Deck 2: The U.S.and Global Economies

Question 1

The difference between consumption and capital goods is that

A) only big corporations can afford capital goods.
B) capital goods are used to produce additional goods while consumption goods are not.
C) capital goods are provided by the government.
D) consumption goods can be enjoyed by many people at the same time.
E) it is illegal to export capital goods.

Answer 1

capital goods are used to produce additional goods while consumption goods are not.

Question 2

Which of the following is NOT considered an example of a capital good?

A) a miner's cap
B) a GPS tracking device
C) an airport kiosk
D) a U.S. government bond
E) a stethoscope

Answer 2

a U.S. government bond

Question 3

Goods and services bought by the government account for about ________ percent of total production.

A) 2
B) 8
C) 17
D) 35
E) 67

Answer 3

17

Question 4

The largest share of total production in the United States is

A) consumption goods and services.
B) capital goods.
C) government goods and services.
D) exported goods and services.
E) imported goods and services.

Question 5

Which of the following is NOT considered one of the factors of production?

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

Question 6

Which of the following is a consumption good or service?

A) a personal computer purchased in order to play games at home
B) a United Airline ticket counter
C) the Endeavor space shuttle
D) a United Parcel Service truck delivering Christmas gifts
E) a satellite dish installed by Cox Cable to download programs that are then distributed through its cable system

Question 7

What would be an example of consumption good?

A) Antonio, the manager of the local Taco Hut, purchases a new deep fryer.
B) The local driver's license office purchases a new digital camera and printer.
C) Rhianna gets a haircut.
D) Jake buys an iPhone.
E) Donald Trump purchases furniture for his office.

Question 8

Over the past 70 years,which of the following has occurred?
i.The service sector has grown so that now about 80 percent of workers are now employed in the service industry.
ii.The manufacturing sector has shrunk,so now about 20 percent of workers are now employed in the production of goods.
iii.The percentage of workers employed in the service industry has increased steadily.

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

Question 9

An export good is a good produced

A) in the United States and sold to foreigners living in the United States.
B) by foreigners in the United States and purchased by U.S. households.
C) in another country and purchased by U.S. residents.
D) in the United States and sold in other countries.
E) in another country and purchased by foreigners not residing in the United States.

Question 10

The Colorado Ski Shop sold 60 ski jackets to a Belgian company's headquarters located in Paris,France.The ski jackets are a

A) U.S. export good.
B) capital good.
C) government good.
D) U.S. consumption service.
E) U.S. import.

Question 11

Items bought by individuals to provide personal enjoyment are termed

A) consumption goods.
B) personal goods.
C) consumption or investment goods.
D) standard goods.
E) pleasure goods.

Question 12

Which of the following is NOT considered a consumption good?

A) Nike swimming trunks
B) marriage counseling services
C) a UPS truck
D) a Subway sandwich
E) a U.S. government bond

Question 13

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

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

Question 14

Items bought by businesses to help produce other goods and services are called

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

Question 15

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

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 16

What would be an example of government good?

A) Jake buys an iPhone.
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) Donald Trump purchases furniture for his office.
E) Rhianna gets a haircut.

Question 17

What would be an example of consumption service?

A) Rhianna gets a haircut.
B) Jake buys an iPhone.
C) Antonio, the manager of the local Taco Hut, purchases a new deep fryer.
D) The local driver's license office purchases a new digital camera and printer.
E) Donald Trump purchases furniture for his office.

Question 18

An item that is purchased to increase businesses' productive resources is

A) an export.
B) a government good.
C) a capital good.
D) a consumption good.
E) a productive good.

Question 19

What would be an example of capital good?

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 20

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

A) exports.
B) imports.
C) foreign goods.
D) capital goods.
E) capital account goods.

Question 21

Human capital ________ as you work.As a result,the ________ of goods and services ________.

A) increases; quantity; increases.
B) declines; quality; increases.
C) improves; quality; does not change.
D) does not change; quality; does not change.
E) decreases; quantity; decreases.

Question 22

As a factor of production,oil reserves are counted as

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

Question 23

Which of the following is NOT directly related to human capital?

