Question 1

Which of the following is a function of the U.S.federal government?

Accepted Answer

A) providing the legal and social framework for economic activity 
B) distributing private goods and services 
C) deciding for whom firms should produce goods and services 
D) deciding how much to produce of private goods and services 
E) determining what wages firms will pay their workers.

Question 2

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

Question 3

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 4

Compared to the developing economies,the advanced economies have ________ human capital and ________ physical capital.

Accepted Answer

A) more;more 
B) more;less 
C) the same;the same 
D) less;more 
E) less;less

Question 5

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

Question 6

Identify the four factors of production,and tell what type of income is earned by each factor.

Accepted Answer

The answer of Identify the four factors of production,and tell...

Question 7

Of the following,the largest single component of U.S.federal government expenditures is spent on

Accepted Answer

A) interest paid on the national debt. 
B) Medicare and Medicaid. 
C) national defense. 
D) purchases of goods and services for purposes other than national defense. 
E) transfers to state and local governments.

Question 8

Explain the structure of the circular flow model.

Accepted Answer

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

Question 9

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 10

As a factor of production,oil reserves are counted as

Accepted Answer

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

Question 11

The majority of the value of production in the world economy is produced in

Accepted Answer

A) all of the developing economies taken together. 
B) all of Africa and the Middle East taken together. 
C) China and other Asian developing economies. 
D) all of the advanced economies taken together. 
E) all of the emerging market economies taken together.

Question 12

In the circular flow model,the factors of production flow in the

Accepted Answer

A) same direction as do the rents,wages,interest,and profits. 
B) opposite direction as do the rents,wages,interest,and profits. 
C) opposite direction as does the government. 
D) same direction as does the goods market. 
E) opposite direction as does the goods market.

Question 13

A newspaper printing press is an example of

Accepted Answer

A) a capital good. 
B) a factor of production. 
C) something that influences labor productivity. 
D) a good that was once an output of the production process. 
E) All of the above are correct.

Question 14

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 15

In the United States,how does the income received by the richest 20 percent of individuals compare with the income received by the other 80 percent?

Accepted Answer

The answer of In the United States,how does the income...

Question 16

Income taxes paid by corporations are

Accepted Answer

A) the major source of revenue for the federal government. 
B) the major source of revenue for state governments. 
C) the major source of revenue for local governments. 
D) about 9 percent of the federal government's revenue. 
E) the major source of expenditure by the federal government.

Question 17

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

Question 18

Explain the difference between consumption and capital goods.

Accepted Answer

The answer of Explain the difference between consumption and capital...

Question 19

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 20

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.

Exam 2: The Usand Global Economies