Question 1

How are the roles of the household different in the goods market and in the factor markets?

Accepted Answer

In the goods market,households are buyer

Question 2

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 3

Canada is 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 natural-resource based economy. 
A) an advanced economy. 
B) a developing economy. 
C) a transition economy. 
D) an emerging market economy. 
E) a natural-resource based economy.

Question 4

Which of the following transactions takes place in factor markets?

Accepted Answer

A) Henry receives a commission from his employer for selling a new automobile. 
B) Jake purchases 1,000 shares of stock in the Wal-Mart Corporation through his online trading account. 
C) Sam enters the winning bid on a grand piano at a local auction. 
D) Justin receives $30 in exchange for mowing his neighbor's lawn. 
E) Lucille receives a $500 check from the U.S.Social Security Administration. 
A) Henry receives a commission from his employer for selling a new automobile. 
B) Jake purchases 1,000 shares of stock in the Wal-Mart Corporation through his online trading account. 
C) Sam enters the winning bid on a grand piano at a local auction. 
D) Justin receives $30 in exchange for mowing his neighbor's lawn. 
E) Lucille receives a $500 check from the U.S.Social Security Administration.

Question 5

Goods and services are produced by using four factors of production:

Accepted Answer

A) land,labor,capital,and entrepreneurship. 
B) land,labor,money,and equipment. 
C) natural resources,human resources,financial assets,and entrepreneurial resources. 
D) labor,human capital,physical capital,and financial capital. 
E) land,labor,capital,and money. 
A) land,labor,capital,and entrepreneurship. 
B) land,labor,money,and equipment. 
C) natural resources,human resources,financial assets,and entrepreneurial resources. 
D) labor,human capital,physical capital,and financial capital. 
E) land,labor,capital,and money.

Question 6

________ 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 7

Economists classify energy and water as part of which factor of production?

Accepted Answer

A) land 
B) labor 
C) capital 
D) entrepreneurship 
E) land if undeveloped and capital if developed 
A) land 
B) labor 
C) capital 
D) entrepreneurship 
E) land if undeveloped and capital if developed

Question 8

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 9

Explain how the largest sources of state tax revenues differs from the largest sources of federal tax revenues.

Accepted Answer

The two largest sources of federal tax r

Question 10

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 11

Wages are paid to ________ and interest is paid to ________.

Accepted Answer

A) entrepreneurs;capital 
B) labor;capital 
C) labor;land 
D) entrepreneurs;land 
E) labor;entrepreneurs 
A) entrepreneurs;capital 
B) labor;capital 
C) labor;land 
D) entrepreneurs;land 
E) labor;entrepreneurs

Question 12

In the circular flow model,there are two types of markets: the ________ market and the ________ market.

Accepted Answer

A) producers;consumers 
B) households;firms 
C) service;goods 
D) goods;factor 
E) supply;demand 
A) producers;consumers 
B) households;firms 
C) service;goods 
D) goods;factor 
E) supply;demand

Question 13

In the United States,which factor of production earns the largest share of the nation's total income?

Accepted Answer

The largest fraction of the na

Question 14

What two groups of decision makers are represented in the basic circular flow model?

Accepted Answer

A) governments and financial institutions 
B) lenders and borrowers 
C) wholesalers and retailers 
D) bankers and regulators 
E) households and firms 
A) governments and financial institutions 
B) lenders and borrowers 
C) wholesalers and retailers 
D) bankers and regulators 
E) households and firms

Question 15

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 16

State and local governments spend about ________ of their expenditures on education.

Accepted Answer

A) 14 percent 
B) 19 percent 
C) 34 percent 
D) 59 percent 
E) 74 percent 
A) 14 percent 
B) 19 percent 
C) 34 percent 
D) 59 percent 
E) 74 percent

Question 17

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 18

An example of a U.S.export is

Accepted Answer

A) a TV made in China sold to a buyer in Azerbaijan. 
B) matchbooks made in Mexico sold to a buyer in New Jersey. 
C) pasta made in Italy sold to buyers in Spain. 
D) diamonds mined in Africa sold to buyers in South America. 
E) a washing machine made in Indiana sold to a buyer in France. 
A) a TV made in China sold to a buyer in Azerbaijan. 
B) matchbooks made in Mexico sold to a buyer in New Jersey. 
C) pasta made in Italy sold to buyers in Spain. 
D) diamonds mined in Africa sold to buyers in South America. 
E) a washing machine made in Indiana sold to a buyer in France.

Question 19

Which of the following is NOT shown explicitly in the circular flow model?

Accepted Answer

A) the governments' purchases in the goods market 
B) the taxes the governments collect from households 
C) the governments' interaction with firms 
D) the legal system 
E) the transfers the governments make to households 
A) the governments' purchases in the goods market 
B) the taxes the governments collect from households 
C) the governments' interaction with firms 
D) the legal system 
E) the transfers the governments make to households

Question 20

What would be an example of consumption service?

Accepted Answer

A) Rhianna gets a haircut. 
B) Jake buys an iPhone. 
C) Antonio,the manager of the local Taco Hut,purchases a new deep fryer. 
D) The local driver's license office purchases a new digital camera and printer. 
E) Donald Trump purchases furniture for his office. 
A) Rhianna gets a haircut. 
B) Jake buys an iPhone. 
C) Antonio,the manager of the local Taco Hut,purchases a new deep fryer. 
D) The local driver's license office purchases a new digital camera and printer. 
E) Donald Trump purchases furniture for his office.

How are the roles of the household different in the goods market and in the factor markets?

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.

Canada is classified by the International Monetary Fund as

Which of the following transactions takes place in factor markets?

Goods and services are produced by using four factors of production:

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

Economists classify energy and water as part of which factor of production?

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

Explain how the largest sources of state tax revenues differs from the largest sources of federal tax revenues.

One of the productive resources is capital.Capital includes

Wages are paid to and interest is paid to .

In the circular flow model,there are two types of markets: the market and the market.

In the United States,which factor of production earns the largest share of the nation's total income?

What two groups of decision makers are represented in the basic circular flow model?

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

State and local governments spend about ________ of their expenditures on education.

The decisions of firms and households are

An example of a U.S.export is

Which of the following is NOT shown explicitly in the circular flow model?

What would be an example of consumption service?

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

How are the roles of the household different in the goods market and in the factor markets?

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.

Canada is classified by the International Monetary Fund as

Which of the following transactions takes place in factor markets?

Goods and services are produced by using four factors of production:

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

Economists classify energy and water as part of which factor of production?

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

Explain how the largest sources of state tax revenues differs from the largest sources of federal tax revenues.

One of the productive resources is capital.Capital includes

Wages are paid to ________ and interest is paid to ________.

In the circular flow model,there are two types of markets: the ________ market and the ________ market.

In the United States,which factor of production earns the largest share of the nation's total income?

What two groups of decision makers are represented in the basic circular flow model?

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

State and local governments spend about ________ of their expenditures on education.

The decisions of firms and households are

An example of a U.S.export is

Which of the following is NOT shown explicitly in the circular flow model?

What would be an example of consumption service?

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.

Wages are paid to and interest is paid to .

In the circular flow model,there are two types of markets: the market and the market.