51) When describing the IMF broad country classification, the most accurate statement is that
51)
A) .png”>.png”>most of the world’s population lives in advanced economies. B) the category with the greatest number of countries is the advanced economies. C) most of the nations in Western Europe are considered emerging market economies. D) the emerging market economies are countries that were, until the early 1990s, part of the Soviet Union or its satellites. E) about 50 percent of the world’s population live in the advanced economies and the other 50 percent live in the emerging market and developing economies. .png”>
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52) In the circular flow model, the factor markets are the markets in which
52)
A) consumption goods and services are bought and sold.
B) investment goods and services are bought and sold.
C) government goods and services are provided.
D) governments impose all their taxes.
E) land, labor, capital, and entrepreneurship are bought and sold.
53) As the circular flow model points out, a choice that households make is how
53)
A) .png”>many resources a firm will hire. B) many goods and services are produced.
C) much the government will collect in taxes and how much the government will spend on transfer payments. D) much labor is hired. E) many goods and services are purchased. .png”>
54) Tax revenues are transferred from
54)
A) local governments to state and federal governments. B) state governments to the federal government. C) one state government to other state governments. D) the state and local governments to the federal government. E) the federal government to state and local governments. .png”>
55) Households receive transfers from ________ and firms receive transfers from ________.
55)
A) government; government and households .png”>B) government; government C) firms and government; government D) firms; households E) government; no one
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56) U.S. exports of goods and services flow to households and firms in ________ and U.S. financial
56)
inflows of capital flow to households and firms in ________. A) the United States; the United States .png”>
B) the United States; the rest of the world and the United States C) the rest of the world; the rest of the world
D) the United States; the rest of the world E) the rest of the world; the United States
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.png”>
The figure above shows the circular flow model.
57) In the figure above, which of the following represents a real flow?
57)
A) Wages .png”>B) Capital C) Profit D) Expenditures on real estate services E) Both B and D
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58) Compared to the developing economies, the advanced economies have ________ human capital
58)
and ________ physical capital.
A) the same; the same
B) less; less
C) more; more
D) more; less
E) less; more
59) Physical capital differences across countries can be seen in the fact that
59)
A) students in India study the same subjects as those in the United States.
B) more advanced economies typically have more sophisticated technology.
C) the iPhone’s components are produced in 30 countries.
D) advanced economies produce 53 percent of the world’s income.
E) furniture factories in China use machines like those in North Carolina.
60) Which of the following correctly describes how the “global pie is baked”?
60)
A) .png”>.png”>Emerging economies account for about 25 percent of the global pie. B) The U.S.’s share of economic pie is increasing while China’s share is decreasing. C) Advanced economies account for about 50 percent of the value of the world’s production. D) Asia accounts for about 40 percent of the global pie. E) The increase in manufacturing has taken place in mainly the advanced economies. .png”>