Economic Growth in SW Asia

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

• Investment in human capital has little effect on the GDP.
• Most workers want to keep their jobs and do not care about the GDP.
• GDP is only affected if workers pay for the investment out of their own pocket.
• GDP may go down because poorly trained workers will not be able to do their jobs well.

Which of these natural resources is in extremely short supply in the Middle East?

• Water
• Coal
• Iron
• Oil

How has the Saudi government used its national wealth to change the country?

• All Saudi citizens are given an equal share of the national wealth.
• The Saudi government has spent very little to improve the lives of citizens.
• A majority of the national wealth has been given to religious organizations in the country.
• The government has paid for improvements in transportation, education, health care, and agriculture.

Who takes on the financial risk in starting a new business in a market economy?

• consumers

• government planners

• individual business people

• combination of government planners and individual investors

If Israel's literacy rate is high, what can be concluded about their standard of living in Israel?

• The standard of living is low in Israel.

• The standard of living is high in Israel.

• The standard of living is not affected by the literacy rate.

• The standard of living will decrease as the GDP increases.

The above quote by Israel’s chairman of Israel Innovation authority suggests that Israel should do which of the following?

• Invest more heavily in human capital

• Increase spending on capital goods

• Try to decrease economic growth

• Intensify the annual military budget

If Mrs. Sherman's family find oil in her back yard, how can she invest in capital goods to help her make money off of her newfound oil?

• She can pay for her kids to be trained in the oil refinery industry.

• She can sell it to the highest investor at a bank.

• She can buy machines that will allow her to take the oil out of the ground and refine it.

• She can pay to have it inspected by an agency.

Mr. Waltz decides he wants to take a risk and open up a Jello Shop. He invests his own capital, human capital, capital goods, and natural resources to start a business. What is this an example of?

• a natural resource

• human capital

• a capital good

• entrepreneurship

What is the relationship between education and training in a country and the country’s gross domestic product (GDP)?

• Countries with a high level of education and training have a higher GDP.

• Gross domestic product only deals with the amount of investment in factories and machinery.

• The role of entrepreneurs is the only factor affecting gross domestic product.

• There is no relationship between education and training and gross domestic product.

Mr. Nelson decides he will open up his very own chocolate factory. He already has all the chocolate and natural resources he needs to make the chocolate. Then he decides to hire some student workers that were trained in the chocolate making process. What type of resource are the trained student chocolate workers?

• natural resources

• human capital

• capital goods

• financial resources