Question 1

Monopolists can dictate the price or the quantity of the product they produce, but not both.

Accepted Answer

A) True 
 B)False

Question 2

A labor-intensive production process is one that

Accepted Answer

A)   Has a low ratio of labor to capital.
B)   Has a low ratio of capital to labor.
C)   Is used only in the United States.
D)   All of the choices are correct.

Question 3

The relative decline in goods production compared to services produced means that we're producing fewer goods than in earlier decades.

Accepted Answer

A) True 
 B)False

Question 4

Approximately how much of the world's output does China produce?

Accepted Answer

A)   13 percent.
B)   0 percent.
C)   9 percent.
D)   1.5 percent

Question 5

Per capita GDP will rise if GDP

Accepted Answer

A)   Increases more rapidly than the population increases.
B)   Increases at the same rate as the population increases.
C)   Decreases and the population increases.
D)   Increases more slowly than the population increases. A

Question 6

The role of the government in establishing how private business can operate includes all of the following except

Accepted Answer

A)   Providing a legal framework.
B)   Providing raw materials to business.
C)   Protecting the environment.
D)   Protecting consumers from defective products.

Question 7

The 20 percent of families with the lowest income in the United States receive approximately ______ percent of total income.

Accepted Answer

A)   1
B)   3
C)   15
D)   20

Question 8

Productivity is a measure of

Accepted Answer

A)   Output per unit of input.
B)   Output per dollar of input.
C)   Input per unit of output.
D)   Input per dollar of output.

Question 9

As the U.S. economy relies more and more heavily on the production of services rather than goods,

Accepted Answer

A)   GDP will decrease since there will be less real production.
B)   International trade will become more difficult.
C)   Mass unemployment will result.
D)   Nearly all future job growth will be in service-producing industries.

Question 10

On average, since 1900 the population of the United States has grown by roughly ____ percent per year.

Accepted Answer

A)   9
B)   6
C)   3
D)   1

Question 11

Which of the following would be a legitimate government activity in the U.S. economy?

Accepted Answer

A)   The provision of public goods and services.
B)   The regulation of water pollution.
C)   Enforcing child labor laws.
D)   All of the choices are correct.

Question 12

Which of the following countries (or regions)  produces the most output annually?

Accepted Answer

A)   Japan.
B)   United States.
C)   China.
D)   Germany.

Question 13

Which of the following contributes to the high productivity of American workers?

Accepted Answer

A)   The labor-intensive production process in the United States.
B)   The abundance of capital relative to labor.
C)   The low level of factor mobility.
D)   The decreasing investment in human capital.

Question 14

The United States has a larger real GDP than China because

Accepted Answer

A)   The U.S. population is smaller but works in capital-intensive jobs.
B)   The U.S. population is smaller but works in labor-intensive jobs.
C)   The U.S. population is larger but works in capital-intensive jobs.
D)   The U.S. population is larger but works in labor-intensive jobs. A

Question 15

Income inequality is

Accepted Answer

A)   Often greatest in the richest countries.
B)   An issue because households in the lowest quintile receive more than their share of income.
C)   Often greatest in the poorest countries.
D)   Not an issue in the United States because of the redistribution of income through the federal tax system.

Question 16

A country that increased its literacy rate and thereby its average human capital would probably

Accepted Answer

A)   Increase GDP but not equity.
B)   Increase GDP and increase equity.
C)   Increase GDP and decrease equity.
D)   None of the choices are correct.

Question 17

The World View article titled "The Education Gap between Rich and Poor Nations" says that 85 percent of all Americans graduate from high school. This is an example of

Accepted Answer

A)   The inequitable distribution of income.
B)   A negative externality.
C)   Investment in human capital.
D)   Capital-intensive production.

Question 18

According to economists, which of the following is NOT a factor of production?

Accepted Answer

A)   Land.
B)   Labor.
C)   Money.
D)   Entrepreneurship.

Question 19

The United States has roughly how much of the world's population?

Accepted Answer

A)   5 percent.
B)   10 percent.
C)   15 percent.
D)   20 percent.

Question 20

The term externalities refers to

Accepted Answer

A)   Black-market economic activity.
B)   The impact on markets of imported goods.
C)   The costs or benefits of a market activity borne by a third party.
D)   The inequitable distribution of income. C

Exam 2: The Us Economy: a Global View

Monopolists can dictate the price or the quantity of the product they produce, but not both.

Correct AnswerverifiedShow Answer

A labor-intensive production process is one that

Correct AnswerverifiedShow Answer

The relative decline in goods production compared to services produced means that we're producing fewer goods than in earlier decades.

Correct AnswerverifiedShow Answer

Approximately how much of the world's output does China produce?

Correct AnswerverifiedShow Answer

Per capita GDP will rise if GDP

Correct AnswerverifiedA

The role of the government in establishing how private business can operate includes all of the following except

Correct AnswerverifiedShow Answer

The 20 percent of families with the lowest income in the United States receive approximately ______ percent of total income.

Correct AnswerverifiedShow Answer

Productivity is a measure of

Correct AnswerverifiedShow Answer

As the U.S. economy relies more and more heavily on the production of services rather than goods,

Correct AnswerverifiedShow Answer

On average, since 1900 the population of the United States has grown by roughly ____ percent per year.

Correct AnswerverifiedShow Answer

Which of the following would be a legitimate government activity in the U.S. economy?

Correct AnswerverifiedShow Answer

Which of the following countries (or regions) produces the most output annually?

Correct AnswerverifiedShow Answer

Which of the following contributes to the high productivity of American workers?

Correct AnswerverifiedShow Answer

The United States has a larger real GDP than China because

Correct AnswerverifiedA

Income inequality is

Correct AnswerverifiedShow Answer

A country that increased its literacy rate and thereby its average human capital would probably

Correct AnswerverifiedShow Answer

The World View article titled "The Education Gap between Rich and Poor Nations" says that 85 percent of all Americans graduate from high school. This is an example of

Correct AnswerverifiedShow Answer

According to economists, which of the following is NOT a factor of production?

Correct AnswerverifiedShow Answer

The United States has roughly how much of the world's population?

Correct AnswerverifiedShow Answer

The term externalities refers to

Correct AnswerverifiedC

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
C