Economics Study Quiz #2

43 Questions | By Angelsheffield | Updated: Mar 22, 2022 | Attempts: 242

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1.

The personal distribution of income refers to the
- A.
  
  Division of income between personal taxes, consumption expenditures, and savings
- B.
  
  Division of income on the basis of industry sources, for example, agriculture, transportation, and mining
- C.
  
  Distribution of income to basic resource classes, that is, wages, rents, interest, and profits
- D.
  
  Way income is distributed among specific households or spending units
2.

The largest functional share of the national income consists of
- A.
  
  Wages and salaries
- B.
  
  Interst and rental income
- C.
  
  Proprietors' income, that is, the income of unincorporated businesses
- D.
  
  Corporate profits
3.

The distribution of income among individual households is known as
- A.
  
  Income differentials
- B.
  
  The personal distribution of income
- C.
  
  The functional distribution of income
- D.
  
  The concentration ratio
4.

Listed in descending order of relative size, households divide their total incomes among
- A.
  
  Consumption expenditures, savings, and taxes
- B.
  
  Savings, consumption expenditures, and taxes
- C.
  
  Consumption expenditures, taxes, and savings
- D.
  
  Taxes, consumption expenditures, and savings
5.

Households in the aggregate use the largest share of their total income to
- A.
  
  Pay taxes
- B.
  
  Consume
- C.
  
  Save
- D.
  
  Buy capital goods
6.

The majority of personal consumption expenditures go to purchase
- A.
  
  Nondurable goods
- B.
  
  Durable goods
- C.
  
  Capital goods
- D.
  
  Services
7.

In economics, a group of firms that produce identical or similar products is called a(n)
- A.
  
  Industry
- B.
  
  Plant
- C.
  
  Conclomerate
- D.
  
  Firm
8.

An industry is best defined as a group of firms that
- A.
  
  Compete for labor
- B.
  
  Product identical or similar products
- C.
  
  Use identical production techniques
- D.
  
  Are located in the same city or geographic area
9.

Which form of business enterprise accounts for the largest number of firms in the United States?
- A.
  
  Corporations
- B.
  
  Proprietorships
- C.
  
  Partnerships
- D.
  
  Cooperatives
10.

Which form of business enterprise accounts for the largest proportion of total output?
- A.
  
  Corporations
- B.
  
  Proprietorships
- C.
  
  Partnerships
- D.
  
  Cooperatives
11.

The three basic legal forms of business enterprise are
- A.
  
  Monopolists, competitors, and enterprises
- B.
  
  Proprietorships, partnerships, and corporations
- C.
  
  Vertical, horizontal, and conglomerate corporations
- D.
  
  Conglomerates, multinationals, and partnerships
12.

An owner's liability for the debts of a business is
- A.
  
  Limited in a corporation to the assets of preferred stockholders
- B.
  
  Limited in a corporation to the assets of bondholders
- C.
  
  Limited to the owner's investment in a single proprietorship
- D.
  
  Unlimited in a partnership
13.

Limited liability means that
- A.
  
  Creditors have no legal claim on the personal assets of a proprietor
- B.
  
  Corporations cannot be sued
- C.
  
  Creditors have no legal claim on the personal assets of a corporate stockholder
- D.
  
  Corporations have a legal life independent of their owners and managers
14.

Most output in the United States is produced by
- A.
  
  Cooperatives
- B.
  
  Partnerships
- C.
  
  Sole proprietorships
- D.
  
  Corporations
15.

The largest category for Federal spending is for
- A.
  
  Agriculture and rural development
- B.
  
  Science, space, and technology
- C.
  
  Pensions and income security
- D.
  
  Highway construction
16.

Which of the following is NOT an important source of revenue for the Federal government?
- A.
  
  Corproate income taxes
- B.
  
  Property taxes
- C.
  
  Payroll taxes
- D.
  
  Personal income taxes
17.

The United States' most important trading partner in terms of dollar volume is
- A.
  
  Mexico
- B.
  
  Canada
- C.
  
  Germany
- D.
  
  China
18.

In terms of absolute volumes of imports and exports, the world's leading trading nation is
- A.
  
  France
- B.
  
  Japan
- C.
  
  The United States
- D.
  
  South Korea
19.

In recent years the United States has
- A.
  
  Exported more goods and services than it has imported
- B.
  
  Imported more goods and services than it has exported
- C.
  
  Realized an approximate balance in its imports and exports
- D.
  
  Experienced a falling absolute dollar amount of imports and a rising absolute dollar amount of exports
20.

The major goods exports of the United States (in dollar volume) are
- A.
  
  Chemicals, consumer durables, agricultural products, and semiconductors
- B.
  
  Petroleum, automobiles, clothing, and household appliances
- C.
  
  Iron and steel, clothing, beef, and sugar
- D.
  
  Aircraft, glassware, television sets, and furniture
21.

The major goods imports of the United States (in dollar volume) are
- A.
  
  Chemicals, consumer durables, aircraft, and grain
- B.
  
  Petroleum, automobiles, household appliances, and computers
- C.
  
  Iron and steel, clothing, electronic equipment, and sugar
- D.
  
  Aircraft, paper products, television sets, and furniture
22.

Depreciation of the dollar will
- A.
  
  Increase the price of U.S. imports, but decrease the prices of U.S. exports
- B.
  
  Decrease the price of U.S. imports, but increase the prices of U.S. exports
- C.
  
  Increase the price of both U.S. imports and exports
- D.
  
  Decrease the price of both U.S. imports and exports
23.

Import quotas are
- A.
  
  Maximum limits on the quantity or total value of specifc products imported to a nation
- B.
  
  Excise taxes or duties placed on imported products
- C.
  
  Licensing requirements, unreasonable quality standards, and the like designed to impede imports
- D.
  
  Government payments to domestic producers to reduce the world prices of exported goods
24.

The Smoot-Hawley Act
- A.
  
  Bound the world's nations to a gradual process of tariff reduction
- B.
  
  Established very high tariffs on goods imported to the United States
- C.
  
  Exempted American exporters from the Sherman Antitrust Act
- D.
  
  Established the reciprocal trade agreements program
25.

The Reciprocal Trade Agreements Act
- A.
  
  Exempted American exporters from the Sherman Antitrust Act
- B.
  
  Provided technological assistance to developing countries
- C.
  
  Brough about considerable reductions in American trade barriers
- D.
  
  Eliminated American subsidies to agricultural exports