Question 1

Property taxes are a major source of revenue for

Accepted Answer

A) state and local governments. 
B) the federal governments. 
C) the federal, state, and local governments. 
D) firms wanting to relocate their operations. 
E) consumers. 
A) state and local governments. 
B) the federal governments. 
C) the federal, state, and local governments. 
D) firms wanting to relocate their operations. 
E) consumers.

Question 2

The United States possesses a large amount of human capital.As a result of this fact, in the United States there is a

Accepted Answer

A) large amount of machinery and equipment. 
B) large number of people and a great deal of land. 
C) highly skilled and educated labor force. 
D) large number of kind and generous humans. 
E) large amount of machinery (capital)that is run by people (humans). 
A) large amount of machinery and equipment. 
B) large number of people and a great deal of land. 
C) highly skilled and educated labor force. 
D) large number of kind and generous humans. 
E) large amount of machinery (capital)that is run by people (humans).

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

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 5

Which of the following is NOT shown explicitly in the circular flow model?

Accepted Answer

A) the governments' purchases in the goods market 
B) the taxes the governments collect from households 
C) the governments' interaction with firms 
D) the legal system 
E) the transfers the governments make to households 
A) the governments' purchases in the goods market 
B) the taxes the governments collect from households 
C) the governments' interaction with firms 
D) the legal system 
E) the transfers the governments make to households

Question 6

________ paid for the use of land; ________ paid for the services of labor; and ________ paid for the use of capital.

Accepted Answer

A) Rent is; wages are; interest is 
B) Rent is; interest is; wages are 
C) Interest is; wages are; profit is 
D) Mortgages are; interest is; wages are 
E) Rent is; wages are; profit is 
A) Rent is; wages are; interest is 
B) Rent is; interest is; wages are 
C) Interest is; wages are; profit is 
D) Mortgages are; interest is; wages are 
E) Rent is; wages are; profit is

Question 7

Discuss the distribution of income around the world.Which countries have the highest average incomes? Which countries have the lowest average incomes? How has the distribution of income changed in recent years?

Accepted Answer

Income is distributed unequally, with re

Question 8

Income equality has

Accepted Answer

A) increased within countries but has narrowed across countries. 
B) not changed in the advanced economies over the past 50 years. 
C) narrowed within countries but increased across countries. 
D) increased in developing economies as manufacturing has decreased. 
E) decreased in the United States as manufacturing has increased. 
A) increased within countries but has narrowed across countries. 
B) not changed in the advanced economies over the past 50 years. 
C) narrowed within countries but increased across countries. 
D) increased in developing economies as manufacturing has decreased. 
E) decreased in the United States as manufacturing has increased.

Question 9

Human capital can be increased through

Accepted Answer

A) investment in new technology. 
B) education, on-the-job training, and work experience. 
C) investment in new machinery. 
D) decreases in population. 
E) increasing the nation's production of consumption goods. 
A) investment in new technology. 
B) education, on-the-job training, and work experience. 
C) investment in new machinery. 
D) decreases in population. 
E) increasing the nation's production of consumption goods.

Question 10

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 11

Which of the following is a function of the U.S.federal government?

Accepted Answer

A) providing the legal and social framework for economic activity 
B) distributing private goods and services 
C) deciding for whom firms should produce goods and services 
D) deciding how much to produce of private goods and services 
E) determining what wages firms will pay their workers 
A) providing the legal and social framework for economic activity 
B) distributing private goods and services 
C) deciding for whom firms should produce goods and services 
D) deciding how much to produce of private goods and services 
E) determining what wages firms will pay their workers

Question 12

As a percentage of total world production, production in the 29 advanced economies is about ________ percent of total world production and in the 118 developing economies is about ________ percent of total world production.

Accepted Answer

A) 53; 39 
B) 23; 62 
C) 53; 12 
D) 30; 46 
E) 19; 73 
A) 53; 39 
B) 23; 62 
C) 53; 12 
D) 30; 46 
E) 19; 73

Question 13

Of the following, the federal government obtains most revenue from

Accepted Answer

A) excise taxes. 
B) sales taxes. 
C) corporate income taxes. 
D) social security taxes. 
E) property taxes. 
A) excise taxes. 
B) sales taxes. 
C) corporate income taxes. 
D) social security taxes. 
E) property taxes.

Question 14

Social Security tax is deducted from your paycheck.In the figure above this will be shown as

Accepted Answer

A) taxes flowing from households to governments. 
B) taxes flowing from firms to governments. 
C) taxes flowing from households to firms. 
D) wages flowing from firms to households. 
E) wages flowing from firms to governments. 
A) taxes flowing from households to governments. 
B) taxes flowing from firms to governments. 
C) taxes flowing from households to firms. 
D) wages flowing from firms to households. 
E) wages flowing from firms to governments.

