Question 1

What would be an example of consumption service?

Accepted Answer

A) Rhianna gets a haircut. 
B) Jake buys an iPhone. 
C) Antonio, the manager of the local Taco Hut, purchases a new deep fryer. 
D) The local driver's license office purchases a new digital camera and printer. 
E) Donald Trump purchases furniture for his office. 
A) Rhianna gets a haircut. 
B) Jake buys an iPhone. 
C) Antonio, the manager of the local Taco Hut, purchases a new deep fryer. 
D) The local driver's license office purchases a new digital camera and printer. 
E) Donald Trump purchases furniture for his office.

Question 2

The figure above shows the circular flow model.
-In the figure above, which of the following represents a real flow?

Accepted Answer

A) Expenditures on real estate services 
B) Profit 
C) Capital 
D) Wages 
E) Both B and D 
A) Expenditures on real estate services 
B) Profit 
C) Capital 
D) Wages 
E) Both B and D

Question 3

Nigeria would be classified by the International Monetary Fund as

Accepted Answer

A) an advanced economy. 
B) a developing economy. 
C) a transition economy. 
D) an emerging market economy. 
E) a resource-based economy. 
A) an advanced economy. 
B) a developing economy. 
C) a transition economy. 
D) an emerging market economy. 
E) a resource-based economy.

Question 4

In the circular flow model, there are two types of markets: the ________ market and the ________ market.

Accepted Answer

A) producers; consumers 
B) households; firms 
C) service; goods 
D) goods; factor 
E) supply; demand 
A) producers; consumers 
B) households; firms 
C) service; goods 
D) goods; factor 
E) supply; demand

Question 5

The figure above shows the circular flow model.
-In the figure above, which of the following represents a real flow of a factor of production?

Accepted Answer

A) Labor 
B) Wages 
C) Goods bought 
D) Services sold 
E) Firms' expenditures on factors of production 
A) Labor 
B) Wages 
C) Goods bought 
D) Services sold 
E) Firms' expenditures on factors of production

Question 6

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

Accepted Answer

A) a household's supply of work effort at its new business. 
B) the government's payment of wages to a soldier. 
C) Nike's payment of wages to workers in China. 
D) your county's collection of property taxes. 
E) a teacher's salary at the local high school. 
A) a household's supply of work effort at its new business. 
B) the government's payment of wages to a soldier. 
C) Nike's payment of wages to workers in China. 
D) your county's collection of property taxes. 
E) a teacher's salary at the local high school.

Question 7

The personal distribution of income measures which of the following?

Accepted Answer

A) How federal tax revenues are related to the type of businesses that employs the taxpayers. 
B) The distribution of earnings by the factors of production. 
C) 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 type of businesses that employs the taxpayers. 
B) The distribution of earnings by the factors of production. 
C) 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 8

What would be an example of government good?

Accepted Answer

A) Jake buys an iPhone. 
B) The local driver's license office purchases a new digital camera and printer. 
C) Antonio, the manager of the local Taco Hut, purchases a new deep fryer. 
D) Donald Trump purchases furniture for his office. 
E) Rhianna gets a haircut. 
A) Jake buys an iPhone. 
B) The local driver's license office purchases a new digital camera and printer. 
C) Antonio, the manager of the local Taco Hut, purchases a new deep fryer. 
D) Donald Trump purchases furniture for his office. 
E) Rhianna gets a haircut.

Question 9

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

Accepted Answer

A) state and local; are less than 
B) federal; are less than 
C) federal; exceed 
D) state and local; exceed 
E) federal; are equal to 
A) state and local; are less than 
B) federal; are less than 
C) federal; exceed 
D) state and local; exceed 
E) federal; are equal to

Question 10

The concept of human capital describes

Accepted Answer

A) human skills, that is, the quality of labor. 
B) human population, that is, the quantity of labor. 
C) the number of machines per employed worker. 
D) the number of workers per operating machine. 
E) the number of machines (capital)that have been produced by people (humans). 
A) human skills, that is, the quality of labor. 
B) human population, that is, the quantity of labor. 
C) the number of machines per employed worker. 
D) the number of workers per operating machine. 
E) the number of machines (capital)that have been produced by people (humans).

Question 11

In the circular flow model,

Accepted Answer

A) only firms sell in markets. 
B) only households buy from markets. 
C) some firms only sell and some firms only buy. 
D) the money used to buy goods and the goods themselves travel in the same direction. 
E) both firms and households buy or sell in different markets. 
A) only firms sell in markets. 
B) only households buy from markets. 
C) some firms only sell and some firms only buy. 
D) the money used to buy goods and the goods themselves travel in the same direction. 
E) both firms and households buy or sell in different markets.

Question 12

In the United States, which factor of production earns the largest share of the nation's total income?

