Europe's Factors of Economic Growth

Country X has a high gross domestic product. Country Y has a much lower gross domestic product than Country X. Which of the following statements is MOST LIKELY correct?

• Citizens in Country Y have a higher standard of living.

• There is less environmental pollution in Country X.

• Citizens in Country Y have less access to education.

• There is a higher level of unemployment in Country X.

Germany's literacy rate is 99%. Based on this information, what can be concluded about Germany?

• Germany's workforce has valuable human capital.

• Germany's businesses have valuable capital goods.

• Germany has a low gross domestic product.

• Germany has a low standard of living.

The German government has provided education and job training to people. How did the German government try to improve its economy?

• It made investments in human capital.

• It took advantage of its natural resources.

• It reduced barriers to starting new businesses.

• It helped companies invest in capital resources.

What is an example of an investment in human capital?

• A company pays for its workers to go to graduate school.

• A company buys a new computer system to improve productivity.

• A company hires a lobbyist to fight government regulations.

• A company starts using better materials to improve product quality.

Many factories in Russia cannot efficiently produce goods because they have old, outdated machinery. Based on this information, what would MOST improve the Russian industrial sector?

• increased barriers to trade

• investment in capital goods

• investment in human capital

• increased government regulation

The supervisor explained to Greg, the owner, they were waiting for the repairman to come and fix the hydraulic press that stamped the grommets out of steel. The supervisor explained that it was the sixth time in the last three months the press had broken and stopped production.

• Greg should have obtained more natural resources for the grommet factory.

• Greg should have invested in the human capital of the employees who work at the grommet factory.

• Greg should have invested in new capital goods for the grommet factory.

• Greg should have hired employees with more entrepreneurship to work in the grommet factory.

Iron, precious metals, and fuel, such as oil and coal, are the top three categories of EXPORTS from Russia. What conclusion about the Russian economy can be drawn based on this information?

• Russia has a pure market economy.

• Russia has a pure command economy.

• The Russian economy relies on manufacturing.

• The Russian economy relies on natural resources.

Chalk and gypsum deposits found in the United Kingdom are sources of what type of resource?

• human capital

• entrepreneurship

• a capital resource

• a natural resource

Which person demonstrated entrepreneurship?

• Mateo worked hard every day at a grocery store, so his boss gave him a raise.

• Benjamin invested all of his money in the stock of a very popular coffee company.

• Maria wanted a new smartphone, so she saved her paychecks until she could afford it.

• Kara learned to code and started a company designing websites for other businesses.

A country wants to increase its gross domestic product (GDP). The government votes to lower corporate taxes. It also makes it easier to start businesses by reforming regulations. To help business owners succeed, the government also provides training programs on how to run a business.

What is this country trying to do?

• eliminate barriers to trade

• improve access to natural resources

• encourage entrepreneurship

• reduce the cost of capital investments