Economic Growth and Specialization Quiz Review

If Mexico begins to invest in adult educational programs in the manufacturing and production fields, what outcome should Mexico see in regard to economic growth?

• Economic growth and GDP should increase.

• Economic growth and GDP should slow down.

• There would be no effect upon economic growth nor GDP.

• Adults would move to the United States because of USMCA.

Which is the MOST common result of specialization?

• Less productivity

• More productivity

• Less interdependence

• More interdependence

Countries that invest more in human capital usually have higher GDP rates than countries that do NOT because:

• Population rates and family size is larger so they have more workers.

• People are expected to purchase stocks and bonds for the company they work for.

• More money is spent on education and training so people produce more and make a higher wage.

• More money is spent in only using human intelligence and technology, and computers are limited.

• People are focusing on longer workdays rather than leisure time, so their annual productivity is higher.

When two or more nations engage in free trade, how is the standard of living improved in the participating countries?

• Goods become cheaper, demand rises, and output increases.

• Goods become cheaper, demand lowers, and output decreases.

• Goods become more expensive, demand rises, and output increases.

• Goods become more expensive, demand lowers, and output decreases.

Tariffs, quotas, and subsidies are examples of:

• Free trade.

• Trade barriers.

• Trade incentives.

• Restrictive licenses.

Using the data below, which statement is MOST likely correct regarding Mexico's economy? Mexican GDP per capita (measured in US Dollars):
1970: $670
1980: $2,800
1990: $3,600
2000: $5,600
2010: $8,700

• The standard of living had declined.

• There has been investment in education.

• People only live close to the U.S. border.

• Mexico has a steadily increasing unemployment rate.

Entrepreneurs develop new goods and services to start a business. Why is entrepreneurship often difficult?

• There is a risk that the new business may fail.

• There are laws that restrict most new businesses.

• Motivation for profit may not be the best incentive.

• Healthy competition encourages higher-quality products.

If Canada wanted to create an economic punishment against Cuba, which of these would they MOST likely create?

• The prohibiting of trade between countries.

• An increase in exports from select countries.

• A situation of freely traded goods and services.

• The amount that can be legally imported into a country.

The price of one nation's currency in terms of another nation's currency is called:

• Fiscal policy.

• Monetary policy.

• The exchange rate.

• The discount rate.

• Inflation rate.

Canada’s literacy rate is over 99%. Because of this, you could expect that:

• Canada would have a high unemployment rate.

• Canada would have a high standard of living.

• Canada would not allow an increase in immigration.

• Canada would need to increase funding to its education programs.