Question 1

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 2

Goods and services bought by the government account for about ________ percent of total production.

Accepted Answer

A)  2 
B)  8 
C)  17 
D)  35 
E)  67 
A)  2 
B)  8 
C)  17 
D)  35 
E)  67

Question 3

What is meant by the term "human capital"?

Accepted Answer

Human capital refers to the skills peopl

Question 4

Which of the following correctly describes how the "global pie is baked"?

Accepted Answer

A)  Advanced economies account for about 50 percent of the value of the world's production. 
B)  The United States' share of economic pie is increasing while China's share is decreasing. 
C)  The increase in manufacturing has taken place in mainly the advanced economies. 
D)  Asia accounts for about 40 percent of the global pie. 
E)  Emerging economies account for about 25 percent of the global pie. 
A)  Advanced economies account for about 50 percent of the value of the world's production. 
B)  The United States' share of economic pie is increasing while China's share is decreasing. 
C)  The increase in manufacturing has taken place in mainly the advanced economies. 
D)  Asia accounts for about 40 percent of the global pie. 
E)  Emerging economies account for about 25 percent of the global pie.

Question 5

Households and firms in the U.S.economy interact with those in the rest of the world in the ________ market and in the ________ market.

Accepted Answer

A)  goods; factor 
B)  goods; financial 
C)  government; goods 
D)  financial; factor 
E)  firm; government 
A)  goods; factor 
B)  goods; financial 
C)  government; goods 
D)  financial; factor 
E)  firm; government

Question 6

The largest category of state and local government expenditures is

Accepted Answer

A)  public welfare. 
B)  highways. 
C)  education. 
D)  interest on their debt. 
E)  Social Security. 
A)  public welfare. 
B)  highways. 
C)  education. 
D)  interest on their debt. 
E)  Social Security.

Question 7

In the circular flow model,which of the following flows in the opposite direction from the flow of factors of production?

Accepted Answer

A)  finished goods and services 
B)  wages, rent, interest, and profit 
C)  interests payments of Federal, state, and local governments 
D)  firm's profit incentives 
E)  the goods market 
A)  finished goods and services 
B)  wages, rent, interest, and profit 
C)  interests payments of Federal, state, and local governments 
D)  firm's profit incentives 
E)  the goods market

Question 8

Which of the following correctly lists the categories of factors of production?

Accepted Answer

A)  machines, buildings, land, and money 
B)  hardware, software, land, and money 
C)  capital, money, and labor 
D)  owners, workers, and consumers 
E)  land, labor, capital, and entrepreneurship 
A)  machines, buildings, land, and money 
B)  hardware, software, land, and money 
C)  capital, money, and labor 
D)  owners, workers, and consumers 
E)  land, labor, capital, and entrepreneurship

Question 9

A money flow in the circular flow diagram is
i.the government's collection of taxes.
ii.Chevrolet's production of SUVs.
iii.Nike's payment of wages to its workers.

Accepted Answer

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

Question 10

Among the United States,Canada,Russia,India,and the United Kingdom,the country with the highest average income per person is

Accepted Answer

A)  the United States. 
B)  Russia. 
C)  India. 
D)  Canada. 
E)  the United Kingdom. 
A)  the United States. 
B)  Russia. 
C)  India. 
D)  Canada. 
E)  the United Kingdom.

Question 11

Approximately ________ people live in the United States and ________ people live in the world.

Accepted Answer

A)  410 million; 8 billion 
B)  310 million; 7 billion 
C)  210 million; 5 billion 
D)  310 million; 3 billion 
E)  210 million; 6 billion 
A)  410 million; 8 billion 
B)  310 million; 7 billion 
C)  210 million; 5 billion 
D)  310 million; 3 billion 
E)  210 million; 6 billion

Question 12

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 13

In the circular flow model,the expenditures on goods and services flow in the

Accepted Answer

A)  same direction as goods and services in all cases. 
B)  same direction as goods and services only if they both flow through the goods market. 
C)  same direction as goods and services only if they both flow through the factor market. 
D)  opposite direction as goods and services. 
E)  same direction as factor markets. 
A)  same direction as goods and services in all cases. 
B)  same direction as goods and services only if they both flow through the goods market. 
C)  same direction as goods and services only if they both flow through the factor market. 
D)  opposite direction as goods and services. 
E)  same direction as factor markets.

Question 14

In economics,the factor of production "land" includes all of the following EXCEPT

Accepted Answer

A)  energy. 
B)  plastics. 
C)  wild plants. 
D)  animals, birds, and fish. 
E)  oil. 
A)  energy. 
B)  plastics. 
C)  wild plants. 
D)  animals, birds, and fish. 
E)  oil.

Question 15

Identify the four factors of production,and tell what type of income is earned by each factor.

Accepted Answer

The factors of production are land,which

Question 16

What determines the revenue flows received by businesses?

