31) When Ethan continues his education beyond high school he is increasing his
31)
A) capital.
B) rent.
C) human capital.
D) wage rate.
E) quantity of labor.
32)Which of the following are sources of revenue for state and local governments?
32)
i)
property taxes
ii)
sales taxes
iii) transfers from the federal government
A) i only
B) i, ii and iii
C) i and iii
D) ii and iii
E) i and ii
33) Which of the following correctly lists the categories of factors of production?
33)
A) machines, buildings, land, and money
B) hardware, software, land, and money
C) land, labor, capital, and entrepreneurship
D) owners, workers, and consumers
E) capital, money, and labor
.png”>.png”>.png”>.png”>
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34) In the goods market, firms ________ and households ________.
34)
A) purchase goods and services; supply goods and services
B) hire land, labor, capital, and entrepreneurship services; supply goods and services
C) supply land, labor, capital, and entrepreneurship services; hire land, labor, capital, and entrepreneurship services
D) pay rent, wages, interest, and profit:; earn rent, wages, interest, and profit
E) supply goods and services; purchase goods and services
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)
35) In the circular flow model with the government sector, transfers
35)
A) to households flow in the same direction as do expenditures on goods and services.
B) flow in the same direction as do taxes.
C) flow only through the goods market.
D) to firms flow in the same direction as do rent, wages, interest, and profits.
E) flow in the opposite direction as do taxes.
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36) As the circular flow model shows, the factors of production flow from
36)
A) households to firms through the goods market.
.png”>B) firms to households through the factor market.
C) firms to households through the goods market.
D) the goods market through firms to the factor markets.
E) households to firms through the factor market.
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The figure above shows governments in the circular flow.
37) In the figure above, firms
37)
A) receive transfers from governments through factor markets.
B) sell goods and services to governments in goods markets.
C) own factors of production.
D) pay taxes directly to governments.
E) do all of the above.
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11
38)In the figure above, which of the following is true?
38)
i. Governments coordinate economic activities of households and firms.
ii. Governments buy goods and services in goods markets.
iii. Households pay taxes directly to firms.
.png”>A) Only i B) ii and iii C) Only iii D) Only ii E) i and ii
39) Most countries in the world are classified as
39)
A) developing.
B) advanced.
C) emerging market.
D) industrialized.
E) in transition.
40) ________ paid for the use of land; ________ paid for the services of labor; and ________ paid for the
40)
use of capital.
A) Rent is; wages are; profit is
B) Mortgages are; interest is; wages are
C) Rent is; wages are; interest is
D) Rent is; interest is; wages are
E) Interest is; wages are; profit is