Question 15

Terri is enrolled in her first economics course.She is required to give a presentation about the circular flow.Which of the following statements should she include in her presentation?

Accepted Answer

A) Households choose the amount of the factors of production to provide the firms. 
B) Firms choose the amount of the factors of production to provide households. 
C) Households receive wages for the amount of entrepreneurship they provide firms. 
D) Firms pay wages for the amount of entrepreneurship they provide households. 
E) The flows of goods and services and payments for the goods and services flow in the same direction. 
A) Households choose the amount of the factors of production to provide the firms. 
B) Firms choose the amount of the factors of production to provide households. 
C) Households receive wages for the amount of entrepreneurship they provide firms. 
D) Firms pay wages for the amount of entrepreneurship they provide households. 
E) The flows of goods and services and payments for the goods and services flow in the same direction.

Question 16

In the circular flow model with the government sector, taxes

Accepted Answer

A) flow in the opposite direction as do transfers. 
B) flow in the same direction as do transfers. 
C) on households flow in the same direction as do the goods and services. 
D) on firms flow in the same direction as do factors of production. 
E) flow from the goods market to the factor markets. 
A) flow in the opposite direction as do transfers. 
B) flow in the same direction as do transfers. 
C) on households flow in the same direction as do the goods and services. 
D) on firms flow in the same direction as do factors of production. 
E) flow from the goods market to the factor markets.

Question 17

Explain the structure of the circular flow model.

Accepted Answer

Households own the factors of production

Question 18

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

Accepted Answer

Human capital is the knowledge and skill

Question 19

If there is a national debt, we can conclude that the federal government has

Accepted Answer

A) borrowed in the past. 
B) purchased more goods and services than were needed. 
C) spent money foolishly. 
D) loaned funds to U.S. taxpayers in the past. 
E) loaned funds to other nations in the past. 
A) borrowed in the past. 
B) purchased more goods and services than were needed. 
C) spent money foolishly. 
D) loaned funds to U.S. taxpayers in the past. 
E) loaned funds to other nations in the past.

Question 20

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.

Property taxes are a major source of revenue for

The United States possesses a large amount of human capital.As a result of this fact, in the United States there is a

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

The largest share of total production in the United States is

Which of the following is NOT shown explicitly in the circular flow model?

paid for the use of land; paid for the services of labor; and paid for the use of capital.

Discuss the distribution of income around the world.Which countries have the highest average incomes? Which countries have the lowest average incomes? How has the distribution of income changed in recent years?

Income equality has

Human capital can be increased through

The owners of the resource are paid .

Which of the following is a function of the U.S.federal government?

As a percentage of total world production, production in the 29 advanced economies is about percent of total world production and in the 118 developing economies is about percent of total world production.

Of the following, the federal government obtains most revenue from

Social Security tax is deducted from your paycheck.In the figure above this will be shown as

Terri is enrolled in her first economics course.She is required to give a presentation about the circular flow.Which of the following statements should she include in her presentation?

In the circular flow model with the government sector, taxes

Explain the structure of the circular flow model.

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

If there is a national debt, we can conclude that the federal government has

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

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

Property taxes are a major source of revenue for

The United States possesses a large amount of human capital.As a result of this fact, in the United States there is a

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

The largest share of total production in the United States is

Which of the following is NOT shown explicitly in the circular flow model?

________ paid for the use of land; ________ paid for the services of labor; and ________ paid for the use of capital.

Discuss the distribution of income around the world.Which countries have the highest average incomes? Which countries have the lowest average incomes? How has the distribution of income changed in recent years?

Income equality has

Human capital can be increased through

The owners of the resource ________ are paid ________ .

Which of the following is a function of the U.S.federal government?

As a percentage of total world production, production in the 29 advanced economies is about ________ percent of total world production and in the 118 developing economies is about ________ percent of total world production.

Of the following, the federal government obtains most revenue from

Social Security tax is deducted from your paycheck.In the figure above this will be shown as

Terri is enrolled in her first economics course.She is required to give a presentation about the circular flow.Which of the following statements should she include in her presentation?

In the circular flow model with the government sector, taxes

Explain the structure of the circular flow model.

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

If there is a national debt, we can conclude that the federal government has

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

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

paid for the use of land; paid for the services of labor; and paid for the use of capital.

The owners of the resource are paid .

As a percentage of total world production, production in the 29 advanced economies is about percent of total world production and in the 118 developing economies is about percent of total world production.