GDP, Specialization, Literacy Rate

What is GDP?

• the total value of all goods and services produced in a year in one country
• the total value of goods produced by a person in a year.
• the total value of goods consumed by a person in one year.
• the total value of all goods and services consumed in a year in one country

How does the literacy rate impact the economy of a country?

• Usually the lower the literacy rate, the more successful the economy.

• Usually the higher the literacy rate, the less successful the economy.

• Usually the higher the literacy rate, the more successful the economy.

• Usually the lower the literacy rate, the more money the country has to spend.

What is specialization?

• when a country produces only the goods it can make easily and efficiently, and then trades to get other goods

• when a country produces only special goods, and then trades to get other goods

• when a country produces only the goods to export, and then trades to get other goods

• when a country only imports goods, and then trades to get other goods

Why are most countries better off specializing in the production of particular goods, and then trading with other nations to obtain whatever else they need?

• Transportation costs are lower than they were a century ago.

• Resources are not evenly distributed among countries.

• Greater investment of capital goods increases productivity.

• People have limited resources to satisfy unlimited wants.

Which of the following best explains how specialization encourages trade between nations?

• Specialization encourages businesses to make a wide variety of items, that way it ensures that someone will want to trade with them.

• Countries that are allies will always want to trade with each other.

• Specialization allows nations to protect domestic markets from foreign competition and block the importation of dangerous products.

• Specialization allows nations to choose to market only those products/services which they are capable of providing fastest, cheapest, and in great abundance.

Global agreements like NAFTA exist to make trade more affordable between member nations. They achieve this by eliminating ___________ on imported goods.

• quota

• tariffs

• embargo

• borders

Based on the map of world literacy in 2011, what can you conclude about Latin America's literacy rate?

• Latin America is the region with the lowest literacy levels in the world.

• Latin America has high levels of literacy, except in a few countries in

  Central America.

• South America shows the lowest level of literacy of all continents showed on the map.

• Latin America shows much higher literacy rates than all North America.

Based on the information about "Latin America's Human Capital," you can affirm that:

• Cuba invests in educating its people.

• Cuba has a very low literacy rate, what affects heir GDP.

• Brazil, Cuba, and Mexico are not investing in human capital.

• Cuba's high GDP is due to its high literacy rate.

If the leader of a country's plan is to improve the economy by encouraging companies to invest in new computers and wireless communication systems, s/he would be basing his/her plan on the conclusion that:

• An investment in human capital will increase the country's GDP.

• An investment in entrepreneurs will spark creativity in the country.

• An investment in capital goods will increase the country's GDP.

• An investment in human resources will help the country's economy.

If members of NAFTA do not pay tariffs on goods traded among each other, then it can be said that members of NAFTA participate in what?

• GDP

• trade barriers

• embargo

• free trade