61) The richest 20 percent of individuals in the United States receive about ________ of the
nation’s total income.
A) 21 percent
B) 51 percent
C) 91 percent
D) 99 percent
E) 23 percent
Skill: Level 1: Deinition
Section: Checkpoint 2.1
Status: Old
AACSB: Relective thinking
62) When the total U.S. production of goods and services is divided into consumption goods
and services, capital goods, government goods and services, and export goods and
services, the largest component is
A) consumption goods and services.
B) capital goods.
C) government goods and services.
D) export goods and services.
E) capital goods and government goods and services tie for the largest component.
Skill: Level 2: Using deinitions
Section: Checkpoint 2.1
Status: Old
AACSB: Relective thinking
63) An example of a capital good is
A) a iber optic cable TV system.
B) an insurance policy.
C) a haircut.
D) an iPod.
E) a slice of pizza.
Skill: Level 2: Using deinitions
Section: Checkpoint 2.1
Status: Old
AACSB: Relective thinking
21
64) Goods and services produced in the United States and sold in other countries are called
A) consumption goods and services.
B) capital goods.
C) government goods and services.
D) export goods and services.
E) import goods and services.
Skill: Level 2: Using deinitions
Section: Checkpoint 2.1
Status: Old
AACSB: Relective thinking
65) Which of the following correctly lists the categories of factors of production?
A) machines, buildings, land, and money
B) hardware, software, land, and money
C) capital, money, and labor
D) owners, workers, and consumers
E) land, labor, capital, and entrepreneurship
Skill: Level 1: Deinition
Section: Checkpoint 2.1
Status: Old
AACSB: Relective thinking
66) In economics, the factor of production “land” includes all of the following EXCEPT
A) energy.
B) plastics.
C) wild plants.
D) animals, birds, and ish.
E) oil.
Skill: Level 2: Using deinitions
Section: Checkpoint 2.1
Status: Old
AACSB: Relective thinking
22
67) Human capital is
A) solely the innate ability we are born with.
B) the money humans have saved.
C) the knowledge humans accumulate through education and experience.
D) machinery that needs human supervision.
E) any type of machinery.
Skill: Level 1: Deinition
Section: Checkpoint 2.1
Status: Old
AACSB: Relective thinking
68) When Ethan continues his education beyond high school, he is increasing his
A) capital.
B) wage rate.
C) human capital.
D) quantity of labor.
E) rent.
Skill: Level 2: Using deinitions
Section: Checkpoint 2.1
Status: Old
AACSB: Relective thinking
69) ________ is the human resource that organizes labor, land, and capital.
A) Human capital
B) Human skill
C) A gift of nature
D) Entrepreneurship
E) Proit
Skill: Level 2: Using deinitions
Section: Checkpoint 2.1
Status: Old
AACSB: Relective thinking
23
70) Wages are paid to ________ and interest is paid to ________.
A) entrepreneurs; capital
B) labor; capital
C) labor; land
D) entrepreneurs; land
E) labor; entrepreneurs
Skill: Level 1: Deinition
Section: Checkpoint 2.1
Status: Old
AACSB: Relective thinking
71) The income earned by entrepreneurs is
A) interest.
B) wages.
C) proit or loss.
D) rent, wages, and interest.
E) a mixture of rent, wages, interest, and proit.
Skill: Level 1: Deinition
Section: Checkpoint 2.1
Status: Old
AACSB: Relective thinking
72) Dividing the nation’s income among the factors of production, the largest percentage is
paid to
A) labor.
B) land.
C) capital.
D) entrepreneurship.
E) labor and capital, with each receiving about 41 percent of the total income.
Skill: Level 1: Deinition
Section: Checkpoint 2.1
Status: Old
AACSB: Relective thinking
24
73) ________ earned the highest amount of income among the factors of production in the
United States.
A) Labor
B) Capital
C) Land
D) Entrepreneurship
E) Investment
Skill: Level 1: Deinition
Section: Checkpoint 2.1
Status: Old
AACSB: Relective thinking
74) In the United States, the richest 20 percent of households receive about ________
percent of total income.
A) 4
B) 15
C) 23
D) 50
E) 33
Skill: Level 1: Deinition
Section: Checkpoint 2.1
Status: Old
AACSB: Relective thinking
75) In the United States, the poorest 20 percent of households receive about ________
percent of total income.
A) 3
B) 15
C) 23
D) 49
E) 20
Skill: Level 1: Deinition
Section: Checkpoint 2.1
Status: Old
AACSB: Relective thinking
25
76) The personal distribution of income shows
A) that labor receives the largest percentage of total income.
B) how proit accounts for the largest fraction of total income.
C) that the richest 20 percent of households receive 23 percent of total income.
D) that interest accounts for most of the income of the richest 20 percent of households.
E) that the poorest 20 percent of households receive less than 4 percent of total income.
