MacroEconomics Chapter 2 Quiz – Flashcards

The United States has roughly how much of the world's population? a) 5 percent. b) 10 percent. c) 15 percent. d) 20 percent.

Which of the following statements is true about the U.S. economy? a) The United States produces nearly one-fifth of the world's production. b) The United States has the world's third largest economy. c) The United States produces less than half as much as China does. d) The United States produces less than one-third as much as Japan does.

Average living standards are best measured using a) GDP. b) The economic growth of the economy. c) Per capita GDP. d) The capital stock of the economy.

What percentage of the world's population subsists on incomes of less than $2 a day? a) 33 percent. b) 50 percent. c) 60 percent. d) 70 percent.

Economic growth a) Is an increase in output or real GDP. b) Causes a contraction in the production possibilities curve. c) Involves reduced capacity in the short run. d) None of the choices are correct.

As of the year 2000, agriculture accounted for what percentage of total U.S. output? a) 1 percent. b) 5 percent. c) 8 percent. d) None of the choices are correct.

A capital-intensive production process is one that a) Has a high ratio of labor to capital. b) Has a high ratio of capital to labor. c) Is used only in the United States. d) All of the choices are correct.

The term externalities refers to a) Only positive benefits of a market activity borne by a third party. b) Only negative costs of a market activity borne by a third party. c) The negative costs and positive benefits of a market activity borne by a third party. d) None of the choices are correct.

Human capital is defined as the a) Amount of machinery, factories, and buildings an individual owns. b) Dollar value of all the stocks and bonds an individual owns. c) Knowledge and skills workers possess. d) None of the choices are correct.

Productivity is a measure of a) Output per unit of input. b) Output per dollar of input. c) Input per unit of output. d) Input per dollar of output.

Production processes that use a high ratio of capital to labor inputs are referred to as a) Labor-intensive. b) Production-intensive. c) Capital-intensive. d) Factor-intensive.

A monopoly exists when a) A small number of firms are the only producers of a good. b) A large number of firms are producing a good. c) The government intervenes on behalf of consumers. d) One firm produces all the output for a particular good or service.

The bottom 80 percent of the families in the United States receive approximately ______ percent of total income. a) 10 b) 20 c) 50 d) 90

Income inequality tends to be greatest in a) Poorest countries. b) Middle-income countries. c) Richest countries. d) None of the choices are correct.

As of 2013, to be in the top quintile for income distribution in the United States, a family needed in income at least a) $52,000. b) $85,000. c) $106,000. d) $140,000.

According to the World View titled "Income Share of the Rich," in which of the following would the top tenth of the population be most likely to receive the highest percentage of the country's income? a) Japan. b) The United States. c) Germany. d) Haiti.

According to the World View excerpt that compares GDP figures for several nations, Japan's real GDP is approximately a) Second only to that of the United States. b) More than that of China. c) More than that of Germany. d) All of the choices are correct.

On average over the last century, the U.S. population has grown three times as fast as the U.S. real GDP. True False