Question 1

The International Monetary Fund divides nations into three groups.What are the three groups and what are the characteristics of each group?

Accepted Answer

The International Monetary Fund divides ...

Question 2

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

Accepted Answer

Human capital is the knowledge and skill...

Question 3

Capital,as a factor of production,refers to

Accepted Answer

A)   money, stocks, and bonds.
B)   the production technology used by firms.
C)   the tools and instruments used to produce other goods and services.
D)   the production factors imported from abroad.
E)   stocks and bonds but not money.

Question 4

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 largest source of tax revenue for th...

Question 5

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 6

What two groups of decision makers are represented in the basic circular flow model?

Accepted Answer

A)   governments and financial institutions
B)   lenders and borrowers
C)   wholesalers and retailers
D)   bankers and regulators
E)   households and firms

Question 7

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 8

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 9

In the factor market,firms ________ and households ________.

Accepted Answer

A)   hire land, labor, capital, and entrepreneurship services; purchase 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)   purchase goods and services; supply goods and services
E)   supply goods and services; purchase goods and services

Question 10

When Ethan continues his education beyond high school he is increasing his

Accepted Answer

A)   capital.
B)   wage rate.
C)   human capital.
D)   quantity of labor.
E)   rent.

Question 11

The circular flow model shows the

Accepted Answer

A)   distribution of income and consumption goods across income levels.
B)   combinations of the factors of production needed to produce goods and services.
C)   flow of expenditure and incomes that arise from the households', firms', and governments' decisions.
D)   flow of natural resources from firms to the private market to government and back to firms.
E)   distribution of income to the different factors of production.

Question 12

Of the following,the largest source of revenue for the federal government is the

Accepted Answer

A)   personal income tax.
B)   transfers from state and local governments.
C)   corporation income tax.
D)   lottery.
E)   revenue from the sale of public lands.

Question 13

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 14

Draw a circular flow diagram with households and firms and without government.Label the markets and the flows in the circular flow diagram.

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> A circular flow dia...

Question 15

As the circular flow model points out,a choice that households make is how

Accepted Answer

A)   many resources a firm will hire.
B)   many goods and services are produced.
C)   many goods and services are purchased.
D)   much labor is hired.
E)   much the government will collect in taxes and how much the government will spend on transfer payments.

Question 16

Of the following,the federal government's largest source of revenue is the

Accepted Answer

A)   sales tax.
B)   property tax.
C)   corporate income tax.
D)   Social Security tax.
E)   transfers from state and local governments.

Question 17

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.

Question 18

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 19

Entrepreneurship,as a factor of production,refers to

Accepted Answer

A)   the technology used by firms.
B)   the human capital accumulated by workers.
C)   the value of the firm's stock.
D)   the human resource that organizes labor, land, and capital.
E)   the capital the firm uses.

Question 20

As a factor of production,oil reserves are counted as

Accepted Answer

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

Exam 2: The U.S.and Global Economies

Capital,as a factor of production,refers to

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What two groups of decision makers are represented in the basic circular flow model?

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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 factor market,firms ________ and households ________.

Correct AnswerverifiedShow Answer

As a factor of production,oil reserves are counted as

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The circular flow model shows the

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When Ethan continues his education beyond high school he is increasing his

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

One of the productive resources is capital.Capital includes

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The International Monetary Fund divides nations into three groups.What are the three groups and what are the characteristics of each group?

Correct AnswerverifiedThe International Monetary Fund divides ...View AnswerShow Answer

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

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Of the following,the federal government's largest source of revenue is the

Correct AnswerverifiedShow Answer

Entrepreneurship,as a factor of production,refers to

Correct AnswerverifiedShow Answer

Draw a circular flow diagram with households and firms and without government.Label the markets and the flows in the circular flow diagram.

Correct Answerverified A circular flow dia...View AnswerShow Answer

As the circular flow model points out,a choice that households make is how

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedThe largest source of tax revenue for th...View AnswerShow Answer

Of the following,the largest source of revenue for the federal government is the

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

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

A newspaper printing press is an example of

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Canada is classified by the International Monetary Fund as

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In the factor market,firms and households .

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The International Monetary Fund divides ...
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A circular flow dia...
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The largest source of tax revenue for th...
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Human capital is the knowledge and skill...
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