Question 1

Compared to the developing economies, the advanced economies have ________ human capital and ________ physical capital.

Accepted Answer

A) more; more 
B) more; less 
C) the same; the same 
D) less; more 
E) less; less 
A) more; more 
B) more; less 
C) the same; the same 
D) less; more 
E) less; less

Question 2

When Ethan continues his education beyond high school he is increasing his

Accepted Answer

A) capital. 
B) wage rate. 
C) human capital. 
D) quantity of labor. 
E) rent. 
A) capital. 
B) wage rate. 
C) human capital. 
D) quantity of labor. 
E) rent.

Question 3

The circular flow model is used to show the

Accepted Answer

A) flow of renewable natural resources. 
B) recycling process of production materials. 
C) expansions and contractions of economic activity. 
D) flow of expenditures and incomes in the economy. 
E) flow of supply and the flow of demand. 
A) flow of renewable natural resources. 
B) recycling process of production materials. 
C) expansions and contractions of economic activity. 
D) flow of expenditures and incomes in the economy. 
E) flow of supply and the flow of demand.

Question 4

Of the following, the largest source of tax revenue collected by state and local governments comes from

Accepted Answer

A) individual income taxes. 
B) corporate income taxes. 
C) death taxes. 
D) sales taxes. 
E) lottery revenues. 
A) individual income taxes. 
B) corporate income taxes. 
C) death taxes. 
D) sales taxes. 
E) lottery revenues.

Question 5

The difference between consumption and capital goods is that

Accepted Answer

A) only big corporations can afford capital goods. 
B) capital goods are used to produce additional goods while consumption goods are not. 
C) capital goods are provided by the government. 
D) consumption goods can be enjoyed by many people at the same time. 
E) it is illegal to export capital goods. 
A) only big corporations can afford capital goods. 
B) capital goods are used to produce additional goods while consumption goods are not. 
C) capital goods are provided by the government. 
D) consumption goods can be enjoyed by many people at the same time. 
E) it is illegal to export capital goods.

Question 6

Wages are paid to ________ and interest is paid to ________.

Accepted Answer

A) entrepreneurs; capital 
B) labor; capital 
C) labor; land 
D) entrepreneurs; land 
E) labor; entrepreneurs 
A) entrepreneurs; capital 
B) labor; capital 
C) labor; land 
D) entrepreneurs; land 
E) labor; entrepreneurs

Question 7

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

Accepted Answer

A) collect taxes. 
B) coordinate economic activities of households and firms. 
C) hire factors of production. 
D) own factors of production. 
E) sell goods and services to household. 
A) collect taxes. 
B) coordinate economic activities of households and firms. 
C) hire factors of production. 
D) own factors of production. 
E) sell goods and services to household.

Question 8

The income earned by entrepreneurs is

Accepted Answer

A) interest. 
B) wages. 
C) profit or loss. 
D) rent, wages, and interest. 
E) a mixture of rent, wages, interest, and profit. 
A) interest. 
B) wages. 
C) profit or loss. 
D) rent, wages, and interest. 
E) a mixture of rent, wages, interest, and profit.

Question 9

Margo orders a MacBook Pro computer from The Apple Store online to use it in her graphic design business.How will this be reflected in the figure above?

Accepted Answer

A) As a flow of a factor of production 
B) As a flow of goods and services bought 
C) As expenditures on goods and services 
D) As goods and services supplied 
E) It won't be shown in the figure because this transaction takes place neither in goods markets nor in factor markets. 
A) As a flow of a factor of production 
B) As a flow of goods and services bought 
C) As expenditures on goods and services 
D) As goods and services supplied 
E) It won't be shown in the figure because this transaction takes place neither in goods markets nor in factor markets.

Question 10

An example of a money flow in the circular flow diagram is

Accepted Answer

A) a student's payment of tuition to her university. 
B) the government's operation of the court system. 
C) the government's financing of the national debt. 
D) a firm's production of goods to sell to a foreign country. 
E) a farmer's use of land to grow wheat. 
A) a student's payment of tuition to her university. 
B) the government's operation of the court system. 
C) the government's financing of the national debt. 
D) a firm's production of goods to sell to a foreign country. 
E) a farmer's use of land to grow wheat.

