Question 1

Which of the following is NOT considered one of the factors of production?

Accepted Answer

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

Question 2

Income equality has

Accepted Answer

A)  increased within countries but has narrowed across countries. 
B)  not changed in the advanced economies over the past 50 years. 
C)  narrowed within countries but increased across countries. 
D)  increased in developing economies as manufacturing has decreased. 
E)  decreased in the United States as manufacturing has increased. 
A)  increased within countries but has narrowed across countries. 
B)  not changed in the advanced economies over the past 50 years. 
C)  narrowed within countries but increased across countries. 
D)  increased in developing economies as manufacturing has decreased. 
E)  decreased in the United States as manufacturing has increased.

Question 3

Of the following,the largest single component of U.S.federal government expenditures is spent on

Accepted Answer

A)  interest paid on the national debt. 
B)  Medicare and Medicaid. 
C)  national defense. 
D)  purchases of goods and services for purposes other than national defense. 
E)  transfers to state and local governments. 
A)  interest paid on the national debt. 
B)  Medicare and Medicaid. 
C)  national defense. 
D)  purchases of goods and services for purposes other than national defense. 
E)  transfers to state and local governments.

Question 4

The figure above shows the circular flow model.
-Margo orders a MacBook Pro computer from The Apple Store online to use it in her graphic design business.How will this be reflected in the figure above?

Accepted Answer

A)  as a flow of a factor of production 
B)  as a flow of goods and services bought 
C)  as expenditures on goods and services 
D)  as goods and services supplied 
E)  It won't be shown in the figure because this transaction takes place neither in goods markets nor in factor markets. 
A)  as a flow of a factor of production 
B)  as a flow of goods and services bought 
C)  as expenditures on goods and services 
D)  as goods and services supplied 
E)  It won't be shown in the figure because this transaction takes place neither in goods markets nor in factor markets.

Question 5

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 6

________ 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 7

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 8

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 9

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 10

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 11

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 12

________ choose the quantities of factors of production to hire and ________ choose the quantities of goods and services to produce.

Accepted Answer

A)  Entrepreneurs; firms 
B)  Firms; firms 
C)  Markets; markets 
D)  Factor markets; goods markets 
E)  Firms; households 
A)  Entrepreneurs; firms 
B)  Firms; firms 
C)  Markets; markets 
D)  Factor markets; goods markets 
E)  Firms; households

Question 13

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 14

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 15

It is conventional to divide the nation's total production into four categories.Name and explain the four categories.In the United States,which category accounts for the largest share and the smallest share of the nation's total production?

Accepted Answer

The four categories of production are co

Question 16

Human capital is

Accepted Answer

A)  solely the innate ability we are born with. 
B)  the money humans have saved. 
C)  the knowledge humans accumulate through education and experience. 
D)  machinery that needs human supervision. 
E)  any type of machinery. 
A)  solely the innate ability we are born with. 
B)  the money humans have saved. 
C)  the knowledge humans accumulate through education and experience. 
D)  machinery that needs human supervision. 
E)  any type of machinery.

Question 17

Explain the difference between consumption and capital goods.

Accepted Answer

A difference lies in the identity of the

Question 18

Within the circular flow model,economists define households as

Accepted Answer

A)  families with at least 2 children. 
B)  families living in their own houses. 
C)  individuals or groups living together. 
D)  married or engaged couples. 
E)  individuals or groups within the same legally defined family. 
A)  families with at least 2 children. 
B)  families living in their own houses. 
C)  individuals or groups living together. 
D)  married or engaged couples. 
E)  individuals or groups within the same legally defined family.

Question 19

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 20

A circular flow model shows the interrelationship between the ________ market and the ________ markets.

Accepted Answer

A)  household; goods 
B)  household; factor 
C)  business; household 
D)  expenditure; income 
E)  goods; factor 
A)  household; goods 
B)  household; factor 
C)  business; household 
D)  expenditure; income 
E)  goods; factor

Which of the following is NOT considered one of the factors of production?

Income equality has

Of the following,the largest single component of U.S.federal government expenditures is spent on

The figure above shows the circular flow model. -Margo orders a MacBook Pro computer from The Apple Store online to use it in her graphic design business.How will this be reflected in the figure above?

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

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

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

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?

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

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.

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

choose the quantities of factors of production to hire and choose the quantities of goods and services to produce.

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

Which factor of production is paid "profit"?

It is conventional to divide the nation's total production into four categories.Name and explain the four categories.In the United States,which category accounts for the largest share and the smallest share of the nation's total production?

Human capital is

Explain the difference between consumption and capital goods.

Within the circular flow model,economists define households as

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

A circular flow model shows the interrelationship between the market and the markets.

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

Which of the following is NOT considered one of the factors of production?

Income equality has

Of the following,the largest single component of U.S.federal government expenditures is spent on

The figure above shows the circular flow model. -Margo orders a MacBook Pro computer from The Apple Store online to use it in her graphic design business.How will this be reflected in the figure above?

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

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

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

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?

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

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.

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

________ choose the quantities of factors of production to hire and ________ choose the quantities of goods and services to produce.

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

Which factor of production is paid "profit"?

It is conventional to divide the nation's total production into four categories.Name and explain the four categories.In the United States,which category accounts for the largest share and the smallest share of the nation's total production?

Human capital is

Explain the difference between consumption and capital goods.

Within the circular flow model,economists define households as

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

A circular flow model shows the interrelationship between the ________ market and the ________ markets.

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

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.

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

choose the quantities of factors of production to hire and choose the quantities of goods and services to produce.

A circular flow model shows the interrelationship between the market and the markets.