Econ Exam 2 Prep

The income that households have available for spending or saving is: A. Disposable Income B. Nominal GDP C. Real GDP D. A Microeconomic Variable

A. Disposable Income

Private savings equals: A. Disposable Income minus Consumption Spending B. Government Spending minus Taxes plus Transfers C. National Income minus Consumption Spending D. Before-tax Income minus Consumption Spending

A. Disposable Income minus Consumption Spending

In the circular-flow diagram, households' purchases of goods and services is known as: A. Money Creation B. Consumer Spending C. Economic Growth D. Indexing the Market Basket

B. Consumer Spending

In the simplified circular-flow model of the macroeconomy, the two sectors are: A. Labor Unions and Management B. Households and Firms C. Inflation and Unemployment D. Capital and Labor

B. Households and Firms

What are the two sectors represented in a simple circular-flow diagram of the economy? A. Unions and Management. B. Households and Firms. C. Business and Government. D. Profit and Not-for-profit Sectors.

B. Households and Firms.

National income accounts were created in the United states during the: A. American Revolution B. Civil War C. Great Depression D. Vietnam War

C. Great Depression

Households receive income in the form of: A. Stocks, taxes, and savings. B. Savings and interest. C. Wages, dividends, interest, and rent. D. Market Baskets.

C. Wages, dividends, interest, and rent.

What is traded in factor markets? A. Agricultural products. B. Mineral Products. C. Exports and imports. D. Land, Labor, Capital, and Human Capital.

D. Land, Labor, Capital, and Human Capital.

Disposable income is income earned by households in factor markets: A. Plus taxes minus government transfers. B. Minus taxes and government transfers. C. Plus taxes and government transfers. D. Minus taxes plus government transfers.

D. Minus taxes plus government transfers.