3) The International Monetary Fund divides nations into three groups. What are the three
groups and what are the characteristics of each group?
Skill: Level 3: Using models
Section: Checkpoint 2.2
Status: Old
AACSB: Written and oral communication
4) Discuss the distribution of income around the world. Which countries have the highest
average incomes? Which countries have the lowest average incomes? How has the
distribution of income changed in recent years?
Skill: Level 3: Using models
Section: Checkpoint 2.2
Status: Old
AACSB: Written and oral communication
5) Discuss the diferences between developing and emerging market economies.
Skill: Level 5: Critical thinking
Section: Checkpoint 2.2
Status: Old
AACSB: Written and oral communication
2.8 Essay: The Circular Flows
68
1) What is a market? Must a market have a single physical location?
Skill: Level 1: Deinition
Section: Checkpoint 2.3
Status: Old
AACSB: Written and oral communication
2) Explain the structure of the circular low model.
Skill: Level 2: Using deinitions
Section: Checkpoint 2.3
Status: Old
AACSB: Written and oral communication
3) How are the roles of the household diferent in the goods market and in the factor
markets?
Skill: Level 2: Using deinitions
Section: Checkpoint 2.3
Status: Old
AACSB: Written and oral communication
69
4) Describe the circular low of the economy by discussing the two markets where
households and irms meet.
Skill: Level 3: Using models
Section: Checkpoint 2.3
Status: Old
AACSB: Written and oral communication
5) Explain how public goods provided by the federal government difer from public goods
provided by the state and local governments.
Skill: Level 1: Deinition
Section: Checkpoint 2.3
Status: Old
AACSB: Written and oral communication
6) Describe the government’s lows in the circular low model of the economy.
Skill: Level 2: Using deinitions
Section: Checkpoint 2.3
Status: Old
AACSB: Written and oral communication
70
7) Label the lows in the simpliied circular low diagram that ignores the government.
Skill: Level 2: Using deinitions
Section: Checkpoint 2.3
Status: Old
AACSB: Relective thinking
8) Draw a circular low diagram with households and irms and without government. Label
the markets and the lows in the circular low diagram.
Skill: Level 3: Using models
Section: Checkpoint 2.3
Status: Old
AACSB: Relective thinking
72
9) Explain how the largest sources of state tax revenues difers from the largest sources of
federal tax revenues.
Skill: Level 1: Deinition
Section: Checkpoint 2.3
Status: Old
AACSB: Relective thinking
10) What are the two largest sources of tax revenues for the U.S. federal government?
Skill: Level 1: Deinition
Section: Checkpoint 2.3
Status: Old
AACSB: Relective thinking
11) What is the largest source of tax revenue for the U.S. federal government and what is
the largest expenditure item of the U.S. federal government?
Skill: Level 1: Deinition
Section: Checkpoint 2.3
Status: Old
AACSB: Relective thinking
73