Chapter 2: The U.S. and Global Economies

In 2010 the U.S. produced about ___ of the global output.

20%

State and local governments spend about ___ of their funds on education.

34%

Consumption goods and services comprise about ___ of total production.

61%

Approximately ___ of the world's energy is used to produce electricity with the remainder used for transportation.

80%

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

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

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

Getting a college degree

The largest category of total production is ___.

Health services

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

Households

The flow of funds from ___ into the financial system makes it possible for government and firms to borrow.

Households

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

Human capital

Goods and services purchased from businesses in other countries are known as ___.

Imports

Income paid for the use of capital is called ___.

Interest

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

Natural resources

The two largest sources of revenue for the U.S. government are ___.

Personal income taxes and social security taxes

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

Physical capital

Which of these is an example of profit?

The net income from a small restaurant

What is the definition of economic rent?

The price received by a factor of production that is in fixed supply

The U.S. government's national debt is ___.

The total amount borrowed and still owed to creditors over its history

Federal expenditures as a percentage of the gross domestic product ___.

Were at the highest level during World War II

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

2%

The largest component of U.S. government spending is ___.

Medicare and Medicaid