ECO C.2

In the United States, the poorest 20 percent of households receive about ________ percent of total income.

3

________ is the human resource that organizes labor, land, and capital.

Entrepreneurship

_____ choose the quantities of goods and services to produce, while _____ choose the quantities of goods and services to buy.

Firms; households and the governments

In the circular flow model, the expenditures on goods and services flow in the

Opposite direction as goods and services

________ are the largest components of state and local government revenue.

Transfers from federal government and sales taxes

An example of a capital good is

a fiber optic cable TV system

In the circular flow model,

both firms and households buy or sell in different markets.

In the circular flow model, rent, wages, interest, and profit paid flow from ________ through ________ to ________.

firms; factor markets; households

________ choose the quantities of factors of production to hire and ________ choose the quantities of goods and services to produce.

firms; firms

A circular flow model shows the interrelationship between the ________ market and the ________ markets.

goods; factor

Within the circular flow model, economists define households as

individuals or groups living together.

Human capital is

knowledge humans accumulate through education and experience

________ earned the highest amount of income among the factors of production in the United States.

labor

Wages are paid to ________ and interest is paid to ________.

labor; capital

Which of the following correctly lists the categories of factors of production?

land, labor, capital, entrepreneurship

The percentage of the world's population that lives in the advanced economies is

less than 20 percent.

Of the following, the largest source of revenue for the federal government is

personal income taxes.

In economics, the factor of production "land" includes all of the following EXCEPT ________.

plastics

The income earned by entrepreneurs is

profit or loss

U.S. exports of goods and services flow to households and firms in ________ and U.S. financial inflows of capital flow to households and firms in ________.

the rest of the world; the United States