Economic Growth Factors

Which answer choice below defines literacy rate?

• Machines, tools, and factories use to make products and goods

• The training that workers need to be good at their job

• The amount of people over 15 in a country that can read write

What would be the result of the actions in the sentence below ?

A country builds schools and universities and invest in other education programs for its population to attend.

• The population will buy more capital goods

• The population will have a high literacy rate

• The country’s workforce will decrease

How does literacy influence economic growth?

• People that can read and write cannot get better jobs and will not earn more money

• People that can read and write, can secure better jobs and make more money. They can then spend that money

• People with low literacy can work better jobs and make more money

An entrepreneur invests their own _____ into their business.

True or False?

Entrepreneurs create jobs for the population.

• True

• False

How do entrepreneurs influence economic growth?

• They create and sell good and services, which people use money to buy

• They only produce goods and services for themselves

• They do not invest their own money, instead they take from the population

Capital goods are…

• A person that invests their own money in starting a business

• The training that workers need to be good at their job

• Factories,tools and machines used to produce other goods and products

Which choice below is an example of a capital good?

• Keys

• bulldozer

• Loaf of bread

How do capital goods influence economic growth?

• Countries that invest in capital goods, produce less goods than countries that do not

• The more literate a person is, the less work they can do

• Countries that invest in capital goods, produce more goods than countries that do not

Japan specializes in making cars, and China specializes in producing computers.

Which capital good should each country invest in ?

• Japan- car assembly machines

  China- digital monitor makers for computers

• Japan-petroleum melting factories

  China- digital monitor makers for computers

• Japan- car assembly machines

  China- tools for digging for coal