Question 1

Which of the following is least likely to determine individual income in a market economy?

Accepted Answer

A)  The quantity of resources owned. 
B)  The quality of resources owned. 
C)  The prices of resources in the marketplace. 
D)  The government. 
A)  The quantity of resources owned. 
B)  The quality of resources owned. 
C)  The prices of resources in the marketplace. 
D)  The government. D

Question 2

A country's total output includes all of the following except:

Accepted Answer

A)  Household consumption. 
B)  Business investment. 
C)  Imports. 
D)  Government services. 
A)  Household consumption. 
B)  Business investment. 
C)  Imports. 
D)  Government services. C

Question 3

Investment goods are a different type of output.Discuss the types of investment goods and its relationship to production possibilities.

Accepted Answer

Investment goods include the plant,machinery,and equipment that are produced for use in the business sector.These investments are often used to replace worn-out equipment and factories,which maintains production possibilities.
Investment goods increase and improve the stock of capital.This expands production possibilities.
Inventory is also counted as investment goods.

Question 4

Which of the following is the best measure of an increase in actual output?

Accepted Answer

A)  Nominal GDP. 
B)  Real GDP. 
C)  Per capita GDP. 
D)  GDP per dollar. 
A)  Nominal GDP. 
B)  Real GDP. 
C)  Per capita GDP. 
D)  GDP per dollar.

Question 5

When World War II ended some resources moved easily from the production of military goods to the production of consumer goods which is referred to in economics as:

Accepted Answer

A)  Production equality. 
B)  Capital adaptation. 
C)  Resource flexibility. 
D)  Factor mobility. 
A)  Production equality. 
B)  Capital adaptation. 
C)  Resource flexibility. 
D)  Factor mobility.

Question 6

American production is described as capital intensive,which means that:

Accepted Answer

A)  Foreign investment is relatively small. 
B)  The ratio of machinery to labor is high. 
C)  The ratio of labor to machinery is high. 
D)  Government control of production processes is high. 
A)  Foreign investment is relatively small. 
B)  The ratio of machinery to labor is high. 
C)  The ratio of labor to machinery is high. 
D)  Government control of production processes is high.

Question 7

Which of the following is NOT included in U.S.GDP?

Accepted Answer

A)  Toys produced by a U.S.firm located in China. 
B)  Beer brewed in Colorado and purchased by a German tourist. 
C)  A car made by a Japanese auto producer in Kansas. 
D)  Corn grown in Iowa and exported to Africa. 
A)  Toys produced by a U.S.firm located in China. 
B)  Beer brewed in Colorado and purchased by a German tourist. 
C)  A car made by a Japanese auto producer in Kansas. 
D)  Corn grown in Iowa and exported to Africa.

Question 8

One HEADLINE article in the text,"Income Share of the Rich," reports: "In most developing countries the top tenth of all households receives 30-50 percent of all income." Which of the following forms of government intervention is designed to reduce this market situation?

Accepted Answer

A)  Antitrust laws. 
B)  Public goods. 
C)  Laissez-faire. 
D)  Income transfers. 
A)  Antitrust laws. 
B)  Public goods. 
C)  Laissez-faire. 
D)  Income transfers.

Question 9

In the United States,corporations:

Accepted Answer

A)  Dominate market transactions. 
B)  Are owned by one or two people. 
C)  Are the most common type of business firm. 
D)  Typically have less than $10,000 in assets. 
A)  Dominate market transactions. 
B)  Are owned by one or two people. 
C)  Are the most common type of business firm. 
D)  Typically have less than $10,000 in assets.

Question 10

On average,U.S.real GDP has grown roughly _____ percent per year.

Accepted Answer

A)  Two 
B)  Three 
C)  Four 
D)  Five 
A)  Two 
B)  Three 
C)  Four 
D)  Five

Question 11

A firm that produces the entire market supply of a certain good or service is known as:

Accepted Answer

A)  A competitive firm. 
B)  An oligopoly. 
C)  A monopsony. 
D)  A monopoly. 
A)  A competitive firm. 
B)  An oligopoly. 
C)  A monopsony. 
D)  A monopoly.

Question 12

Income transfers include all of the following EXCEPT:

Accepted Answer

A)  Food stamps. 
B)  Medicaid. 
C)  Wages. 
D)  Welfare benefits. 
A)  Food stamps. 
B)  Medicaid. 
C)  Wages. 
D)  Welfare benefits.

Question 13

Proprietorships:

Accepted Answer

A)  Dominate market transactions. 
B)  Are owned by many individual stockholders. 
C)  Are known for their large assets. 
D)  Are the most common type of business firm. 
A)  Dominate market transactions. 
B)  Are owned by many individual stockholders. 
C)  Are known for their large assets. 
D)  Are the most common type of business firm.

Question 14

Which of the following is true about the income-transfer system in the United States?

Accepted Answer

A)  The system provides more output for lower-income households than the market alone provides. 
B)  Transfer payments solve the problem of income inequality. 
C)  The system does not affect the distribution of income because of regressive taxes. 
D)  The system is actually progressive and gives more income to rich households. 
A)  The system provides more output for lower-income households than the market alone provides. 
B)  Transfer payments solve the problem of income inequality. 
C)  The system does not affect the distribution of income because of regressive taxes. 
D)  The system is actually progressive and gives more income to rich households.

