Micro Economics Chapter 2

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

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

Which of the following is an example of capital?

An Assembly Line

Which letter represents the demand for factors of production in this circular flow model?

C

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

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

Health Services

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

Goods and services purchased from businesses in other countries are

Imports

Income paid for the use of capital is called

Interest

What factor of production receives rent as a payment?

Land

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

Physical Capital

Which of these is an example of profit?

The income the owners of a small restaurant receive.

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

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

Land