Question 1

Which factor of production is paid "profit"?

Accepted Answer

A) land 
B) labor 
C) capital 
D) entrepreneurship 
E) human capital 
A) land 
B) labor 
C) capital 
D) entrepreneurship 
E) human capital

Question 2

If a product becomes more popular and consumers want more produced,which of the following best describes what happens to move more factors of production into that industry?

Accepted Answer

A) An agency of the Federal government directs the movement of factors. 
B) The chief executive officers or presidents of corporations require that factors leave one industry and move to the other industry. 
C) Factor owners voluntarily move their factors because they want to satisfy the interests of consumers. 
D) Wages,rent,interest,and profit increase in that industry,thereby giving factors the incentive to move to that industry. 
E) Consumers increase their demand for the products and,as a result,the taxes the producers must pay decrease enabling the producers to hire more factors of production. 
A) An agency of the Federal government directs the movement of factors. 
B) The chief executive officers or presidents of corporations require that factors leave one industry and move to the other industry. 
C) Factor owners voluntarily move their factors because they want to satisfy the interests of consumers. 
D) Wages,rent,interest,and profit increase in that industry,thereby giving factors the incentive to move to that industry. 
E) Consumers increase their demand for the products and,as a result,the taxes the producers must pay decrease enabling the producers to hire more factors of production.

Question 3

Which of the following is NOT directly related to human capital?

Accepted Answer

A) a college education 
B) a summer internship 
C) knowledge of computer programing 
D) an MRI machine 
E) an understanding of real estate markets 
A) a college education 
B) a summer internship 
C) knowledge of computer programing 
D) an MRI machine 
E) an understanding of real estate markets

Question 4

The income paid for the use of land is called

Accepted Answer

A) rent. 
B) wages. 
C) interest. 
D) profit. 
E) land capital. 
A) rent. 
B) wages. 
C) interest. 
D) profit. 
E) land capital.

Question 5

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 6

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

Accepted Answer

A) exports. 
B) imports. 
C) foreign goods. 
D) capital goods. 
E) capital account goods. 
A) exports. 
B) imports. 
C) foreign goods. 
D) capital goods. 
E) capital account goods.

Question 7

Social Security tax is deducted from your paycheck.In the figure above this will be shown as

Accepted Answer

A) taxes flowing from households to governments. 
B) taxes flowing from firms to governments. 
C) taxes flowing from households to firms. 
D) wages flowing from firms to households. 
E) wages flowing from firms to governments. 
A) taxes flowing from households to governments. 
B) taxes flowing from firms to governments. 
C) taxes flowing from households to firms. 
D) wages flowing from firms to households. 
E) wages flowing from firms to governments.

Question 8

The owners of the resource ________ are paid ________.

Accepted Answer

A) land;wages 
B) labor;profit 
C) capital;rent 
D) capital;interest 
E) entrepreneurship;wages 
A) land;wages 
B) labor;profit 
C) capital;rent 
D) capital;interest 
E) entrepreneurship;wages

Question 9

Which markets are depicted in the basic circular flow model?

Accepted Answer

A) the goods market and the stock market 
B) the factor market and the bond market 
C) the goods market and the factor market 
D) the money market and the foreign exchange market 
E) the stock market and the bond market 
A) the goods market and the stock market 
B) the factor market and the bond market 
C) the goods market and the factor market 
D) the money market and the foreign exchange market 
E) the stock market and the bond market

Question 10

Payments to the factors of production are

Accepted Answer

A) rent,mortgage,interest,and bonds. 
B) rent,interest,bonds,and profit or loss. 
C) rent,wages,interest,and profit or loss. 
D) rent,wages,profit or loss,and bonus. 
E) land,labor,capital,and entrepreneurship. 
A) rent,mortgage,interest,and bonds. 
B) rent,interest,bonds,and profit or loss. 
C) rent,wages,interest,and profit or loss. 
D) rent,wages,profit or loss,and bonus. 
E) land,labor,capital,and entrepreneurship.

Question 11

Capital,as a factor of production,refers to

Accepted Answer

A) money,stocks,and bonds. 
B) the production technology used by firms. 
C) the tools and instruments used to produce other goods and services. 
D) the production factors imported from abroad. 
E) stocks and bonds but not money. 
A) money,stocks,and bonds. 
B) the production technology used by firms. 
C) the tools and instruments used to produce other goods and services. 
D) the production factors imported from abroad. 
E) stocks and bonds but not money.

Question 12

Over the past 70 years,which of the following has occurred?
I.The service sector has grown so that now about 80 percent of workers are now employed in the service industry.
Ii.The manufacturing sector has shrunk,so now about 20 percent of workers are now employed in the production of goods.
Iii.The percentage of workers employed in the service industry has increased steadily.

Accepted Answer

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

Question 13

What is the difference between the functional and the personal distribution of income?

Accepted Answer

The functional distribution of

Question 14

As a percentage of total world production,production in the 29 advanced economies is about ________ percent of total world production and in the 118 developing economies is about ________ percent of total world production.

