Question 1

An export good is a good produced

Accepted Answer

A) in the United States and sold to foreigners living in the United States. 
B) by foreigners in the United States and purchased by U.S. households. 
C) in another country and purchased by U.S. residents. 
D) in the United States and sold in other countries. 
E) in another country and purchased by foreigners not residing in the United States. 
A) in the United States and sold to foreigners living in the United States. 
B) by foreigners in the United States and purchased by U.S. households. 
C) in another country and purchased by U.S. residents. 
D) in the United States and sold in other countries. 
E) in another country and purchased by foreigners not residing in the United States.

Question 2

Which of the following is a function of the U.S. federal government?

Accepted Answer

A) providing the legal and social framework for economic activity 
B) distributing private goods and services 
C) deciding for whom firms should produce goods and services 
D) deciding how much to produce of private goods and services 
E) determining what wages firms will pay their workers. 
A) providing the legal and social framework for economic activity 
B) distributing private goods and services 
C) deciding for whom firms should produce goods and services 
D) deciding how much to produce of private goods and services 
E) determining what wages firms will pay their workers.

Question 3

The total value of capital in the United States is around

Accepted Answer

A) $50 trillion. 
B) $10 trillion. 
C) $79 trillion. 
D) $100 trillion. 
E) $145 trillion. 
A) $50 trillion. 
B) $10 trillion. 
C) $79 trillion. 
D) $100 trillion. 
E) $145 trillion.

Question 4

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 5

The circular flow model shows the flow of

Accepted Answer

A) expenditure and income throughout the economy. 
B) only money throughout the economy. 
C) only funds in stock and bond markets. 
D) only tax payments and government expenditures. 
E) goods market and factor markets as they move through the economy. 
A) expenditure and income throughout the economy. 
B) only money throughout the economy. 
C) only funds in stock and bond markets. 
D) only tax payments and government expenditures. 
E) goods market and factor markets as they move through the economy.

Question 6

What determines the revenue flows received by businesses?

Accepted Answer

A) an agency of the Federal government 
B) what they choose to produce, how much is sold, and the price received when sold 
C) their ownership of factors of production, how much they sell in the factor markets, and the prices received when sold 
D) financial institutions such as banks 
E) what they pay the factors of production they employ. 
A) an agency of the Federal government 
B) what they choose to produce, how much is sold, and the price received when sold 
C) their ownership of factors of production, how much they sell in the factor markets, and the prices received when sold 
D) financial institutions such as banks 
E) what they pay the factors of production they employ.

Question 7

The largest component of federal government spending is for

Accepted Answer

A) national defense. 
B) Medicare and Medicaid. 
C) education. 
D) prisons. 
E) interest on the national debt. 
A) national defense. 
B) Medicare and Medicaid. 
C) education. 
D) prisons. 
E) interest on the national debt.

Question 8

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 9

Which of the following is NOT a function of the federal government?

Accepted Answer

A) collecting property taxes 
B) making social security and welfare payments 
C) making transfers to state and local governments 
D) providing public goods and services 
E) imposing a personal income tax. 
A) collecting property taxes 
B) making social security and welfare payments 
C) making transfers to state and local governments 
D) providing public goods and services 
E) imposing a personal income tax.

Question 10

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 11

Property taxes are a major source of revenue for

Accepted Answer

A) state and local governments. 
B) the federal governments. 
C) the federal, state, and local governments. 
D) firms wanting to relocate their operations. 
E) consumers. 
A) state and local governments. 
B) the federal governments. 
C) the federal, state, and local governments. 
D) firms wanting to relocate their operations. 
E) consumers.

Question 12

Discuss the differences between developing and emerging market economies.

Accepted Answer

Although the average income in emerging

Question 13

Payments to the factors of production are

Accepted Answer

A) rent, mortgage, interest, and bonds. 
B) rent, interest, bonds, and profit or loss. 
C) rent, wages, interest, and profit or loss. 
D) rent, wages, profit or loss, and bonus. 
E) land, labor, capital, and entrepreneurship. 
A) rent, mortgage, interest, and bonds. 
B) rent, interest, bonds, and profit or loss. 
C) rent, wages, interest, and profit or loss. 
D) rent, wages, profit or loss, and bonus. 
E) land, labor, capital, and entrepreneurship.

