CHP 2 Eco
Of the following, the federal government obtains most revenue from
Social Sec taxes
Which markets are depicted in the basic circular flow model?
The goods market and the factor market
In the circular flow model, which of the following is on the selling side in the goods market?
Only firms
What would be an example of capital good?
Antonio, the manager of the local Taco Hut, purchases a new deep fryer
In the circular flow model, which of the following is on the buying side in the goods market? i. firms ii. households iii. federal, state, and local governments
II and III
What would be an example of a consumption good
Jake buys an iPhone
The largest component of federal government spending is for
Medicare and Medicaid
Items bought by businesses to help produce other goods and services are called
capital goods.
Items that are purchased by individuals for their own enjoyment are called
consumption goods and services
The largest share of total production in the United States is
consumption goods and services
The circular flow model shows the
flow of expenditure and incomes that arise from the households', firms', and governments' decisions
The emerging market economies are
in transition from state-owned production to free markets.
Goods and services are produced by using four factors of production
land, labor, capital, and entrepreneurship
Physical capital differences across countries can be seen in the fact that
more advanced economies typically have more sophisticated technology.
In the factor market, firms ________ and households ________.
pay rent, wages, interest, and profit; earn rent, wages, interest, and profit
In the goods market, firms ________ and households ________.
supply goods and services; purchase goods and services
The personal distribution of income shows
that the poorest 20 percent of households receive less than 4 percent of total income
Capital, as a factor of production, refers to
the tools and instruments used to produce other goods and services