In the simple circular flow model, total income in one nation must equal A) the sum of wages, rents, interest and profits. B) the yearly amount earned by that nation’s resources. C) the total monetary value of all final goods and services. D) All of the above are correct. ANSWER D
Date: September 2nd, 2020
Which of the following would most likely be defined as a final good? A) a computer tablet B) wheat C) iron ore D) lumber ANSWER A
Date: September 2nd, 2020
In the simple circular flow A) producers trade goods and services for monetary payments in the product market. B) consumers trade resources for goods and services in the factor market. C) businesses trade goods and services for resources in the product market. D) consumers trade goods and services for monetary payments in the factor market. […]
Date: September 2nd, 2020
In the product market A) businesses trade goods and services for resources. B) consumers trade monetary payments for goods and services. C) consumers trade goods and services for resources. D) consumers trade resources for goods and services. ANSWER B
Date: September 2nd, 2020
The population of a small town is 5,000. There are 4,000 people in the labor force, and 3,000 people are employed. The unemployment rate equals A) 25 percent. B) 60 percent. C) 75 percent. D) an undetermined amount given the lack of information. ANSWER A
Date: September 2nd, 2020
The unemployment rate can increase when A) the proportion of 18-22 year olds that go to college increases. B) the number of unemployed workers increases. C) the number of job finders increases. D) the size of the military increases. ANSWER B
Date: September 2nd, 2020
A firm produces a good and generates $5 million in receipts. Wages are $3 million, rent is $500,000, and interest payments are $1 million. Then A) profits are $500,000, the cost of production is $4.5 million, and households receive income equal to $4.5 million. B) profits are $500,000, the cost of production is $5 million, […]
Date: September 2nd, 2020
Countries are concerned about small changes in their average annual growth rates in per capita income because A) growth rates are a factor in U.N. participation. B) the power of compounding means small changes have large effects over time. C) growth rates tend to decline over time. D) the faster a country grows today, the […]
Date: September 2nd, 2020
In a small country, the adult population is 10,000. In that country, 7,000 people are in the labor force and 6,300 people are employed. The unemployment rate equals A) 0.63 percent. B) 7 percent. C) 10 percent. D) an undetermined amount given the lack of information. ANSWER C
Date: September 2nd, 2020
Which of the following occurs in the factor market? A) households exchange resources for goods and services. B) firms exchange money for resources. C) firms exchange goods and services for resources. D) households exchange money for goods and services. ANSWER B
Date: September 2nd, 2020
