Question 1

Income inequality is

Accepted Answer

A)  Often greatest in the richest countries.
B)  An issue because households in the lowest quintile receive more than their share of income.
C)  Often greatest in the poorest countries.
D)  Not an issue in the United States because of the redistribution of income through the federal tax system.Income distribution can vary a great deal from country to country.E) A) and D)
F) B) and D)

Question 2

Approximately how much of the world's output does China produce?

Accepted Answer

A)  13 percent.
B)  0 percent.
C)  9 percent.
D)  1.5 percent.E) None of the above
F) B) and C)

Question 3

The income distribution of the United States is basically the nation's answer to the

Accepted Answer

A)  WHAT question.
B)  HOW question.
C)  FOR WHOM question.
D)  WHAT, HOW, and FOR WHOM questions.E) A) and B)
F) A) and C)

Question 4

A country that increased its literacy rate and thereby its average human capital would probably

Accepted Answer

A)  Decrease GDP.
B)  Increase GDP.
C)  Have not impact on GDP.
D)  None of the choices are correct.E) A) and B)
F) B) and C)

Question 5

Factor mobility refers to

Accepted Answer

A)  Technological change in the use of capital.
B)  The ease of reallocating resources.
C)  Technological change in the use of labor.
D)  The increase in labor productivity.E) A) and B)
F) B) and D)

Question 6

China has roughly how much of the world's population?

Accepted Answer

A)  10 percent.
B)  20 percent.
C)  30 percent.
D)  40 percent.E) C) and D)
F) A) and C)

Question 7

Regarding increasing productivity, factor mobility is

Accepted Answer

A)  Important in that it helps to fix a stable labor-intensive production process.
B)  Important in that it helps to fix a stable capital-intensive production process.
C)  Important in that it helps to reallocate resources in a dynamic economy.
D)  Not important in either a stable or dynamic economy.E) B) and D)
F) A) and C)

Question 8

How will an increase in the level of human capital, ceteris paribus, affect an economy's production possibilities curve?

Accepted Answer

A)  Shift the curve inward.
B)  Result in a movement from inside the curve to a point on the curve.
C)  Shift the curve outward.
D)  Result in a movement along the curve.E) A) and D)
F) A) and C)

Question 9

In the United States today, nearly _________ of the population has attained a college degree.

Accepted Answer

A)  30 percent
B)  15 percent
C)  50 percent
D)  40 percentE) A) and B)
F) A) and C)

Question 10

The measure of final goods and services produced in the United States is the

Accepted Answer

A)  GDP of the United States.
B)  Percentage change in the GDP of the United States.
C)  Per capita GDP in the United States.
D)  Total sales of all goods during the year.E) A) and B)
F) B) and D)

Question 11

Monopolists can dictate the price or the quantity of the product they produce, but not both.

Accepted Answer

A) True 
 B)False

Question 12

The best measure of how much output the average person would get if all output were divided evenly among the population would be

Accepted Answer

A)  GDP.
B)  The economic growth of the economy.
C)  Per capita GDP.
D)  The capital stock of the economy.E) B) and D)
F) C) and D)

Question 13

Per capita GDP will rise if GDP

Accepted Answer

A)  Increases more rapidly than the population increases.
B)  Increases at the same rate as the population increases.
C)  Decreases and the population increases.
D)  Increases more slowly than the population increases.E) A) and B)
F) A) and C)

Question 14

Per capita GDP will definitely fall if

Accepted Answer

A)  The population falls.
B)  The rate of economic growth falls.
C)  The rate of economic growth is less than the rate of population growth.
D)   There is a decrease in the size of the working population.E) A) and B)
F) A) and C)

Question 15

If output growth exceeds population growth for a country,

Accepted Answer

A)  Average living standards will increase.
B)  GDP must have fallen at a very rapid rate.
C)  Per capita GDP will decrease.
D)   This country must have overcome the problem of opportunity costs.E) A) and B)
F) B) and C)

Question 16

As of 2010, for income distribution in the United States, the minimum family earnings in the top quintile were approximately _______ times the maximum family earnings in the bottom quintile.

Accepted Answer

A)  3
B)  5
C)  7
D)  10E) B) and D)
F) B) and C)

Question 17

Education and training are examples of investment in human capital.

Accepted Answer

A) True 
 B)False

Question 18

According to the World View chart in the text, from highest to lowest real GDP per capita, which is correct?

Accepted Answer

A)  United States, Japan, France, Canada, China.
B)  United States, China, Japan, Germany, Russia.
C)  United States, Canada, Japan, France, South Korea.
D)  United States, China, India, Jordan, Germany, Japan, Russia.E) C) and D)
F) A) and C)

Question 19

Outsourcing leads to

Accepted Answer

A)  Increases in productivity and increases in total output.
B)  Increases in productivity and decreases in total output.
C)  Decreases in productivity and increases in total output.
D)  Decreases in productivity and decreases in total output.E) A) and C)
F) A) and D)

Question 20

The richest 20 percent of the families in the United States receive approximately ______ percent of total income.

Accepted Answer

A)  10
B)  20
C)  50
D)  90E) A) and B)
F) A) and C)

Exam 2: The Useconomy: a Global View

The richest 20 percent of the families in the United States receive approximately ______ percent of total income.

Correct AnswerverifiedShow Answer

China has roughly how much of the world's population?

Correct AnswerverifiedShow Answer

Per capita GDP will rise if GDP

Correct AnswerverifiedShow Answer

Per capita GDP will definitely fall if

Correct AnswerverifiedShow Answer

The best measure of how much output the average person would get if all output were divided evenly among the population would be

Correct AnswerverifiedShow Answer

Monopolists can dictate the price or the quantity of the product they produce, but not both.

Correct AnswerverifiedShow Answer

In the United States today, nearly _________ of the population has attained a college degree.

Correct AnswerverifiedShow Answer

The measure of final goods and services produced in the United States is the

Correct AnswerverifiedShow Answer

As of 2010, for income distribution in the United States, the minimum family earnings in the top quintile were approximately _______ times the maximum family earnings in the bottom quintile.

Correct AnswerverifiedShow Answer

Outsourcing leads to

Correct AnswerverifiedShow Answer

If output growth exceeds population growth for a country,

Correct AnswerverifiedShow Answer

Approximately how much of the world's output does China produce?

Correct AnswerverifiedShow Answer

Regarding increasing productivity, factor mobility is

Correct AnswerverifiedShow Answer

The income distribution of the United States is basically the nation's answer to the

Correct AnswerverifiedShow Answer

A country that increased its literacy rate and thereby its average human capital would probably

Correct AnswerverifiedShow Answer

How will an increase in the level of human capital, ceteris paribus, affect an economy's production possibilities curve?

Correct AnswerverifiedShow Answer

Factor mobility refers to

Correct AnswerverifiedShow Answer

According to the World View chart in the text, from highest to lowest real GDP per capita, which is correct?

Correct AnswerverifiedShow Answer

Education and training are examples of investment in human capital.

Correct AnswerverifiedShow Answer

Income inequality is

Correct AnswerverifiedShow Answer

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