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