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

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.

According to the circular flow diagram, with households and firms as the only two sectors, money saved by the households reenters the economy in the form of:

The government sector sells resource services to households and buys goods and services from firms.

Which of the following is true of fiscal spending at the federal, state, and local levels of the U.S.government?

Identify the international organization that makes loans to developing countries.

A financial intermediary accepts deposits from savers and makes loans to borrowers.

If a corporation cannot pay its debts, creditors cannot seek payment from shareholders' personal wealth.

Which of the following flows from the government to the households, according to the circular flow diagram?

The process of new products and new firms replacing existing products and firms is called:

Balance in international trade suggests that:

According to the World Bank, low-income economies are heavily concentrated in:

In a market system, who ultimately determines what is produced?

In 2009, combined government spending in the U.S.economy was about:

In economics parlance, the term investment refers to:

The idea that in a market system the consumer determines what is to be produced is called:

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

National economic policies are usually set by the local government in the U.S. , making it the focus of economic discussions.

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

According to the World Bank, the high-income oil-exporting nations like Libya, Saudi Arabia, Kuwait, and the United Arab Emirates:

An enterprise that has only one shareholder does not constitute a corporation.