Question 11

When describing the IMF broad country classification, the most accurate statement is that

Accepted Answer

A) the category with the greatest number of countries is the advanced economies. 
B) the emerging market economies are countries that were, until the early 1990s, part of the Soviet Union or its satellites. 
C) most of the nations in Western Europe are considered emerging market economies. 
D) most of the world's population lives in advanced economies. 
E) about 50 percent of the world's population live in the advanced economies and the other 50 percent live in the emerging market and developing economies. 
A) the category with the greatest number of countries is the advanced economies. 
B) the emerging market economies are countries that were, until the early 1990s, part of the Soviet Union or its satellites. 
C) most of the nations in Western Europe are considered emerging market economies. 
D) most of the world's population lives in advanced economies. 
E) about 50 percent of the world's population live in the advanced economies and the other 50 percent live in the emerging market and developing economies.

Question 12

The productive resource that includes all the "gifts of nature" is called

Accepted Answer

A) land. 
B) labor. 
C) capital. 
D) entrepreneurship. 
E) land if undeveloped and capital if developed. 
A) land. 
B) labor. 
C) capital. 
D) entrepreneurship. 
E) land if undeveloped and capital if developed.

Question 13

Most of the world's population lives in

Accepted Answer

A) advanced economies. 
B) developing economies. 
C) transition economies. 
D) emerging market economies. 
E) island nations. 
A) advanced economies. 
B) developing economies. 
C) transition economies. 
D) emerging market economies. 
E) island nations.

Question 14

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 15

Which of the following is NOT classified as an advanced economy?

Accepted Answer

A) South Korea 
B) Australia 
C) Russia 
D) Hong Kong 
E) the United Kingdom 
A) South Korea 
B) Australia 
C) Russia 
D) Hong Kong 
E) the United Kingdom

Question 16

How are the roles of the household different in the goods market and in the factor markets?

Accepted Answer

In the goods market, households are buye

Question 17

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

Accepted Answer

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

Question 18

Compare and contrast the world population with that of the United States.Is the United States becoming a larger or a smaller part of the world's population?

Accepted Answer

The U.S.population was approximately 311

Question 19

Of the following, the largest single component of U.S.federal government expenditures is spent on

Accepted Answer

A) interest paid on the national debt. 
B) Medicare and Medicaid. 
C) national defense. 
D) purchases of goods and services for purposes other than national defense. 
E) transfers to state and local governments. 
A) interest paid on the national debt. 
B) Medicare and Medicaid. 
C) national defense. 
D) purchases of goods and services for purposes other than national defense. 
E) transfers to state and local governments.

Question 20

How many and what fraction of the world's people live in advanced economies? In emerging market and developing economies?

Accepted Answer

There are approximately 7 billion people

Compared to the developing economies, the advanced economies have human capital and physical capital.

When Ethan continues his education beyond high school he is increasing his

The circular flow model is used to show the

Of the following, the largest source of tax revenue collected by state and local governments comes from

The difference between consumption and capital goods is that

Wages are paid to and interest is paid to .

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

The income earned by entrepreneurs is

Margo orders a MacBook Pro computer from The Apple Store online to use it in her graphic design business.How will this be reflected in the figure above?

An example of a money flow in the circular flow diagram is

When describing the IMF broad country classification, the most accurate statement is that

The productive resource that includes all the "gifts of nature" is called

Most of the world's population lives in

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

Which of the following is NOT classified as an advanced economy?

How are the roles of the household different in the goods market and in the factor markets?

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

Compare and contrast the world population with that of the United States.Is the United States becoming a larger or a smaller part of the world's population?

Of the following, the largest single component of U.S.federal government expenditures is spent on

How many and what fraction of the world's people live in advanced economies? In emerging market and developing economies?

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

Compared to the developing economies, the advanced economies have ________ human capital and ________ physical capital.

When Ethan continues his education beyond high school he is increasing his

The circular flow model is used to show the

Of the following, the largest source of tax revenue collected by state and local governments comes from

The difference between consumption and capital goods is that

Wages are paid to ________ and interest is paid to ________.

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

The income earned by entrepreneurs is

Margo orders a MacBook Pro computer from The Apple Store online to use it in her graphic design business.How will this be reflected in the figure above?

An example of a money flow in the circular flow diagram is

When describing the IMF broad country classification, the most accurate statement is that

The productive resource that includes all the "gifts of nature" is called

Most of the world's population lives in

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

Which of the following is NOT classified as an advanced economy?

How are the roles of the household different in the goods market and in the factor markets?

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

Compare and contrast the world population with that of the United States.Is the United States becoming a larger or a smaller part of the world's population?

Of the following, the largest single component of U.S.federal government expenditures is spent on

How many and what fraction of the world's people live in advanced economies? In emerging market and developing economies?

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

Compared to the developing economies, the advanced economies have human capital and physical capital.

Wages are paid to and interest is paid to .

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