Question 1

Identify the international organization that makes loans to developing countries.

Accepted Answer

A)   The World Bank
B)   The Federal Reserve
C)   The World Trade Organization
D)   The Industrial Development Board
E)   The Bank of England

Question 2

The _____ tend to have a smaller public sector relative to the total economy.

Accepted Answer

A)   socialist economies
B)   centrally planned economies
C)   autocratic economies
D)   market economies
E)   mercantilist economies

Question 3

Which of the following is considered a financial intermediary?

Accepted Answer

A)   The Federal Reserve
B)   A bankruptcy court
C)   The U.S. Department of Commerce
D)   A credit union
E)   A foreign exchange

Question 4

According to the World Bank, the high-income oil-exporting nations like Libya, Saudi Arabia, Kuwait, and the United Arab Emirates:

Accepted Answer

A)   are considered to be still-developing countries.
B)   are the major trade partners of the U.S.
C)   are considered as underdeveloped economies.
D)   have highly interdependent economies.
E)   are considered highly-developed countries.

Question 5

When the government's spending is less than tax revenue, it implies that:

Accepted Answer

A)   the government budget is balanced.
B)   the government is running a deficit.
C)   there is a budget surplus.
D)   there is a higher chance of default by the government.
E)   the government needs to borrow from the central bank. C

Question 6

The owner of a sole proprietorship has limited liability, while stockholders of corporations have unlimited liability.

Accepted Answer

A) True 
 B)False

Question 7

If a corporation cannot pay its debts, creditors cannot seek payment from shareholders' personal wealth.

Accepted Answer

A) True 
 B)False

Question 8

The United States is the largest consumer and importer of grains and other agricultural output in the world.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following observations is true of the federal budget between 1960 and 2010?

Accepted Answer

A)   The federal budget was in deficit in the early 1960s.
B)   Between 1960 and 1970 the federal budget deficit reflected a sharp increase.
C)   The federal budget was in surplus between 1970 and 1980.
D)   The federal budget deficit was the highest in the late 1990s.
E)   The federal budget deficit was lower than 600 billion dollars in 2010.

Question 10

Which of the following does not constitute a household consumption item?

Accepted Answer

A)   A pair of jeans
B)   A bottle of Beck's beer
C)   A haircut
D)   A steam turbine electric generator
E)   A packet of breakfast cereal

Question 11

Financial intermediaries are best described as:

Accepted Answer

A)   informal institutions that provide funds to the government to manage budget deficits.
B)   institutions that accept deposits and make loans.
C)   institutions that control the money supply in the economy.
D)   institutions that provide financial aid to foreign countries.
E)   individuals who manage other's investment portfolios.

Question 12

When the flow of money from the foreign countries to the domestic firms equals the flow of money from the home country to the foreign firms, _____.

Accepted Answer

A)   a trade surplus exists
B)   an equal amount of agricultural and manufactured products are exported
C)   a trade deficit exists
D)   an equal amount of goods and services are imported
E)   the value of net exports is zero

Question 13

Scenario 4-1?In a given year, country A exported $12 million worth of goods to country B and $6 million worth of goods to country C; country B exported $4 million worth of goods to country A and $7 million worth of goods to country C; and country C exported $5 million worth of goods to country A and $2 million worth of goods to country B.
-According to Scenario 4-1, country A has net exports of:

Accepted Answer

A)   $18 million.
B)   $8 million.
C)   $13 million.
D)   $9 million.
E)   $6 million.

Question 14

Which of the following flows from the government to the households?

Accepted Answer

A)   Goods and services
B)   Resources of production
C)   Taxes
D)   Government services
E)   Loans

Question 15

Based on the fact that the companies Ford, IBM, PepsiCo, and McDonald's own and operate producing units in many different countries, they are categorized as:

Accepted Answer

A)   joint ventures.
B)   sole proprietorship firms.
C)   partnership firms.
D)   multinational firms.
E)   co-operative firms.

Question 16

A financial intermediary accepts deposits from savers and makes loans to borrowers.

Accepted Answer

A) True 
 B)False  True

Question 17

Consumption or household spending of an economy comprises of both consumer spending and business spending.

Accepted Answer

A) True 
 B)False

Question 18

A surplus in a country's trade balance means that:

Accepted Answer

A)   its net exports exceed transfer payments.
B)   the country's currency is over-valued.
C)   the value of its net exports is positive.
D)   imports into the country exceed exports.
E)   domestic savings exceeds domestic investment. C

Question 19

A person obtains income by selling the services of the resources that he or she owns.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following statements is a defining feature of a corporation?

