Factors of Economic Growth in Europe

What is the measure used by economists to determine the health of a country's economy?

• Gross Domestic Product (GDP)

• Literacy rate

• Natural resources

• Human capital

What does GDP per capita indicate about a country's economy?

• Strength of the economy

• Level of literacy

• Availability of natural resources

• Investment in capital goods

Which of the following is NOT a category of productive resources?

• Natural resources

• Human capital

• Capital goods

• Entrepreneurship

What role do natural resources play in a country's economy?

• Fuel for industry

• Improving literacy rates

• Investment in capital goods

• Promoting entrepreneurship

What are capital goods?

• Man-made materials used to produce goods and services

• Skilled workers in a country

• Materials that come from nature

• New businesses started by entrepreneurs

How does investment in capital goods affect a country's GDP?

• Increases GDP

• Decreases GDP

• Has no impact on GDP

• Reduces literacy rates

What is human capital?

• Skilled workers in a country

• Materials that come from nature

• Man-made materials used to produce goods and services

• New businesses started by entrepreneurs

How does investment in human capital improve a country's GDP?

• By providing a smart, highly-skilled workforce

• By increasing natural resources

• By reducing literacy rates

• By promoting entrepreneurship

What is the relationship between literacy rates and a country's standard of living?

• High literacy rates lead to a high standard of living

• Low literacy rates lead to a high standard of living

• High literacy rates lead to a low standard of living

• Low literacy rates lead to a low standard of living

What is entrepreneurship?

• Taking risks to start a new business

• Investing in capital goods

• Investing in human capital

• Using natural resources to produce goods and services