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

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

Accepted Answer

Human capital is the knowledge and skill...

Question 3

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 4

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 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

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 7

Most countries in the world are classified as

Accepted Answer

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

Question 8

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 9

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 10

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 11

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 12

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 13

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 14

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 15

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 16

What are the payments each factor of production receives?

Accepted Answer

Rent is paid for the use of la...

Question 17

________ 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 18

The income paid to labor is called

Accepted Answer

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

Question 19

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.

Question 20

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

Accepted Answer

Firms and households meet in two markets...

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

Correct AnswerverifiedB

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

Correct AnswerverifiedHuman capital is the knowledge and skill...View AnswerShow Answer

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?

Correct AnswerverifiedA

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

Correct AnswerverifiedShow Answer

As a factor of production,oil reserves are counted as

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Most countries in the world are classified as

Correct AnswerverifiedShow Answer

The circular flow model is used to show the

Correct AnswerverifiedShow Answer

One of the productive resources is capital.Capital includes

Correct AnswerverifiedShow Answer

When describing the IMF broad country classification,the most accurate statement is that

Correct AnswerverifiedShow Answer

The personal distribution of income measures which of the following?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In the circular flow model,there are two types of markets: the ________ market and the ________ market.

Correct AnswerverifiedShow Answer

The income earned by entrepreneurs is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What are the payments each factor of production receives?

Correct AnswerverifiedRent is paid for the use of la...View AnswerShow Answer

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

Correct AnswerverifiedA

The income paid to labor is called

Correct AnswerverifiedShow Answer

Within the circular flow model,economists define households as

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedFirms and households meet in two markets...View AnswerShow Answer

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

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Human capital is the knowledge and skill...
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In the circular flow model,there are two types of markets: the market and the market.

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Rent is paid for the use of la...
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paid for the use of land; paid for the services of labor; and paid for the use of capital.

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A

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Firms and households meet in two markets...
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