Question 1

________ economies include ________.

Accepted Answer

A)  Advanced; France, Australia and South Korea 
B)  Advanced; the U.S., Taiwan and Russia 
C)  Advanced; Russia, Canada and Singapore 
D)  Emerging; Taiwan, Russia and Singapore 
E)  Emerging; Saudi Arabia, Poland and Taiwan 
A)  Advanced; France, Australia and South Korea 
B)  Advanced; the U.S., Taiwan and Russia 
C)  Advanced; Russia, Canada and Singapore 
D)  Emerging; Taiwan, Russia and Singapore 
E)  Emerging; Saudi Arabia, Poland and Taiwan

Question 2

The emerging market economies are

Accepted Answer

A)  the largest grouping including the nations of China and India. 
B)  in transition from state-owned production to free markets. 
C)  most of the nations of Western Europe. 
D)  the nations that are currently agricultural in nature. 
E)  the nations with the highest standards of living. 
A)  the largest grouping including the nations of China and India. 
B)  in transition from state-owned production to free markets. 
C)  most of the nations of Western Europe. 
D)  the nations that are currently agricultural in nature. 
E)  the nations with the highest standards of living.

Question 3

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 4

Households receive transfers from ________ and firms receive transfers from ________.

Accepted Answer

A)  government; government 
B)  firms; households 
C)  government; government and households 
D)  firms and government; government 
E)  government; no one 
A)  government; government 
B)  firms; households 
C)  government; government and households 
D)  firms and government; government 
E)  government; no one

Question 5

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 6

As the circular flow model shows,the factors of production flow from

Accepted Answer

A)  firms to households through the factor market. 
B)  households to firms through the factor market. 
C)  firms to households through the goods market. 
D)  households to firms through the goods market. 
E)  the goods market through firms to the factor markets. 
A)  firms to households through the factor market. 
B)  households to firms through the factor market. 
C)  firms to households through the goods market. 
D)  households to firms through the goods market. 
E)  the goods market through firms to the factor markets.

Question 7

In the circular flow model,the factor markets are the markets in which

Accepted Answer

A)  consumption goods and services are bought and sold. 
B)  government goods and services are provided. 
C)  land, labor, capital, and entrepreneurship are bought and sold. 
D)  investment goods and services are bought and sold. 
E)  governments impose all their taxes. 
A)  consumption goods and services are bought and sold. 
B)  government goods and services are provided. 
C)  land, labor, capital, and entrepreneurship are bought and sold. 
D)  investment goods and services are bought and sold. 
E)  governments impose all their taxes.

Question 8

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 9

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 10

Which of the following has been the bigger contributor to increases in the quantity of labor in the Unites States during the past 50 years?

Accepted Answer

A)  The proportion of men taking paid jobs has trended up. 
B)  The proportion of women taking paid jobs has trended up. 
C)  The proportion of young adults entering college has trended down. 
D)  The proportion of seniors taking early retirement has trended down. 
E)  Total population growth has increased dramatically. 
A)  The proportion of men taking paid jobs has trended up. 
B)  The proportion of women taking paid jobs has trended up. 
C)  The proportion of young adults entering college has trended down. 
D)  The proportion of seniors taking early retirement has trended down. 
E)  Total population growth has increased dramatically.

Question 11

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 12

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 13

State and local governments finance expenditures mainly from

Accepted Answer

A)  tax revenue. 
B)  funds provided by the federal government. 
C)  government bonds issued at the state level. 
D)  private bank loans. 
E)  lottery funds. 
A)  tax revenue. 
B)  funds provided by the federal government. 
C)  government bonds issued at the state level. 
D)  private bank loans. 
E)  lottery funds.

Question 14

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 15

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 16

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

Accepted Answer

A)  receive transfers directly from governments. 
B)  buy goods and services from governments in goods markets. 
C)  receive transfers from governments through factor markets. 
D)  sell factors of production to governments. 
E)  pay taxes to governments through factor markets. 
A)  receive transfers directly from governments. 
B)  buy goods and services from governments in goods markets. 
C)  receive transfers from governments through factor markets. 
D)  sell factors of production to governments. 
E)  pay taxes to governments through factor markets.

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

In the circular flow model,

Accepted Answer

A)  only firms sell in markets. 
B)  only households buy from markets. 
C)  some firms only sell and some firms only buy. 
D)  the money used to buy goods and the goods themselves travel in the same direction. 
E)  both firms and households buy or sell in different markets. 
A)  only firms sell in markets. 
B)  only households buy from markets. 
C)  some firms only sell and some firms only buy. 
D)  the money used to buy goods and the goods themselves travel in the same direction. 
E)  both firms and households buy or sell in different markets.

Question 19

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 20

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.

economies include .

The emerging market economies are

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

Households receive transfers from and firms receive transfers from .

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

As the circular flow model shows,the factors of production flow from

In the circular flow model,the factor markets are the markets in which

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

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

Which of the following has been the bigger contributor to increases in the quantity of labor in the Unites States during the past 50 years?

Which of the following transactions takes place in factor markets?

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

State and local governments finance expenditures mainly from

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

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

The world population is approximately ________ people.

In the circular flow model,

Which markets are depicted in the basic circular flow model?

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

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

________ economies include ________.

The emerging market economies are

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

Households receive transfers from ________ and firms receive transfers from ________.

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

As the circular flow model shows,the factors of production flow from

In the circular flow model,the factor markets are the markets in which

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

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

Which of the following has been the bigger contributor to increases in the quantity of labor in the Unites States during the past 50 years?

Which of the following transactions takes place in factor markets?

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

State and local governments finance expenditures mainly from

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

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

The world population is approximately ________ people.

In the circular flow model,

Which markets are depicted in the basic circular flow model?

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

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

economies include .

Households receive transfers from and firms receive transfers from .