Accepted Answer

A) 53;39 
B) 23;62 
C) 53;12 
D) 30;46 
E) 19;73 
A) 53;39 
B) 23;62 
C) 53;12 
D) 30;46 
E) 19;73

Question 15

What is the difference between "capital" and "financial capital"? Which is a factor of production?

Accepted Answer

"Capital" is the actual physical good,su

Question 16

The circular flow model shows the flow of

Accepted Answer

A) expenditure and income throughout the economy. 
B) only money throughout the economy. 
C) only funds in stock and bond markets. 
D) only tax payments and government expenditures. 
E) goods markets and factor markets as they move through the economy. 
A) expenditure and income throughout the economy. 
B) only money throughout the economy. 
C) only funds in stock and bond markets. 
D) only tax payments and government expenditures. 
E) goods markets and factor markets as they move through the economy.

Question 17

The figure above shows the circular flow model.
-In the figure above,which of the following transactions take place in the factor markets?
I.Michael,a student,orders a computer from Dell online.
Ii.Peter gets a job at a Wal-Mart store.
Iii.Apple Computer opens a new store in Georgia

Accepted Answer

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

Question 18

In the advanced economies,________ of the factories use advanced capital equipment,and in the developing economies,________ of the factories use advanced capital equipment.

Accepted Answer

A) virtually all;virtually all 
B) some;some 
C) virtually all;none 
D) some;none of 
E) virtually all;some 
A) virtually all;virtually all 
B) some;some 
C) virtually all;none 
D) some;none of 
E) virtually all;some

Question 19

Items that are purchased by individuals for their own enjoyment are called

Accepted Answer

A) consumption goods and services. 
B) capital goods. 
C) government goods and services. 
D) exports of goods and services. 
E) private goods. 
A) consumption goods and services. 
B) capital goods. 
C) government goods and services. 
D) exports of goods and services. 
E) private goods.

Question 20

In the circular flow model,rent,wages,interest,and profit paid flow from ________ through ________ to ________.

Accepted Answer

A) households;goods markets;firms as payment for goods 
B) firms;factor markets;households 
C) firms;goods markets;households 
D) households;factor markets;firms 
E) firms;goods markets;firms 
A) households;goods markets;firms as payment for goods 
B) firms;factor markets;households 
C) firms;goods markets;households 
D) households;factor markets;firms 
E) firms;goods markets;firms

Which factor of production is paid "profit"?

If a product becomes more popular and consumers want more produced,which of the following best describes what happens to move more factors of production into that industry?

Which of the following is NOT directly related to human capital?

The income paid for the use of land is called

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

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

Social Security tax is deducted from your paycheck.In the figure above this will be shown as

The owners of the resource are paid .

Which markets are depicted in the basic circular flow model?

Payments to the factors of production are

Capital,as a factor of production,refers to

What is the difference between the functional and the personal distribution of income?

As a percentage of total world production,production in the 29 advanced economies is about percent of total world production and in the 118 developing economies is about percent of total world production.

What is the difference between "capital" and "financial capital"? Which is a factor of production?

The circular flow model shows the flow of

The figure above shows the circular flow model. -In the figure above,which of the following transactions take place in the factor markets? I.Michael,a student,orders a computer from Dell online. Ii.Peter gets a job at a Wal-Mart store. Iii.Apple Computer opens a new store in Georgia

In the advanced economies, of the factories use advanced capital equipment,and in the developing economies, of the factories use advanced capital equipment.

Items that are purchased by individuals for their own enjoyment are called

In the circular flow model,rent,wages,interest,and profit paid flow from through to .

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

Which factor of production is paid "profit"?

If a product becomes more popular and consumers want more produced,which of the following best describes what happens to move more factors of production into that industry?

Which of the following is NOT directly related to human capital?

The income paid for the use of land is called

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

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

Social Security tax is deducted from your paycheck.In the figure above this will be shown as

The owners of the resource ________ are paid ________.

Which markets are depicted in the basic circular flow model?

Payments to the factors of production are

Capital,as a factor of production,refers to

What is the difference between the functional and the personal distribution of income?

As a percentage of total world production,production in the 29 advanced economies is about ________ percent of total world production and in the 118 developing economies is about ________ percent of total world production.

What is the difference between "capital" and "financial capital"? Which is a factor of production?

The circular flow model shows the flow of

The figure above shows the circular flow model. -In the figure above,which of the following transactions take place in the factor markets? I.Michael,a student,orders a computer from Dell online. Ii.Peter gets a job at a Wal-Mart store. Iii.Apple Computer opens a new store in Georgia

In the advanced economies,________ of the factories use advanced capital equipment,and in the developing economies,________ of the factories use advanced capital equipment.

Items that are purchased by individuals for their own enjoyment are called

In the circular flow model,rent,wages,interest,and profit paid flow from ________ through ________ to ________.

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 resource are paid .

As a percentage of total world production,production in the 29 advanced economies is about percent of total world production and in the 118 developing economies is about percent of total world production.

In the advanced economies, of the factories use advanced capital equipment,and in the developing economies, of the factories use advanced capital equipment.

In the circular flow model,rent,wages,interest,and profit paid flow from through to .