A) a college education
B) a summer internship
C) knowledge of computer programing
D) an MRI machine
E) an understanding of real estate markets

Question 24

Economists classify energy and water as part of which factor of production?

A) land
B) labor
C) capital
D) entrepreneurship
E) land if undeveloped and capital if developed

Question 25

The concept of human capital describes

A) human skills, that is, the quality of labor.
B) human population, that is, the quantity of labor.
C) the number of machines per employed worker.
D) the number of workers per operating machine.
E) the number of machines (capital) that have been produced by people (humans).

Question 26

Human capital can be increased through

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 27

Factors of production are the

A) goods that are bought by individuals and used to provide personal enjoyment.
B) goods that are bought by businesses to produce productive resources.
C) productive resources used to produce goods and services.
D) productive resources used by government to increase the productivity of consumption.
E) goods and services produced by the economy.

Question 28

Capital,as a factor of production,refers to

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 29

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

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

Question 30

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

A) natural labor.
B) human capital.
C) consumption services.
D) natural resources.
E) entrepreneurship capital.

Question 31

Which of the following has been the bigger contributor to increases in the quantity of labor in the Unites States during the past 50 years?

A) The proportion of men taking paid jobs has trended up.
B) The proportion of women taking paid jobs has trended up.
C) The proportion of young adults entering college has trended down.
D) The proportion of seniors taking early retirement has trended down.
E) Total population growth has increased dramatically.

Question 32

The productive resource that includes all the "gifts of nature" is called

A) land.
B) labor.
C) capital.
D) entrepreneurship.
E) land if undeveloped and capital if developed.

Question 33

The United States possesses a large amount of human capital.As a result of this fact,in the United States there is a

A) large amount of machinery and equipment.
B) large number of people and a great deal of land.
C) highly skilled and educated labor force.
D) large number of kind and generous humans.
E) large amount of machinery (capital) that is run by people (humans).

Question 34

The total value of capital in the United States is around

A) $50 trillion.
B) $10 trillion.
C) $79 trillion.
D) $100 trillion.
E) $145 trillion.

Question 35

Which of the following is not considered a factor of production?

A) money
B) capital
C) land
D) entrepreneurial ideas
E) labor

Question 36

Which of the following correctly lists the categories of factors of production?

A) land, labor, capital, and entrepreneurship
B) land, buildings, capital, and entrepreneurship
C) labor, machines, buildings, capital, and entrepreneurship
D) forests, fish, buildings, capital, and entrepreneurship
E) labor, money, stocks, and bonds

Question 37

Goods and services are produced by using four factors of production:

A) land, labor, capital, and entrepreneurship.
B) land, labor, money, and equipment.
C) natural resources, human resources, financial assets, and entrepreneurial resources.
D) labor, human capital, physical capital, and financial capital.
E) land, labor, capital, and money.

Question 38

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

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

Question 39

Which factor of production does human capital enhance?
i.land
ii.labor
iii.capital

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

Question 40

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

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

Question 41

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

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 42

One of the productive resources is capital.Capital includes

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 43

Entrepreneurship,as a factor of production,refers to

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 44

Which factor of production is paid "profit"?

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

Question 45

The income paid for the use of land is called

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

Question 46

The functional distribution of income measures which of the following?

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 47

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

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

Question 48

Payments to the factors of production are

A) rent, mortgage, interest, and bonds.
B) rent, interest, bonds, and profit or loss.
C) rent, wages, interest, and profit or loss.
D) rent, wages, profit or loss, and bonus.
E) land, labor, capital, and entrepreneurship.

Question 49

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

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

Question 50

Which of the following is NOT considered capital?

A) an assembly line at a General Motors plant
B) a computer used by your instructor for presentations in class
C) stocks and bonds that are sold by Pepsico
D) the furniture in the President's office
E) a nail gun used for building houses

Question 51

The owners of the resource ________ are paid ________.

A) land; wages
B) labor; profit
C) capital; rent
D) capital; interest
E) entrepreneurship; wages

Question 52

Which factor of production is paid "interest"?

