Question 1

In the circular flow model, the expenditures on goods and services flow in the

Accepted Answer

A) same direction as goods and services in all cases. 
B) same direction as goods and services only if they both flow through the goods market. 
C) same direction as goods and services only if they both flow through the factor market. 
D) opposite direction as goods and services. 
E) same direction as factor markets. 
A) same direction as goods and services in all cases. 
B) same direction as goods and services only if they both flow through the goods market. 
C) same direction as goods and services only if they both flow through the factor market. 
D) opposite direction as goods and services. 
E) same direction as factor markets.

Question 2

Income equality has

Accepted Answer

A) increased within countries but has narrowed across countries. 
B) not changed in the advanced economies over the past 50 years. 
C) narrowed within countries but increased across countries. 
D) increased in developing economies as manufacturing has decreased. 
E) decreased in the United States as manufacturing has increased. 
A) increased within countries but has narrowed across countries. 
B) not changed in the advanced economies over the past 50 years. 
C) narrowed within countries but increased across countries. 
D) increased in developing economies as manufacturing has decreased. 
E) decreased in the United States as manufacturing has increased.

Question 3

An item that is purchased to increase businesses' productive resources is

Accepted Answer

A) an export. 
B) a government good. 
C) a capital good. 
D) a consumption good. 
E) a productive good. 
A) an export. 
B) a government good. 
C) a capital good. 
D) a consumption good. 
E) a productive good.

Question 4

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 5

When Ethan continues his education beyond high school he is increasing his

Accepted Answer

A) capital. 
B) wage rate. 
C) human capital. 
D) quantity of labor. 
E) rent. 
A) capital. 
B) wage rate. 
C) human capital. 
D) quantity of labor. 
E) rent.

Question 6

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

Accepted Answer

A) receive transfers directly from governments. 
B) buy goods and services from governments in goods markets. 
C) receive transfers from governments through factor markets. 
D) sell factors of production to governments. 
E) pay taxes to governments through factor markets. 
A) receive transfers directly from governments. 
B) buy goods and services from governments in goods markets. 
C) receive transfers from governments through factor markets. 
D) sell factors of production to governments. 
E) pay taxes to governments through factor markets.

Question 7

________ the owners of the factors of production, while ________ what amounts of those factors to hire.

Accepted Answer

A) Households are; firms determine 
B) Households are; the government determines 
C) The government is; firms determine 
D) Firms are; households determine 
E) Firms are; the government determines 
A) Households are; firms determine 
B) Households are; the government determines 
C) The government is; firms determine 
D) Firms are; households determine 
E) Firms are; the government determines

Question 8

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 9

________ choose the quantities of factors of production to hire and ________ choose the quantities of goods and services to produce.

Accepted Answer

A) Entrepreneurs; firms 
B) Firms; firms 
C) Markets; markets 
D) Factor markets; goods markets 
E) Firms; households 
A) Entrepreneurs; firms 
B) Firms; firms 
C) Markets; markets 
D) Factor markets; goods markets 
E) Firms; households

Question 10

What is meant by the term "human capital"?

Accepted Answer

Human capital refers to the skills peopl

Question 11

Which of the following is true?
I. The advanced economies account for more than half of global production.
Ii. Almost four out of every five people in the world live in the developing economies.
Iii. In the advanced economies, agriculture accounts for a larger part of total production than in the developing economies.

Accepted Answer

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

Question 12

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 13

What determines the income flows that households receive?

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 choose to consume 
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 choose to consume

Question 14

Poland is classified as

Accepted Answer

A) an advanced economy. 
B) a developing economy. 
C) a transition economy. 
D) an emerging market economy. 
E) private economy. 
A) an advanced economy. 
B) a developing economy. 
C) a transition economy. 
D) an emerging market economy. 
E) private economy.

Question 15

Which of the following is NOT considered capital?

