Question 1

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 2

Goods produced in the United States and sold in other countries are called

Accepted Answer

A)  exports. 
B)  imports. 
C)  foreign goods. 
D)  capital goods. 
E)  capital account goods. 
A)  exports. 
B)  imports. 
C)  foreign goods. 
D)  capital goods. 
E)  capital account goods.

Question 3

Discuss the differences between developing and emerging market economies.

Accepted Answer

Although the average income in emerging

Question 4

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 5

State and local governments spend about ________ of their expenditures on education.

Accepted Answer

A)  15 percent 
B)  20 percent 
C)  35 percent 
D)  60 percent 
E)  75 percent 
A)  15 percent 
B)  20 percent 
C)  35 percent 
D)  60 percent 
E)  75 percent

Question 6

The world population is approximately ________ people.

Accepted Answer

A)  6.8 million 
B)  2 trillion 
C)  6.8 billion 
D)  6.8 trillion 
E)  680 million 
A)  6.8 million 
B)  2 trillion 
C)  6.8 billion 
D)  6.8 trillion 
E)  680 million

Question 7

________ are the largest components of state and local government revenue.

Accepted Answer

A)  Transfers from federal government and corporate income taxes 
B)  Transfers from federal government and sales taxes 
C)  Individual income taxes and corporate income taxes 
D)  Individual income taxes and sales taxes 
E)  Corporate income taxes and lottery income 
A)  Transfers from federal government and corporate income taxes 
B)  Transfers from federal government and sales taxes 
C)  Individual income taxes and corporate income taxes 
D)  Individual income taxes and sales taxes 
E)  Corporate income taxes and lottery income

Question 8

Factors of production are the

Accepted Answer

A)  goods that are bought by individuals and used to provide personal enjoyment. 
B)  goods that are bought by businesses to produce productive resources. 
C)  productive resources used to produce goods and services. 
D)  productive resources used by government to increase the productivity of consumption. 
E)  goods and services produced by the economy. 
A)  goods that are bought by individuals and used to provide personal enjoyment. 
B)  goods that are bought by businesses to produce productive resources. 
C)  productive resources used to produce goods and services. 
D)  productive resources used by government to increase the productivity of consumption. 
E)  goods and services produced by the economy.

Question 9

________ 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 10

What would be an example of capital good?

Accepted Answer

A)  Jeanette buys a new dress. 
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)  Apple sells computers to Japan. 
E)  Rhianna gets a haircut. 
A)  Jeanette buys a new dress. 
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)  Apple sells computers to Japan. 
E)  Rhianna gets a haircut.

Question 11

2.5 Chapter Figures
   
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 12

Identify the four factors of production, and tell what type of income is earned by each factor.

Accepted Answer

The factors of production are land, whic

Question 13

Describe the government's flows in the circular flow model of the economy.

Accepted Answer

The government has several flows in the

Question 14

A circular flow model shows the interrelationship between the ________ market and the ________ markets.

Accepted Answer

A)  household; goods 
B)  household; factor 
C)  business; household 
D)  expenditure; income 
E)  goods; factor 
A)  household; goods 
B)  household; factor 
C)  business; household 
D)  expenditure; income 
E)  goods; factor

Question 15

As the circular flow model points out, a choice that households make is how

Accepted Answer

A)  many resources a firm will hire. 
B)  many goods and services are produced. 
C)  many goods and services are purchased. 
D)  much labor is hired. 
E)  much the government will collect in taxes and how much the government will spend on transfer payments. 
A)  many resources a firm will hire. 
B)  many goods and services are produced. 
C)  many goods and services are purchased. 
D)  much labor is hired. 
E)  much the government will collect in taxes and how much the government will spend on transfer payments.

Question 16

One of the productive resources is capital.Capital includes

Accepted Answer

A)  money borrowed from a bank. 
B)  a company's stocks and bonds. 
C)  tools, buildings, and machine tools. 
D)  toys, t-shirts, CD players, and pencils. 
E)  money in a savings account at a bank. 
A)  money borrowed from a bank. 
B)  a company's stocks and bonds. 
C)  tools, buildings, and machine tools. 
D)  toys, t-shirts, CD players, and pencils. 
E)  money in a savings account at a bank.

Question 17

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 18

An example of a U.S.export is

Accepted Answer

A)  a TV made in China sold to a buyer in Azerbaijan. 
B)  matchbooks made in Mexico sold to a buyer in New Jersey. 
C)  pasta made in Italy sold to buyers in Spain. 
D)  diamonds mined in Africa sold to buyers in South America. 
E)  a washing machine made in Indiana sold to a buyer in France. 
A)  a TV made in China sold to a buyer in Azerbaijan. 
B)  matchbooks made in Mexico sold to a buyer in New Jersey. 
C)  pasta made in Italy sold to buyers in Spain. 
D)  diamonds mined in Africa sold to buyers in South America. 
E)  a washing machine made in Indiana sold to a buyer in France.

Question 19

Dan missed class the day the professor covered the circular flow model.Dan asked his friend Joan to explain markets to him.Joan correctly stated that a market

Accepted Answer

A)  requires a physical location for buyers and sellers to get together. 
B)  is any arrangement that brings buyers and sellers together. 
C)  must include a written contract between buyers and sellers. 
D)  is only a place to purchase groceries. 
E)  must have many buyers and only one seller, who is willing to sell to all the buyers. 
A)  requires a physical location for buyers and sellers to get together. 
B)  is any arrangement that brings buyers and sellers together. 
C)  must include a written contract between buyers and sellers. 
D)  is only a place to purchase groceries. 
E)  must have many buyers and only one seller, who is willing to sell to all the buyers.

Question 20

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)  Social Security benefits. 
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)  Social Security benefits. 
C)  national defense. 
D)  purchases of goods and services for purposes other than national defense. 
E)  transfers to state and local governments.

Of the following, the federal government obtains most revenue from

Goods produced in the United States and sold in other countries are called

Discuss the differences between developing and emerging market economies.

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

State and local governments spend about ________ of their expenditures on education.

The world population is approximately ________ people.

________ are the largest components of state and local government revenue.

Factors of production are the

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

What would be an example of capital good?

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

Identify the four factors of production, and tell what type of income is earned by each factor.

Describe the government's flows in the circular flow model of the economy.

A circular flow model shows the interrelationship between the market and the markets.

As the circular flow model points out, a choice that households make is how

One of the productive resources is capital.Capital includes

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

An example of a U.S.export is

Dan missed class the day the professor covered the circular flow model.Dan asked his friend Joan to explain markets to him.Joan correctly stated that a market

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

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

Of the following, the federal government obtains most revenue from

Goods produced in the United States and sold in other countries are called

Discuss the differences between developing and emerging market economies.

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

State and local governments spend about ________ of their expenditures on education.

The world population is approximately ________ people.

________ are the largest components of state and local government revenue.

Factors of production are the

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

What would be an example of capital good?

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

Identify the four factors of production, and tell what type of income is earned by each factor.

Describe the government's flows in the circular flow model of the economy.

A circular flow model shows the interrelationship between the ________ market and the ________ markets.

As the circular flow model points out, a choice that households make is how

One of the productive resources is capital.Capital includes

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

An example of a U.S.export is

Dan missed class the day the professor covered the circular flow model.Dan asked his friend Joan to explain markets to him.Joan correctly stated that a market

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

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

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

A circular flow model shows the interrelationship between the market and the markets.