Question 1

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 2

Poland is classified as

Accepted Answer

A)   an advanced economy.
B)   a developing economy.
C)   a transition economy.
D)   an emerging market economy.
E)   private economy.

Question 3

The productive resource that organizes labor, land, and capital is

Accepted Answer

A)   human capital.
B)   financial capital.
C)   entrepreneurship.
D)   government.
E)   capital.

Question 4

In the circular flow model, consumption goods are bought and sold in the

Accepted Answer

A)   goods market.
B)   financial market.
C)   factor markets.
D)   government market.
E)   monetary flows.

Question 5

What is meant by the term "human capital"?

Accepted Answer

Human capital refers to the skills peopl...

Question 6

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 7

According to the functional distribution of income, in the United States

Accepted Answer

A)   capital earns most of the income.
B)   labor earns most of the income.
C)   land earns most of the income.
D)   entrepreneurs earned most of the income.
E)   the income earned by capital and labor are approximately equal.

Question 8

Social Security tax is deducted from your paycheck. In the figure above this will be shown as

Accepted Answer

A)   taxes flowing from households to governments.
B)   taxes flowing from firms to governments.
C)   taxes flowing from households to firms.
D)   wages flowing from firms to households.
E)   wages flowing from firms to governments.

Question 9

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

Accepted Answer

A)   20
B)   10
C)   15
D)   3
E)   0.5

Question 10

The majority of the income earned in the United States is paid in

Accepted Answer

A)   rent.
B)   wages.
C)   interest.
D)   profit.
E)   dividends.

Question 11

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 12

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

Accepted Answer

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

Question 13

The largest expenditure by state and local governments is for

Accepted Answer

A)   public welfare.
B)   highways.
C)   education.
D)   fire and ambulance services.
E)   transfers to the federal government.

Question 14

The income paid for the use of land is called

Accepted Answer

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

Question 15

As a factor of production, oil reserves are counted as

Accepted Answer

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

Question 16

Human capital can be increased through

Accepted Answer

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

Question 17

Most of the world's population lives in

Accepted Answer

A)   advanced economies.
B)   developing economies.
C)   transition economies.
D)   emerging market economies.
E)   island nations.

Question 18

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 19

How are the roles of the household different in the goods market and in the factor markets?

Accepted Answer

In the goods market, households are buye...

Question 20

________ earned the highest amount of income among the factors of production in the United States.

Accepted Answer

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

Exam 2: The Usand Global Economies

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

Correct AnswerverifiedShow Answer

What is meant by the term "human capital"?

Correct AnswerverifiedHuman capital refers to the skills peopl...View AnswerShow Answer

The majority of the income earned in the United States is paid in

Correct AnswerverifiedShow Answer

Human capital can be increased through

Correct AnswerverifiedShow Answer

The largest expenditure by state and local governments is for

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

How are the roles of the household different in the goods market and in the factor markets?

Correct AnswerverifiedIn the goods market, households are buye...View AnswerShow Answer

In the circular flow model, consumption goods are bought and sold in the

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According to the functional distribution of income, in the United States

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

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Most of the world's population lives in

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Social Security tax is deducted from your paycheck. In the figure above this will be shown as

Correct AnswerverifiedShow Answer

________ earned the highest amount of income among the factors of production in the United States.

Correct AnswerverifiedShow Answer

The productive resource that organizes labor, land, and capital is

Correct AnswerverifiedShow Answer

As a factor of production, oil reserves are counted as

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Poland is classified as

Correct AnswerverifiedShow Answer

The income paid for the use of land is called

Correct AnswerverifiedShow Answer

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Human capital refers to the skills peopl...
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In the goods market, households are buye...
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Compared to the developing economies, the advanced economies have human capital and physical capital.

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