Households supply four basic types of resources. They include all of the following except
a. natural resources
b. final goods and services
c. capital
d. entrepreneurial ability
e. labor
QUESTION 2Raghib teaches mathematics at Camford University and receives 40,000 per year. His spouse, Noraini, works as a self-employed computer programmer and charges 40 per hour. Which of the following is true?
a. Raghib's income is personal interest; Noraini's is wages
b. Raghib's income is a salary; Noraini's is personal interest
c. Both Raghib and Noraini receive proprietor's income
d. Both Raghib and Noraini receive wage or salary income
e. Raghib's income is a salary, and Noraini's income is a proprietor's income
QUESTION 3Luigi owns and operates a small restaurant. The income he receives from the restaurant is classified as
a. saving
b. proprietor's income
c. wages and salaries
d. rental income
e. dividends
QUESTION 4Which of the following represents the largest source of income for U.S. households?
a. personal interest
b. proprietor's income
c. wages and salaries
d. rental income
e. transfer payments
QUESTION 5Which of the following is an example of an in-kind transfer?
a. welfare payments
b. most Social Security benefits
c. unemployment compensation payments
d. food stamps
e. charitable contributions
QUESTION 6Which resource generates the largest share of the income in the United States?
a. labor
b. land
c. capital
d. entrepreneurial ability
e. money
QUESTION 7Personal income in the United States is primarily determined by selling labor services.
a. True
b. False
QUESTION 8Rationality in the household decision-making process means that
a. all households make the same decisions
b. everyone in the household agrees on all decisions
c. households act in their own best interests
d. households want to earn as much income as possible
e. all households would make the same decisions given the same information on products qualities and prices
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