Question 1

The income earned by entrepreneurs is

Accepted Answer

A) interest. 
B) wages. 
C) profit or loss. 
D) rent,wages,and interest. 
E) a mixture of rent,wages,interest,and profit. 
A) interest. 
B) wages. 
C) profit or loss. 
D) rent,wages,and interest. 
E) a mixture of rent,wages,interest,and profit. C

Question 2

U.S.exports of goods and services flow to households and firms in ________,and U.S.financial inflows of capital flow to households and firms in ________.

Accepted Answer

A) the United States;the United States 
B) the United States;the rest of the world 
C) the rest of the world;the United States 
D) the rest of the world;the rest of the world 
E) the United States;the rest of the world and the United States 
A) the United States;the United States 
B) the United States;the rest of the world 
C) the rest of the world;the United States 
D) the rest of the world;the rest of the world 
E) the United States;the rest of the world and the United States C

Question 3

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. D

Question 4

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 5

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 6

The total amount the federal government has borrowed to make expenditures that exceed tax revenue is called

Accepted Answer

A) personal income taxes. 
B) federal expenditures. 
C) total government spending. 
D) the net government revenue. 
E) the national debt. 
A) personal income taxes. 
B) federal expenditures. 
C) total government spending. 
D) the net government revenue. 
E) the national debt.

Question 7

Capital is a factor of production.Which of the following is an example of capital?
I.$1,000 in money
Ii.100 shares of Microsoft stock
Iii.$10,000 in bonds issued by General Motors
Iv.a drill press in your local machine shop

Accepted Answer

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

Question 8

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 9

State and local governments finance expenditures mainly from

Accepted Answer

A) tax revenue. 
B) funds provided by the federal government. 
C) government bonds issued at the state level. 
D) private bank loans. 
E) lottery funds. 
A) tax revenue. 
B) funds provided by the federal government. 
C) government bonds issued at the state level. 
D) private bank loans. 
E) lottery funds.

Question 10

In the circular flow model,which of the following flows in the opposite direction from the flow of factors of production?

Accepted Answer

A) finished goods and services 
B) wages,rent,interest,and profit 
C) interests payments of Federal,state,and local governments 
D) firm's profit incentives 
E) the goods market 
A) finished goods and services 
B) wages,rent,interest,and profit 
C) interests payments of Federal,state,and local governments 
D) firm's profit incentives 
E) the goods market

Question 11

Entrepreneurship,as a factor of production,refers to

Accepted Answer

A) the technology used by firms. 
B) the human capital accumulated by workers. 
C) the value of the firm's stock. 
D) the human resource that organizes labor,land,and capital. 
E) the capital the firm uses. 
A) the technology used by firms. 
B) the human capital accumulated by workers. 
C) the value of the firm's stock. 
D) the human resource that organizes labor,land,and capital. 
E) the capital the firm uses.

Question 12

Over time,the percentage of total employment in services has ________ and in agriculture,employment has ________.

Accepted Answer

A) increased;increased 
B) decreased;increased 
C) stayed about the same;decreased 
D) stayed about the same;increased 
E) increased;decreased 
A) increased;increased 
B) decreased;increased 
C) stayed about the same;decreased 
D) stayed about the same;increased 
E) increased;decreased

Question 13

The personal distribution of income in the United States shows that

Accepted Answer

A) income is equally distributed. 
B) the poorest 20 percent of individuals receive approximately 20 percent of total income. 
C) the richest 20 percent of individuals receive approximately 50 percent of total income. 
D) the poorest 60 percent of individuals receive approximately 50 percent of total income. 
E) the richest 20 percent of individuals receive approximately 25 percent of total income. 
A) income is equally distributed. 
B) the poorest 20 percent of individuals receive approximately 20 percent of total income. 
C) the richest 20 percent of individuals receive approximately 50 percent of total income. 
D) the poorest 60 percent of individuals receive approximately 50 percent of total income. 
E) the richest 20 percent of individuals receive approximately 25 percent of total income.

Question 14

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

Accepted Answer

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

Question 15

________ 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 16

Households receive transfers from ________ and firms receive transfers from ________.

Accepted Answer

A) government;government 
B) firms;households 
C) government;government and households 
D) firms and government;government 
E) government;no one 
A) government;government 
B) firms;households 
C) government;government and households 
D) firms and government;government 
E) government;no one

Question 17

The national debt is the total amount the ________ government has borrowed to make expenditures that ________ tax revenue.

Accepted Answer

A) state and local;are less than 
B) federal;are less than 
C) federal;exceed 
D) state and local;exceed 
E) federal;are equal to 
A) state and local;are less than 
B) federal;are less than 
C) federal;exceed 
D) state and local;exceed 
E) federal;are equal to

Question 18

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 19

Compared to the world,the rate of U.S.population growth is

Accepted Answer

A) slower than in the world as a whole. 
B) about the same as in the world as a whole. 
C) much faster than in the world as a whole. 
D) incomparable because U.S.residents are born with a much greater chance of accumulating a lot of human capital. 
E) incomparable because we do not have accurate world population statistics. 
A) slower than in the world as a whole. 
B) about the same as in the world as a whole. 
C) much faster than in the world as a whole. 
D) incomparable because U.S.residents are born with a much greater chance of accumulating a lot of human capital. 
E) incomparable because we do not have accurate world population statistics.

Question 20

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.

The income earned by entrepreneurs is

U.S.exports of goods and services flow to households and firms in ,and U.S.financial inflows of capital flow to households and firms in .

Tax revenues are transferred from

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

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

The total amount the federal government has borrowed to make expenditures that exceed tax revenue is called

Capital is a factor of production.Which of the following is an example of capital? I.$1,000 in money Ii.100 shares of Microsoft stock Iii.$10,000 in bonds issued by General Motors Iv.a drill press in your local machine shop

Factors of production are the

State and local governments finance expenditures mainly from

In the circular flow model,which of the following flows in the opposite direction from the flow of factors of production?

Entrepreneurship,as a factor of production,refers to

Over time,the percentage of total employment in services has and in agriculture,employment has .

The personal distribution of income in the United States shows that

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

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

Households receive transfers from and firms receive transfers from .

The national debt is the total amount the government has borrowed to make expenditures that tax revenue.

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?

Compared to the world,the rate of U.S.population growth is

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

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 Usand Global Economies

The income earned by entrepreneurs is

U.S.exports of goods and services flow to households and firms in ________,and U.S.financial inflows of capital flow to households and firms in ________.

Tax revenues are transferred from

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

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

The total amount the federal government has borrowed to make expenditures that exceed tax revenue is called

Capital is a factor of production.Which of the following is an example of capital? I.$1,000 in money Ii.100 shares of Microsoft stock Iii.$10,000 in bonds issued by General Motors Iv.a drill press in your local machine shop

Factors of production are the

State and local governments finance expenditures mainly from

In the circular flow model,which of the following flows in the opposite direction from the flow of factors of production?

Entrepreneurship,as a factor of production,refers to

Over time,the percentage of total employment in services has ________ and in agriculture,employment has ________.

The personal distribution of income in the United States shows that

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

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

Households receive transfers from ________ and firms receive transfers from ________.

The national debt is the total amount the ________ government has borrowed to make expenditures that ________ tax revenue.

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?

Compared to the world,the rate of U.S.population growth is

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

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

U.S.exports of goods and services flow to households and firms in ,and U.S.financial inflows of capital flow to households and firms in .

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

Over time,the percentage of total employment in services has and in agriculture,employment has .

Households receive transfers from and firms receive transfers from .

The national debt is the total amount the government has borrowed to make expenditures that tax revenue.