ECO Ch.2

The income of labor earns ___ percent of total income.

63

Consider the factors of production and the type of income that each factor of production earns. Which of the following does not match? A. Capital; Profit B. Entrepreneurship; profit C. Land; rent D. Labor; wages

A. Capital; Profit

Which of the following is an example of consumption goods and services? A. Ron bought a Nissan Altima last summer. B. Unemployment in the eurozone is rising C. Real estate markets are improving and many US cities D. Winter has started settling in

A. Ron bought a Nissan Altima last summer

Which of the following is an example of entrepreneurship? A. Sam Walton created the multinational retail brand Walmart in 1962 B. Facebook is a social networking site C. Honda Civic and Toyota corolla are the best selling compact cars in North America D. industrial output in China is increasing

A. Sam Walton created the multinational retail brand Walmart in 1962

People become entrepreneurs because they ___. The income entrepreneurs are in is called ___.

Are frustrated in their jobs; profit

Which of the following is an example of capital goods? A. The population of India will overtake China by 2020 B. The government will open another public school in the area C. Sam is scared of driving D. I enjoy Starbucks coffee

B. The government will open another public school in the area

Which of the following is items is not a factor of production? A. And oil rig in the golf of Mexico B. And Orange Grove in Florida C. A bank loan to a farmer D. A ski jump in Utah

C. A bank loan to a farmer

The factor of production ___; the factor of production ___.

Capital earns interest; entrepreneurship receives a profit or loss

The factors of production used to make the Dreamliner include ___.

Capital, land, labor, and entrepreneurship

The Dreamliner is a ___ good because it is ___

Capital; bought by airlines to increase productive resources

If California adopted the German model of higher education, ___ would get more and ___ would get less.

College graduates and skilled workers; taxpayers

The two types of goods and services produced are ___. And example of ____.

Constumption goods and services and capital goods; A consumption good is your iPad, a capital good is a pizza oven at a pizzeria

The production of the Dreamliner influences what goods and services produced by

Creating a demand for components manufactured around the world

Examples of capital include all of the following except A. Cruise ships B. Internet servers C. School busses D. Google stock E. ATMs

D. Google stock

Choose the statement that is incorrect. A. The quality of labor depends on how skilled the people are B. Labor is the work time and work effort that people devote to producing goods and services C. Human capital is the knowledge and skill that people obtain from education, on-the-job training, and work experience D. Labor is often referred to as infrastructure capital E. The quality of labor increases as the adult population increases

D. Labor is often referred to as infrastructure capital

The production of the dreamliner influences how good and services are produced by

Developing a new technologies for the design and construction of an airplane

In the circular flow figure of the global economy on the right, the flows of the components manufactured in other countries appear as ___. And the flows of dream liner sales to foreign airline appear as ___

Expenditure on the US imports; expenditure on the US exports

A model of the economy that shows a circular flow of ___ that result from decision makers choices and the way these choices interact to determine ___ goods and services are produced is the circular flow model

Expenditures and incomes; what, how, and for whom

The money flows are ___

Factor incomes, household and government expenditures on goods and services, taxes, and transfers

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

Payments for labor services flow from ___ through the ___ markets

Firms to households; factor

Describe what goods and services are produced in developing economies.

Food production is a large part of developing economies and manufacturing is growing

Purchases of new national defense equipment flow from​ ______ to​ ______ through the​ ______ markets.

Government to firms; goods

Expenditure on consumption goods and services flows from ___ through the ___ markets

Households to firms; goods

With More job training and more scholarships to pour American students, which special factor of production is likely to grow faster than in the past?

Human capital

A Clinton foundation success story is that it loaned to $23,000 to Rwandan Coffee growers to support improvements to coffee washing stations and provided technical support. What was the source of this success? The source of the success of the coffee growers is___.

Increase in human capital and improvements to washing stations, which changed physical capital

Human capital ___ that people obtain from education, on the job training, and work experience. ___ that have been produced and that businesses now use to produce goods and services is capital.

Is the knowledge and skill; tools, instruments, machines, buildings, and other items

Indicate all items in the following list that are not factors of production and explain why. Item a: vans used by a baker to deliver bread Item b: 1,000 shares of Amazon.com stock Item c: undiscovered oil in the Arctic Ocean Item d: a bulldozer Item e: a soda Item f: the attorney general

Items b, c, and e because they are not productive resources used to produce goods and services - land, labor, capital, or entrepreneurship

Indicate all items in the following list that are non-consumption goods and services and explain why. Item a: a chocolate bar Item b: a ski lift Item c: a golf ball Item d: a shopping mall Item e: a train Item f: a golf course

Items b, d, e and f because they are not items that individuals and governments buy and use up in the current period.

Indicate all items in the following list that are not capital goods and services and explain why. Item a: an auto assembly line Item b: a shopping mall Item c: a golf ball Item d: the Atlantic Ocean Item e: a truck owned by fedex Item f: a librarian

Items c, d, and f because they are not items that businesses and governments buy to increase productive resources to use over future periods to produce other goods and services

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

Most Americans are in their income by selling the services of the factor of production ___. The income they are in is called ___.

Labor; a wage

The factor of production most people supply is ___, and the income these people earn is ___.

Labor; a wage

The factor of production that earns the highest percentage of total US income is ___. The income this factor of production earns is called ___.

Labor; wages

The factor of production ___, and the factor of production ___?

Land earns rent; Labor earns wages

The productive resources that are used to produce goods and services - ___ are factors of production

Land, labor, capital, and entrepreneurship

Rent is the income paid for the use of​ _____. Wages are income paid for the services of​ _____. Profit ​(or loss) is the​ _____ earned by an entrepreneur for running a business. Interest is the income paid for the use of​ _____.

Land; labor; income; capital

Households are individuals are a group of people ___ together. Buhrman is our institutions that Firms are institutions that organize ___ of goods and services

Living; the production

___ firms are involved in the production of the Dreamliner. ___ of the firms are identified in the figure in the pop up.

More than 400; fifteen

Why am I and cons of one dollar a day and two dollars a day under estimate the value of the goods and services that the households annually consume?

Most households living on one dollar or two dollars a day produce and consume much of their own food and clothing

Describe how good and services are produced in developing economies.

Most production does not use modern capital intensive technologies but some industries do

The production of the dreamliner influences for human goods and services are produced by

Paying rent, wages, interest, and profit to the factors of production that make and assemble dreamliner components

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

So many people in Peru are entrepreneurs because ___

Peru is a poor country in the United States, so Peru has more limited employment opportunities

The real flows are ___ that flow from firms to households and governments through ___ markets.

The goods and services; goods

What are the real flows and money flows that run between households, firms, and governments in the circular flow model? The real flows are ___ that flow from households to firms through ___ markets.

The services of factors of production; factor

Capital consists of ___.

Tools, instruments, machines, buildings, and other items that have been produced in the past and that business is now used to produce goods and services

Which of the following illustrates goods markets? Which of the following illustrates factor markets?

Walmart sells potatoes at $2.14 a pound. Ann bought a new condo for $200,000

The pace at which new businesses are created in the US economy and the percentage of US jobs in young firms have fallen. Explain how these facts might influence what, how, and for whom goods and services are produced in the United States. The fax in the news clip to have implications for ___ goods and services are produced

What, how, and for whom

A market is an arrangement that brings​ _____ together and enables them to get information and do business with each other.

buyers and sellers

Land is the __________ that we use to produce goods and services.

gifts of nature or natural resources

The ___ that people devote to produce goods and services is labor.

work time and work effort