Question 1

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

Accepted Answer

A market is any arrangement that allows buyers and sellers to get together and transact their business.Although some markets have a physical location, such as a farmers' market where buyers and sellers of fresh corn can meet face-to-face, markets do not require an actual location.Indeed, many markets, such as the local market for apartments, do not have a single physical location.Nonetheless, buyers and sellers (tenants and landlords)arrange purchases and sales (the rental of apartments and houses)through means other than meeting in one central location.

Question 2

The total value of capital in the United States is around

Accepted Answer

A)  $50 trillion.
B)  $10 trillion.
C)  $79 trillion.
D)  $100 trillion.
E)  $145 trillion. A

Question 3

An example of a U.S.export is

Accepted Answer

A)  a TV made in China sold to a buyer in Azerbaijan.
B)  matchbooks made in Mexico sold to a buyer in New Jersey.
C)  pasta made in Italy sold to buyers in Spain.
D)  diamonds mined in Africa sold to buyers in South America.
E)  a washing machine made in Indiana sold to a buyer in France. E

Question 4

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

Accepted Answer

A)  land, labor, capital, and entrepreneurship
B)  land, buildings, capital, and entrepreneurship
C)  labor, machines, buildings, capital, and entrepreneurship
D)  forests, fish, buildings, capital, and entrepreneurship
E)  labor, money, stocks, and bonds

Question 5

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

Question 6

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

Question 7

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

Question 8

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 9

In the United States, the poorest 20 percent of households earn roughly ________ percent of total income.

Accepted Answer

A)  20
B)  10
C)  15
D)  3
E)  0.5

Question 10

________ is the human resource that organizes labor, land, and capital.

Accepted Answer

A)  Human capital
B)  Human skill
C)  A gift of nature
D)  Entrepreneurship
E)  Profit

Question 11

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 12

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.

Question 13

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

Question 14

Over time, the percentage of total employment in services has ________ and in agriculture, employment has ________.

Accepted Answer

A)  increased; increased.
B)  decreased; increased.
C)  stayed about the same; decreased.
D)  stayed about the same; increased.
E)  increased; decreased.

Question 15

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

Question 16

The circular flow model shows that goods and services flow from

Accepted Answer

A)  businesses to households.
B)  households to business.
C)  the factor market to businesses.
D)  the goods market to businesses.
E)  the factor markets to the goods markets.

Question 17

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

Question 18

What are the two largest sources of tax revenues for the U.S.federal government?

Accepted Answer

The answer of What are the two largest sources of...

Question 19

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.

Question 20

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

Exam 2: The Usand Global Economies

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

The total value of capital in the United States is around

An example of a U.S.export is

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

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

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

In the United States, the poorest 20 percent of households earn roughly ________ percent of total income.

________ is the human resource that organizes labor, land, and capital.

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

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

What determines the revenue flows received by businesses?

Over time, the percentage of total employment in services has and in agriculture, employment has .

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 .

The circular flow model shows that goods and services flow from

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

What are the two largest sources of tax revenues for the U.S.federal government?

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

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