Question : 21) Refer to Figure 2-17. In the circular flow diagram, : 1244994

21) Refer to Figure 2-17. In the circular flow diagram, who are economic agents A and who are economic agents B?

A) A = firms; B = households

B) A = households; B = firms

C) A = households; B = factor markets

D) A= firms; B = product markets

Figure 2-18

22) Refer to Figure 2-18. One segment of the circular flow diagram in the figure shows the flow of funds from economic agents E to market F. Who are economic agents E and what is market F?

A) E = households; F = product markets

B) E = firms; F = product markets

C) E = households ; F = factor markets

D) E = firms; F = factor markets

23) Refer to Figure 2-18. One segment of the circular flow diagram in the Figure shows the flow of funds from market F to economic agents G. The funds represent spending on goods and services. What is market F and who are economic agents G?

A) F = factor markets; G = households

B) F = product markets; G = households

C) F = factor markets; G = firms

D) F = product markets; G = firms

24) All of the following are examples of spending on factors of production in the circular flow model except

A) Bima hires two students to work at his ice-cream store.

B) “Get Fit Together” purchases 3 new treadmills for its gym.

C) Iris buys a dozen roses for her mother’s birthday.

D) The Banyan Tree rents a much larger property so that it can add a restaurant to its facilities.

25) Which of the following is an example of spending on factors of production in the circular flow model?

A) Carolina has her nails done before her 20th high school class reunion.

B) Giorgio buys snow cones for his youth soccer team after each game.

C) Stevie trades in his old cell phone for a newer model.

D) Arlisha purchases a cotton candy machine for her concession stand at the state fair.

26) Which of the following is an example of spending on goods and services in the circular flow model?

A) Belinda purchases a new computer for her tax-preparation business.

B) Javier buys 800 square feet of wood flooring for his vacation home.

C) Celeste buys fresh herbs at the farmers’ market to use in her restaurant.

D) Timmy purchases a new examination table for use in his veterinary clinic.

27) “An Inquiry into the Nature and Causes of the Wealth of Nations” published in 1776 was written by

A) John Maynard Keynes.

B) Karl Marx.

C) Alfred Marshall.

D) Adam Smith.

Figure 2-19

28) Refer to Figure 2-19. Which two arrows in the diagram depict the following transaction: LaDonna sells 20 pairs of sunglasses at the Oakley store.

A) J and M

B) J and G

C) K and M

D) K and G

29) Refer to Figure 2-19. Which two arrows in the diagram depict the following transaction: Dorian Gray hires “Wild Oscar,” a professional portrait artist, to paint his picture.

A) J and M

B) K and G

C) K and M

D) J and G

30) Refer to Figure 2-19. Which two arrows in the diagram depict the following transaction: Barney earns $250 for selling scissors and razors to Floyd’s Barber Shop.

A) J and M

B) K and G

C) K and M

D) J and G

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July 1, 2023

9.1 The United States in the International Economy

1) Following the tariff imposed on Chinese tires, some businesspeople correctly argued that the U.S. tariff would result in

A) China retaliating by raising tariffs on some U.S. exports.

B) China halting the sale of all products in the United States.

C) U.S. firms never being able to meet the demand for U.S.-produced tires.

D) the government demanding price cuts from U.S. tire manufacturers.

2) Workers in industries protected by tariffs and quotas are likely to support these trade restrictions because

A) they do not want to offend their employers who want them.

B) politicians lobby to convince workers the restrictions will make them better off.

C) they believe the restrictions will protect their jobs.

D) they don't understand that the restrictions will threaten their jobs.

3) The intention of the U.S. tariff on Chinese tires was to

A) protect jobs in the U. S. tire industry.

B) protect infant industries in tire U.S. tire market.

C) insure that Chinese tires meet U.S. quality and safety standards.

D) save the government money by restricting the sale of more expensive Chinese-made tires.

4) In the 1930s, the United States charged an average tariff rate ________. Today, the rate is ________.

A) of 100 percent; 20 percent

B) above 50 percent; less than 1.5 percent

C) of less than 10 percent; over 40 percent

D) of 17 percent; 33 percent

5) A tariff is a tax imposed by a government on

A) exports.

B) services.

C) imports.

D) luxury items.

6) Goods and services bought domestically but produced in other countries are referred to as

A) exports.

B) imports.

C) transfer payments.

D) foreign consumption.

7) Exports are domestically produced goods and services

A) sold to other countries.

B) sold to the government.

C) sold at home.

D) which are used to produce other goods and services.

8) When Roxanne, a U.S. citizen, purchases a designer dress from Barneys of New York that was made in Milan, the purchase is

A) both a U.S. and an Italian import.

B) a U.S. import and an Italian export.

C) a U.S. export and an Italian import.

D) neither an export nor an import for either country.

9) When BMW, a German company, purchases a welding machine that was made in Toronto, the purchase is

A) both a German and a Canadian import.

B) a German import and a Canadian export.

C) a German export and a Canadian import.

D) neither an export nor an import for either country.

10) Which of the following statements about the importance of trade to the U.S. economy is true?

A) Since 1950, both exports and imports have steadily decreased as a fraction of U.S. gross domestic product.

B) Overall, about 80 percent of U.S. manufacturing jobs depend directly or indirectly on exports.

C) The United States is the second largest exporter in the world.

D) The U.S. economy is highly dependent on international trade for growth in its gross domestic product.