Question 1

In the circular flow model,there are two types of markets: the ________ market and the ________ market.

Accepted Answer

A)  producers; consumers 
B)  households; firms 
C)  service; goods 
D)  goods; factor 
E)  supply; demand 
A)  producers; consumers 
B)  households; firms 
C)  service; goods 
D)  goods; factor 
E)  supply; demand

Question 2

Compare and contrast the world population with that of the United States.Is the United States becoming a larger or a smaller part of the world's population?

Accepted Answer

The U.S.population was approximately 311

Question 3

What is a market? Must a market have a single physical location?

Accepted Answer

A market is any arrangement that allows

Question 4

The figure above shows governments in the circular flow.
-In the figure above,which of the following is true?
i.Governments coordinate economic activities of households and firms.
ii.Governments buy goods and services in goods markets.
iii.Households pay taxes directly to firms.

Accepted Answer

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

Question 5

The two biggest items of the U.S.federal government revenue that together account for over approximately 80 percent of total federal government revenue are

Accepted Answer

A)  personal income taxes and Social Security taxes. 
B)  personal income taxes and corporate income taxes. 
C)  corporate income taxes and Social Security taxes. 
D)  corporate income taxes and property taxes. 
E)  personal income taxes and sales taxes. 
A)  personal income taxes and Social Security taxes. 
B)  personal income taxes and corporate income taxes. 
C)  corporate income taxes and Social Security taxes. 
D)  corporate income taxes and property taxes. 
E)  personal income taxes and sales taxes.

Question 6

The personal distribution of income in the United States shows that

Accepted Answer

A)  income is equally distributed. 
B)  the poorest 20 percent of individuals receive approximately 20 percent of total income. 
C)  the richest 20 percent of individuals receive approximately 50 percent of total income. 
D)  the poorest 60 percent of individuals receive approximately 50 percent of total income. 
E)  the richest 20 percent of individuals receive approximately 25 percent of total income. 
A)  income is equally distributed. 
B)  the poorest 20 percent of individuals receive approximately 20 percent of total income. 
C)  the richest 20 percent of individuals receive approximately 50 percent of total income. 
D)  the poorest 60 percent of individuals receive approximately 50 percent of total income. 
E)  the richest 20 percent of individuals receive approximately 25 percent of total income.

Question 7

In the goods market,firms ________ and households ________.

Accepted Answer

A)  purchase goods and services; supply goods and services 
B)  supply land, labor, capital, and entrepreneurship services; hire land, labor, capital, and entrepreneurship services 
C)  pay rent, wages, interest, and profit; earn rent, wages, interest, and profit 
D)  supply goods and services; purchase goods and services 
E)  hire land, labor, capital, and entrepreneurship services; supply goods and services 
A)  purchase goods and services; supply goods and services 
B)  supply land, labor, capital, and entrepreneurship services; hire land, labor, capital, and entrepreneurship services 
C)  pay rent, wages, interest, and profit; earn rent, wages, interest, and profit 
D)  supply goods and services; purchase goods and services 
E)  hire land, labor, capital, and entrepreneurship services; supply goods and services

Question 8

The charitable organization Creating Hope International trains women in Afghanistan to become tailors.This effort reduces

Accepted Answer

A)  physical capital differences between advanced and developing economies. 
B)  entrepreneurship differences between advanced and developing economies. 
C)  agricultural differences between advanced and developing economies. 
D)  manufacturing differences between advanced and developing economies. 
E)  human capital differences between advanced and developing economies. 
A)  physical capital differences between advanced and developing economies. 
B)  entrepreneurship differences between advanced and developing economies. 
C)  agricultural differences between advanced and developing economies. 
D)  manufacturing differences between advanced and developing economies. 
E)  human capital differences between advanced and developing economies.