Accepted Answer

A)   The owners of a corporation face unlimited liability on debts.
B)   A corporation owns and operates units only in foreign countries.
C)   A corporation is created by a verbal agreement.
D)   A corporation that is based on a verbal agreement is also recognized by State law.
E)   A corporation has a legal identity that is separate from that of its owners.

Exam 4: The Aggregate Economy

Identify the international organization that makes loans to developing countries.

Correct Answer
verified

The _____ tend to have a smaller public sector relative to the total economy.

Correct Answer
verified

Which of the following is considered a financial intermediary?

Correct Answer
verified

According to the World Bank, the high-income oil-exporting nations like Libya, Saudi Arabia, Kuwait, and the United Arab Emirates:

Correct Answer
verified

When the government's spending is less than tax revenue, it implies that:

Correct Answer
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C

The owner of a sole proprietorship has limited liability, while stockholders of corporations have unlimited liability.

Correct Answer
verified

If a corporation cannot pay its debts, creditors cannot seek payment from shareholders' personal wealth.

Correct Answer
verified

The United States is the largest consumer and importer of grains and other agricultural output in the world.

Correct Answer
verified

Which of the following observations is true of the federal budget between 1960 and 2010?

Correct Answer
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Which of the following does not constitute a household consumption item?

Correct Answer
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Financial intermediaries are best described as:

Correct Answer
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When the flow of money from the foreign countries to the domestic firms equals the flow of money from the home country to the foreign firms, _____.

Correct Answer
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Correct Answer
verified

Which of the following flows from the government to the households?

Correct Answer
verified

Based on the fact that the companies Ford, IBM, PepsiCo, and McDonald's own and operate producing units in many different countries, they are categorized as:

Correct Answer
verified

A financial intermediary accepts deposits from savers and makes loans to borrowers.

Correct Answer
verified
True

Consumption or household spending of an economy comprises of both consumer spending and business spending.

Correct Answer
verified

A surplus in a country's trade balance means that:

Correct Answer
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C

A person obtains income by selling the services of the resources that he or she owns.

Correct Answer
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Which of the following statements is a defining feature of a corporation?

Correct Answer
verified

Exam 4: The Aggregate Economy

Identify the international organization that makes loans to developing countries.

Correct AnswerverifiedShow Answer

The _____ tend to have a smaller public sector relative to the total economy.

Correct AnswerverifiedShow Answer

Which of the following is considered a financial intermediary?

Correct AnswerverifiedShow Answer

According to the World Bank, the high-income oil-exporting nations like Libya, Saudi Arabia, Kuwait, and the United Arab Emirates:

Correct AnswerverifiedShow Answer

When the government's spending is less than tax revenue, it implies that:

Correct AnswerverifiedC

The owner of a sole proprietorship has limited liability, while stockholders of corporations have unlimited liability.

Correct AnswerverifiedShow Answer

If a corporation cannot pay its debts, creditors cannot seek payment from shareholders' personal wealth.

Correct AnswerverifiedShow Answer

The United States is the largest consumer and importer of grains and other agricultural output in the world.

Correct AnswerverifiedShow Answer

Which of the following observations is true of the federal budget between 1960 and 2010?

Correct AnswerverifiedShow Answer

Which of the following does not constitute a household consumption item?

Correct AnswerverifiedShow Answer

Financial intermediaries are best described as:

Correct AnswerverifiedShow Answer

When the flow of money from the foreign countries to the domestic firms equals the flow of money from the home country to the foreign firms, _____.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following flows from the government to the households?

Correct AnswerverifiedShow Answer

Based on the fact that the companies Ford, IBM, PepsiCo, and McDonald's own and operate producing units in many different countries, they are categorized as:

Correct AnswerverifiedShow Answer

A financial intermediary accepts deposits from savers and makes loans to borrowers.

Correct AnswerverifiedTrue

Consumption or household spending of an economy comprises of both consumer spending and business spending.

Correct AnswerverifiedShow Answer

A surplus in a country's trade balance means that:

Correct AnswerverifiedC

A person obtains income by selling the services of the resources that he or she owns.

Correct AnswerverifiedShow Answer

Which of the following statements is a defining feature of a corporation?

Correct AnswerverifiedShow Answer

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C

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True

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C

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