Accepted Answer

A) an assembly line at a General Motors plant 
B) a computer used by your instructor for presentations in class 
C) stocks and bonds that are sold by Pepsico 
D) the furniture in the President's office 
E) a nail gun used for building houses 
A) an assembly line at a General Motors plant 
B) a computer used by your instructor for presentations in class 
C) stocks and bonds that are sold by Pepsico 
D) the furniture in the President's office 
E) a nail gun used for building houses

Question 16

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

Accepted Answer

A) consumption goods and services. 
B) capital goods. 
C) government goods and services. 
D) export goods and services. 
E) import goods and services. 
A) consumption goods and services. 
B) capital goods. 
C) government goods and services. 
D) export goods and services. 
E) import goods and services.

Question 17

Items bought by individuals to provide personal enjoyment are termed

Accepted Answer

A) consumption goods. 
B) personal goods. 
C) consumption or investment goods. 
D) standard goods. 
E) pleasure goods. 
A) consumption goods. 
B) personal goods. 
C) consumption or investment goods. 
D) standard goods. 
E) pleasure goods.

Question 18

When describing the IMF broad country classification, the most accurate statement is that

Accepted Answer

A) the category with the greatest number of countries is the advanced economies. 
B) the emerging market economies are countries that were, until the early 1990s, part of the Soviet Union or its satellites. 
C) most of the nations in Western Europe are considered emerging market economies. 
D) most of the world's population lives in advanced economies. 
E) about 50 percent of the world's population live in the advanced economies and the other 50 percent live in the emerging market and developing economies. 
A) the category with the greatest number of countries is the advanced economies. 
B) the emerging market economies are countries that were, until the early 1990s, part of the Soviet Union or its satellites. 
C) most of the nations in Western Europe are considered emerging market economies. 
D) most of the world's population lives in advanced economies. 
E) about 50 percent of the world's population live in the advanced economies and the other 50 percent live in the emerging market and developing economies.

Question 19

The largest category of state and local government expenditures is

Accepted Answer

A) public welfare. 
B) highways. 
C) education. 
D) interest on their debt. 
E) social security. 
A) public welfare. 
B) highways. 
C) education. 
D) interest on their debt. 
E) social security.

Question 20

The United States possesses a large amount of human capital. As a result of this fact, in the United States there is a

Accepted Answer

A) large amount of machinery and equipment. 
B) large number of people and a great deal of land. 
C) highly skilled and educated labor force. 
D) large number of kind and generous humans. 
E) large amount of machinery (capital)that is run by people (humans). 
A) large amount of machinery and equipment. 
B) large number of people and a great deal of land. 
C) highly skilled and educated labor force. 
D) large number of kind and generous humans. 
E) large amount of machinery (capital)that is run by people (humans).

In the circular flow model, the expenditures on goods and services flow in the

Income equality has

An item that is purchased to increase businesses' productive resources is

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

When Ethan continues his education beyond high school he is increasing his

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

the owners of the factors of production, while what amounts of those factors to hire.

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

choose the quantities of factors of production to hire and choose the quantities of goods and services to produce.

What is meant by the term "human capital"?

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

What determines the income flows that households receive?

Poland is classified as

Which of the following is NOT considered capital?

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

Items bought by individuals to provide personal enjoyment are termed

When describing the IMF broad country classification, the most accurate statement is that

The largest category of state and local government expenditures is

The United States possesses a large amount of human capital. As a result of this fact, in the United States there is a

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 circular flow model, the expenditures on goods and services flow in the

Income equality has

An item that is purchased to increase businesses' productive resources is

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

When Ethan continues his education beyond high school he is increasing his

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

________ the owners of the factors of production, while ________ what amounts of those factors to hire.

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

________ choose the quantities of factors of production to hire and ________ choose the quantities of goods and services to produce.

What is meant by the term "human capital"?

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

What determines the income flows that households receive?

Poland is classified as

Which of the following is NOT considered capital?

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

Items bought by individuals to provide personal enjoyment are termed

When describing the IMF broad country classification, the most accurate statement is that

The largest category of state and local government expenditures is

The United States possesses a large amount of human capital. As a result of this fact, in the United States there is a

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

the owners of the factors of production, while what amounts of those factors to hire.

choose the quantities of factors of production to hire and choose the quantities of goods and services to produce.