Question 1

In the circular flow model,which of the following is on the selling side in the goods market?

Accepted Answer

A) federal,state,and local governments 
B) only households 
C) exporters 
D) only firms 
E) both firms and households 
A) federal,state,and local governments 
B) only households 
C) exporters 
D) only firms 
E) both firms and households

Question 2

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

Accepted Answer

A) a household's supply of work effort at its new business. 
B) the government's payment of wages to a soldier. 
C) Nike's payment of wages to workers in China. 
D) your county's collection of property taxes. 
E) a teacher's salary at the local high school. 
A) a household's supply of work effort at its new business. 
B) the government's payment of wages to a soldier. 
C) Nike's payment of wages to workers in China. 
D) your county's collection of property taxes. 
E) a teacher's salary at the local high school.

Question 3

Terri is enrolled in her first economics course.She is required to give a presentation about the circular flow.Which of the following statements should she include in her presentation?

Accepted Answer

A) Households choose the amount of the factors of production to provide the firms. 
B) Firms choose the amount of the factors of production to provide households. 
C) Households receive wages for the amount of entrepreneurship they provide firms. 
D) Firms pay wages for the amount of entrepreneurship they provide households. 
E) The flows of goods and services and payments for the goods and services flow in the same direction. 
A) Households choose the amount of the factors of production to provide the firms. 
B) Firms choose the amount of the factors of production to provide households. 
C) Households receive wages for the amount of entrepreneurship they provide firms. 
D) Firms pay wages for the amount of entrepreneurship they provide households. 
E) The flows of goods and services and payments for the goods and services flow in the same direction.

Question 4

What effect,if any,will a good college education have on your human capital? Explain your answer.

Accepted Answer

Human capital refers to the sk

Question 5

In the circular flow model,which of the following is on the buying side in the goods market?
I.firms
Ii.households
Iii.federal,state,and local governments

Accepted Answer

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

Question 6

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 7

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 8

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

Accepted Answer

A) personal income tax. 
B) transfers from state and local governments. 
C) corporation income tax. 
D) lottery. 
E) revenue from the sale of public lands. 
A) personal income tax. 
B) transfers from state and local governments. 
C) corporation income tax. 
D) lottery. 
E) revenue from the sale of public lands.

Question 9

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 10

The figure above shows the circular flow model.
-In the figure above,which of the following represents a real flow of a factor of production?

Accepted Answer

A) Labor 
B) Wages 
C) Goods bought 
D) Services sold 
E) Firms' expenditures on factors of production 
A) Labor 
B) Wages 
C) Goods bought 
D) Services sold 
E) Firms' expenditures on factors of production

Question 11

In economics,the factor of production "land" includes all of the following EXCEPT

Accepted Answer

A) energy. 
B) plastics. 
C) wild plants. 
D) animals,birds,and fish. 
E) oil. 
A) energy. 
B) plastics. 
C) wild plants. 
D) animals,birds,and fish. 
E) oil.

Question 12

According to the functional distribution of income,in the United States

Accepted Answer

A) capital earns most of the income. 
B) labor earns most of the income. 
C) land earns most of the income. 
D) entrepreneurs earned most of the income. 
E) the income earned by capital and labor are approximately equal. 
A) capital earns most of the income. 
B) labor earns most of the income. 
C) land earns most of the income. 
D) entrepreneurs earned most of the income. 
E) the income earned by capital and labor are approximately equal.

Question 13

Discuss the distribution of income around the world.Which countries have the highest average incomes? Which countries have the lowest average incomes? How has the distribution of income changed in recent years?

Accepted Answer

Income is distributed unequally,with res

Question 14

In the circular flow model with the government sector,transfers

Accepted Answer

A) flow in the same direction as do taxes. 
B) flow in the opposite direction as do taxes. 
C) to households flow in the same direction as do expenditures on goods and services. 
D) to firms flow in the same direction as do rent,wages,interest,and profits. 
E) flow only through the goods market. 
A) flow in the same direction as do taxes. 
B) flow in the opposite direction as do taxes. 
C) to households flow in the same direction as do expenditures on goods and services. 
D) to firms flow in the same direction as do rent,wages,interest,and profits. 
E) flow only through the goods market.

Question 15

The figure above shows the circular flow model.
-In the figure above,which of the following represents a money flow?

Accepted Answer

A) Goods purchased 
B) Interest 
C) Capital 
D) Services sold 
E) Goods supplied 
A) Goods purchased 
B) Interest 
C) Capital 
D) Services sold 
E) Goods supplied

Question 16

What is a market? Must a market have a single physical location?

Accepted Answer

A market is any arrangement that allows

Question 17

The world population is approximately ________ people.

Accepted Answer

A) 6.8 million 
B) 2 trillion 
C) 6.8 billion 
D) 6.8 trillion 
E) 680 million 
A) 6.8 million 
B) 2 trillion 
C) 6.8 billion 
D) 6.8 trillion 
E) 680 million

Question 18

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).

Question 19

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

Accepted Answer

A) collect taxes. 
B) coordinate economic activities of households and firms. 
C) hire factors of production. 
D) own factors of production. 
E) sell goods and services to household. 
A) collect taxes. 
B) coordinate economic activities of households and firms. 
C) hire factors of production. 
D) own factors of production. 
E) sell goods and services to household.

Question 20

Describe the government's flows in the circular flow model of the economy.

Accepted Answer

The government has several flows in the

In the circular flow model,which of the following is on the selling side in the goods market?

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

Terri is enrolled in her first economics course.She is required to give a presentation about the circular flow.Which of the following statements should she include in her presentation?

What effect,if any,will a good college education have on your human capital? Explain your answer.

In the circular flow model,which of the following is on the buying side in the goods market? I.firms Ii.households Iii.federal,state,and local governments

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

What determines the income flows that households receive?

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

What determines the revenue flows received by businesses?

The figure above shows the circular flow model. -In the figure above,which of the following represents a real flow of a factor of production?

In economics,the factor of production "land" includes all of the following EXCEPT

According to the functional distribution of income,in the United States

Discuss the distribution of income around the world.Which countries have the highest average incomes? Which countries have the lowest average incomes? How has the distribution of income changed in recent years?

In the circular flow model with the government sector,transfers

The figure above shows the circular flow model. -In the figure above,which of the following represents a money flow?

What is a market? Must a market have a single physical location?

The world population is approximately ________ people.

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

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

Describe the government's flows in the circular flow model of the economy.

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

In the circular flow model,which of the following is on the selling side in the goods market?

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

Terri is enrolled in her first economics course.She is required to give a presentation about the circular flow.Which of the following statements should she include in her presentation?

What effect,if any,will a good college education have on your human capital? Explain your answer.

In the circular flow model,which of the following is on the buying side in the goods market? I.firms Ii.households Iii.federal,state,and local governments

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

What determines the income flows that households receive?

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

What determines the revenue flows received by businesses?

The figure above shows the circular flow model. -In the figure above,which of the following represents a real flow of a factor of production?

In economics,the factor of production "land" includes all of the following EXCEPT

According to the functional distribution of income,in the United States

Discuss the distribution of income around the world.Which countries have the highest average incomes? Which countries have the lowest average incomes? How has the distribution of income changed in recent years?

In the circular flow model with the government sector,transfers

The figure above shows the circular flow model. -In the figure above,which of the following represents a money flow?

What is a market? Must a market have a single physical location?

The world population is approximately ________ people.

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

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

Describe the government's flows in the circular flow model of the economy.

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