Question 1

Computers and insurance coverage produced in the United States and sold to people in other nations are categorized as

Accepted Answer

A)   U.S. consumption goods and services.
B)   foreign capital goods.
C)   U.S. government goods and services.
D)   U.S. exports of goods and services.
E)   U.S. imports of goods and services.

Question 2

In the circular flow model with the government sector,taxes

Accepted Answer

A)   flow in the opposite direction as do transfers.
B)   flow in the same direction as do transfers.
C)   on households flow in the same direction as do the goods and services.
D)   on firms flow in the same direction as do factors of production.
E)   flow from the goods market to the factor markets.

Question 3

Which factor of production is paid "interest"?

Accepted Answer

A)   land
B)   labor
C)   capital
D)   entrepreneurship
E)   human capital

Question 4

Of the following,the largest source of tax revenue collected by state and local governments comes from

Accepted Answer

A)   individual income taxes.
B)   corporate income taxes.
C)   death taxes.
D)   sales taxes.
E)   lottery revenues.

Question 5

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 6

The functional distribution of income measures which of the following?

Accepted Answer

A)   how federal tax revenues are related to the business function that employs taxpayers
B)   the distribution of earnings by the factors of production
C)   the 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 7

In the circular flow model,which of the following owns the factors of production?

Accepted Answer

A)   only federal, state, and local governments
B)   only households
C)   only firms
D)   both firms and households
E)   firms, households, and all levels of government

Question 8

A real flow in the circular flow diagram is
i.a firm's payments of wages to its workers.
ii.a household's purchase of a new car.
iii.a farmer's use of land to grow corn.

Accepted Answer

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

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

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 11

The national debt is the total amount the ________ government has borrowed to make expenditures that ________ tax revenue.

Accepted Answer

A)   state and local; are less than
B)   federal; are less than
C)   federal; exceed
D)   state and local; exceed
E)   federal; are equal to

Question 12

Capital is a factor of production.An example of capital as a factor of production is

Accepted Answer

A)   money.
B)   stocks.
C)   bonds.
D)   machines.
E)   education.

Question 13

________ 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 14

The figure above shows governments in the circular flow.
-In the figure above,firms

Accepted Answer

A)   pay taxes directly to governments.
B)   sell goods and services to governments in goods markets.
C)   receive transfers from governments through factor markets.
D)   own factors of production.
E)   do all of the above.

Question 15

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 16

In the circular flow model,which of the following is on the buying side in the goods market?
i.firms
ii.households
iii.federal,state,and local governments

Accepted Answer

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

Question 17

Aaron locked himself out of his house and had to pay $40 to Brianna,who works for Lucky Locksmith,to open his door.Based on this transaction in the economy and using concepts from the circular flow model,which of the following is true?

Accepted Answer

A)   Brianna earned income from supplying her labor services.
B)   Aaron earned income from supplying his labor services.
C)   Brianna purchased goods and services.
D)   Aaron acted as a firm in this transaction.
E)   Aaron supplied goods and services.

Question 18

What would be an example of capital good?

Accepted Answer

A)   Jeanette buys a new dress.
B)   The local driver's license office purchases a new digital camera and printer.
C)   Antonio, the manager of the local Taco Hut, purchases a new deep fryer.
D)   Apple sells computers to Japan.
E)   Rhianna gets a haircut.

Question 19

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.

Question 20

Discuss the differences between developing and emerging market economies.

Accepted Answer

Although the average income in emerging ...

Exam 2: The U.S.and Global Economies

In the circular flow model,which of the following owns the factors of production?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In the circular flow model,which of the following is on the buying side in the goods market? i.firms ii.households iii.federal,state,and local governments

Correct AnswerverifiedShow Answer

Of the following,the largest source of tax revenue collected by state and local governments comes from

Correct AnswerverifiedShow Answer

The functional distribution of income measures which of the following?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In the circular flow model with the government sector,taxes

Correct AnswerverifiedShow Answer

The figure above shows governments in the circular flow. -In the figure above,firms

Correct AnswerverifiedShow Answer

Aaron locked himself out of his house and had to pay $40 to Brianna,who works for Lucky Locksmith,to open his door.Based on this transaction in the economy and using concepts from the circular flow model,which of the following is true?

Correct AnswerverifiedShow Answer

Capital is a factor of production.An example of capital as a factor of production is

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What would be an example of capital good?

Correct AnswerverifiedShow Answer

Which factor of production is paid "interest"?

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Discuss the differences between developing and emerging market economies.

Correct AnswerverifiedAlthough the average income in emerging ...View AnswerShow Answer

Computers and insurance coverage produced in the United States and sold to people in other nations are categorized as

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The national debt is the total amount the ________ government has borrowed to make expenditures that ________ tax revenue.

Correct AnswerverifiedShow Answer

A real flow in the circular flow diagram is i.a firm's payments of wages to its workers. ii.a household's purchase of a new car. iii.a farmer's use of land to grow corn.

Correct AnswerverifiedShow Answer

The total value of capital in the United States is around

Correct AnswerverifiedShow Answer

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Although the average income in emerging ...
View Answer

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

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The national debt is the total amount the government has borrowed to make expenditures that tax revenue.

Correct Answer
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