Question 9

Compared to the world,the rate of U.S.population growth is

Accepted Answer

A)  slower than in the world as a whole. 
B)  about the same as in the world as a whole. 
C)  much faster than in the world as a whole. 
D)  incomparable because U.S. residents are born with a much greater chance of accumulating a lot of human capital. 
E)  incomparable because we do not have accurate world population statistics. 
A)  slower than in the world as a whole. 
B)  about the same as in the world as a whole. 
C)  much faster than in the world as a whole. 
D)  incomparable because U.S. residents are born with a much greater chance of accumulating a lot of human capital. 
E)  incomparable because we do not have accurate world population statistics.

Question 10

________ the owners of the factors of production,while ________ what amounts of those factors to hire.

Accepted Answer

A)  Households are; firms determine 
B)  Households are; the government determines 
C)  The government is; firms determine 
D)  Firms are; households determine 
E)  Firms are; the government determines 
A)  Households are; firms determine 
B)  Households are; the government determines 
C)  The government is; firms determine 
D)  Firms are; households determine 
E)  Firms are; the government determines

Question 11

If there is a national debt,we can conclude that the federal government has

Accepted Answer

A)  borrowed in the past. 
B)  purchased more goods and services than were needed. 
C)  spent money foolishly. 
D)  loaned funds to U.S. taxpayers in the past. 
E)  loaned funds to other nations in the past. 
A)  borrowed in the past. 
B)  purchased more goods and services than were needed. 
C)  spent money foolishly. 
D)  loaned funds to U.S. taxpayers in the past. 
E)  loaned funds to other nations in the past.

Question 12

What would be an example of government good?

Accepted Answer

A)  Jake buys an iPhone. 
B)  The local driver's license office purchases a new digital camera and printer. 
C)  Antonio, the manager of the local Taco Hut, purchases a new deep fryer. 
D)  Donald Trump purchases furniture for his office. 
E)  Rhianna gets a haircut. 
A)  Jake buys an iPhone. 
B)  The local driver's license office purchases a new digital camera and printer. 
C)  Antonio, the manager of the local Taco Hut, purchases a new deep fryer. 
D)  Donald Trump purchases furniture for his office. 
E)  Rhianna gets a haircut.

Question 13

U.S.exports of goods and services flow to households and firms in ________ and U.S.financial inflows of capital flow to households and firms in ________.

Accepted Answer

A)  the United States; the United States 
B)  the United States; the rest of the world 
C)  the rest of the world; the United States 
D)  the rest of the world; the rest of the world 
E)  the United States; the rest of the world and the United States 
A)  the United States; the United States 
B)  the United States; the rest of the world 
C)  the rest of the world; the United States 
D)  the rest of the world; the rest of the world 
E)  the United States; the rest of the world and the United States

Question 14

Explain how public goods provided by the federal government differ from public goods provided by the state and local governments.

Accepted Answer

The federal government provides goods an

Question 15

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 16

An export good is a good produced

Accepted Answer

A)  in the United States and sold to foreigners living in the United States. 
B)  by foreigners in the United States and purchased by U.S. households. 
C)  in another country and purchased by U.S. residents. 
D)  in the United States and sold in other countries. 
E)  in another country and purchased by foreigners not residing in the United States. 
A)  in the United States and sold to foreigners living in the United States. 
B)  by foreigners in the United States and purchased by U.S. households. 
C)  in another country and purchased by U.S. residents. 
D)  in the United States and sold in other countries. 
E)  in another country and purchased by foreigners not residing in the United States.

Question 17

Human capital ________ as you work.As a result,the ________ of goods and services ________.

Accepted Answer

A)  increases; quantity; increases. 
B)  declines; quality; increases. 
C)  improves; quality; does not change. 
D)  does not change; quality; does not change. 
E)  decreases; quantity; decreases. 
A)  increases; quantity; increases. 
B)  declines; quality; increases. 
C)  improves; quality; does not change. 
D)  does not change; quality; does not change. 
E)  decreases; quantity; decreases.

Question 18

Explain how the largest sources of state tax revenues differs from the largest sources of federal tax revenues.

Accepted Answer

The two largest sources of federal tax r

Question 19

What would be an example of consumption service?

