Economic Growth
What is the relationship between investments in human capital and Gross Domestic Product (GDP)?
A well-trained work force contributes to a higher GDP
What is an entrepreneur?
A. An American that moves to Germany to work.
B. A well-known company with lots of employees.
C. A former East German apprentice.
D. A business owner who takes a risk and have found a specific good or service to provide.
D. A business owner who takes a risk and have found a specific good or service to provide.
Land used to build a factory is what type of capital resource?
A. Capital Good
B. Human Capital
C. Natural Resources
D. Reserve Resources
C. Natural Resources
Belgium, Germany, and the United Kingdom each have literacy rates of 99%. What is the most likely effect of such high literacy rates?
A. The citizens living here will have a lower life expectancy.
B. These nations will have a relatively high standard of living.
C. These nations will have a relatively low standard of living.
D. Neighboring nations will pass laws to restrict trade with these countries.
B. These nations will have a relatively high standard of living.
What is the definition of standard of living?
A. The amount of money a person has.
B. The level of wealth, comfort, and material goods available to a person or community.
C. The total population of a country.
D. The number of schools in a region.
B. The level of wealth, comfort, and material goods available to a person or community.
In what way can entrepreneurship contribute to economic growth?
Entrepreneurs can provide jobs.
How do entrepreneurs influence the economy?
A. They do not influence the economy.
B. They create jobs and stimulate economic growth.
C. They decrease the number of jobs available.
D. They only create new currencies.
B. They create jobs and stimulate economic growth.
What type of resource is a training an individual on how to cut down a tree for a tree cutting business? u
A. Capital Good
B. Human Capital
C. Natural Resources
D. Reserve Resources
B. Human Capital
Most European nations have a high literacy rate. What can you conclude about the average European's standard of living?
A. He/she has a much higher socio-economic status, much better health, and much better employment prospects than people of a nearby continent
B. He/She has higher socio-economic status but lower health and employment prospects than people on a nearby continent
C. He/She has the same socio-economic status, health, and employment prospects as people on a nearby continent.
D. He/She has lower socio-economic status, poorer health, and fewer employment prospects than people on a nearby continent.
A. He/she has a much higher socio-economic status, much better health, and much better employment prospects than people of a nearby continent
What can be concluded about the standard of living in countries with lower literacy rates?
A. They have lower standards of living.
B. They have higher standards of living.
C. They have the same standard of living as lower literacy rate countries.
D. They have no impact on standard of living.
A. They have lower standards of living.
Which activity is an example of investing in capital goods by a company?
A. A clothing manufacturer purchasing new and better sewing machines and fabric
B. A computer company training its employees to use the computers
C. A logging company planting new trees
D. A waiter serving food and drinks in a restaurant
A. A clothing manufacturer purchasing new and better sewing machines and fabric
What resources does an entrepreneur need to start a business?
A. Only money.
B. Land, labor, and capital.
C. Just a good idea.
D. None of the above.
B. Land, labor, and capital.
Which of the following best describes capital goods?
A. Goods that are used to produce other goods and services.
B. The money needed to start a business.
C. Workers with specialized skills.
D. Raw materials found in nature.
A. Goods that are used to produce other goods and services.
D. A program that assists adults in learning to read and write
Which of the following is an indicator of a high standard of living?
A. High unemployment rates.
B. High literacy rates.
C. Low GDP per person.
D. High infant mortality rates.
B. High literacy rates.
What is the Gross Domestic Product (GDP)?
Gross Domestic Product
Which of the following is a benefit of entrepreneurship?
A. Increased unemployment.
B. Innovation and competition in the market.
C. Decreased product variety.
D. Lower consumer spending.
B. Innovation and competition in the market
Which is an example of human capital?
A. A factory building.
B. A well-trained workforce.
C. Natural materials.
D. Financial investments.
B. A well-trained workforce.
What is the most likely effect of high literacy rates on a country's economy?
A. It leads to more unemployment.
B. It contributes to economic growth.
C. It decreases the standard of living.
D. It has no impact on the economy
B. It contributes to economic growth.
What is the relation between standard of living and literacy rates?
A country with a high literacy rate, more than likely has a high standard of living.
If a country has a high GDP, the people in that country more than likely have?
A. Low literacy rates
B. High standard of living
C. Low expectations
D. Low standard of living
B. High Standard of living
Why might someone choose to become an entrepreneur?
A. To avoid paying taxes.
B. To have more control over their work and potential income.
C. To work fewer hours.
D. To work for someone else.
B. To have more control over their work and potential income
Why are capital goods important for a business?
A. They are not important at all.
B. They help increase efficiency and production.
C. They only matter when starting a business.
D. They are only needed in large companies.
B. They help increase efficiency and production.
How might high literacy rates influence healthcare in these countries?
A. It leads to lower life expectancy.
B. It enables better health decisions.
C. It has no effect on health.
D. It limits access to healthcare.
B. It enables better health decisions.
What factors contribute to a higher standard of living in a country?
A. Education, healthcare, and economic opportunities.
B. Military power and wealth.
C. Population size and geography.
D. Natural disasters and climate.
A. Education, healthcare, and economic opportunities.