Reference no: EM13219715

1) In a market economy, income depends mostly on a. productivity b. luck c. age d. sex

2) The Lorenz curve shows the a. functional distribution of income b. personal distribution of income c. relative percentage of income going to each of the resources d. cumulative percentage of income received by cumulative percentages of households

3) A fair distribution of income for the U.S. economy is a. not an economic issue b. defined by the Department of Agriculture c. a positive economic question d. a normative economic question

4) The major social insurance program in the United States is a. Social Security b. Temporary Assistance for Needy Families c. Medicare d. Medicaid

5) Which of the following is not "means-tested"? a. Temporary Assistance for Needy Families (TANF) b. welfare programs c. the Food Stamp program d. Social Security payments to a retiree

6) Which of the following is not "means-tested"? a. Temporary Assistance for Needy Families (TANF) b. welfare programs c. the Food Stamp program d. Social Security payments to a retiree

7) The benefit of the production of capital is a. decreased current production of consumption goods b. increased future production of consumption goods c. the amount of roundabout production d. abundant capital accumulation

8) Interest is a payment for deferred a. taxation b. saving c. consumption d. investment

9) A profit-maximizing firm invests up to the point at which the marginal rate of return on capital is greatest. a. True b. False

10) If a firm can borrow or lend at a 10 percent annual interest rate, it will a. buy all units of capital with a marginal rate of return above 10 percent b. buy all units of capital with an average rate of return above 10 percent c. buy all units of capital with a marginal rate of return below 10 percent d. buy all units of capital with an average rate of return below 10 percent

11) The balance of payments summarizes the transactions that occur during a given time period between a. the government of one country and the government of another country b. the national government and local governments in the same country c. individuals, firms, and government of one country and individuals, firms, and governments throughout the rest of the world d. individuals, firms, and governments of two countries

12) Which of the following is not considered as a unilateral transfer? a. income earned from foreign investments b. foreign aid c. personal gifts to friends or family abroad d. institutional charitable donations

13) Which of the following is true of the United States? a. It has been and continues to be a net capital exporter. b. It is today the world's largest debtor nation. c. It was, until the last decade, a net capital importer. d. It has historically been a debtor nation.

14) The exchange rate is the a. ratio of exports to imports b. interest rate the U.S. government charges on international transactions c. pricing policy of goods scheduled for export d. price of one nation's currency in terms of another nation's currency

15) If the British pound appreciates, U.S. television stations need fewer dollars to buy episodes of a Britcom from the British Broadcasting Company. a. True b. False

16) The term autarky refers to a. equilibrium after trade begins between two countries b. the gains received from trade c. self-sufficiency d. political isolationism

17) If the United States has an absolute advantage in producing computer components, it should export them worldwide. a. True b. False

18) International trade is most likely to occur whenever a. one of the trading nations is self-sufficient b. all of the trading nations are self-sufficient c. one of the trading nations gains from trade d. each of the trading nations gains from trade