Question 1

________ choose the quantities of goods and services to produce,while ________ choose the quantities of goods and services to buy

Accepted Answer

A)   Households; firms
B)   Firms; households and the government
C)   The government; firms
D)   Firms; only households
E)   Households; the government B

Question 2

Terri is enrolled in her first economics course.She is required to give a presentation about the circular flow.Which of the following statements should she include in her presentation?

Accepted Answer

A)   Households choose the amount of the factors of production to provide the firms.
B)   Firms choose the amount of the factors of production to provide households.
C)   Households receive wages for the amount of entrepreneurship they provide firms.
D)   Firms pay wages for the amount of entrepreneurship they provide households.
E)   The flows of goods and services and payments for the goods and services flow in the same direction. A

Question 3

________ paid for the use of land; ________ paid for the services of labor; and ________ paid for the use of capital.

Accepted Answer

A)   Rent is; wages are; interest is
B)   Rent is; interest is; wages are
C)   Interest is; wages are; profit is
D)   Mortgages are; interest is; wages are
E)   Rent is; wages are; profit is A

Question 4

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

Question 5

The circular flow model is used to show the

Accepted Answer

A)   flow of renewable natural resources.
B)   recycling process of production materials.
C)   expansions and contractions of economic activity.
D)   flow of expenditures and incomes in the economy.
E)   flow of supply and the flow of demand.

Question 6

Describe the circular flow of the economy by discussing the two markets where households and firms meet.

Accepted Answer

The answer of Describe the circular flow of the economy...

Question 7

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

Question 8

As a factor of production,oil reserves are counted as

Accepted Answer

A)   land.
B)   labor.
C)   capital.
D)   entrepreneurship.
E)   financial capital.

Question 9

Explain the differences between "human capital," "financial capital," and "capital."

Accepted Answer

The answer of Explain the differences between "human capital," "financial...

Question 10

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

Question 11

One of the productive resources is capital.Capital includes

Accepted Answer

A)   money borrowed from a bank.
B)   a company's stocks and bonds.
C)   tools, buildings, and machine tools.
D)   toys, t-shirts, CD players, and pencils.
E)   money in a savings account at a bank.

Question 12

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

Accepted Answer

A)   Expenditures on real estate services
B)   Profit
C)   Capital
D)   Wages
E)   Both B and D

Question 13

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.

Question 14

Most countries in the world are classified as

Accepted Answer

A)   advanced.
B)   in transition.
C)   developing.
D)   industrialized.
E)   emerging market.

Question 15

The income paid to labor is called

Accepted Answer

A)   rent.
B)   wages.
C)   interest.
D)   profit.
E)   human capital.

Question 16

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

Accepted Answer

A)   consumption goods and services.
B)   capital goods.
C)   government goods and services.
D)   export goods and services.
E)   import goods and services.

Question 17

What are the payments each factor of production receives?

Accepted Answer

The answer of What are the payments each factor of...

Question 18

The income earned by entrepreneurs is

Accepted Answer

A)   interest.
B)   wages.
C)   profit or loss.
D)   rent, wages, and interest.
E)   a mixture of rent, wages, interest, and profit.

Question 19

Jan is attending college and studying to be an investment broker.To improve her chances of employment following college,she has interned at a top brokerage firm during the last two summers.Jan's internship has increased her

Accepted Answer

A)   natural labor.
B)   human capital.
C)   consumption services.
D)   natural resources.
E)   entrepreneurship capital.

Question 20

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.

Exam 2: The U.S.and Global Economies

choose the quantities of goods and services to produce,while choose the quantities of goods and services to buy