Question 1

The cost or benefit of a market activity borne by a third party is

Accepted Answer

A)  An externality.
B)  A government directive.
C)  A monopoly.
D)  Black-market economic activity.

Question 2

One characteristic that has allowed the U.S.economy to change the mix of output in response to consumer demand is the

Accepted Answer

A)  Ease with which resources move from one industry to another.
B)  Abundance of scarce resources.
C)  Large number of proprietorships.
D)  Labor-intensive production process.

Question 3

Economic growth

Accepted Answer

A)  Is an increase in output or real GDP.
B)  Causes a contraction in the production possibilities curve.
C)  Involves reduced capacity in the short run.
D)  None of the choices are correct.

Question 4

Per capita GDP is

Accepted Answer

A)  The sum of consumer goods,investment goods,government services,and net exports.
B)  A dollar measure of the economic growth rate of a country.
C)  The value of the factors of production used to produce output in a country.
D)  GDP divided by total population.

Question 5

According to the World View article that compares GDP per capita figures for several nations,which of the following nations has the highest GDP per capita?

Accepted Answer

A)  Japan.
B)  Great Britain.
C)  United States.
D)  China.

Question 6

When the government provides a legal framework,

Accepted Answer

A)  Private market transactions suffer and government market transactions suffer.
B)  Private market transactions suffer and government market transactions benefit.
C)  Private market transactions benefit and government market transactions benefit.
D)  None of the choices are correct.

Question 7

Average living standards are best measured using

Accepted Answer

A)  GDP.
B)  The economic growth of the economy.
C)  Per capita GDP.
D)  The capital stock of the economy.

Question 8

On average,since 1900 U.S.output has grown roughly ____ times faster than population growth.

Accepted Answer

A)  5
B)  4
C)  3
D)  2

Question 9

Income inequalities are greatest in

Accepted Answer

A)  Highly developed countries.
B)  Poor countries.
C)  Rich countries.
D)  Countries with many factors of production.

Question 10

Over many years the capital stock in the United States has grown to approximately

Accepted Answer

A)  $50 trillion.
B)  $40 trillion.
C)  $30 trillion.
D)  $20 trillion.

Question 11

Which component(s) of U.S.real GDP decreased in size relative to total U.S.real GDP from 1950 to 2000?

Accepted Answer

A)  Only agriculture.
B)  Only manufacturing.
C)  Agriculture and manufacturing.
D)  Only services.

Question 12

Per capita GDP will definitely fall if

Accepted Answer

A)  The population falls.
B)  The rate of economic growth falls.
C)  The rate of economic growth is less than the rate of population growth.
D)  There is a decrease in the size of the labor force.

Question 13

The richest fifth of U.S.households get nearly half of all U.S.income.
The greatest share of income goes to the top fifth of households.

Accepted Answer

A) True 
 B)False

Question 14

What are externalities,and how do they affect who pays the true cost of a polluting factory?

Accepted Answer

Externalities are the market effects fel...

Question 15

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 16

As of 2010,to be in the bottom quintile for income distribution in the United States,a family needed in income no more than

Accepted Answer

A)  $15,000.
B)  $21,000.
C)  $27,000.
D)  $35,000.

Question 17

The high productivity of the U.S.economy results from using highly educated workers in a capital-intensive production process.
Greater use of physical capital leads to higher productivity of workers.

Accepted Answer

A) True 
 B)False

Question 18

Regarding increasing productivity,factor mobility is

Accepted Answer

A)  Important in that it helps to fix a stable labor-intensive production process.
B)  Important in that it helps to fix a stable capital-intensive production process.
C)  Important in that it helps to reallocate resources in a dynamic economy.
D)  Not important in either a stable or dynamic economy.

Question 19

The result of government intervention in the market is that

Accepted Answer

A)  Society is always better off.
B)  The production possibilities curve always shifts outward.
C)  Society may be worse off.
D)  Society is always worse off.

Question 20

Human capital is defined as the

Accepted Answer

A)  Amount of machinery,factories,and buildings an individual owns.
B)  Dollar value of all the stocks and bonds an individual owns.
C)  Knowledge and skills workers possess.
D)  None of the choices are correct.

Exam 2: The Us Economy: A Global View

On average,since 1900 U.S.output has grown roughly ____ times faster than population growth.

Correct AnswerverifiedShow Answer

Human capital is defined as the

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The high productivity of the U.S.economy results from using highly educated workers in a capital-intensive production process. Greater use of physical capital leads to higher productivity of workers.

Correct AnswerverifiedShow Answer

Economic growth

Correct AnswerverifiedShow Answer

Which component(s) of U.S.real GDP decreased in size relative to total U.S.real GDP from 1950 to 2000?

Correct AnswerverifiedShow Answer

As of 2010,to be in the bottom quintile for income distribution in the United States,a family needed in income no more than

Correct AnswerverifiedShow Answer

Over many years the capital stock in the United States has grown to approximately

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Income inequalities are greatest in

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Average living standards are best measured using

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The cost or benefit of a market activity borne by a third party is

Correct AnswerverifiedShow Answer

Per capita GDP will definitely fall if

Correct AnswerverifiedShow Answer

The result of government intervention in the market is that

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

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What are externalities,and how do they affect who pays the true cost of a polluting factory?

Correct AnswerverifiedExternalities are the market effects fel...View AnswerShow Answer

Regarding increasing productivity,factor mobility is

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When the government provides a legal framework,

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According to the World View article that compares GDP per capita figures for several nations,which of the following nations has the highest GDP per capita?

Correct AnswerverifiedShow Answer

Per capita GDP is

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One characteristic that has allowed the U.S.economy to change the mix of output in response to consumer demand is the

Correct AnswerverifiedShow Answer

The richest fifth of U.S.households get nearly half of all U.S.income. The greatest share of income goes to the top fifth of households.

Correct AnswerverifiedShow Answer

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Externalities are the market effects fel...
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