Chapter 2

Question 1

Capital GS

Answer 1

Bought by businesses to increase their productive resources

Question 2

Government GS

Answer 2

Bought by government (ie missles)

Question 3

Export GS

Answer 3

Produced in one country, sold in another

Question 4

Rent

Answer 4

Income paid for the use of land

Question 5

Wages

Answer 5

Income paid for the services of labor

Question 6

Interest

Answer 6

Income paid for the use of capital

Question 7

Functional Distribution of Income

Answer 7

Distribution of income among the factors of production

Question 8

Personal Distribution of Income

Answer 8

Distribution of income among households

Question 9

Firms

Answer 9

Institutions that organize the production of GS

Question 10

Goods Markets

Answer 10

Markets in which GS is bought/sold

Question 11

Factor Markets

Answer 11

Markets in which factors of production are bought/sold

Question 12

Real Flows

Answer 12

Counterclockwise

Question 13

Money Flows

Answer 13

Clockwise

Question 14

Three types of economies

Answer 14

Advanced, Emerging Market, and Developing

Question 15

Consumption GS

Answer 15

Bought by individuals