Exam 4: The Market System and the Private and Public Sector

Based on the fact that the companies Ford, IBM, PepsiCo, and McDonald's own and operate units in many different countries, they are categorized as:

In the market for digital photo frames, any change in the price of a digital photo frame would lead to a change in the overall demand for other photo frames.

The figure given below represents the circular flow of income between households, firms, financial intermediaries, and foreign countries. Figure 4.2 -Refer to Figure 4.2. Assume investment spending decreases by $4,000. Everything else being the same, what must be the new value of net trade flows in order to maintain total expenditures on business firms' output at $35,000?

Which of the following is true of U.S. net exports prior to the 1960s?

In a market economy, _____ own(s) all the basic resources or factors of production.

The term net exports refers to:

The term consumer sovereignty refers to:

The United States is the largest consumer and importer of grains and other agricultural output in the world.

According to the theory of consumer sovereignty, the preferences of the business sector alone determines the equilibrium price and output of a good or service in a market.

Which of the following is a defining feature of a multinational firm?

Which of the following is true of a freely functioning market?

Identify the international organization that makes loans to developing countries.

When the government's spending is less than tax revenue, it implies that:

Which of the following institutions form the private sector in an economy?

Households and firms pay taxes to the government to:

Identify the correct reason behind the rise in agricultural produce in the U.S. despite a drastic decline in the percentage of the country's workforce employed in this sector.

In 2009, household spending was the smallest component of total spending in the U.S. economy.

Which of the following is not considered a financial intermediary?

In a given year, country A exported $12 million worth of goods to country B and $6 million worth of goods to country C; country B exported $4 million worth of goods to country A and $7 million worth of goods to country C; and country C exported $5 million worth of goods to country A and $2 million worth of goods to country B. -According to Scenario 4-1, country A has net exports of:

Total government spending in the U.S. economy was around _____ of GDP in the financial year 2010.