Question 1

As a percentage of total world production, production in the 29 advanced economies is about ________ percent of total world production and in the 118 developing economies is about ________ percent of total world production.

Accepted Answer

A) 53; 39 
B) 23; 62 
C) 53; 12 
D) 30; 46 
E) 19; 73

Question 2

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

Question 3

Explain the structure of the circular flow model.

Accepted Answer

The answer of Explain the structure of the circular flow...

Question 4

In the circular flow model, consumption goods are bought and sold in the

Accepted Answer

A) goods market. 
B) financial market. 
C) factor markets. 
D) government market. 
E) monetary flows.

Question 5

Which of the following is NOT classified as an advanced economy?

Accepted Answer

A) South Korea 
B) Australia 
C) Russia 
D) Hong Kong 
E) the United Kingdom

Question 6

Dividing the nation's income among the factors of production, the largest percentage is paid to

Accepted Answer

A) labor. 
B) land. 
C) capital. 
D) entrepreneurship. 
E) labor and capital, with each receiving about 41 percent of the total income.

Question 7

Canada is classified by the International Monetary Fund as

Accepted Answer

A) an advanced economy. 
B) a developing economy. 
C) a transition economy. 
D) an emerging market economy. 
E) a natural-resource based economy.

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

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

Accepted Answer

The answer of Explain how public goods provided by the...

Question 10

Describe the government's flows in the circular flow model of the economy.

Accepted Answer

The answer of Describe the government's flows in the circular...

Question 11

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

Accepted Answer

The answer of Explain how the largest sources of state...

Question 12

Social Security tax is deducted from your paycheck. In the figure above this will be shown as

Accepted Answer

A) taxes flowing from households to governments. 
B) taxes flowing from firms to governments. 
C) taxes flowing from households to firms. 
D) wages flowing from firms to households. 
E) wages flowing from firms to governments.

Question 13

Economists classify energy and water as part of which factor of production?

Accepted Answer

A) land 
B) labor 
C) capital 
D) entrepreneurship 
E) land if undeveloped and capital if developed

Question 14

-Label the flows in the simplified circular flow diagram that ignores the government.

Accepted Answer

The answer of 
-Label the flows in the simplified circular...

Question 15

The data show that more than 60 percent of the total income earned in the United States goes to

Accepted Answer

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

Question 16

Capital is a factor of production. Which of the following is an example of capital?
I. $1,000 in money
Ii. 100 shares of Microsoft stock
Iii. $10,000 in bonds issued by General Motors
Iv. A drill press in your local machine shop

Accepted Answer

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

Question 17

2.5 Chapter Figures
  
The figure above shows the circular flow model.
-Margo orders a MacBook Pro computer from The Apple Store online to use it in her graphic design business. How will this be reflected in the figure above?

Accepted Answer

A) As a flow of a factor of production 
B) As a flow of goods and services bought 
C) As expenditures on goods and services 
D) As goods and services supplied 
E) It won't be shown in the figure because this transaction takes place neither in goods markets nor in factor markets.

Question 18

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 19

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

Question 20

The percentage of the world's population that lives in the advanced economies is

Accepted Answer

A) more than 71 percent. 
B) between 51 percent and 70 percent. 
C) between 31 percent and 50 percent. 
D) between 20 percent and 30 percent. 
E) less than 20 percent.

Exam 2: The Us and Global Economies

As a percentage of total world production, production in the 29 advanced economies is about percent of total world production and in the 118 developing economies is about percent of total world production.