging market economy. 
E) private economy.

Question 6

In the United States, how does the income received by the richest 20 percent of individuals compare with the income received by the other 80 percent?

Accepted Answer

In the United States, the richest 20 per

Question 7

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 8

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 9

________ economies include ____________.

Accepted Answer

A) Advanced; France, Australia and South Korea 
B) Advanced; the U.S., Taiwan and Russia 
C) Advanced; Russia, Canada and Singapore 
D) Emerging; Taiwan, Russia and Singapore 
E) Emerging; Saudi Arabia, Poland and Taiwan 
A) Advanced; France, Australia and South Korea 
B) Advanced; the U.S., Taiwan and Russia 
C) Advanced; Russia, Canada and Singapore 
D) Emerging; Taiwan, Russia and Singapore 
E) Emerging; Saudi Arabia, Poland and Taiwan

Question 10

Which factor of production does human capital enhance?
I∙land
Ii∙labor
Iii∙capital

Accepted Answer

A) i only 
B) ii only 
C) iii only 
D) i and ii 
E) i, ii, and iii 
A) i only 
B) ii only 
C) iii only 
D) i and ii 
E) i, ii, and iii

Question 11

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 12

The income paid for the use of land is called

Accepted Answer

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

Question 13

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 14

Which of the following is true?
i. The advanced economies account for more than half of global production.
ii. Almost four out of every five people in the world live in the developing economies.
iii. In the advanced economies, agriculture accounts for a larger part of total production than in the developing economies.

Accepted Answer

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

Question 15

The circular flow model shows the flow of

Accepted Answer

A) expenditure and income throughout the economy. 
B) only money throughout the economy. 
C) only funds in stock and bond markets. 
D) only tax payments and government expenditures. 
E) goods market and factor markets as they move through the economy. 
A) expenditure and income throughout the economy. 
B) only money throughout the economy. 
C) only funds in stock and bond markets. 
D) only tax payments and government expenditures. 
E) goods market and factor markets as they move through the economy.

Question 16

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 17

Goods and services are produced by using four factors of production:

Accepted Answer

A) land, labor, capital, and entrepreneurship. 
B) land, labor, money, and equipment. 
C) natural resources, human resources, financial assets, and entrepreneurial resources. 
D) labor, human capital, physical capital, and financial capital. 
E) land, labor, capital, and money. 
A) land, labor, capital, and entrepreneurship. 
B) land, labor, money, and equipment. 
C) natural resources, human resources, financial assets, and entrepreneurial resources. 
D) labor, human capital, physical capital, and financial capital. 
E) land, labor, capital, and money.

Question 18

What determines the income flows that households receive?

Accepted Answer

A) an agency of the Federal government 
B) what they choose to produce, how much is sold, and the price received when sold 
C) their ownership of factors of production, how much they sell in the factor markets, and the prices received when sold 
D) financial institutions such as banks 
E) what they choose to consume 
A) an agency of the Federal government 
B) what they choose to produce, how much is sold, and the price received when sold 
C) their ownership of factors of production, how much they sell in the factor markets, and the prices received when sold 
D) financial institutions such as banks 
E) what they choose to consume

Question 19

The circular flow model shows the

Accepted Answer

A) distribution of income and consumption goods across income levels. 
B) combinations of the factors of production needed to produce goods and services. 
C) flow of expenditure and incomes that arise from the households', firms', and governments' decisions. 
D) flow of natural resources from firms to the private market to government and back to firms. 
E) distribution of income to the different factors of production. 
A) distribution of income and consumption goods across income levels. 
B) combinations of the factors of production needed to produce goods and services. 
C) flow of expenditure and incomes that arise from the households', firms', and governments' decisions. 
D) flow of natural resources from firms to the private market to government and back to firms. 
E) distribution of income to the different factors of production.

Question 20

Payments to the factors of production are

Accepted Answer

A) rent, mortgage, interest, and bonds. 
B) rent, interest, bonds, and profit or loss. 
C) rent, wages, interest, and profit or loss. 
D) rent, wages, profit or loss, and bonus. 
E) land, labor, capital, and entrepreneurship. 
A) rent, mortgage, interest, and bonds. 
B) rent, interest, bonds, and profit or loss. 
C) rent, wages, interest, and profit or loss. 
D) rent, wages, profit or loss, and bonus. 
E) land, labor, capital, and entrepreneurship.

In the circular flow model, the factors of production flow in the

Tax revenues are transferred from

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

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

Poland is classified as

In the United States, how does the income received by the richest 20 percent of individuals compare with the income received by the other 80 percent?

What would be an example of consumption good?

The largest component of federal government spending is for

economies include ____.

Which factor of production does human capital enhance? I∙land Ii∙labor Iii∙capital

Capital, as a factor of production, refers to

The income paid for the use of land is called

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.

The circular flow model shows the flow of

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

Goods and services are produced by using four factors of production:

What determines the income flows that households receive?

The circular flow model shows the

Payments to the factors of production are

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

In the circular flow model, the factors of production flow in the

Tax revenues are transferred from

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

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

Poland is classified as

In the United States, how does the income received by the richest 20 percent of individuals compare with the income received by the other 80 percent?

What would be an example of consumption good?

The largest component of federal government spending is for

________ economies include ____________.

Which factor of production does human capital enhance? I∙land Ii∙labor Iii∙capital

Capital, as a factor of production, refers to

The income paid for the use of land is called

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.

The circular flow model shows the flow of

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

Goods and services are produced by using four factors of production:

What determines the income flows that households receive?

The circular flow model shows the

Payments to the factors of production are

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

economies include ____.

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