Question 1

Which of the following statements about productivity in the service sector of the U.S. economy is most accurate?

Accepted Answer

A)   Productivity in the service sector has increased much more rapidly than productivity in the manufacturing sector.
B)   Improving productivity in the service sector is much less important than improving productivity in the manufacturing sector, because the service sector does not really produce anything.
C)   Productivity in the service sector is easier to measure than productivity in agriculture.
D)   Measures of productivity in the service sector do a poor job of taking quality improvements into account.E) A) and D)
F) A) and C)

Question 2

Patrick just landed a job working for an up and coming online gaming company in Palo Alto, California. In a lot of ways, this is his dream job come true-the chance to work for a company that makes gaming software and live in California at the same time. As his plane lands at San Jose International, he pictures a snazzy apartment with a palm tree right outside the front door. A few hours later, as he meets a property manager of a large apartment complex, his heart sinks. The price of apartments is outrageous! Back at the hotel, he checks the Bureau of Labor Statistics site to try to get a better picture of why the cost of housing is so high in this region of the country. Which factors may be causing the rise in the price of housing?

Accepted Answer

A)   A low unemployment rate and increasing GDP
B)   A high consumer's marginal index and low PPI
C)   A low CPI and high state tax rate
D)   A decreasing Disruptive Technologies Index and high unemploymentE) A) and D)
F) A) and C)

Question 3

The nation of Winstone's economic system closely approximates pure capitalism. While Winstone's economy is likely to generate a great deal of wealth, it may do a poor job of providing an acceptable level of income for the elderly or disabled.

Accepted Answer

A) True 
 B)False

Question 4

A major distinction between capitalism and socialism concerns the distribution of income.

Accepted Answer

A) True 
 B)False

Question 5

As productivity increases, the cost of producing goods and services is likely to fall.

Accepted Answer

A) True 
 B)False

Exam 2: Understanding Economics and How It Affects Business

The nation of Winstone's economic system closely approximates pure capitalism. While Winstone's economy is likely to generate a great deal of wealth, it may do a poor job of providing an acceptable level of income for the elderly or disabled.

Correct Answer
verified

Which of the following statements about productivity in the service sector of the U.S. economy is most accurate?

Correct Answer
verified

As productivity increases, the cost of producing goods and services is likely to fall.

Correct Answer
verified

Correct Answer
verified

A major distinction between capitalism and socialism concerns the distribution of income.

Correct Answer
verified

Exam 2: Understanding Economics and How It Affects Business

The nation of Winstone's economic system closely approximates pure capitalism. While Winstone's economy is likely to generate a great deal of wealth, it may do a poor job of providing an acceptable level of income for the elderly or disabled.

Correct AnswerverifiedShow Answer

Which of the following statements about productivity in the service sector of the U.S. economy is most accurate?

Correct AnswerverifiedShow Answer

As productivity increases, the cost of producing goods and services is likely to fall.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A major distinction between capitalism and socialism concerns the distribution of income.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified