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Essential Foundations of Economics

Bade, Robin;Parkin, Michael

Chapter 2

The U.S. and Global Economies - all with Video Answers

Educators

Chapter Questions

01:39

Problem 1

Explain which of the following items are not consumption goods and services:
• A chocolate bar •? A ski lift •? A golf ball

EA
Erwin Antoni
Numerade Educator
06:20

Problem 2

. Explain which of the following items are not capital goods:
• An auto assembly line •? A shopping mall •? A golf ball

Puneet Prajapati
Puneet Prajapati
Numerade Educator
05:19

Problem 3

Explain which of the following items are not factors of production:
• Vans used by a baker to deliver bread
• 1,000 shares of Amazon.com stock
• Undiscovered oil in the Arctic Ocean

Puneet Prajapati
Puneet Prajapati
Numerade Educator
02:37

Problem 4

Which factor of production earns the highest percentage of total U.S. income?
Define that factor of production. What is the income earned by this factor of
production called?

Yang Su
Yang Su
Numerade Educator
06:23

Problem 5

With more job training and more scholarships to poor American students,
which special factor of production is likely to grow faster than in the past?

Pragya Ahuja
Pragya Ahuja
Numerade Educator

Problem 6

Define the factor of production called capital. Give three examples of capital,
different from those in the chapter. Distinguish between the factor of production capital and financial capital.

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02:10

Problem 7

A Job Creation through Entrepreneurship Act, debated in the House of
Representatives in 2009, would award grants to small business owners,
some of which would be aimed at women, Native Americans, and veterans.
The Act would provide $189 million in 2010 and $531 million between 2010
and 2014. Explain how you would expect this Act to influence what, how,
and for whom goods and services are produced in the United States

Md.Daniyal Arshad
Md.Daniyal Arshad
Numerade Educator
16:45

Problem 8

In the circular flow model, explain the real flow and/or the money flow in
which each item in List 1 belongs. Show your answers on a graph

Md.Daniyal Arshad
Md.Daniyal Arshad
Numerade Educator
04:36

Problem 9

. For-profit colleges may face aid cuts
The Obama Administration proposes a new rule: Federal aid to for-profit
colleges will be cut if students in vocational programs graduate without a
degree. Millions of low-income students are borrowing heavily to attend colleges and too many of them are dropping out, and failing to get a job.
Source: USA Today, June 2, 2011
How do you think the personal distribution of income would change if all
graduates could obtain a well-paying job that uses their knowledge gained
in college?

Oluwadamilola Ameobi
Oluwadamilola Ameobi
Numerade Educator
01:51

Problem 10

. Read Eye on the Dreamliner on p. 79 and then answer the following questions:
• How many firms are involved in the production of the Dreamliner
and how many are identified in the figure on p. 79?
• Is the Dreamliner a capital good or a consumption good? Explain why.
• State the factors of production that make the Dreamliner and provide an
example of each.
• Explain how the production of the Dreamliner influences what, how,
and for whom, goods and services are produced.
• Use a graph to show where in the circular flow model of the global
economy the flows of the components listed on p. 79 appear and where
the sales of Dreamliners appear.

Heather Duong
Heather Duong
Numerade Educator