Question 1

If a product becomes more popular and consumers want more produced,which of the following best describes what happens to move more factors of production into that industry?

Accepted Answer

A)   An agency of the Federal government directs the movement of factors.
B)   The chief executive officers or presidents of corporations require that factors leave one industry and move to the other industry.
C)   Factor owners voluntarily move their factors because they want to satisfy the interests of consumers.
D)   Wages, rent, interest, and profit increase in that industry, thereby giving factors the incentive to move to that industry.
E)   Consumers increase their demand for the products and, as a result, the taxes the producers must pay decrease enabling the producers to hire more factors of production. D

Question 2

Which factor of production does human capital enhance?
i.land
ii.labor
iii.capital

Accepted Answer

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

Question 3

Which of following groups of countries are all advanced economies?

Accepted Answer

A)   Australia, Brazil, and the United States
B)   Hong Kong, Japan, France, and the United Kingdom
C)   Italy, the United States, China, and Russia
D)   Singapore, Russia, France, and Chad
E)   Mexico, Canada, Germany, and Egypt B

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

As a factor of production,oil reserves are counted as

Accepted Answer

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

Question 6

What would be an example of capital good?

Accepted Answer

A)   Jeanette buys a new dress.
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)   Apple sells computers to Japan.
E)   Rhianna gets a haircut.

Question 7

Which of the following is true?
i.The advanced economies account for more than half of global production.
ii.Almost four out of every five people in the world live in the developing economies.
iii.In the advanced economies,agriculture accounts for a larger part of total production than in the developing economies.

Accepted Answer

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

Question 8

Property taxes are a major source of revenue for

Accepted Answer

A)   state and local governments.
B)   the federal governments.
C)   the federal, state, and local governments.
D)   firms wanting to relocate their operations.
E)   consumers.

Question 9

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

Question 10

In the circular flow model,

Accepted Answer

A)   the government is represented as a separate market.
B)   the government buys goods and services from firms.
C)   goods and services are sold by households and purchased by firms.
D)   factor markets are where goods rather than services are bought and sold.
E)   the government has no direct interaction with either households or firms.

Question 11

What is the largest source of tax revenue for the U.S.federal government and what is the largest expenditure item of the U.S.federal government?

Accepted Answer

The answer of What is the largest source of tax...

Question 12

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.

Question 13

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 14

In the United States,the richest 20 percent of households receive about ________ percent of total income.

Accepted Answer

A)   4
B)   15
C)   23
D)   50
E)   33

Question 15

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.

Question 16

Most of the world's population lives in

Accepted Answer

A)   advanced economies.
B)   developing economies.
C)   transition economies.
D)   emerging market economies.
E)   island nations.

Question 17

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.

Question 18

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.

Question 19

Human capital can be increased through

Accepted Answer

A)   investment in new technology.
B)   education, on-the-job training, and work experience.
C)   investment in new machinery.
D)   decreases in population.
E)   increasing the nation's production of consumption goods.

Question 20

Which of the following is an example of an effort to decrease physical capital differences between an advanced and a developing economy?

Accepted Answer

A)   American troops build roads in Afghanistan.
B)   Through World Vision, women and children in Africa receive education.
C)   Peace Corps volunteers teach English around the world.
D)   Creating Hope International trains women in Afghanistan to become tailors.
E)   Habitat for Humanity builds houses for low income families in the United States.

Exam 2: The Usand Global Economies