Question 1

In terms of an economy's production possibilities curve,a decrease in the level of human capital,ceteris paribus,will cause

Accepted Answer

A) An inward shift of the curve. 
B) A movement from the curve to a point inside the curve. 
C) A movement along the curve. 
D) An expansion of the curve. 
A) An inward shift of the curve. 
B) A movement from the curve to a point inside the curve. 
C) A movement along the curve. 
D) An expansion of the curve.

Question 2

How will an increase in the level of human capital,ceteris paribus,affect an economy's production possibilities curve?

Accepted Answer

A) Shift the curve inward. 
B) Result in a movement from inside the curve to a point on the curve. 
C) Shift the curve outward. 
D) Result in a movement along the curve. 
A) Shift the curve inward. 
B) Result in a movement from inside the curve to a point on the curve. 
C) Shift the curve outward. 
D) Result in a movement along the curve.

Question 3

Which of the following will increase the level of human capital in an economy?

Accepted Answer

A) An increase in land mass. 
B) An increase in literacy rates. 
C) An increase in factory capacity. 
D) A decrease in the population. 
A) An increase in land mass. 
B) An increase in literacy rates. 
C) An increase in factory capacity. 
D) A decrease in the population.

Question 4

The purpose of antitrust policy in the United States is to

Accepted Answer

A) Encourage competition among producers. 
B) Check the validity of advertising claims. 
C) Determine drug safety and performance. 
D) Encourage business mergers and acquisitions. 
A) Encourage competition among producers. 
B) Check the validity of advertising claims. 
C) Determine drug safety and performance. 
D) Encourage business mergers and acquisitions.

Question 5

Which of the following is likely to be most capital-intensive?

Accepted Answer

A) Farming in developing countries. 
B) Production of clothing in rural China. 
C) Oil refining in the United States. 
D) None of the choices are correct. 
A) Farming in developing countries. 
B) Production of clothing in rural China. 
C) Oil refining in the United States. 
D) None of the choices are correct.

Question 6

An example of human capital would be

Accepted Answer

A) A computer. 
B) Carpentry skills. 
C) A carpenter's saw. 
D) All of the choices are correct. 
A) A computer. 
B) Carpentry skills. 
C) A carpenter's saw. 
D) All of the choices are correct.

Question 7

Which of the following statements is true about the U.S.economy?

Accepted Answer

A) The United States produces nearly one-fifth of the world's production. 
B) The United States has the world's third largest economy. 
C) The United States produces less than half as much as China does. 
D) The United States produces less than one-third as much as Japan does. 
A) The United States produces nearly one-fifth of the world's production. 
B) The United States has the world's third largest economy. 
C) The United States produces less than half as much as China does. 
D) The United States produces less than one-third as much as Japan does.

Question 8

Which of the following will contribute to accelerated growth for the U.S.economy?

Accepted Answer

A) A decrease in factor mobility. 
B) A decrease in government involvement in copyright laws. 
C) Increased use of outsourcing for inputs and increased use of comparative advantage for trade in final goods and services. 
D) A decrease in tax credits for research and development. 
A) A decrease in factor mobility. 
B) A decrease in government involvement in copyright laws. 
C) Increased use of outsourcing for inputs and increased use of comparative advantage for trade in final goods and services. 
D) A decrease in tax credits for research and development.

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

Question 10

If output growth exceeds population growth for a country,

Accepted Answer

A) Average living standards will increase. 
B) GDP must have fallen at a very rapid rate. 
C) Per capita GDP will decrease. 
D) This country must have overcome the problem of opportunity costs. 
A) Average living standards will increase. 
B) GDP must have fallen at a very rapid rate. 
C) Per capita GDP will decrease. 
D) This country must have overcome the problem of opportunity costs.

Question 11

One-fifth of the population,rank ordered by income,is

Accepted Answer

A) A population quintile. 
B) An income quintile 
C) An earnings-population quintile. 
D) None of the choices are correct. 
A) A population quintile. 
B) An income quintile 
C) An earnings-population quintile. 
D) None of the choices are correct.

Question 12

The richest 20 percent of the families in the United States receive approximately ________ percent of total income.

