Exam 5: The Market System and the Private and Public Sector

Which of the following observations is true of the federal budget between 1960 and 2010?

Which of the following statements about transfer payments is true?

The income transferred by the government from a citizen who is earning income to another citizen is referred to as:

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

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.

Which of the following correctly describes the market-clearing price?

'Walkmans' that played audio cassettes were withdrawn from the market by Sony Corporations soon after MP3 players became popular among consumers.Which of the following factors is most likey to have led to this outcome?

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.The demand for Restaurant Meals shift in one direction while the demand for Delivery meals shift in another direction.This implies:

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

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.

Households and firms pay taxes to the government to:

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.Calculate the total amount of consumption expenditure.

When a household owns shares of stock:

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?

Spending on goods and services by all levels of government in the U.S.combined is smaller than investment spending but larger than consumption.

Since the U.S.is organized as a market economy, the government sector does not play a role in economic activity.

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

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

Firms try to minimize costs and maximize profits and in the process produce:

Which of the following economic indicators is used by the World Bank to classify countries as industrial economies or developing countries?