Question 1

Compared to the world, the rate of U.S.population growth is

Accepted Answer

A) slower than in the world as a whole. 
B) about the same as in the world as a whole. 
C) much faster than in the world as a whole. 
D) incomparable because U.S. residents are born with a much greater chance of accumulating a lot of human capital. 
E) incomparable because we do not have accurate world population statistics. 
A) slower than in the world as a whole. 
B) about the same as in the world as a whole. 
C) much faster than in the world as a whole. 
D) incomparable because U.S. residents are born with a much greater chance of accumulating a lot of human capital. 
E) incomparable because we do not have accurate world population statistics.

Question 2

The functional distribution of income measures which of the following?

Accepted Answer

A) How federal tax revenues are related to the business function that employs taxpayers. 
B) The distribution of earnings by the factors of production. 
C) The proportion of income generated by the four types of expenditures on goods and services. 
D) The distribution of income among households. 
E) The distribution of income among nations. 
A) How federal tax revenues are related to the business function that employs taxpayers. 
B) The distribution of earnings by the factors of production. 
C) The proportion of income generated by the four types of expenditures on goods and services. 
D) The distribution of income among households. 
E) The distribution of income among nations.

Question 3

The majority of the value of production in the world economy is produced in

Accepted Answer

A) all of the developing economies taken together. 
B) all of Africa and the Middle East taken together. 
C) China and other Asian developing economies. 
D) all of the advanced economies taken together. 
E) all of the emerging market economies taken together. 
A) all of the developing economies taken together. 
B) all of Africa and the Middle East taken together. 
C) China and other Asian developing economies. 
D) all of the advanced economies taken together. 
E) all of the emerging market economies taken together.

Question 4

Which factor of production is paid "interest"?

Accepted Answer

A) land 
B) labor 
C) capital 
D) entrepreneurship 
E) human capital 
A) land 
B) labor 
C) capital 
D) entrepreneurship 
E) human capital

Question 5

Which of following groups of countries are all advanced economies?

Accepted Answer

A) Australia, Brazil, and the United States 
B) Hong Kong, Japan, France, and the United Kingdom 
C) Italy, the United States, China, and Russia 
D) Singapore, Russia, France, and Chad 
E) Mexico, Canada, Germany, and Egypt 
A) Australia, Brazil, and the United States 
B) Hong Kong, Japan, France, and the United Kingdom 
C) Italy, the United States, China, and Russia 
D) Singapore, Russia, France, and Chad 
E) Mexico, Canada, Germany, and Egypt

Question 6

An example of a capital good is

Accepted Answer

A) a fiber optic cable TV system. 
B) an insurance policy. 
C) a hair cut. 
D) an iPod. 
E) a slice of pizza. 
A) a fiber optic cable TV system. 
B) an insurance policy. 
C) a hair cut. 
D) an iPod. 
E) a slice of pizza.

Question 7

The total amount the federal government has borrowed to make expenditures that exceed tax revenue is called

Accepted Answer

A) personal income taxes. 
B) federal expenditures. 
C) total government spending. 
D) the net government revenue. 
E) the national debt. 
A) personal income taxes. 
B) federal expenditures. 
C) total government spending. 
D) the net government revenue. 
E) the national debt.

Question 8

When the total U.S.production of goods and services is divided into consumption goods and services, capital goods, government goods and services, and export goods and services, the largest component is

Accepted Answer

A) consumption goods and services. 
B) capital goods. 
C) government goods and services. 
D) export goods and services. 
E) capital goods and government goods and services tie for the largest component. 
A) consumption goods and services. 
B) capital goods. 
C) government goods and services. 
D) export goods and services. 
E) capital goods and government goods and services tie for the largest component.

Question 9

In the circular flow model with the government sector, transfers

Accepted Answer

A) flow in the same direction as do taxes. 
B) flow in the opposite direction as do taxes. 
C) to households flow in the same direction as do expenditures on goods and services. 
D) to firms flow in the same direction as do rent, wages, interest, and profits. 
E) flow only through the goods market. 
A) flow in the same direction as do taxes. 
B) flow in the opposite direction as do taxes. 
C) to households flow in the same direction as do expenditures on goods and services. 
D) to firms flow in the same direction as do rent, wages, interest, and profits. 
E) flow only through the goods market.

Question 10

What are the payments each factor of production receives?

Accepted Answer

Rent is paid for the use of la

Question 11

The most people live in ________ economies and the fewest people live in ________ economies.