Accepted Answer

The largest fraction of the na

Question 13

Of the following, the country with the highest average income per day in the world is

Accepted Answer

A) Japan. 
B) the United States. 
C) France. 
D) Germany. 
E) China. 
A) Japan. 
B) the United States. 
C) France. 
D) Germany. 
E) China.

Question 14

Human capital ________ as you work.As a result, the ___________ of goods and services ________.

Accepted Answer

A) increases; quantity; increases. 
B) declines; quality; increases. 
C) improves; quality; does not change. 
D) does not change; quality; does not change. 
E) decreases; quantity; decreases. 
A) increases; quantity; increases. 
B) declines; quality; increases. 
C) improves; quality; does not change. 
D) does not change; quality; does not change. 
E) decreases; quantity; decreases.

Question 15

In the United States, the richest 20 percent of households receive about ________ percent of total income.

Accepted Answer

A) 4 
B) 15 
C) 23 
D) 50 
E) 33 
A) 4 
B) 15 
C) 23 
D) 50 
E) 33

Question 16

In the circular flow model, which of the following is on the buying side in the goods market?
I∙firms
Ii∙households
Iii∙federal, state, and local governments

Accepted Answer

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

Question 17

In the circular flow model,

Accepted Answer

A) the government is represented as a separate market. 
B) the government buys goods and services from firms. 
C) goods and services are sold by households and purchased by firms. 
D) factor markets are where goods rather than services are bought and sold. 
E) the government has no direct interaction with either households or firms. 
A) the government is represented as a separate market. 
B) the government buys goods and services from firms. 
C) goods and services are sold by households and purchased by firms. 
D) factor markets are where goods rather than services are bought and sold. 
E) the government has no direct interaction with either households or firms.

Question 18

________ economies include ______________.

Accepted Answer

A) Developing; Saudi Arabia and South Africa 
B) Developing; Poland and Russia 
C) Developing; China and Poland 
D) Emerging; Poland and Brazil 
E) Emerging; China and Canada 
A) Developing; Saudi Arabia and South Africa 
B) Developing; Poland and Russia 
C) Developing; China and Poland 
D) Emerging; Poland and Brazil 
E) Emerging; China and Canada

Question 19

Among the United States, Canada, Russia, India, and the United Kingdom, the country with the highest average income per person is

Accepted Answer

A) the United States. 
B) Russia. 
C) India. 
D) Canada. 
E) the United Kingdom. 
A) the United States. 
B) Russia. 
C) India. 
D) Canada. 
E) the United Kingdom.

Question 20

In the circular flow model, which of the following is on the selling side in the goods market?

Accepted Answer

A) federal, state, and local governments 
B) only households 
C) exporters 
D) only firms 
E) both firms and households 
A) federal, state, and local governments 
B) only households 
C) exporters 
D) only firms 
E) both firms and households

What would be an example of consumption service?

The figure above shows the circular flow model. -In the figure above, which of the following represents a real flow?

Nigeria would be classified by the International Monetary Fund as

In the circular flow model, there are two types of markets: the market and the market.

The figure above shows the circular flow model. -In the figure above, which of the following represents a real flow of a factor of production?

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

The personal distribution of income measures which of the following?

What would be an example of government good?

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

The concept of human capital describes

In the circular flow model,

In the United States, which factor of production earns the largest share of the nation's total income?

Of the following, the country with the highest average income per day in the world is

Human capital __ as you work.As a result, the _ of goods and services ____.

In the United States, the richest 20 percent of households receive about ________ percent of total income.

In the circular flow model, which of the following is on the buying side in the goods market? I∙firms Ii∙households Iii∙federal, state, and local governments

In the circular flow model,

economies include ______.

Among the United States, Canada, Russia, India, and the United Kingdom, the country with the highest average income per person is

In the circular flow model, which of the following is on the selling side in the goods market?

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

What would be an example of consumption service?

The figure above shows the circular flow model. -In the figure above, which of the following represents a real flow?

Nigeria would be classified by the International Monetary Fund as

In the circular flow model, there are two types of markets: the ________ market and the ________ market.

The figure above shows the circular flow model. -In the figure above, which of the following represents a real flow of a factor of production?

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

The personal distribution of income measures which of the following?

What would be an example of government good?

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

The concept of human capital describes

In the circular flow model,

In the United States, which factor of production earns the largest share of the nation's total income?

Of the following, the country with the highest average income per day in the world is

Human capital ________ as you work.As a result, the ___________ of goods and services ________.

In the United States, the richest 20 percent of households receive about ________ percent of total income.

In the circular flow model, which of the following is on the buying side in the goods market? I∙firms Ii∙households Iii∙federal, state, and local governments

In the circular flow model,

________ economies include ______________.

Among the United States, Canada, Russia, India, and the United Kingdom, the country with the highest average income per person is

In the circular flow model, which of the following is on the selling side in the goods market?

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

In the circular flow model, there are two types of markets: the market and the market.

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

Human capital __ as you work.As a result, the _ of goods and services ____.

economies include ______.