ch.2 pearson

In 2015 the United States produced about __________ of the global output.

16 percent

According to World Bank data, the lowest paid 20 percent of the global population receives about __________ of the world's income.

2 percent

In the United States, consumption goods and services comprise about __________ of total production.

78 percent

Which of the following classifications is​ correct?

A shopping mall produces retail services and is a capital good

In the circular flow model, who supplies factors of production in exchange for income?

Households

What is the name given to the accumulated training and skills that workers possess?

Human capital

Describe how goods and services are produced in developing economies.

Most production does not use modern​ capital-intensive technologies but some industries do.

Describe for whom goods and services are produced in developing economies.

People in factories have rising incomes but those who work in rural industries are left behind.

In the circular flow​ model, which of the following items is a real​ flow?

The flow of labor services from households to firms

Which of these is an example of profit?

The income the owners of a small restaurant receive.

Which of the following items is not a factor of​ production?

a bank loan to a farmer

Which of the following is an example of capital?

an assembly line

The factors of production include land, entrepreneurship, labor and __________.

capital

__________ goods and services are those bought by businesses to be used to increase efficiency or enhance production.

capital

Which of the following statements is​ correct?

capital earns interest and labor earns wages

The factor of production​ _________, and the factor of production​ _______.

capital earns​ interest; entrepreneurship receives a profit or incurs a loss

The two types of goods and services produced are​ _______. An example of​ _______.

consumption goods and services and capital​ goods; a consumption good is your​ iPad, and an example of a capital good is the pizza oven at a pizzeria

Which of the following statements about U.S. production is​ correct?

consumption goods and services represent almost 80%

How are goods and services produced in the global​ economy?

emerging economies use more capitol-intensive technology than do developing economies

The functional distribution of income shows the distribution of income among​ ______ and the personal distribution of income shows the distribution of income among​ ______.

factors of​ production; households

The money flows are​ ______.

factor​ incomes, household and government expenditures on goods and​ services, taxes, and transfers

Payments for labor services flow from​ ______ through the​ ______ markets.

firms to households; factor

Purchases of new national defense equipment flow from​ ______ through the​ ______ markets.

governments to firms; goods

In the United States, of all the services produced the largest category is __________.

health services

Expenditure on consumption goods and services flows from​ ______ through the​ ______ markets.

households to firms; goods

Goods and services purchased from businesses in other countries are __________.

imports

In the United States in​ 2014, the factor of production that earned the largest share of income was​ ______ and it earned​ ______ percent of total income.

labor; 63

The resources provided by nature and used to produce goods and services are also known as __________.

land

What factor of production receives rent as a payment?

land

The factor of production​ _________, and the factor of production​ _______.

land earns​ rent; labor earns wages

The source of the success of the coffee growers is​ _______.

ncrease in human capital and improvements to washing​ stations, which changed physical capital

The stock of computers, factory buildings, and machine tools used to produce goods is known as __________.

physical capital

The real flows are​ ______ that flow from firms to households and governments through​ ______ markets.

the goods and​ services; goods

The real flows are​ ______ that flow from households to firms through​ ______ markets.

the services of factors of​ production; factor

In the United States, the largest source of income is __________.

wage income

expenditures as a percentage of the gross domestic product __________.

were at the highest level during World War II

Which of the following is an example of human​ capital?

your professor's knowledge of the economy

When you think of an arrangement or institution that brings buyers and sellers of a good or service together, what are you thinking of?

A market

Describe what goods and services are produced in developing economies.

food production is a large part of developing countries

A person can increase their stock of human capital by __________.

getting a college degree

Income paid for the use of capital is called __________.

interest