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

Scenario 4-1 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:

Consumption or household spending of an economy comprises of both consumer spending and business spending.

The public sector of the U.S.economy includes:

Which among the following industrial countries has the highest per capita income as measured by the World Bank in 2009?

Which of the following sectors in the economy accounted for about 70% of the spending in the U.S.during 2009?

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

If total U.S.trade consists of $10 billion in electronics imports from Japan and $9 billion in automobile exports to Germany,then the U.S.net export account will be negative.

Which of the following will invariably be illustrated by a circular flow of income diagram?

The owner of a sole proprietorship has limited liability,while stockholders of corporations have unlimited liability.

Which of the following situations is an example of creative destruction?

The figure given below represents the equilibrium price and output in the market for restaurant meals and delivery meals. Figure 4.1 - Refer to Figure 4.1.Which of the following is represented by this figure?

According to the World Development Report published by the World Bank,developing countries greatly outnumber industrial countries.

Which of the following is true of investment spending in the U.S.economy?

The term net exports refers to:

Which of the following statements about transfer payments is true?

In a market system,which of the following factors determines a consumers's ability to pay for a good or service?

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.Suppose households reduce saving to $7,000.Everything else held constant,consumption spending must now be:

The resources owned by firms that shut down in the process of creative destruction:

Which of the following is not considered a financial intermediary?

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.What is the total savings of the household sector?