All of the following are incomes earned in the factor market EXCEPT A) wages. B) prices of goods and services. C) rents. D) profits. ANSWER B
Date: September 2nd, 2020
The annual cost of producing the entire output of goods and services in the economy A) includes durable goods but excludes nondurable goods. B) is total income. C) can be calculated entirely on the basis of financial transactions. D) includes financial transactions. ANSWER B
Date: September 2nd, 2020
Unemployment is a ________ concept, measuring the ________. A) stock; number of people who are not working B) stock; number of people at a point in time who are not working but who are looking for work C) flow; number of people who are first entering the labor force D) flow; number of people who […]
Date: September 2nd, 2020
Households receive their income in the circular flow diagram by A) obtaining dividends and interest payments. B) selling the use of their property. C) selling resources they own to business firms. D) selling the goods they produce at home. ANSWER C
Date: September 2nd, 2020
The term “economic growth” refers to increases in A) resources use. B) productive capacity. C) nominal income. D) satisfaction. ANSWER B
Date: September 2nd, 2020
Economic growth is usually defined as A) the increase in output over time, as measured by real per capita Gross Domestic Product (GDP). B) the reduction in the real cost of necessities. C) the rate of increase in output divided by the increase in labor. D) the increase in input availability. ANSWER A
Date: September 2nd, 2020
Unemployment is a A) flow concept. B) both a flow and a stock concept. C) stock concept. D) neither a stock nor a flow concept. ANSWER C
Date: September 2nd, 2020
Suppose that last week 100,000 people lost their jobs or quit. We can say that A) the number of unemployed increased by less than 100,000 people because we should not count those who quit their jobs. B) the 100,000 people represent a stock known as the new unemployed. C) the number of unemployed increased by […]
Date: September 2nd, 2020
Using a production possibilities curve, economic growth is represented by A) an inward shift of the curve. B) an outward shift in the curve. C) a movement along the curve. D) a pivot of the curve. ANSWER B
Date: September 2nd, 2020
In the simple circular flow model, the funds received by a carmaker when it sells a car goes to A) only the owners of the carmaker. B) the owners of all of the resources used to make the car. C) the workers who helped build the car. D) the owners of firms who sold materials […]
Date: September 2nd, 2020
