Economics Chapter 1.3

Economic growth is an increase in a nation's output of goods and services over time.

• True

• False

Economics growth usually can be achieved without investing in new resources.

• True

• false

Economic growth leads the production possibilities frontier to contract

• True

• False

People's skills, abilities, health, knowledge, and motivation all add up to entrepreneurship.

• True

• False

Separation of tasks to be preformed by different workers is division of labor.

• True

• False

Which of the following would result in a change in the production possibilities frontier in the mythical country of Alpha?

• An influx of immigrants from other countries

• The discovery of an abundant natural resource

• A long draught

• All of the above

In the mythical country Alpha, and entrepreneur has introduced a new technology that makes manufacturing twice as efficient as before. How likely to affect the production possibilities frontier.

• It would not change the frontier

• It would make the frontier smaller

• It would expand the frontier

• It would change the shape of the frontier

The amount of output in a specific amount of time with a given amount of resources is referred to as

• Productivity

• Human Capital

• Efficiency

• Investment risk

Division of labor is practiced because

• Companies do not wan workers to talk to one another

• It increases efficiency by ensuring that all workers become good at every task

• It increases efficiency by ensuring that workers become good at specific tasks

• It prevents specialization

Dave gets a job at a grocery store, which pays him an hourly wage in exchange for his labor. Dave is participating in

• Entrepreneurship

• Human Capital

• The product market

• The Factor market