Economics Review

What does GDP stand for?

• Grand, Dope, Pyramid
• Good Danish People
• Gross Domestic Product
• Gucci Dead Platypus

Gross Domestic Product (GDP) ONLY refers to the total value of FINAL goods and services produced in a country in one year

• True
• False

What is one reason that a country could have a high GDP?

• Because they have high wages.
• Because they have a highly educated population.
• Because they have low taxes.
• Because they love going to space.

Which is an example of investment in human capital?

• trucks
• factories
• education
• highways

How does investment in capital goods by companies help a country increase its GDP?

• The GDP of a country goes down when companies make more money
• Companies that invest in capital goods are able to provide a better place for their workers to work
• Highly trained workers help the company be more profitable by finding ways to help the company work better.
• When a company invests in capital, it can produce more goods at a better price and increase the profit that it makes.

Soil, minerals, air, water, and coal are all examples of

• Natural Resources
• Conservation
• labor
• physical capital

Skills people acquire as they specialize in an area.

• physical capital
• labor
• human capital
• entrepreneurship

 The difference between a good and a service is that:

• Goods are available in unlimited quantaties and services are not 
• Goods are tangible and services are not 
• Services are available in unlimited quantaties and goods are not 
• goods help satisfy unlimited wants and services do not

________ is the most basic economic problem.

• Scarcity
• Labor
• Greed
• Capital

What is an entrepreneur?

• A person who starts a new business.
• A leader of a country.
• A worker in a factory.
• A student in college.