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- 1. Multiple Choice
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.
- 2. Multiple Choice
The___________ a country’s GDP, the better the country’s standard of living.
lower
greater
smaller
answers 1 and 3 are correct
- 3. Multiple Choice
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
- 4. Multiple Choice
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.
- 5. Multiple Choice
Why is it beneficial for a country to have an abundance of natural resources?
countries that have a lot of natural resources are able to use them to produce goods and services cheaper than a country that has to import them. Therefore, a country with a lot of natural resources usually has a greater GDP than a country with little natural resources.
countries with a lot of natural resources are usually taken over by other countries and don't have to worry about paying for anything
they cannot become communist
there is no advantage since most natural resources are worthless
- 6. Multiple Choice
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
- 7. Multiple Choice
Why should countries invest in developing human capital?
because the more people you have working in one area like a capital the more productive it will be
it leads to a lower GDP
it leads to lower literacy rate
investment in the education and skills training of people creates a smarter and more productive workforce, which relates to a higher GDP.
- 8. Multiple Choice
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
- 9. Multiple Choice
Why should countries invest in developing capital goods?
they shouldn't, it is too expensive
because capital goods cannot be sold to other countries
when countries invest in capital goods, they are providing better facilities, resources, and/or materials for the people who perform the labor, which creates a more productive workforce leading to greater economic growth (higher GDP).
because capital goods are less expensive than private goods
- 10. Multiple Choice
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
- 11. Multiple Choice
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
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