Accepted Answer

A) developing; emerging market 
B) advanced; emerging market 
C) advanced; developing 
D) emerging market; developing 
E) developing; advanced 
A) developing; emerging market 
B) advanced; emerging market 
C) advanced; developing 
D) emerging market; developing 
E) developing; advanced

Question 12

Explain the difference between consumption and capital goods.

Accepted Answer

A difference lies in the identity of the

Question 13

A market is defined as

Accepted Answer

A) the physical place where goods (but not services)are sold. 
B) the physical place where goods and services are sold. 
C) any arrangement that brings buyers and sellers together. 
D) a place where money is exchanged for goods. 
E) another name for a store. 
A) the physical place where goods (but not services)are sold. 
B) the physical place where goods and services are sold. 
C) any arrangement that brings buyers and sellers together. 
D) a place where money is exchanged for goods. 
E) another name for a store.

Question 14

What effect, if any, will a good college education have on your human capital? Explain your answer.

Accepted Answer

Human capital refers to the sk

Question 15

A real flow in the circular flow diagram is
i. a firm's payments of wages to its workers.
ii. a household's purchase of a new car.
iii. a farmer's use of land to grow corn.

Accepted Answer

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

Question 16

Label the flows in the simplified circular flow diagram that ignores the government.

Accepted Answer

@#IMG-DLM& The figur

Question 17

Which factor of production is paid "profit"?

Accepted Answer

A) land 
B) labor 
C) capital 
D) entrepreneurship 
E) human capital 
A) land 
B) labor 
C) capital 
D) entrepreneurship 
E) human capital

Question 18

As a factor of production, oil reserves are counted as

Accepted Answer

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

Question 19

In the circular flow model, consumption goods are bought and sold in the

Accepted Answer

A) goods market. 
B) financial market. 
C) factor markets. 
D) government market. 
E) monetary flows. 
A) goods market. 
B) financial market. 
C) factor markets. 
D) government market. 
E) monetary flows.

Question 20

According to the functional distribution of income, in the United States

Accepted Answer

A) capital earns most of the income. 
B) labor earns most of the income. 
C) land earns most of the income. 
D) entrepreneurs earned most of the income. 
E) the income earned by capital and labor are approximately equal. 
A) capital earns most of the income. 
B) labor earns most of the income. 
C) land earns most of the income. 
D) entrepreneurs earned most of the income. 
E) the income earned by capital and labor are approximately equal.

Compared to the world, the rate of U.S.population growth is

The functional distribution of income measures which of the following?

The majority of the value of production in the world economy is produced in

Which factor of production is paid "interest"?

Which of following groups of countries are all advanced economies?

An example of a capital good is

The total amount the federal government has borrowed to make expenditures that exceed tax revenue is called

When the total U.S.production of goods and services is divided into consumption goods and services, capital goods, government goods and services, and export goods and services, the largest component is

In the circular flow model with the government sector, transfers

What are the payments each factor of production receives?

The most people live in economies and the fewest people live in economies.

Explain the difference between consumption and capital goods.

A market is defined as

What effect, if any, will a good college education have on your human capital? Explain your answer.

A real flow in the circular flow diagram is i. a firm's payments of wages to its workers. ii. a household's purchase of a new car. iii. a farmer's use of land to grow corn.

Label the flows in the simplified circular flow diagram that ignores the government.

Which factor of production is paid "profit"?

As a factor of production, oil reserves are counted as

In the circular flow model, consumption goods are bought and sold in the

According to the functional distribution of income, in the United States

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 world, the rate of U.S.population growth is

The functional distribution of income measures which of the following?

The majority of the value of production in the world economy is produced in

Which factor of production is paid "interest"?

Which of following groups of countries are all advanced economies?

An example of a capital good is

The total amount the federal government has borrowed to make expenditures that exceed tax revenue is called

When the total U.S.production of goods and services is divided into consumption goods and services, capital goods, government goods and services, and export goods and services, the largest component is

In the circular flow model with the government sector, transfers

What are the payments each factor of production receives?

The most people live in ________ economies and the fewest people live in ________ economies.

Explain the difference between consumption and capital goods.

A market is defined as

What effect, if any, will a good college education have on your human capital? Explain your answer.

A real flow in the circular flow diagram is i. a firm's payments of wages to its workers. ii. a household's purchase of a new car. iii. a farmer's use of land to grow corn.

Label the flows in the simplified circular flow diagram that ignores the government.

Which factor of production is paid "profit"?

As a factor of production, oil reserves are counted as

In the circular flow model, consumption goods are bought and sold in the

According to the functional distribution of income, in the United States

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 most people live in economies and the fewest people live in economies.