Economic Growth - Investments in Factors of Production

GDP per capita is

• The population divided by total GDP.

• Investment as a percentage of GDP.

• Total GDP divided by total population.

• The same as GDP per worker.

High levels of GDP per capita indicate...

• Higher levels of happiness 
• Higher standard of living
• Equal levels of wealth 
• Self-sufficient communities

Human capital is

• The knowledge and skills possessed by the labor force.

• Able to increase only if the labor force grows.

• Insignificant in productivity advances.

• The ratio of labor to capital.

Which of the following is NOT a factor of economic growth?

• natural resources

• human capital

• entrepreneurs

• capital humans

• capital goods

The value that a worker brings to the marketplace (his/her job) is called ______________.

• entrepreneur

• natural resources

• human capital

• capital goods

Machinery, tools, and trucks to transport goods are examples of which of the four factors of economic growth?

• human capital

• natural resources

• entrepreneur

• capital goods

A person who takes the risk and starts up a company is known as a __________________.

• human capitalist

• capital goods

• entrepreneur

• natural resource

Which factor is being described in the following list: oil, plants, water, gold?

• capital goods

• natural resources

• human resources

• entrepreneur

The ability to read and write at an eighth grade level is called _____________.

• readability rate

• illiterate rate

• literacy rate

• writerability rate

The___________ a country’s GDP, the better the country’s standard of living.

• lower

• greater

• smaller

• answers 1 and 3 are correct