Question 14

In the United States, how does the income received by the richest 20 percent of individuals compare with the income received by the other 80 percent?

Accepted Answer

In the United States, the richest 20 per

Question 15

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

Accepted Answer

A) personal income taxes. 
B) sales taxes. 
C) corporate income taxes. 
D) property taxes. 
E) lottery revenue. 
A) personal income taxes. 
B) sales taxes. 
C) corporate income taxes. 
D) property taxes. 
E) lottery revenue.

Question 16

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

Accepted Answer

A) a student's payment of tuition to her university. 
B) the government's operation of the court system. 
C) the government's financing of the national debt. 
D) a firm's production of goods to sell to a foreign country. 
E) a farmer's use of land to grow wheat. 
A) a student's payment of tuition to her university. 
B) the government's operation of the court system. 
C) the government's financing of the national debt. 
D) a firm's production of goods to sell to a foreign country. 
E) a farmer's use of land to grow wheat.

Question 17

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 18

The circular flow model shows that goods and services flow from

Accepted Answer

A) businesses to households. 
B) households to business. 
C) the factor market to businesses. 
D) the goods market to businesses. 
E) the factor markets to the goods markets. 
A) businesses to households. 
B) households to business. 
C) the factor market to businesses. 
D) the goods market to businesses. 
E) the factor markets to the goods markets.

Question 19

If there is a national debt, we can conclude that the federal government has

Accepted Answer

A) borrowed in the past. 
B) purchased more goods and services than were needed. 
C) spent money foolishly. 
D) loaned funds to U.S. taxpayers in the past. 
E) loaned funds to other nations in the past. 
A) borrowed in the past. 
B) purchased more goods and services than were needed. 
C) spent money foolishly. 
D) loaned funds to U.S. taxpayers in the past. 
E) loaned funds to other nations in the past.

Question 20

Income taxes paid by corporations are

Accepted Answer

A) the major source of revenue for the federal government. 
B) the major source of revenue for state governments. 
C) the major source of revenue for local governments. 
D) about 9 percent of the federal government's revenue. 
E) the major source of expenditure by the federal government. 
A) the major source of revenue for the federal government. 
B) the major source of revenue for state governments. 
C) the major source of revenue for local governments. 
D) about 9 percent of the federal government's revenue. 
E) the major source of expenditure by the federal government.

An export good is a good produced

Which of the following is a function of the U.S. federal government?

The total value of capital in the United States is around

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

The circular flow model shows the flow of

What determines the revenue flows received by businesses?

The largest component of federal government spending is for

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

Which of the following is NOT a function of the federal government?

Of the following, the federal government obtains most revenue from

Property taxes are a major source of revenue for

Discuss the differences between developing and emerging market economies.

Payments to the factors of production are

In the United States, how does the income received by the richest 20 percent of individuals compare with the income received by the other 80 percent?

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

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

An example of a capital good is

The circular flow model shows that goods and services flow from

If there is a national debt, we can conclude that the federal government has

Income taxes paid by corporations are

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

An export good is a good produced

Which of the following is a function of the U.S. federal government?

The total value of capital in the United States is around

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

The circular flow model shows the flow of

What determines the revenue flows received by businesses?

The largest component of federal government spending is for

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

Which of the following is NOT a function of the federal government?

Of the following, the federal government obtains most revenue from

Property taxes are a major source of revenue for

Discuss the differences between developing and emerging market economies.

Payments to the factors of production are

In the United States, how does the income received by the richest 20 percent of individuals compare with the income received by the other 80 percent?

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

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

An example of a capital good is

The circular flow model shows that goods and services flow from

If there is a national debt, we can conclude that the federal government has

Income taxes paid by corporations are

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