Question 1

The largest component of federal government spending is for

Accepted Answer

A)  national defense. 
B)  Medicare and Medicaid. 
C)  education. 
D)  prisons. 
E)  interest on the national debt. 
A)  national defense. 
B)  Medicare and Medicaid. 
C)  education. 
D)  prisons. 
E)  interest on the national debt.

Question 2

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

Accepted Answer

A)  4 
B)  15 
C)  23 
D)  50 
E)  33 
A)  4 
B)  15 
C)  23 
D)  50 
E)  33

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.

Question 4

When the total U.S.production of goods and services is divided into consumption goods and services,capital goods,government goods and services,and export goods and services,the largest component is

Accepted Answer

A)  consumption goods and services. 
B)  capital goods. 
C)  government goods and services. 
D)  export goods and services. 
E)  capital goods and government goods and services tie for the largest component. 
A)  consumption goods and services. 
B)  capital goods. 
C)  government goods and services. 
D)  export goods and services. 
E)  capital goods and government goods and services tie for the largest component.

Question 5

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 6

Which of the following is true?
i.The advanced economies account for more than half of global production.
ii.Almost four out of every five people in the world live in the developing economies.
iii.In the advanced economies,agriculture accounts for a larger part of total production than in the developing economies.

Accepted Answer

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

Question 7

The majority of the value of production in the world economy is produced in

Accepted Answer

A)  all of the developing economies taken together. 
B)  all of Africa and the Middle East taken together. 
C)  China and other Asian developing economies. 
D)  all of the advanced economies taken together. 
E)  all of the emerging market economies taken together. 
A)  all of the developing economies taken together. 
B)  all of Africa and the Middle East taken together. 
C)  China and other Asian developing economies. 
D)  all of the advanced economies taken together. 
E)  all of the emerging market economies taken together.

Question 8

Dividing the nation's income among the factors of production,the largest percentage is paid to

Accepted Answer

A)  labor. 
B)  land. 
C)  capital. 
D)  entrepreneurship. 
E)  labor and capital, with each receiving about 41 percent of the total income. 
A)  labor. 
B)  land. 
C)  capital. 
D)  entrepreneurship. 
E)  labor and capital, with each receiving about 41 percent of the total income.

Question 9

Which of the following is an example of an effort to decrease physical capital differences between an advanced and a developing economy?

Accepted Answer

A)  American troops build roads in Afghanistan. 
B)  Through World Vision, women and children in Africa receive education. 
C)  Peace Corps volunteers teach English around the world. 
D)  Creating Hope International trains women in Afghanistan to become tailors. 
E)  Habitat for Humanity builds houses for low income families in the United States. 
A)  American troops build roads in Afghanistan. 
B)  Through World Vision, women and children in Africa receive education. 
C)  Peace Corps volunteers teach English around the world. 
D)  Creating Hope International trains women in Afghanistan to become tailors. 
E)  Habitat for Humanity builds houses for low income families in the United States.

Question 10

Human capital can be increased through

Accepted Answer

A)  investment in new technology. 
B)  education, on-the-job training, and work experience. 
C)  investment in new machinery. 
D)  decreases in population. 
E)  increasing the nation's production of consumption goods. 
A)  investment in new technology. 
B)  education, on-the-job training, and work experience. 
C)  investment in new machinery. 
D)  decreases in population. 
E)  increasing the nation's production of consumption goods.

Question 11

The personal distribution of income measures which of the following?

Accepted Answer

A)  how federal tax revenues are related to the type of businesses that employs the taxpayers 
B)  the distribution of earnings by the factors of production 
C)  proportion of income generated by the four types of expenditures on goods and services 
D)  the distribution of income among households 
E)  the distribution of income among nations 
A)  how federal tax revenues are related to the type of businesses that employs the taxpayers 
B)  the distribution of earnings by the factors of production 
C)  proportion of income generated by the four types of expenditures on goods and services 
D)  the distribution of income among households 
E)  the distribution of income among nations

The largest component of federal government spending is for

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

Tax revenues are transferred from

When the total U.S.production of goods and services is divided into consumption goods and services,capital goods,government goods and services,and export goods and services,the largest component is

The circular flow model shows the flow of

The majority of the value of production in the world economy is produced in

Dividing the nation's income among the factors of production,the largest percentage is paid to

Which of the following is an example of an effort to decrease physical capital differences between an advanced and a developing economy?

Human capital can be increased through

The personal distribution of income measures which of the following?

Getting Started

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets with Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters

Exam 2: The U.S.and Global Economies

The largest component of federal government spending is for

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

Tax revenues are transferred from

When the total U.S.production of goods and services is divided into consumption goods and services,capital goods,government goods and services,and export goods and services,the largest component is

The circular flow model shows the flow of

The majority of the value of production in the world economy is produced in

Dividing the nation's income among the factors of production,the largest percentage is paid to

Which of the following is an example of an effort to decrease physical capital differences between an advanced and a developing economy?

Human capital can be increased through

The personal distribution of income measures which of the following?

Getting Started

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets with Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters