Ch 2 Economics Practice Test1

Front

What is the advantage of the line graph over the schedule?

Back

It contains more data

Front

What do the points of a graphed line on a PPC graph represent?

Back

Production efficiency

Front

What are the two basic elements of the circular flow model?

Back

Households and business firms

Front

From whom do businesses ultimately receive the factors of production? Options: Banks, Government, Households, Stockholders

Back

Households

Front

Which of the following can NOT be considered an example of land? Wheat, Petroleum, Sheep, Machinery

Back

Machinery

Front

Which model is designed to illustrate the economy of an entire nation? Options: Circular flow model, Line graph, Tabular graph, PPC

Back

Circular flow model

Front

Which of the following can NOT be considered an example of capital? Business loan, Tractor, Power tool

Back

House

Front

Which of the following is a transfer payment? Department of Defense purchases, Wages of postal workers, Income tax withholdings, Unemployment benefits

Back

Unemployment benefits

Front

Which part of the circular flow model receives savings and repayments? Options: Households, Business firms, Government, Financial markets

Back

Financial markets

Front

Which part of the circular flow model receives taxes? Options: Households, Business firms, Government, Financial markets

Back

Government