Economic Growth

An entrepreneur invests their own _____ into their business.

What are the four basic factors that influence economic growth in ANY part of the world?

• natural resources, capital goods, human resources, and technology

• natural resources, capital goods, human resources, entrepreneurship

• natural resources, capital goods, human nature, machines

• natural resources, capital goods, uranium, entrepreneurship

____ is the total value of all goods produced by a country in one year.

• Profit

• Investment

• Gross Domestic Product

• Gross Profit

The above quote by Israel’s chairman of Israel Innovation authority suggests that Israel should do which of the following?

• Invest more heavily in human capital

• Increase spending on capital goods

• Try to decrease economic growth

• Intensify the annual military budget

Which statement BEST describes the relationship between a country's investment in capital goods and human capital and its GDP?

• Investments in capital goods typically lead to a decrease in GDP

• Investments in capital goods and human capital typically lead to an increase in GDP

• a decrease in GDP typically leads to investments in capital goods and a reduction in education

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

a material on or in the earth that has economic value

• capital goods

• standard of living

• human capital

• natural resource

A country can increase its human capital by investing in _____.

• education for its citizens

• new machinery for factories

• railroads and airports

Why are entrepreneurs (someone who starts business or new product) important?

• They can increase the country's unemployment rate.
• They are an economic system that hampers the privitization of businesses.
• They are a factor of production that helps to grow the economy.
• They can make their own economic decisions about capital tools for production.

the part of the economy owned and operated by private citizens

• private sector

• entrepreneur

• profit

• public sector