Deck 2: The Usand Global Economies

Question 1

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.

Answer 1

D

Question 2

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 2

B

Question 3

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.

Answer 3

A

Question 4

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

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

Question 5

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 6

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 7

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 8

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 9

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 10

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 11

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 12

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 13

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 14

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 15

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 16

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 17

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 18

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

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

Question 19

The Colorado Ski Shop sold 60 ski jackets to a Belgium 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 20

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 21

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

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

Question 22

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 23

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 24

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 25

As a factor of production, oil reserves are counted as

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

Question 26

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 27

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 28

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 29

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 30

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 31

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 32

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 33

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 34

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 35

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 36

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 37

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 38

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 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

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 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

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 43

The income paid to labor is called

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

Question 44

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 45

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

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

Question 46

Which factor of production is paid "interest"?

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

Question 47

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 48

Which factor of production is paid "profit"?

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

Question 49

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 50

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 51

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 52

________ 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 53

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

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

Question 54

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 55

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 56

The owners of the resource ________ are paid ________ .

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

Question 57

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 58

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 59

The income paid for the use of land is called

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

Question 60

An example of a capital good is

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

Question 61

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 62

________ 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 63

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 64

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.

Question 65

Which of the following is true?
I) The advanced economies account for more than half of global production.
Ii) Almost four out of every five people in the world live in the developing economies.
Iii) In the advanced economies, agriculture accounts for a larger part of total production than in the developing economies.

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

Question 66

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 67

________ 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 68

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 69

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 70

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 71

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 72

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 73

Canada is classified by the International Monetary Fund as

A)an advanced economy.
B)a developing economy.
C)a transition economy.
D)an emerging market economy.
E)a natural-resource based economy.

Question 74

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 75

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 76

Which of the following is NOT classified as an advanced economy?

A)South Korea
B)Australia
C)Russia
D)Hong Kong
E)the United Kingdom

Question 77

________ economies include ____________.

A)Advanced; France, Australia and South Korea
B)Advanced; the U.S., Taiwan and Russia
C)Advanced; Russia, Canada and Singapore
D)Emerging; Taiwan, Russia and Singapore
E)Emerging; Saudi Arabia, Poland and Taiwan

Question 78

Most countries in the world are classified as

A)advanced.
B)in transition.
C)developing.
D)industrialized.
E)emerging market.

Question 79

Most of the world's population lives in

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

Question 80

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.