Question 1

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 2

The circular flow model shows the

Accepted Answer

A) distribution of income and consumption goods across income levels. 
B) combinations of the factors of production needed to produce goods and services. 
C) flow of expenditure and incomes that arise from the households', firms', and governments' decisions. 
D) flow of natural resources from firms to the private market to government and back to firms. 
E) distribution of income to the different factors of production. 
A) distribution of income and consumption goods across income levels. 
B) combinations of the factors of production needed to produce goods and services. 
C) flow of expenditure and incomes that arise from the households', firms', and governments' decisions. 
D) flow of natural resources from firms to the private market to government and back to firms. 
E) distribution of income to the different factors of production.

Question 3

Items that are purchased by individuals for their own enjoyment are called

Accepted Answer

A) consumption goods and services. 
B) capital goods. 
C) government goods and services. 
D) exports of goods and services. 
E) private goods. 
A) consumption goods and services. 
B) capital goods. 
C) government goods and services. 
D) exports of goods and services. 
E) private goods.

Question 4

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 5

Households and firms in the U.S. economy interact with those in the rest of the world in the ________ market and in the ________ market.

Accepted Answer

A) goods; factor 
B) goods; financial 
C) government; goods 
D) financial; factor 
E) firm; government 
A) goods; factor 
B) goods; financial 
C) government; goods 
D) financial; factor 
E) firm; government

Question 6

The figure above shows governments in the circular flow.
-In the figure above, which of the following is true?
I. Governments coordinate economic activities of households and firms.
Ii. Governments buy goods and services in goods markets.
Iii. Households pay taxes directly to firms.

Accepted Answer

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

Question 7

________ earned the highest amount of income among the factors of production in the United States.

Accepted Answer

A) Labor 
B) Capital 
C) Land 
D) Entrepreneurship 
E) Investment 
A) Labor 
B) Capital 
C) Land 
D) Entrepreneurship 
E) Investment

Question 8

The difference between consumption and capital goods is that

Accepted Answer

A) only big corporations can afford capital goods. 
B) capital goods are used to produce additional goods while consumption goods are not. 
C) capital goods are provided by the government. 
D) consumption goods can be enjoyed by many people at the same time. 
E) it is illegal to export capital goods. 
A) only big corporations can afford capital goods. 
B) capital goods are used to produce additional goods while consumption goods are not. 
C) capital goods are provided by the government. 
D) consumption goods can be enjoyed by many people at the same time. 
E) it is illegal to export capital goods.

Question 9

A market is defined as

Accepted Answer

A) the physical place where goods (but not services)are sold. 
B) the physical place where goods and services are sold. 
C) any arrangement that brings buyers and sellers together. 
D) a place where money is exchanged for goods. 
E) another name for a store. 
A) the physical place where goods (but not services)are sold. 
B) the physical place where goods and services are sold. 
C) any arrangement that brings buyers and sellers together. 
D) a place where money is exchanged for goods. 
E) another name for a store.

Question 10

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 11

Capital is a factor of production. An example of capital as a factor of production is

Accepted Answer

A) money. 
B) stocks. 
C) bonds. 
D) machines. 
E) education. 
A) money. 
B) stocks. 
C) bonds. 
D) machines. 
E) education.

Question 12

A real flow in the circular flow diagram is i) a firm's payments of wages to its workers
Ii) a household's purchase of a new car
Iii) a farmer's use of land to grow corn

Accepted Answer

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

Question 13

Capital, as a factor of production, refers to

Accepted Answer

A) money, stocks, and bonds. 
B) the production technology used by firms. 
C) the tools and instruments used to produce other goods and services. 
D) the production factors imported from abroad. 
E) stocks and bonds but not money. 
A) money, stocks, and bonds. 
B) the production technology used by firms. 
C) the tools and instruments used to produce other goods and services. 
D) the production factors imported from abroad. 
E) stocks and bonds but not money.

Question 14

2.5 Chapter Figures
   
The figure above shows the circular flow model.
-In the figure above, which of the following transactions take place in the factor markets?
I. Michael, a student, orders a computer from Dell online.
Ii. Peter gets a job at a Wal-Mart store.
Iii. Apple Computer opens a new store in Georgia.

Accepted Answer

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

Question 15

Compared to the developing economies, the advanced economies have ________ human capital and ________ physical capital.

