Question 1

Items that are purchased by individuals for their own enjoyment are called

Accepted Answer

A)   government goods and services.
B)   exports of goods and services.
C)   private goods.
D)   consumption goods and services.
E)   capital goods.

Question 2

An example of a real flow in the circular flow diagram is

Accepted Answer

A)   Nike's payment of wages to workers in China.
B)   your council's collection of property taxes.
C)   a household's supply of work effort at its new business.
D)   the government's payment of wages to a soldier.
E)   a teacher's salary at the local high school.

Question 3

Income equality has

Accepted Answer

A)   narrowed within countries but increased across countries.
B)   increased within countries but narrowed across countries.
C)   decreased in Australia as manufacturing has increased.
D)   not changed in the advanced economies over the past 50 years.
E)   increased in developing economies as manufacturing has decreased.

Question 4

As a factor of production, oil reserves are counted as

Accepted Answer

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

Question 5

The world population is approximately ________ people.

Accepted Answer

A)   7.3 6 trillion
B)   2 trillion
C)   7.3 6 billion
D)   7.3 6 million
E)   730 760 million

Question 6

Households receive transfers from ________ and firms receive transfers from ________.

Accepted Answer

A)   firms and the government; the government
B)   the government; no one
C)   firms; households
D)   the government; the government
E)   the government; the government and households

Question 7

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

Accepted Answer

A)   Firms; households and the government
B)   The government; firms
C)   Households; the government
D)   Households; firms
E)   Firms; only households

Question 8

Human capital can be increased through

Accepted Answer

A)   investment in new machinery.
B)   education, on-the-job training and work experience.
C)   increasing the nation's production of consumption goods.
D)   decreases in population.
E)   investment in new technology. B

Question 9

Physical capital differences across countries can be seen in the fact that

Accepted Answer

A)   furniture factories in China use machines like those in North America.
B)   the iPhone's components are produced in 30 countries.
C)   advanced economies produce 53 per cent of the world's income.
D)   more advanced economies typically have more sophisticated technology.
E)   students in India study the same subjects as those in Australia.

Question 10

In the circular flow model, the factor markets are the markets in which

Accepted Answer

A)   government goods and services are provided.
B)   land, labour, capital and entrepreneurship are bought and sold.
C)   governments impose all their taxes.
D)   investment goods and services are bought and sold.
E)   consumption goods and services are bought and sold.

Question 11

Over time, the percentage of total employment in services has ________ and in agriculture employment has ________.

Accepted Answer

A)   stayed about the same; decreased
B)   decreased; increased
C)   increased; increased
D)   increased; decreased
E)   stayed about the same; increased D

Question 12

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 13

Most people live in ________ economies and the fewest people live in ________ economies.

Accepted Answer

A)   emerging market; developing
B)   advanced; developing
C)   advanced; emerging market
D)   developing; emerging market
E)   developing; advanced

Question 14

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

Accepted Answer

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

Question 15

In the circular flow model, which of the following is on the selling side in the goods market?

Accepted Answer

A)   Exporters
B)   Both firms and households
C)   Firms only
D)   Federal, state and local governments
E)   Households only C

Question 16

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

Accepted Answer

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

Question 17

Goods and services produced in Australia and sold in other countries are called

Accepted Answer

A)   government goods and services.
B)   export goods and services.
C)   import goods and services.
D)   capital goods.
E)   consumption goods and services.

Question 18

Among the United States, Canada, Russia, India and the United Kingdom, the country with the highest average income per person is

Accepted Answer

A)   Canada.
B)   Russia.
C)   the United States.
D)   the United Kingdom.
E)   India.

Question 19

________ earns the highest amount of income among the factors of production in Australia.

Accepted Answer

A)   Land
B)   Entrepreneurship
C)   Capital
D)   Investment
E)   Labour

Question 20

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 receive wages for the amount of entrepreneurship they provide to firms.
B)   Firms pay wages for the amount of entrepreneurship they provide to households.
C)   Households choose the amount of the factors of production to provide to firms.
D)   Firms choose the amount of the factors of production to provide to households.
E)   The flows of goods and services and payments for the goods and services flow in the same direction.

Exam 2: The Australian and Global Economies

Items that are purchased by individuals for their own enjoyment are called

Correct AnswerverifiedShow Answer

An example of a real flow in the circular flow diagram is

Correct AnswerverifiedShow Answer

Income equality has

Correct AnswerverifiedShow Answer

As a factor of production, oil reserves are counted as

Correct AnswerverifiedShow Answer

The world population is approximately ________ people.

Correct AnswerverifiedShow Answer

Households receive transfers from ________ and firms receive transfers from ________.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Human capital can be increased through

Correct AnswerverifiedB

Physical capital differences across countries can be seen in the fact that

Correct AnswerverifiedShow Answer

In the circular flow model, the factor markets are the markets in which

Correct AnswerverifiedShow Answer

Over time, the percentage of total employment in services has ________ and in agriculture employment has ________.

Correct AnswerverifiedD

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

Most people live in ________ economies and the fewest people live in ________ economies.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In the circular flow model, which of the following is on the selling side in the goods market?

Correct AnswerverifiedC

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

Correct AnswerverifiedShow Answer

Goods and services produced in Australia and sold in other countries are called

Correct AnswerverifiedShow Answer

Among the United States, Canada, Russia, India and the United Kingdom, the country with the highest average income per person is

Correct AnswerverifiedShow Answer

________ earns the highest amount of income among the factors of production in Australia.

Correct AnswerverifiedShow 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 AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Households receive transfers from and firms receive transfers from .

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified
B

Correct Answer
verified

Correct Answer
verified

Over time, the percentage of total employment in services has and in agriculture employment has .

Correct Answer
verified
D

Correct Answer
verified

Most people live in economies and the fewest people live in economies.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
C

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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified