Question 1

In the factor market, firms ________ and households ________.

Accepted Answer

A) hire land, labor, capital, and entrepreneurship services; purchase goods and services 
B) supply land, labor, capital, and entrepreneurship services; hire land, labor, capital, and entrepreneurship services 
C) pay rent, wages, interest, and profit; earn rent, wages, interest, and profit 
D) purchase goods and services; supply goods and services 
E) supply goods and services; purchase goods and services 
A) hire land, labor, capital, and entrepreneurship services; purchase goods and services 
B) supply land, labor, capital, and entrepreneurship services; hire land, labor, capital, and entrepreneurship services 
C) pay rent, wages, interest, and profit; earn rent, wages, interest, and profit 
D) purchase goods and services; supply goods and services 
E) supply goods and services; purchase goods and services C

Question 2

Jan is attending college and studying to be an investment broker. To improve her chances of employment following college, she has interned at a top brokerage firm during the last two summers. Jan's internship has increased her

Accepted Answer

A) natural labor. 
B) human capital. 
C) consumption services. 
D) natural resources. 
E) entrepreneurship capital. 
A) natural labor. 
B) human capital. 
C) consumption services. 
D) natural resources. 
E) entrepreneurship capital. B

Question 3

Over the past 70 years, which of the following has occurred?
i. The service sector has grown so that now about 80 percent of workers are now employed in the service industry.
ii. The manufacturing sector has shrunk, so now about 20 percent of workers are now employed in the production of goods.
iii. The percentage of workers employed in the service industry has increased steadily.

Accepted Answer

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

Question 4

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 5

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 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

The largest share of total production in the United States is

Accepted Answer

A) consumption goods and services. 
B) capital goods. 
C) government goods and services. 
D) exported goods and services. 
E) imported goods and services. 
A) consumption goods and services. 
B) capital goods. 
C) government goods and services. 
D) exported goods and services. 
E) imported goods and services.

Question 8

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 9

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 10

Computers and insurance coverage produced in the United States and sold to people in other nations are categorized as

Accepted Answer

A) U.S. consumption goods and services. 
B) foreign capital goods. 
C) U.S. government goods and services. 
D) U.S. exports of goods and services. 
E) U.S. imports of goods and services. 
A) U.S. consumption goods and services. 
B) foreign capital goods. 
C) U.S. government goods and services. 
D) U.S. exports of goods and services. 
E) U.S. imports of goods and services.

Question 11

Goods and services bought by the government account for about ________ percent of total production.

Accepted Answer

A) 2 
B) 8 
C) 17 
D) 35 
E) 67 
A) 2 
B) 8 
C) 17 
D) 35 
E) 67

Question 12

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.

Question 13

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 14

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 15

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 16

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 17

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 18

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 19

Aaron locked himself out of his house and had to pay $40 to Brianna, who works for Lucky Locksmith, to open his door. Based on this transaction in the economy and using concepts from the circular flow model, which of the following is true?

Accepted Answer

A) Brianna earned income from supplying her labor services. 
B) Aaron earned income from supplying his labor services. 
C) Brianna purchased goods and services. 
D) Aaron acted as a firm in this transaction. 
E) Aaron supplied goods and services. 
A) Brianna earned income from supplying her labor services. 
B) Aaron earned income from supplying his labor services. 
C) Brianna purchased goods and services. 
D) Aaron acted as a firm in this transaction. 
E) Aaron supplied goods and services.

Question 20

Which of the following correctly describes how the "global pie is baked"?

Accepted Answer

A) Advanced economies account for about 50 percent of the value of the world's production. 
B) The U.S.'s share of economic pie is increasing while China's share is decreasing. 
C) The increase in manufacturing has taken place in mainly the advanced economies. 
D) Asia accounts for about 40 percent of the global pie. 
E) Emerging economies account for about 25 percent of the global pie. 
A) Advanced economies account for about 50 percent of the value of the world's production. 
B) The U.S.'s share of economic pie is increasing while China's share is decreasing. 
C) The increase in manufacturing has taken place in mainly the advanced economies. 
D) Asia accounts for about 40 percent of the global pie. 
E) Emerging economies account for about 25 percent of the global pie.

In the factor market, firms and households .

Jan is attending college and studying to be an investment broker. To improve her chances of employment following college, she has interned at a top brokerage firm during the last two summers. Jan's internship has increased her

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

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

The world population is approximately ________ people.

The largest share of total production in the United States is

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

Tax revenues are transferred from

Computers and insurance coverage produced in the United States and sold to people in other nations are categorized as

Goods and services bought by the government account for about ________ percent of total production.

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

What would be an example of consumption service?

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

In the circular flow model,

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

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

Aaron locked himself out of his house and had to pay $40 to Brianna, who works for Lucky Locksmith, to open his door. Based on this transaction in the economy and using concepts from the circular flow model, which of the following is true?

Which of the following correctly describes how the "global pie is baked"?

Getting Started

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Global Markets in Action

Externalities: Pollution, Education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters

Exam 2: The Us and Global Economies

In the factor market, firms ________ and households ________.

Jan is attending college and studying to be an investment broker. To improve her chances of employment following college, she has interned at a top brokerage firm during the last two summers. Jan's internship has increased her

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

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

The world population is approximately ________ people.

The largest share of total production in the United States is

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

Tax revenues are transferred from

Computers and insurance coverage produced in the United States and sold to people in other nations are categorized as

Goods and services bought by the government account for about ________ percent of total production.

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

What would be an example of consumption service?

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

In the circular flow model,

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

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

Aaron locked himself out of his house and had to pay $40 to Brianna, who works for Lucky Locksmith, to open his door. Based on this transaction in the economy and using concepts from the circular flow model, which of the following is true?

Which of the following correctly describes how the "global pie is baked"?

Getting Started

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Global Markets in Action

Externalities: Pollution, Education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters

In the factor market, firms and households .

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