Question 15

When comparing GDP per capita globally,which list ranks countries correctly from largest to smallest?

Accepted Answer

A)  China,India,Mexico. 
B)  Japan,Mexico,Haiti. 
C)  Mexico,France,India. 
D)  Greece,Japan,Indonesia. 
A)  China,India,Mexico. 
B)  Japan,Mexico,Haiti. 
C)  Mexico,France,India. 
D)  Greece,Japan,Indonesia.

Question 16

In the United States,government regulation is primarily designed to:

Accepted Answer

A)  Protect the environment through government ownership of natural resources. 
B)  Prevent businesses from competing with each other. 
C)  Protect labor,consumers,and the environment. 
D)  Determine all the answers to the WHAT,HOW and FOR WHOM questions. 
A)  Protect the environment through government ownership of natural resources. 
B)  Prevent businesses from competing with each other. 
C)  Protect labor,consumers,and the environment. 
D)  Determine all the answers to the WHAT,HOW and FOR WHOM questions.

Question 17

The United States has invested heavily in human capital by promoting education and skill training.

Accepted Answer

A) True 
 B)False

Question 18

Incomes are distributed more equally in poor countries than in rich ones because of transfer payments.

Accepted Answer

A) True 
 B)False

Question 19

A HEADLINE article reports that "Virtually all Americans attend high school,and roughly 85 percent graduate." Education and training contribute to:

Accepted Answer

A)  Greater income inequality in the United States than in poor countries. 
B)  A labor-intensive production process. 
C)  A decrease in capital stock. 
D)  An increase in worker productivity. 
A)  Greater income inequality in the United States than in poor countries. 
B)  A labor-intensive production process. 
C)  A decrease in capital stock. 
D)  An increase in worker productivity.

Question 20

Factor mobility refers to:

Accepted Answer

A)  How easily factors of production can be reallocated. 
B)  The quantity of resources a country has. 
C)  How rapidly resources depreciate. 
D)  The quality of the factors of production. 
A)  How easily factors of production can be reallocated. 
B)  The quantity of resources a country has. 
C)  How rapidly resources depreciate. 
D)  The quality of the factors of production.

Which of the following is least likely to determine individual income in a market economy?

A country's total output includes all of the following except:

Investment goods are a different type of output.Discuss the types of investment goods and its relationship to production possibilities.

Which of the following is the best measure of an increase in actual output?

When World War II ended some resources moved easily from the production of military goods to the production of consumer goods which is referred to in economics as:

American production is described as capital intensive,which means that:

Which of the following is NOT included in U.S.GDP?

One HEADLINE article in the text,"Income Share of the Rich," reports: "In most developing countries the top tenth of all households receives 30-50 percent of all income." Which of the following forms of government intervention is designed to reduce this market situation?

In the United States,corporations:

On average,U.S.real GDP has grown roughly _____ percent per year.

A firm that produces the entire market supply of a certain good or service is known as:

Income transfers include all of the following EXCEPT:

Proprietorships:

Which of the following is true about the income-transfer system in the United States?

When comparing GDP per capita globally,which list ranks countries correctly from largest to smallest?

In the United States,government regulation is primarily designed to:

The United States has invested heavily in human capital by promoting education and skill training.

Incomes are distributed more equally in poor countries than in rich ones because of transfer payments.

A HEADLINE article reports that "Virtually all Americans attend high school,and roughly 85 percent graduate." Education and training contribute to:

Factor mobility refers to:

The Challenge of Economics

Supply and Demand

Consumer Demand

Supply Decisions

Competition

Monopoly

The Labor Market

Government Intervention

The Business Cycle

Aggregate Supply and Demand

Fiscal Policy

Money and Banks

Monetary Policy

Economic Growth

Theory and Reality

International Trade

Filters

Exam 2: The US Economy

Which of the following is least likely to determine individual income in a market economy?

A country's total output includes all of the following except:

Investment goods are a different type of output.Discuss the types of investment goods and its relationship to production possibilities.

Which of the following is the best measure of an increase in actual output?

When World War II ended some resources moved easily from the production of military goods to the production of consumer goods which is referred to in economics as:

American production is described as capital intensive,which means that:

Which of the following is NOT included in U.S.GDP?

One HEADLINE article in the text,"Income Share of the Rich," reports: "In most developing countries the top tenth of all households receives 30-50 percent of all income." Which of the following forms of government intervention is designed to reduce this market situation?

In the United States,corporations:

On average,U.S.real GDP has grown roughly _____ percent per year.

A firm that produces the entire market supply of a certain good or service is known as:

Income transfers include all of the following EXCEPT:

Proprietorships:

Which of the following is true about the income-transfer system in the United States?

When comparing GDP per capita globally,which list ranks countries correctly from largest to smallest?

In the United States,government regulation is primarily designed to:

The United States has invested heavily in human capital by promoting education and skill training.

Incomes are distributed more equally in poor countries than in rich ones because of transfer payments.

A HEADLINE article reports that "Virtually all Americans attend high school,and roughly 85 percent graduate." Education and training contribute to:

Factor mobility refers to:

The Challenge of Economics

Supply and Demand

Consumer Demand

Supply Decisions

Competition

Monopoly

The Labor Market

Government Intervention

The Business Cycle

Aggregate Supply and Demand

Fiscal Policy

Money and Banks

Monetary Policy

Economic Growth

Theory and Reality

International Trade

Filters