Question 1

As of 2010, per capita GDP in the United States was approximately

Accepted Answer

A)  $26,000. 
B)  $37,000. 
C)  $47,000. 
D)  None of the choices are correct. 
A)  $26,000. 
B)  $37,000. 
C)  $47,000. 
D)  None of the choices are correct. C

Question 2

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

Question 3

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

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

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

Which of the following is an example of an external cost?

Accepted Answer

A)  Unemployment. 
B)  Unfair pricing behavior by a monopoly. 
C)  Automobile exhaust fumes. 
D)  Poverty. 
A)  Unemployment. 
B)  Unfair pricing behavior by a monopoly. 
C)  Automobile exhaust fumes. 
D)  Poverty.

Question 7

According to the World View excerpt that compares GDP figures for several nations, Russia's real GDP is approximately

Accepted Answer

A)  More than that of Germany. 
B)  More than that of China. 
C)  More than that of South Korea. 
D)  None of the choices are correct. 
A)  More than that of Germany. 
B)  More than that of China. 
C)  More than that of South Korea. 
D)  None of the choices are correct.

Question 8

Which of the following statements about the way markets allocate resources is most accurate from society's perspective?

Accepted Answer

A)  The market always allocates resources in the best way. 
B) 
The market may not always allocate resources in a way that is not in society's best interest. 
C)  Resource allocation by markets may not be perfect, but it is always better than government allocation of resources. 
D)  Markets always fail to allocate resources properly, so we must rely on the government to determine the 
A)  The market always allocates resources in the best way. 
B) 
The market may not always allocate resources in a way that is not in society's best interest. 
C)  Resource allocation by markets may not be perfect, but it is always better than government allocation of resources. 
D)  Markets always fail to allocate resources properly, so we must rely on the government to determine the

Question 9

The GDP of the United States includes production by foreign-owned firms that are located in the United States.

Accepted Answer

A) True 
 B)False

Question 10

In the years from 2000 through 2009, China's standard of living or per capita GDP grew faster than that of the United States.

Accepted Answer

A) True 
 B)False

Question 11

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 12

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

Question 13

The theory of how to grow GDP is

Accepted Answer

A)  An equity concept while the theory of how to divide GDP is an equity concept. 
B)  An equity concept while the theory of how to divide GDP is an efficiency concept. 
C)  An efficiency concept while the theory of how to divide GDP is an equity concept. 
D)  An efficiency concept while the theory of how to divide GDP is an efficiency concept. 
A)  An equity concept while the theory of how to divide GDP is an equity concept. 
B)  An equity concept while the theory of how to divide GDP is an efficiency concept. 
C)  An efficiency concept while the theory of how to divide GDP is an equity concept. 
D)  An efficiency concept while the theory of how to divide GDP is an efficiency concept.

Question 14

The government regulates food additives

Accepted Answer

A)  To keep food producers from dominating their markets. 
B)  To restrain the market power of food producers. 
C)  To assess their safety. 
D)  To prevent externalities. 
A)  To keep food producers from dominating their markets. 
B)  To restrain the market power of food producers. 
C)  To assess their safety. 
D)  To prevent externalities.

Question 15

When the government provides a legal framework,

Accepted Answer

A)  Domestic market transactions suffer and foreign trade market transactions suffer. 
B)  Domestic market transactions benefit and foreign trade market transactions benefit. 
C)  Domestic transactions benefit and foreign market transactions suffer. 
D)  None of the choices are correct. 
A)  Domestic market transactions suffer and foreign trade market transactions suffer. 
B)  Domestic market transactions benefit and foreign trade market transactions benefit. 
C)  Domestic transactions benefit and foreign market transactions suffer. 
D)  None of the choices are correct.

Question 16

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. 
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 17

China has roughly how much of the world's population?

Accepted Answer

A)  10 percent. 
B)  20 percent. 
C)  30 percent. 
D)  40 percent. 
A)  10 percent. 
B)  20 percent. 
C)  30 percent. 
D)  40 percent.

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

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

Question 20

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 working population 
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 working population

Exam 2: The Useconomy: a Global View

As of 2010, per capita GDP in the United States was approximately

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

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

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

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

Which of the following is an example of an external cost?

According to the World View excerpt that compares GDP figures for several nations, Russia's real GDP is approximately

Which of the following statements about the way markets allocate resources is most accurate from society's perspective?

The GDP of the United States includes production by foreign-owned firms that are located in the United States.

In the years from 2000 through 2009, China's standard of living or per capita GDP grew faster than that of the United States.

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

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

The theory of how to grow GDP is

The government regulates food additives

When the government provides a legal framework,

A labor-intensive production process is one that

China has roughly how much of the world's population?

Outsourcing leads to

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

Per capita GDP will definitely fall if

Economics: the Core Issues

Supply and Demand

The Role of Government

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

Filters