Economic growth

What does Gross Domestic Product

mean?

• The total value of all goods and services a country imports.

• The total value of all goods and services a country exports.

• The total value of all goods and services produced within a country in one year.

• The net loss in profits within a country due to imports.

The___________ a country’s GDP, the better the country’s standard of living.

• lower

• greater

• smaller

• answers 1 and 3 are correct

What are the 4 factors that lead to a country’s economic growth?

• investment in human capital, investment in physical capital, land (natural resources), entrepreneurship

• good international relations, a democratic president, strict laws, freedom of press

• a powerful military, strong dictatorial leadership, communist regime, little personal freedom

• a monarchy, the World Bank, a parliamentary democracy, personal freedom

What are natural resources?

• resources that are gone from nature

• resources that are manufactured for the environment

• resources that are considered worthless

• materials or substances that occur in nature and can be used for economic gain.

What does human capital mean?

• the place where the most people live within a country

• the place where the most work is performed within a country

• the people who perform labor (work)

• the building where most people work in a country or state

What are capital goods?

• goods that are produced in the capital

• the factories, machinery, and technology used to produce goods and services

• goods that are produced without natural resources

• goods that are produced by the government

What do entrepreneurs do?

• represent business at the capital

• make all the laws in regards to business

• start their own business, invent something new, or change the way something was previously done so that it works better

• work in politics with regards to foreign business

How does entrepreneurship influence economic growth?

• it creates jobs and reduces unemployment

• it encourages people to take risks,and in doing so, create better materials, products, and technologies

• the more entrepreneurs a country has, the higher the country's GDP

• answers 1,2,and 3 are all correct

Which combination of factors is most likely to result in economic growth?

• an increase in management productivity together with a reduction in the hours worked per employee

• increased educational enrollment together with an increase in business regulation

• the discovery of a new raw material deposit together with significant emigration of labour

• the invention of a technology together with the investment to use it in the economy

What do you call organizations formed to provide assistance to skilled and unskilled workers?

• Labor Union

• Suffragists

• Progressives

• Entrepreneur