E6 Comprehension

Which statement explains how literacy rates affect standard of living?

• Those who cannot read or write continue to go to school

• Those who cannot read or write have a very difficult time finding decent jobs

• Those who can read or write cannot find decent jobs

• Those with a low literacy rate have a high standard for living

Lack of education prevents economies to bring improvements to their countries.

• True

• False

If a country has a 99% literacy rate, its standard of living is

• low

• high

What is human capital?

• the amount of goods sold in foreign trade in a year

• taxes collected from a country's workers

• money paid to workers for producing goods

• skills and education workers have

This statement explains an investment in what?

"Well trained workers"

• capital goods

• human capital

• entrepreneurship

• natural resources

If the technology is complicated to understand, a company should invest in. . .

• capital goods

• natural resources

• human capital

• entrepreneurship

What are capital goods?

• the workers who make the goods and services

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

• the money spent to train workers to use new technology

• the factories and machines used to make goods

Why are oil and gas such a 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

How does Saudi Arabia benefit from belonging to the Organization of Petroleum Exporting Countries (OPEC)?

• OPEC makes it possible for SW Asian countries to buy oil at low prices

• OPEC keeps the price of oil high on the world market

• Countries in OPEC are able to share water resources with each other

• The organization sets up tariffs to protect SW Asian manufacturing

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