Skill: Level 1: Deinition
Section: Checkpoint 2.1
Status: Old
AACSB: Relective thinking
2.2 The Global Economy
1) Compared to the world, the rate of U.S. population growth is
A) slower than in the world as a whole.
B) about the same as in the world as a whole.
C) much faster than in the world as a whole.
D) incomparable because U.S. residents are born with a much greater chance of
accumulating a lot of human capital.
E) incomparable because we do not have accurate world population statistics.
Skill: Level 1: Deinition
Section: Checkpoint 2.2
Status: Old
AACSB: Relective thinking
2) Approximately ________ people live in the United States and ________ people live in the
world.
A) 410 million; 8 billion
B) 310 million; 7 billion
C) 210 million; 5 billion
D) 310 million; 3 billion
E) 210 million; 6 billion
Skill: Level 1: Deinition
Section: Checkpoint 2.2
Status: Old
AACSB: Relective thinking
26
3) The most people live in ________ economies and the fewest people live in ________
economies.
A) developing; emerging market
B) advanced; emerging market
C) advanced; developing
D) emerging market; developing
E) developing; advanced
Skill: Level 1: Deinition
Section: Checkpoint 2.2
Status: Old
AACSB: Relective thinking
4) When describing the IMF broad country classiication, the most accurate statement is
that
A) the category with the greatest number of countries is the advanced economies.
B) the emerging market economies are countries that were, until the early 1990s, part of
the Soviet Union or its satellites.
C) most of the nations in Western Europe are considered emerging market economies.
D) most of the world’s population lives in advanced economies.
E) about 50 percent of the world’s population live in the advanced economies and the other
50 percent live in the emerging market and developing economies.
Skill: Level 1: Deinition
Section: Checkpoint 2.2
Status: Old
AACSB: Relective thinking
5) Which of the following is NOT classiied as an advanced economy?
A) South Korea
B) Australia
C) Russia
D) Hong Kong
E) the United Kingdom
Skill: Level 2: Using deinitions
Section: Checkpoint 2.2
Status: Old
AACSB: Relective thinking
27
6) Canada is classiied by the International Monetary Fund as
A) an advanced economy.
B) a developing economy.
C) a transition economy.
D) an emerging market economy.
E) a natural-resource based economy.
Skill: Level 2: Using deinitions
Section: Checkpoint 2.2
Status: Old
AACSB: Relective thinking
7) ________ economies include ________.
A) Advanced; France, Australia and South Korea
B) Advanced; the United States, Taiwan and Russia
C) Advanced; Russia, Canada and Singapore
D) Emerging; Taiwan, Russia and Singapore
E) Emerging; Saudi Arabia, Poland and Taiwan
Skill: Level 2: Using deinitions
Section: Checkpoint 2.2
Status: Old
AACSB: Relective thinking
8) Most countries in the world are classiied as
A) advanced.
B) in transition.
C) developing.
D) industrialized.
E) emerging market.
Skill: Level 1: Deinition
Section: Checkpoint 2.2
Status: Old
AACSB: Relective thinking
28
9) Most of the world’s population lives in
A) advanced economies.
B) developing economies.
C) transition economies.
D) emerging market economies.
E) island nations.
Skill: Level 1: Deinition
Section: Checkpoint 2.2
Status: Old
AACSB: Relective thinking
10) Which of the following is true?
i. The advanced economies account for more than half of global production.
ii. Almost four out of every ive people in the world live in the developing economies.
iii. In the advanced economies, agriculture accounts for a larger part of total production
than in the developing economies.
A) Only i and ii
B) Only ii and iii
C) Only i and iii
D) Only i
E) i, ii, and iii
Skill: Level 1: Deinition
Section: Checkpoint 2.2
Status: Old
AACSB: Relective thinking
11) Nigeria would be classiied by the International Monetary Fund as
A) an advanced economy.
B) a developing economy.
C) a transition economy.
D) an emerging market economy.
E) a resource-based economy.
Skill: Level 2: Using deinitions
Section: Checkpoint 2.2
Status: Old
AACSB: Relective thinking
29
12) ________ economies include ________.
A) Developing; Saudi Arabia and South Africa
B) Developing; Poland and Russia
C) Developing; China and Poland
D) Emerging; Poland and Brazil
E) Emerging; China and Canada
Skill: Level 2: Using deinitions
Section: Checkpoint 2.2
Status: Old
AACSB: Relective thinking
13) Poland is classiied as
A) an advanced economy.
B) a developing economy.
C) a transition economy.
D) an emerging market economy.
E) private economy.
Skill: Level 2: Using deinitions
Section: Checkpoint 2.2
Status: Old
AACSB: Relective thinking
14) The majority of the value of production in the world economy is produced in
A) all of the developing economies taken together.
B) all of Africa and the Middle East taken together.
C) China and other Asian developing economies.
D) all of the advanced economies taken together.
E) all of the emerging market economies taken together.
Skill: Level 1: Deinition
Section: Checkpoint 2.2
Status: Old
AACSB: Relective thinking
30