Accepted Answer

A) more; more 
B) more; less 
C) the same; the same 
D) less; more 
E) less; less 
A) more; more 
B) more; less 
C) the same; the same 
D) less; more 
E) less; less

Question 16

The decisions of firms and households are

Accepted Answer

A) coordinated by markets. 
B) made independently of one another. 
C) controlled by but not totally coordinated by the government. 
D) unexplainable by the circular flow model. 
E) coordinated by but not totally controlled by the government. 
A) coordinated by markets. 
B) made independently of one another. 
C) controlled by but not totally coordinated by the government. 
D) unexplainable by the circular flow model. 
E) coordinated by but not totally controlled by the government.

Question 17

Of the following, the federal government's largest source of revenue is the

Accepted Answer

A) sales tax. 
B) property tax. 
C) corporate income tax. 
D) social security tax. 
E) transfers from state and local governments. 
A) sales tax. 
B) property tax. 
C) corporate income tax. 
D) social security tax. 
E) transfers from state and local governments.

Question 18

________ 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 19

Human capital is

Accepted Answer

A) solely the innate ability we are born with. 
B) the money humans have saved. 
C) the knowledge humans accumulate through education and experience. 
D) machinery that needs human supervision. 
E) any type of machinery. 
A) solely the innate ability we are born with. 
B) the money humans have saved. 
C) the knowledge humans accumulate through education and experience. 
D) machinery that needs human supervision. 
E) any type of machinery.

Question 20

The two biggest items of the U.S. federal government revenue that together account for over approximately 80 percent of total federal government revenue are

Accepted Answer

A) personal income taxes and Social Security taxes. 
B) personal income taxes and corporate income taxes. 
C) corporate income taxes and Social Security taxes. 
D) corporate income taxes and property taxes. 
E) personal income taxes and sales taxes. 
A) personal income taxes and Social Security taxes. 
B) personal income taxes and corporate income taxes. 
C) corporate income taxes and Social Security taxes. 
D) corporate income taxes and property taxes. 
E) personal income taxes and sales taxes.

One of the productive resources is capital. Capital includes

The circular flow model shows the

Items that are purchased by individuals for their own enjoyment are called

Factors of production are the

Households and firms in the U.S. economy interact with those in the rest of the world in the market and in the market.

The figure above shows governments in the circular flow. -In the figure above, which of the following is true? I. Governments coordinate economic activities of households and firms. Ii. Governments buy goods and services in goods markets. Iii. Households pay taxes directly to firms.

________ earned the highest amount of income among the factors of production in the United States.

The difference between consumption and capital goods is that

A market is defined as

Nigeria would be classified by the International Monetary Fund as

Capital is a factor of production. An example of capital as a factor of production is

A real flow in the circular flow diagram is i) a firm's payments of wages to its workers Ii) a household's purchase of a new car Iii) a farmer's use of land to grow corn

Capital, as a factor of production, refers to

Compared to the developing economies, the advanced economies have human capital and physical capital.

The decisions of firms and households are

Of the following, the federal government's largest source of revenue is the

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

Human capital is

The two biggest items of the U.S. federal government revenue that together account for over approximately 80 percent of total federal government revenue 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

One of the productive resources is capital. Capital includes

The circular flow model shows the

Items that are purchased by individuals for their own enjoyment are called

Factors of production are the

Households and firms in the U.S. economy interact with those in the rest of the world in the ________ market and in the ________ market.

The figure above shows governments in the circular flow. -In the figure above, which of the following is true? I. Governments coordinate economic activities of households and firms. Ii. Governments buy goods and services in goods markets. Iii. Households pay taxes directly to firms.

________ earned the highest amount of income among the factors of production in the United States.

The difference between consumption and capital goods is that

A market is defined as

Nigeria would be classified by the International Monetary Fund as

Capital is a factor of production. An example of capital as a factor of production is

A real flow in the circular flow diagram is i) a firm's payments of wages to its workers Ii) a household's purchase of a new car Iii) a farmer's use of land to grow corn

Capital, as a factor of production, refers to

Compared to the developing economies, the advanced economies have ________ human capital and ________ physical capital.

The decisions of firms and households are

Of the following, the federal government's largest source of revenue is the

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

Human capital is

The two biggest items of the U.S. federal government revenue that together account for over approximately 80 percent of total federal government revenue 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

Households and firms in the U.S. economy interact with those in the rest of the world in the market and in the market.

Compared to the developing economies, the advanced economies have human capital and physical capital.