Econ Chapter 2

If GDP is $50 billion and the population is 20 million, then the GDP per capita is ______.

$2,500

The total GDP produced in 2013 by the world's three largest economies equaled (See World View, "Comparative Output") _____.

$30.9 trillion

If GDP is $15 trillion and the population is 300 million, then the GDP per capita is ______.

$50,000

In 2019, the average U.S. citizen could have consumed approximately _____ worth of goods and services.

$64,000

Per capita GDP in the United States in 2019 was approximately ______.

$64,000

According to the 2019 data on distribution of income, the poorest 20 percent of U.S. households earned ____________ percent of the total income. (Insert a number and round to one decimal place.)

3.1

In the given figure (see World View, "GDP Per Capita Around the World"), the per capita GDP in the United States in 2013 was approximately _____ times higher than the average for the rest of the world.

5

Using 2019 data, the richest fifth of U.S. households earned _______ percent of all the income. (Round to the nearest percent)

52

Which of the following are examples of factor mobility?

A worker who sold desktop computers is now a representative for a tablet supplier. A textile factory gets converted into a craft brewery.

An increase in output or an expansion of production possibilities is called:

Economic growth

The idea that the U.S. economy uses the market mechanism to distribute most goods and services and those who receive the most income get the most goods is best represented by the question:

FOR WHOM output is produced?

High productivity in the United States and other high-income countries results from high levels of human capital combined with labor-intensive production processes.

False

True or false: The government has no role in an economy.

False

True or false: The three main decisions that must be addressed by an economic system include what goods are to be produced, who will produce them, and where they will be produced.

False

According to the given graph (see World View, "GDP Per Capita Around The World"), per capita GDP in the United States was approximately _____________ times higher than the average for the rest of the world. (Insert a whole number.)

Five or 5

Real GDP divided by the size of the population is called:

GDP per capita

The factors of production include _____.

Labor, capital, land (natural resources), entrepreneurship

Production in high income countries is _____ labor-intensive compared to lower income countries.

Less

Which of the following are included in the role of government?

Providing a legal framework Protecting the environment Protecting Consumers Protecting Labor

Which of the following statements best summarizes the growth in GDP in the U.S. between 1900 and 2010?

Real GDP rose more than tenfold.

Which of the following are specific development goals set by the United Nations?

Reduce inequalities across income groups, gender, and race. Eliminate world hunger. Ending world poverty. Protect the environment and slow climate change.

Income inequality tends to be highest in which one of the following countries?

South Africa

True or false: Economists classify the factors of production into land, labor, capital and entrepreneurial ability.

True

True or false: The idea that the U.S. economy uses the market mechanism to distribute most goods and services and those who receive the most income get the most goods is best represented by the question 'FOR WHOM the output is produced.'

True

If a farmer uses tractors, combines, automated irrigation systems, and computers to manage the farm, this farmer is producing in a ________ manner.

capital-intensive

Private property rights, coupled with the freedom to negotiate binding written _______________(one word) enables individuals and businesses to obtain, use, and dispose of property resources as they see fit.

contracts

Because business contracts may harm third parties, the government uses regulations to protect the _______.

environment

The movement of resources between old and new industries is an example of:

factor mobility

As long as GDP growth is _____ population growth, a country will experience an increase in per capita GDP.

greater than

The total market value of all final goods and services produced within a nation's borders in a given time period is:

gross domestic product

The transformation of the United States into a service economy is a reflection of its

high incomes.

The per capita income in the United States is increasing because the rate of economic growth is _____ the rate of population growth.

higher than

High productivity in the United States and other high-income countries results from which two of the following?

highly skilled labor forces and capital-intensive production processes

The knowledge and skills possessed by the workforce is called ______.

human capital

The knowledge and skills possessed by the workforce is called ______________ ____________. (Enter one word in each blank)

human capital

The government regulation of HOW goods are produced will make us better off _____ a sure thing.

is not

The mix of output in poor countries is weighted toward goods rather than services as a consequence of their

low incomes.

Income inequality tends to be highest in ______.

low-income countries

Possible negative consequences of excessive regulation include all of the following except ______.

lower product prices

Productivity is defined as:

output per unit of input

The dollar value of GDP divided by the total population is called:

per capita GDP

Output per labor-hour can be defined as:

productivity

When the government regulates the safety of many products, like medicine or food products, this is an example of government:

protecting consumers

When externalities exist, the government can enact laws to limit these external costs of production. This is best described as an example of the government:

protecting the environment

The title to an automobile or the deed to a cattle ranch assures a buyer that the seller is the legitimate owner of that property. This is an example of the government _________.

providing a legal framework

The sustainable development goals (aka the Millennium Development goals) established by the United Nations are meant to ______.

reduce global poverty

Which of the following are examples of the role of government in protecting consumers?

the testing of new medicines the regulation of advertising claims the implementation of antitrust laws

Gross domestic product can be described as ______

the total market value of all final goods and services produced within a nation's borders in a given time period