Accepted Answer

A)  an agency of the Federal government 
B)  what they choose to produce, how much is sold, and the price received when sold 
C)  their ownership of factors of production, how much they sell in the factor markets, and the prices received when sold 
D)  financial institutions such as banks 
E)  what they pay the factors of production they employ. 
A)  an agency of the Federal government 
B)  what they choose to produce, how much is sold, and the price received when sold 
C)  their ownership of factors of production, how much they sell in the factor markets, and the prices received when sold 
D)  financial institutions such as banks 
E)  what they pay the factors of production they employ.

Question 17

Dan missed class the day the professor covered the circular flow model.Dan asked his friend Joan to explain markets to him.Joan correctly stated that a market

Accepted Answer

A)  requires a physical location for buyers and sellers to get together. 
B)  is any arrangement that brings buyers and sellers together. 
C)  must include a written contract between buyers and sellers. 
D)  is only a place to purchase groceries. 
E)  must have many buyers and only one seller, who is willing to sell to all the buyers. 
A)  requires a physical location for buyers and sellers to get together. 
B)  is any arrangement that brings buyers and sellers together. 
C)  must include a written contract between buyers and sellers. 
D)  is only a place to purchase groceries. 
E)  must have many buyers and only one seller, who is willing to sell to all the buyers.

Question 18

The figure above shows the circular flow model.
-In the figure above,which of the following represents a money flow?

Accepted Answer

A)  Goods purchased 
B)  Interest 
C)  Capital 
D)  Services sold 
E)  Goods supplied 
A)  Goods purchased 
B)  Interest 
C)  Capital 
D)  Services sold 
E)  Goods supplied

Question 19

The richest 20 percent of individuals in the United States receive about ________ of the nation's total income.

Accepted Answer

A)  21 percent 
B)  51 percent 
C)  91 percent 
D)  99 percent 
E)  23 percent 
A)  21 percent 
B)  51 percent 
C)  91 percent 
D)  99 percent 
E)  23 percent

Question 20

Factors of production are the

Accepted Answer

A)  goods that are bought by individuals and used to provide personal enjoyment. 
B)  goods that are bought by businesses to produce productive resources. 
C)  productive resources used to produce goods and services. 
D)  productive resources used by government to increase the productivity of consumption. 
E)  goods and services produced by the economy. 
A)  goods that are bought by individuals and used to provide personal enjoyment. 
B)  goods that are bought by businesses to produce productive resources. 
C)  productive resources used to produce goods and services. 
D)  productive resources used by government to increase the productivity of consumption. 
E)  goods and services produced by the economy.

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

Goods and services bought by the government account for about ________ percent of total production.

What is meant by the term "human capital"?

Which of the following correctly describes how the "global pie is baked"?

Households and firms in the U.S.economy interact with those in the rest of the world in the market and in the market.

The largest category of state and local government expenditures is

In the circular flow model,which of the following flows in the opposite direction from the flow of factors of production?

Which of the following correctly lists the categories of factors of production?

A money flow in the circular flow diagram is i.the government's collection of taxes. ii.Chevrolet's production of SUVs. iii.Nike's payment of wages to its workers.

Among the United States,Canada,Russia,India,and the United Kingdom,the country with the highest average income per person is

Approximately people live in the United States and people live in the world.

The income paid for the use of land is called

In the circular flow model,the expenditures on goods and services flow in the

In economics,the factor of production "land" includes all of the following EXCEPT

Identify the four factors of production,and tell what type of income is earned by each factor.

What determines the revenue flows received by businesses?

Dan missed class the day the professor covered the circular flow model.Dan asked his friend Joan to explain markets to him.Joan correctly stated that a market

The figure above shows the circular flow model. -In the figure above,which of the following represents a money flow?

The richest 20 percent of individuals in the United States receive about ________ of the nation's total income.

Factors of production are the

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

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

Goods and services bought by the government account for about ________ percent of total production.

What is meant by the term "human capital"?

Which of the following correctly describes how the "global pie is baked"?

Households and firms in the U.S.economy interact with those in the rest of the world in the ________ market and in the ________ market.

The largest category of state and local government expenditures is

In the circular flow model,which of the following flows in the opposite direction from the flow of factors of production?

Which of the following correctly lists the categories of factors of production?

A money flow in the circular flow diagram is i.the government's collection of taxes. ii.Chevrolet's production of SUVs. iii.Nike's payment of wages to its workers.

Among the United States,Canada,Russia,India,and the United Kingdom,the country with the highest average income per person is

Approximately ________ people live in the United States and ________ people live in the world.

The income paid for the use of land is called

In the circular flow model,the expenditures on goods and services flow in the

In economics,the factor of production "land" includes all of the following EXCEPT

Identify the four factors of production,and tell what type of income is earned by each factor.

What determines the revenue flows received by businesses?

Dan missed class the day the professor covered the circular flow model.Dan asked his friend Joan to explain markets to him.Joan correctly stated that a market

The figure above shows the circular flow model. -In the figure above,which of the following represents a money flow?

The richest 20 percent of individuals in the United States receive about ________ of the nation's total income.

Factors of production are the

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

Households and firms in the U.S.economy interact with those in the rest of the world in the market and in the market.

Approximately people live in the United States and people live in the world.