SS6E12 Economic Growth Factors

Which statement below describes entrepreneurship?

• The ability to harvest and use natural resources to create products to be sold to consumers.

• Machines, tools, and devices used for production.

• Putting together productive resources to produce a good or service.

• The physical talents of people to build things.

According to the normal relationship, if Nation “X” decided to invest several billion dollars in education and training, which statement below best explains how its GDP would likely be affected?

• It would depend on other factors

• It would not change

• It would decrease

• A It would increase

Australia and Canada both invest in capital goods at higher rates than Ethiopia. Based on this fact, which conclusion below explains what would be most logical?

• Ethiopia has a smaller growth rate.

• Ethiopia has fewer uses for capital.

• Ethiopia has more natural resources.

• Ethiopia can’t trade with either country.

Evaluate the table above. Based on the information provided in the table, what is the relationship of literacy rates to standard of living?

• Countries with more money per person and greater life expectancy have higher literacy rates.

• The higher the literacy rate, the worse off people in the country are.

• There is little impact of literacy rates to standard of living for a country or to life expectancy.

• Population has more affect on standard of living than literacy rates.

Which headline below would MOST LIKELY be used to describe a country that will experience future economic growth?

• “Country experiences population reduction.”

• “Inflation rate hits new highs.”

• “Government to offer new educational opportunities.”

• “Central bank to raise interest rates.”

Which statement about Nation Z’s investment in capital could be best explained and supported by the chart above?

• More money was spent to locate and harvest natural resources near Nation Z’s capital during this time.

• Likely, more money was spent developing machinery and technology from 2002 to 2004.

• Workers were producing efficiently until 2002 and then they became less productive.

• There was a decrease in capital investment between 2001 and 2004.

The country of Brownsville has decided to invest heavily in new capital equipment and technology. The factor that has been described BEST influences ______________________.

• economic freedom.

• supply and demand.

• economic growth.

• opportunity costs.

Brownville’s GDP impressively increased 9.2% from 2006 to 2007. This fact supports which statement about Brownville’s workforce?

• During this time, there was less immigration into Brownsville.

• Brownville’s workforce is producing fewer goods now than it did before independence.

• This increase in production can only be explained by Brownville’s workforce getting larger.

• Since the 1990s there has been an increase in spending on education and training.

“As Leeserville stands at the brink of a new millennium, entrepreneurship has been recognized as an important part of economic advancement. Foreign businessmen have created a new pool of capital resources for Leeserville’s talent that previously had few monetary options beyond their family and friends.”

- Debbie Jenkins, Author

According to the passage above, which statement below describes the role of entrepreneurship in Leeserville in the future?

• use the new capital resources to develop new products and ideas

• reduce the need for money in the economy of Leeserville

• increase the reliance on family and friends

• slow the production of capital resources

How does the graphic above explain the relationship between investment in human capital and GDP?

• There is little difference in the lifetime incomes of college graduates and high school graduates.

• College graduates will likely have a higher standard of living compared to high school graduates.

• It is undesirable to graduate from college because you will be put in a higher tax bracket.

• There is no economic value in graduating from High School.’