ECON 1.3

Economic growth is an increase in a nation's output of goods and service over time.

• True

• False

Economic growth usually can be achieved without investing in new resources

• True

• False

Specialization is not an assignment of task to workers, factories, regions, or nations that can perform them more efficiently

• True

• False

People's skills, abilities, health, knowledge, and motivation all add up to economic interdependence.

• True

• False

Separation of tasks to be performed by different workers is division of labor.

• True

• False

In The Circular Flow of Economic Activity, Individuals provide _____________ to the Factors Market in exchange for an income.

• Business

• Wages

• Resources

• Land, Labor, Capital, & Entrepreneurship

In the mythical country Alpha, an entrepreneur has introduced a new technology that makes manufacturing twice as efficient as before. How is this likely to affect the production possibilities curve/frontier?

• it would not change the frontier

• it would make the curve/frontier smaller

• it would expand the curve/frontier

• it would change the shape of the curve/frontier

The amount of output in a specific amount of time with a given amount of resources is referred to as

• productivity

• human capital

• efficiency

• investment risk

Division of labor is practiced because

• companies do not want workers to talk to one another

• it increases efficiency by ensuring that all workers become good at every task

• it increases efficiency by ensuring that workers become good at specific tasks

• it prevents specialization

Dave gets a job at a grocery store, which pays him an hourly wage in exchange for his labor. Dave is participating in

• entrepreneurship

• human capital

• the product market

• the factors market