AKS 48abcd Human Capital, Capital Goods,

Front

What problem would a country try to address by increasing investments in human capital? Options: lack of natural resources, high rate of unemployment, lack of foreign trading partners, high level of government regulation

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high rate of unemployment

Front

What conclusion can be made based on the information in the table? Options: Countries that invest more in capital goods have higher standards of living. Countries that invest more in human capital have higher standards of living. Countries that invest more in capital goods have more equal distribution of wealth. Countries that invest more in human capital have more equal distribution of wealth.

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Countries that invest more in human capital have higher standards of living.

Front

What would be the MOST effective way for a country to raise the average standard of living of its people? Options: cut taxes and reduce government programs, improve literacy rates by investing in education, nationalize industries and set production quotas, decrease competition by creating barriers to trade

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improve literacy rates by investing in education

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Based on the table, which of the following is MOST LIKELY true? Iraq’s economy is mainly agricultural. Afghanistan’s economy is mainly industrial. Turkey has a higher unemployment rate than Iraq. Saudi Arabia has a higher standard of living than Afghanistan.

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Saudi Arabia has a higher standard of living than Afghanistan.

Front

Which of the following BEST characterizes Saudi Arabia’s actions and their likely effect on gross domestic product (GDP)?

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Saudi Arabia invested in the human capital of its population, which will likely lead to an increase in GDP.

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Based on the table, which country can you infer has invested the MOST in human capital? Options: Iran, Israel, Turkey, Saudi Arabia

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Israel

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Based on the table, what conclusion can be made? Options: Iran spends more on education than Israel. Syria has more natural resources than Iraq. Israeli businesses have more modern capital goods than Iraq. Syrian citizens attend school more often than Iranian citizens.

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Israeli businesses have more modern capital goods than Iraq.

Front

Which of the following situations involves an investment in capital goods? A restaurant starts opening earlier so it can serve lunch. A company pays its employees’ graduate school tuition. A farmer buys a new tractor to replace his old one. A government starts providing kindergarten.

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A farmer buys a new tractor to replace his old one.

Front

What would be a reasonable conclusion to draw about the correlation between standard of living and a country with an abundance of oil?

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The standard of living has been improved due to better education, healthcare, roads, and technology.

Front

Which conclusion can BEST be made from the information on the chart above? More people are employed in Saudi Arabia then Kuwait. More people are employed in Saudi Arabia then Kuwait. Kuwait’s GDP per Capita is a result of the size of their country. Saudi Arabia’s GDP per capita is a result of its high production of oil.

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Saudi Arabia’s GDP per capita is a result of its high production of oil.