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

Question 53

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

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

Question 54

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

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

Question 55

A newspaper printing press is an example of

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 56

In the United States,the productive factor that,as a group,receives the largest fraction of the nation's total income is

A) labor.
B) capital.
C) consumption goods and services.
D) entrepreneurship.
E) land.

Question 57

The personal distribution of income in the United States shows that

A) income is equally distributed.
B) the poorest 20 percent of individuals receive approximately 20 percent of total income.
C) the richest 20 percent of individuals receive approximately 50 percent of total income.
D) the poorest 60 percent of individuals receive approximately 50 percent of total income.
E) the richest 20 percent of individuals receive approximately 25 percent of total income.

Question 58

The income paid to labor is called

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

Question 59

The data show that more than 60 percent of the total income earned in the United States goes to

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

Question 60

The personal distribution of income measures which of the following?

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 61

The most people live in ________ economies and the fewest people live in ________ economies.

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

Question 62

Wages are paid to ________ and interest is paid to ________.

A) entrepreneurs; capital
B) labor; capital
C) labor; land
D) entrepreneurs; land
E) labor; entrepreneurs

Question 63

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

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

Question 64

An example of a capital good is

A) a fiber optic cable TV system.
B) an insurance policy.
C) a haircut.
D) an iPod.
E) a slice of pizza.

Question 65

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

A) Human capital
B) Human skill
C) A gift of nature
D) Entrepreneurship
E) Profit

Question 66

Which of the following correctly lists the categories of factors of production?

A) machines, buildings, land, and money
B) hardware, software, land, and money
C) capital, money, and labor
D) owners, workers, and consumers
E) land, labor, capital, and entrepreneurship

Question 67

Human capital is

A) solely the innate ability we are born with.
B) the money humans have saved.
C) the knowledge humans accumulate through education and experience.
D) machinery that needs human supervision.
E) any type of machinery.

Question 68

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

A) 21 percent
B) 51 percent
C) 91 percent
D) 99 percent
E) 23 percent

Question 69

Compared to the world,the rate of U.S.population growth is

A) slower than in the world as a whole.
B) about the same as in the world as a whole.
C) much faster than in the world as a whole.
D) incomparable because U.S. residents are born with a much greater chance of accumulating a lot of human capital.
E) incomparable because we do not have accurate world population statistics.

Question 70

In the United States,the richest 20 percent of households receive about ________ percent of total income.

A) 4
B) 15
C) 23
D) 50
E) 33

Question 71

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

A) 3
B) 15
C) 23
D) 49
E) 20

Question 72

When the total U.S.production of goods and services is divided into consumption goods and services,capital goods,government goods and services,and export goods and services,the largest component is

A) consumption goods and services.
B) capital goods.
C) government goods and services.
D) export goods and services.
E) capital goods and government goods and services tie for the largest component.

Question 73

In economics,the factor of production "land" includes all of the following EXCEPT

A) energy.
B) plastics.
C) wild plants.
D) animals, birds, and fish.
E) oil.

Question 74

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

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

Question 75

The income earned by entrepreneurs is

A) interest.
B) wages.
C) profit or loss.
D) rent, wages, and interest.
E) a mixture of rent, wages, interest, and profit.

Question 76

Dividing the nation's income among the factors of production,the largest percentage is paid to

A) labor.
B) land.
C) capital.
D) entrepreneurship.
E) labor and capital, with each receiving about 41 percent of the total income.

Question 77

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

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

Question 78

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

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 79

Approximately ________ people live in the United States and ________ people live in the world.

A) 410 million; 8 billion
B) 310 million; 7 billion
C) 210 million; 5 billion
D) 310 million; 3 billion
E) 210 million; 6 billion

Question 80

The personal distribution of income shows

A) that labor receives the largest percentage of total income.
B) how profit accounts for the largest fraction of total income.
C) that the richest 20 percent of households receive 23 percent of total income.
D) that interest accounts for most of the income of the richest 20 percent of households.
E) that the poorest 20 percent of households receive less than 4 percent of total income.