Question 1

Which of the following is an indicator of how much output the average person would get if all output were divided up evenly among the population?

Accepted Answer

A) GDP. 
B) Economic growth. 
C) Per capita GDP. 
D) Real GDP. 
A) GDP. 
B) Economic growth. 
C) Per capita GDP. 
D) Real GDP. C

Question 2

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

Accepted Answer

Externalities are the market effects felt either beneficially or detrimentally by third parties in a market exchange. Another way to look at this is that externalities are by-products affecting bystanders. An example would be when a factory gets rid of production waste more cheaply by polluting a river than by disposing of the waste
in a manner that does not affect the environment. By polluting the river, the factory has a lower internal cost of production, a lower price of output, and thereby a larger quantity demanded of its product. What is not in the final price of the product is the external cost of the pollution paid by those living downstream and suffering health costs and loss of income.

Question 3

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

Accepted Answer

A) Second only to that of the United States. 
B) More than that of China. 
C) More than that of Germany. 
D) All of the choices are correct. 
A) Second only to that of the United States. 
B) More than that of China. 
C) More than that of Germany. 
D) All of the choices are correct. C

Question 4

When unregulated monopolies exist,

Accepted Answer

A) Prices tend to be higher than with a competitive market. 
B) Quality tends to be higher than with a competitive market. 
C) Production tends to be higher than with a competitive market. 
D) Externalities occur. 
A) Prices tend to be higher than with a competitive market. 
B) Quality tends to be higher than with a competitive market. 
C) Production tends to be higher than with a competitive market. 
D) Externalities occur.

Question 5

To an economist, the four factors of production are

Accepted Answer

A) Labor, workers, profit, and services. 
B) Land, labor, capital, and entrepreneurship. 
C) Entrepreneurship, machinery, workers, and profit. 
D) None of the choices are correct. 
A) Labor, workers, profit, and services. 
B) Land, labor, capital, and entrepreneurship. 
C) Entrepreneurship, machinery, workers, and profit. 
D) None of the choices are correct.

Question 6

Whenever technology advances, an economy can produce more output with

Accepted Answer

A) Fewer resources. 
B) More resources. 
C) Current resources. 
D) No resources. 
A) Fewer resources. 
B) More resources. 
C) Current resources. 
D) No resources.

Question 7

As of 2010, per capita GDP in the United States was approximately how many times the world average?

Accepted Answer

A) 3. 
B) 5. 
C) 7. 
D) 9. 
A) 3. 
B) 5. 
C) 7. 
D) 9.

Question 8

If population growth is less than output growth for a country,

Accepted Answer

A) Real GDP has decreased. 
B) Average living standards will decrease. 
C) GDP must have fallen at a fairly rapid rate. 
D) The per capita living standard will increase. 
A) Real GDP has decreased. 
B) Average living standards will decrease. 
C) GDP must have fallen at a fairly rapid rate. 
D) The per capita living standard will increase.

Question 9

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 10

The World View article titled "The Education Gap between Rich and Poor Nations" says that 85 percent of all Americans graduate from high school.This is an example of

Accepted Answer

A) The inequitable distribution of income. 
B) A negative externality. 
C) Investment in human capital. 
D) Capital-intensive production. 
A) The inequitable distribution of income. 
B) A negative externality. 
C) Investment in human capital. 
D) Capital-intensive production.

Question 11

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

Accepted Answer

A) 14 percent. 
B) 12 percent. 
C) 10 percent. 
D) 8 percent. 
A) 14 percent. 
B) 12 percent. 
C) 10 percent. 
D) 8 percent.

Question 12

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 13

Outsourcing is a source of increased U.S.output.

Accepted Answer

A) True 
 B)False

Question 14

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 15

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 16

The government regulates monopolies in order to

Accepted Answer

A) Ensure that product quality meets minimum standards, such as testing of new drugs. 
B) Prohibit mergers or acquisitions that would lessen competition. 
C) Protect consumers from false advertising. 
D) All of the choices are correct. 
A) Ensure that product quality meets minimum standards, such as testing of new drugs. 
B) Prohibit mergers or acquisitions that would lessen competition. 
C) Protect consumers from false advertising. 
D) All of the choices are correct.

Question 17

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 18

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 19

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 20

On average, since 1900 U.S.output 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

Exam 2: The Useconomy: a Global View

Which of the following is an indicator of how much output the average person would get if all output were divided up evenly among the population?

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

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

When unregulated monopolies exist,

To an economist, the four factors of production are

Whenever technology advances, an economy can produce more output with

As of 2010, per capita GDP in the United States was approximately how many times the world average?

If population growth is less than output growth for a country,

The result of government intervention in the market is that

The World View article titled "The Education Gap between Rich and Poor Nations" says that 85 percent of all Americans graduate from high school.This is an example of

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

When the government provides a legal framework,

Outsourcing is a source of increased U.S.output.

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

Outsourcing leads to

The government regulates monopolies in order to

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

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

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

On average, since 1900 U.S.output has grown by roughly ____ percent per year.

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

International Finance

Global Poverty

Filters