101)
Which of the following correctly lists the categories of factors of
production?
101)
A) labor, money, stocks, and bonds
B) land, labor, capital, and
entrepreneurship
C) land, buildings, capital, and
entrepreneurship
D) forests, fish, buildings, capital,
and entrepreneurship
E) labor, machines, buildings,
capital, and entrepreneurship
102)
Goods and services are produced by using four factors of production:
102)
A) .png”>land, labor, capital, and money.
B) land, labor, capital, and entrepreneurship.
C) land, labor, money, and equipment.
D) natural resources, human resources,
financial assets, and entrepreneurial resources.
E) labor, human capital, physical
capital, and financial capital.
.png”>
35
.png”>
The figure above shows governments in
the circular flow.
103) In the figure above,
households
103)
A) pay taxes to governments through
factor markets.
B) receive transfers directly from
governments.
C) buy goods and services from
governments in goods markets.
D) receive transfers from governments
through factor markets.
E) sell factors of production to
governments.
.png”>
36
104) ________ are the largest components of state and
local government revenue.
104)
A) Corporate income taxes and
lottery income
B) Transfers from federal
government and corporate income taxes
C) Transfers from federal
government and sales taxes
D) Individual income taxes and
sales taxes
E) Individual income taxes and
corporate income taxes
105)
The richest 20 percent of individuals in the United States receive about
________ of the nation’s
105)
total income.
A) 91 percent
B) 99 percent
C) 51 percent
D) 23 percent
E) 21 percent
106) An example of a money flow in
the circular flow diagram is
106)
A) .png”>.png”>a student’s payment of tuition to her
university.
B) a farmer’s use of land to grow wheat.
C) the government’s operation of the
court system.
D) a firm’s production of goods to sell
to a foreign country.
E) the government’s financing of the
national debt.
.png”>
107)
Capital, as a factor of production, refers to
107)
A) the tools and instruments used to
produce other goods and services.
B) the production technology used by
firms.
C) money, stocks, and bonds.
D) stocks and bonds but not money.
E) the production factors imported from
abroad.
.png”>
37
108) Human capital can be increased through
108)
A) decreases in population.
B) increasing the nation’s production of
consumption goods.
C) investment in new machinery.
D) education, on-the-job training, and work experience.
E) investment in new technology.
.png”>
)
109)
The national debt is the total amount the ________ government has ________ to
make expenditures 109) that exceed tax revenue.
A) .png”>federal; loaned
B) federal; taxed U.S. citizens
C) state and local; borrowed
D) federal; borrowed
E) state and local; taxed U.S. citizens
110) The functional distribution of
income measures which of the following?
110)
A) The distribution of earnings by the
factors of production.
B) The distribution of income among
nations.
C) The distribution of income among
households.
D) How federal tax revenues are related
to the business function that employs taxpayers.
E) The proportion of income generated by
the four types of expenditures on goods and services.
.png”>