Accepted Answer

A) 10 
B) 20 
C) 50 
D) 90 
A) 10 
B) 20 
C) 50 
D) 90

Question 13

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) Factor mobility which is the increased 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. 
A) Factor mobility which is the increased 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 14

During the past 100 years,the United States has transformed into primarily

Accepted Answer

A) A manufacturing economy. 
B) A closed economy with little foreign trade. 
C) An agricultural economy. 
D) A service economy. 
A) A manufacturing economy. 
B) A closed economy with little foreign trade. 
C) An agricultural economy. 
D) A service economy.

Question 15

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

Question 16

The best measure of how much output the average person would get if all output were divided evenly among the population would be

Accepted Answer

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

Question 17

The income distribution of the United States is basically the nation's answer to the

Accepted Answer

A) WHAT question. 
B) HOW question. 
C) FOR WHOM question. 
D) WHAT,HOW,and FOR WHOM questions. 
A) WHAT question. 
B) HOW question. 
C) FOR WHOM question. 
D) WHAT,HOW,and FOR WHOM questions.

Question 18

Outsourcing leads to

Accepted Answer

A) Increases in total output,but with temporary job losses for some domestic workers. 
B) Increases in total output,but with permanent job losses for some domestic workers. 
C) Decreases in total output,but with no changes in the number of domestic jobs available. 
D) Decreases in total output,along with permanent job losses for some domestic workers. 
A) Increases in total output,but with temporary job losses for some domestic workers. 
B) Increases in total output,but with permanent job losses for some domestic workers. 
C) Decreases in total output,but with no changes in the number of domestic jobs available. 
D) Decreases in total output,along with permanent job losses for some domestic workers.

Question 19

Outsourcing leads to

Accepted Answer

A) Increases in productivity and increases in total output. 
B) Increases in productivity and decreases in total output. 
C) Decreases in productivity and increases in total output. 
D) Decreases in productivity and decreases in total output. 
A) Increases in productivity and increases in total output. 
B) Increases in productivity and decreases in total output. 
C) Decreases in productivity and increases in total output. 
D) Decreases in productivity and decreases in total output.

Question 20

According to the World View titled "Income Share of the Rich," in which of the following would the top tenth of the population be most likely to receive the highest percentage of the country's income?

Accepted Answer

A) Namibia. 
B) South Africa. 
C) Canada. 
D) Japan. 
A) Namibia. 
B) South Africa. 
C) Canada. 
D) Japan.

Exam 2: The Useconomy: a Global View

In terms of an economy's production possibilities curve,a decrease in the level of human capital,ceteris paribus,will cause

How will an increase in the level of human capital,ceteris paribus,affect an economy's production possibilities curve?

Which of the following will increase the level of human capital in an economy?

The purpose of antitrust policy in the United States is to

Which of the following is likely to be most capital-intensive?

An example of human capital would be

Which of the following statements is true about the U.S.economy?

Which of the following will contribute to accelerated growth for the U.S.economy?

Income inequalities are greatest in

If output growth exceeds population growth for a country,

One-fifth of the population,rank ordered by income,is

The richest 20 percent of the families in the United States receive approximately ________ percent of total income.

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

During the past 100 years,the United States has transformed into primarily

The result of government intervention in the market is that

The best measure of how much output the average person would get if all output were divided evenly among the population would be

The income distribution of the United States is basically the nation's answer to the

Outsourcing leads to

Outsourcing leads to

According to the World View titled "Income Share of the Rich," in which of the following would the top tenth of the population be most likely to receive the highest percentage of the country's income?

Economics: the Core Issues

Supply and Demand

The Role of Government

National Income Accounting

Unemployment

Inflation

The Business Cycle

Aggregate Demand

Self-Adjustment or Instability

Fiscal Policy

Deficits and Debt

Money and Banks

The Federal Reserve System

Monetary Policy

Supply-Side Policy: Short-Run Options

Growth and Productivity: Long-Run Possibilities

Theory Versus Reality

Consumer Choice

Elasticity

The Costs of Production

The Competitive Firm

Competitive Markets

Monopoly

Oligopoly

Monopolistic Competition

Natural Monopolies: Deregulation

Environmental Protection

The Farm Problem

The Labor Market

Labor Unions

Financial Markets

Taxes: Equity Versus Efficiency

Transfer Payments: Welfare and Social Security

International Trade

International Finance

Global Poverty

Filters