Accepted Answer

A)  Rhianna gets a haircut. 
B)  Jake buys an iPhone. 
C)  Antonio, the manager of the local Taco Hut, purchases a new deep fryer. 
D)  The local driver's license office purchases a new digital camera and printer. 
E)  Donald Trump purchases furniture for his office. 
A)  Rhianna gets a haircut. 
B)  Jake buys an iPhone. 
C)  Antonio, the manager of the local Taco Hut, purchases a new deep fryer. 
D)  The local driver's license office purchases a new digital camera and printer. 
E)  Donald Trump purchases furniture for his office.

Question 20

Which of the following statements is true?

Accepted Answer

A)  Income inequality within most countries has increased during the past 20 years. 
B)  Income inequality across the entire world has decreased during the past 20 years. 
C)  Income inequality within most countries and across the entire world has not changed much during the past 20 years. 
D)  Both A and B are correct. 
E)  None of the above is correct. 
A)  Income inequality within most countries has increased during the past 20 years. 
B)  Income inequality across the entire world has decreased during the past 20 years. 
C)  Income inequality within most countries and across the entire world has not changed much during the past 20 years. 
D)  Both A and B are correct. 
E)  None of the above is correct.

In the circular flow model,there are two types of markets: the market and the market.

Compare and contrast the world population with that of the United States.Is the United States becoming a larger or a smaller part of the world's population?

What is a market? Must a market have a single physical location?

The figure above shows governments in the circular flow. -In the figure above,which of the following is true? i.Governments coordinate economic activities of households and firms. ii.Governments buy goods and services in goods markets. iii.Households pay taxes directly to firms.

The two biggest items of the U.S.federal government revenue that together account for over approximately 80 percent of total federal government revenue are

The personal distribution of income in the United States shows that

In the goods market,firms and households .

The charitable organization Creating Hope International trains women in Afghanistan to become tailors.This effort reduces

Compared to the world,the rate of U.S.population growth is

the owners of the factors of production,while what amounts of those factors to hire.

If there is a national debt,we can conclude that the federal government has

What would be an example of government good?

U.S.exports of goods and services flow to households and firms in and U.S.financial inflows of capital flow to households and firms in .

Explain how public goods provided by the federal government differ from public goods provided by the state and local governments.

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

An export good is a good produced

Human capital as you work.As a result,the of goods and services .

Explain how the largest sources of state tax revenues differs from the largest sources of federal tax revenues.

What would be an example of consumption service?

Which of the following statements is true?

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

In the circular flow model,there are two types of markets: the ________ market and the ________ market.

Compare and contrast the world population with that of the United States.Is the United States becoming a larger or a smaller part of the world's population?

What is a market? Must a market have a single physical location?

The figure above shows governments in the circular flow. -In the figure above,which of the following is true? i.Governments coordinate economic activities of households and firms. ii.Governments buy goods and services in goods markets. iii.Households pay taxes directly to firms.

The two biggest items of the U.S.federal government revenue that together account for over approximately 80 percent of total federal government revenue are

The personal distribution of income in the United States shows that

In the goods market,firms ________ and households ________.

The charitable organization Creating Hope International trains women in Afghanistan to become tailors.This effort reduces

Compared to the world,the rate of U.S.population growth is

________ the owners of the factors of production,while ________ what amounts of those factors to hire.

If there is a national debt,we can conclude that the federal government has

What would be an example of government good?

U.S.exports of goods and services flow to households and firms in ________ and U.S.financial inflows of capital flow to households and firms in ________.

Explain how public goods provided by the federal government differ from public goods provided by the state and local governments.

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

An export good is a good produced

Human capital ________ as you work.As a result,the ________ of goods and services ________.

Explain how the largest sources of state tax revenues differs from the largest sources of federal tax revenues.

What would be an example of consumption service?

Which of the following statements is true?

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

In the circular flow model,there are two types of markets: the market and the market.

In the goods market,firms and households .

the owners of the factors of production,while what amounts of those factors to hire.

U.S.exports of goods and services flow to households and firms in and U.S.financial inflows of capital flow to households and firms in .

Human capital as you work.As a result,the of goods and services .