Southern and Eastern Asia Economics Review

South Korea invests heavily in human capital, spending about 7.6% of the nation's gross domestic product on education annually. The government promotes small businesses by making it easy to start a new business. Based on this information, which of the following is MOST LIKELY a characteristic of the South Korean economy?

• a reliance on low-skilled professions

• a high level of entrepreneurship

• a low level of international trade

• a reliance on natural resource exports

Which situation is an example of investment in capital goods?

• The Chinese government sells its ownership stake in a steel company.

• The North Korean government purchases tractors for its collective farms

• South Korea reduces the corporate tax rate to attract foreign businesses.

• The Indian government increases funding for public education.

Why would a government impose a tariff?

• to reduce the average prices of certain goods

• to reduce the amount of taxes that consumers pay

• to protect its economy from foreign direct investment

• to protect domestic businesses from foreign competition

Which situation is an example of investment in capital goods?

• The Chinese government sells its ownership stake in a steel company.

• A Japanese car company purchases new assembly equipment

• South Korea reduces the corporate tax rate to attract foreign businesses.

• The Indian government increases funding for public education.

A low literacy rate usually indicates that a country lacks

• capital goods.

• a strong agricultural sector.

• human capital

• a strong industrial sector

What should a country invest in to increase its literacy rate?

• health care

• education

• energy

• national defense

Japan is one of the world's largest net importers of agricultural products, MAINLY due to its lack of

• entrepreneurship

• human resources.

• capital resources

• natural resources

Which two Asian countries have large amounts of arable farmland?

• India and China

• Japan and North Korea

• India and South Korea

• Japan and China

Based on the table, which statement is MOST LIKELY correct?

• Japan has a higher average standard of living than India

• India has a higher average standard of living than South Korea.

• China spends more per student on education than Japan.

• India spends more per student on education than South Korea.

Which of these people is an entrepreneur?

• Anil reads books to children while volunteering at the library.

• Priya sells some of her clothes to a thrift shop to earn extra money

• Ken uses his savings to open a coffee shop and hires his friend Yui.

• Li Wei washes dishes at his father's restaurant when he is not in school.