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sample midterm 2

sample midterm 2 - University of Southern California Econ...

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University of Southern California Econ 203, Principles of Microeconomics Sample Midterm 2 1. The personal distribution of income refers to the: A) division of income between personal taxes, consumption expenditures, and saving. 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. In economics, a business establishment that owns one or more plants is called a(n): 3. The separation of ownership and control in a corporation means that: 4. In a competitive market: 5. A market externality refers to: A) economic costs and benefits of market activities that go to those who are not directly involved in the market transaction. B) the impact of legal and institutional forces on market behavior. C) any unanticipated change in market price or output. D) any noneconomic force, for example, political disruption of the flow of Middle East oil, which has market effects. Page 1
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Use the following to answer question 6: R i v a l r y N o n r i v a l r y E x c l u d a b i l i t y A B N o n e x c l u d a b i l i t y C D 6. Refer to the above matrix. A public good is characterized by combination: 7. In performing its stabilization function, it may be appropriate for the nation's central bank (the Federal Reserve in the United States) to take actions to:
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