ECON 202 CH2 HW
You've seen that the global distribution of income is unequal. Why do you think it is unequal? The global distribution of income is unequal because there is an unequal distribution of ______.
Human capital and physical capital
Indicate all the items in the following list that are not factors of production and explain why. Item a: Trucks used by FedEx to make deliveries Item b: Your dog Item c: Undiscovered coal reserves Item d: A garbage truck Item e: A pack of bubble gum Item f: The President of the United States
Items b, c, and e because they are not productive resources used to produce goods and serviceslong dashland, labor, capital, or entrepreneurship.
Consider the functional distribution of income. The largest percentage of income paid to the factors of production is paid to _________.
Labor
Think about the trends in what and how goods and services are produced in the U.S. and global economies. Do you think that at some future time, there will be no jobs in the United States and all the jobs will be in developing economies? Why or why not?
No, because we will always want personal services and entertainment and talented people will always be available to produce these items in the United States.
So many people in Peru are entrepreneurs because _____
Peru is a poorer country than the United States, so Peru has more limited employment opportunities
The factor of production _________, and the factor of production _______.
capital earns interest; entrepreneurship receives a profit or incurs a loss
Most Americans earn their income by selling the services of the factor of production ______. The income they earn is called ______.
labor; a wage
The factor of production _________, and the factor of production _______
land earns rent; labor earns wages
