Question 1

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

Accepted Answer

A)  3 
B)  15 
C)  23 
D)  49 
E)  20 
A)  3 
B)  15 
C)  23 
D)  49 
E)  20

Question 2

What is the difference between "capital" and "financial capital"?
 Which is a factor of production?

Accepted Answer

"Capital" is the actual physical good, s

Question 3

In the circular flow model, which of the following flows in the opposite direction from the flow of factors of production?

Accepted Answer

A)  finished goods and services 
B)  wages, rent, interest, and profit 
C)  interests payments of Federal, state, and local governments 
D)  firm's profit incentives 
E)  the goods market 
A)  finished goods and services 
B)  wages, rent, interest, and profit 
C)  interests payments of Federal, state, and local governments 
D)  firm's profit incentives 
E)  the goods market

Question 4

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 5

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 6

What is the difference between the functional and the personal distribution of income?

Accepted Answer

The functional distribution of

Question 7

What are the two largest sources of tax revenues for the U.S.federal government?

Accepted Answer

The largest source of tax revenue for th

Question 8

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 9

The total value of capital in the United States is around

Accepted Answer

A)  $47 trillion. 
B)  $10 trillion. 
C)  $79 trillion. 
D)  $100 trillion. 
E)  $145 trillion. 
A)  $47 trillion. 
B)  $10 trillion. 
C)  $79 trillion. 
D)  $100 trillion. 
E)  $145 trillion.

Question 10

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 11

Which of the following correctly lists the categories of factors of production?

Accepted Answer

A)  land, labor, capital, and entrepreneurship 
B)  land, buildings, capital, and entrepreneurship 
C)  labor, machines, buildings, capital, and entrepreneurship 
D)  forests, fish, buildings, capital, and entrepreneurship 
E)  labor, money, stocks, and bonds 
A)  land, labor, capital, and entrepreneurship 
B)  land, buildings, capital, and entrepreneurship 
C)  labor, machines, buildings, capital, and entrepreneurship 
D)  forests, fish, buildings, capital, and entrepreneurship 
E)  labor, money, stocks, and bonds

Question 12

Of the following, the largest source of revenue for the federal government is the

Accepted Answer

A)  personal income tax. 
B)  transfers from state and local governments. 
C)  corporation income tax. 
D)  lottery. 
E)  revenue from the sale of public lands. 
A)  personal income tax. 
B)  transfers from state and local governments. 
C)  corporation income tax. 
D)  lottery. 
E)  revenue from the sale of public lands.

Question 13

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 14

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 15

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 16

The richest 20 percent of individuals in the United States receive about ________ of the nation's total income.

Accepted Answer

A)  20 percent 
B)  50 percent 
C)  90 percent 
D)  10 percent 
E)  23 percent 
A)  20 percent 
B)  50 percent 
C)  90 percent 
D)  10 percent 
E)  23 percent

Question 17

________ choose the quantities of goods and services to produce, while ________ choose the quantities of goods and services to buy

Accepted Answer

A)  Households; firms 
B)  Firms; households and the government 
C)  The government; firms 
D)  Firms; only households 
E)  Households; the government 
A)  Households; firms 
B)  Firms; households and the government 
C)  The government; firms 
D)  Firms; only households 
E)  Households; the government

Question 18

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

Accepted Answer

Human capital is the knowledge and skill

Question 19

The personal distribution of income shows

Accepted Answer

A)  that labor receives the largest percentage of total income. 
B)  how profit accounts for the largest fraction of total income. 
C)  that the richest 20 percent of households receive 23 percent of total income. 
D)  that interest accounts for most of the income of the richest 20 percent of households. 
E)  that the poorest 20 percent of households receive less than 4 percent of total income. 
A)  that labor receives the largest percentage of total income. 
B)  how profit accounts for the largest fraction of total income. 
C)  that the richest 20 percent of households receive 23 percent of total income. 
D)  that interest accounts for most of the income of the richest 20 percent of households. 
E)  that the poorest 20 percent of households receive less than 4 percent of total income.

Question 20

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.

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

What is the difference between "capital" and "financial capital"? Which is a factor of production?

In the circular flow model, which of the following flows in the opposite direction from the flow of factors of production?

The concept of human capital describes

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

What is the difference between the functional and the personal distribution of income?

What are the two largest sources of tax revenues for the U.S.federal government?

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

The total value of capital in the United States is around

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

Which of the following correctly lists the categories of factors of production?

Of the following, the largest source of revenue for the federal government is the

Tax revenues are transferred from

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

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

The richest 20 percent of individuals in the United States receive about ________ of the nation's total income.

choose the quantities of goods and services to produce, while choose the quantities of goods and services to buy

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

The personal distribution of income shows

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

Getting Started

The Economic Problem

Demand and Supply

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and the Natural Unemployment Rate

Economic Growth

Finance, Saving, and Investment

The Monetary System

Money, Interest, and Inflation

Aggregate Supply and Aggregate Demand

Aggregate Expenditure Multiplier

The Short-Run Policy Tradeoff

Fiscal Policy

Monetary Policy

International Trade Policy

International Finance

Filters

Exam 2: The Usand Global Economies

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

What is the difference between "capital" and "financial capital"? Which is a factor of production?

In the circular flow model, which of the following flows in the opposite direction from the flow of factors of production?

The concept of human capital describes

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

What is the difference between the functional and the personal distribution of income?

What are the two largest sources of tax revenues for the U.S.federal government?

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

The total value of capital in the United States is around

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

Which of the following correctly lists the categories of factors of production?

Of the following, the largest source of revenue for the federal government is the

Tax revenues are transferred from

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

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

The richest 20 percent of individuals in the United States receive about ________ of the nation's total income.

________ choose the quantities of goods and services to produce, while ________ choose the quantities of goods and services to buy

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

The personal distribution of income shows

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

Getting Started

The Economic Problem

Demand and Supply

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and the Natural Unemployment Rate

Economic Growth

Finance, Saving, and Investment

The Monetary System

Money, Interest, and Inflation

Aggregate Supply and Aggregate Demand

Aggregate Expenditure Multiplier

The Short-Run Policy Tradeoff

Fiscal Policy

Monetary Policy

International Trade Policy

International Finance

Filters

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

choose the quantities of goods and services to produce, while choose the quantities of goods and services to buy