Benchmark #1 Review 2019

What effect does a country's literacy rate have on its standard of living?

• The literacy rate of a country has little effect on the standard of living.

• The literacy rate is higher in countries with a higher standard of living.

If a country does not invest in its human capital, how might this affect the country's gross domestic product (GDP)?

• Investment in human capital has little effect on a country's GDP.

• Most workers want to keep their jobs and do not care about GDP.

• GDP is only affected if workers pay for the investment out of their own pockets.

• GDP may not rapidly increase because poorly trained workers cannot do their jobs as well.

What is a key difference between a parliamentary democracy and a presidential democracy?

• A parliamentary democracy does not have a judicial branch.

• A presidential democracy allows the citizens to elect the executive, but a parliamentary democracy allows the legislature to select the executive.

• A parliamentary democracy does not have an individual executive, but a presidential does have one.

A country decides to invest more money into its factories and technologies. Which of the following would most likely occur due to this investment?

• The cost of exporting goods would increase.

• The amount of goods imported would increase.

• The cost of raw materials within the country would increase.

• The gross domestic product (GDP) of the country would increase.

Why are oil and gas such valuable natural resources?

• Large deposits of oil and gas are found in most countries.

• It is easy to replace oil and gas supplies after they are used.

• Industrial countries depend on oil and gas as their energy supply.

• Oil and gas are the only sources of energy used around the world.

Saudi Arabia's literacy rate has grown from 49% in 1980 to 79% in 2010. This may indicate that investments have been made in which category?

• capital

• human capital

• entrepreneurship

• natural resources

What is an entrepreneur?

• People who enjoy saving all their money.

• Business people who try not to take risks with their money.

• Someone who is always successful in whatever he attempts.

• Someone who is willing to take a risk to begin a new business.

What are capital goods?

• the workers who make the goods and services

• the factories and machines used to make goods

• the money spent to train workers to use new technology

• the goods and services that are produced for a country's economy

Why would the Saudi oil industry need a large investment in human capital?

• The technology in the oil industry is very complicated.

• The Saudis have found it hard to make a profit in the oil industry.

• Most people working in the Saudi oil industry have little or no real training.

• They hope to have machines take over most of the jobs now done by workers.

If a country does not invest in its human capital, how can it affect the country's GDP?

• Investment in human capital has little effect on a country's GDP.

• Most workers want to keep their jobs and do not care about GDP.

• GDP is only affected if workers pay for the investment out of their own pockets.

• GDP may go down because poorly trained workers will not be able to do their jobs as well.