Chapter 1 Section 3 Econ

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

• increase

• decrease

• no change

Economic growth usually ______ be achieved without investing in new resources.

• can

• cannot

Economic growth causes the production possibilities frontier to ______.

• 
• 

Separation of tasks to be performed by different workers is _______.

• separation of powers

• checks and balances

• division of labor

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

• an influx of immigrants from other countries

• the discovery of an abundant natural resource

• a long drought

• all of the other answers

In the mythical country Alpha, an entrepreneur has introduced a new technology that makes manufacturing twice as efficient as before. How is this 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 want 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