Economics Interim Study Guide

What is the definition of literacy rate?

• A country's labor force must be literate

• People are able to read and write in their native language

• The level of wealth and material comfort available to all people

• A nation's population over the age of 15 who are able to read and write

Which of the following statement shows that high literacy rates do NOT always translate to higher standards of living in Europe?

• The literacy rates vary a lot across Europe

• For a region to sustain high-quality, well-paying jobs, its labor force must be literate

• Russia has one of the highest literacy rates, but more than 13% of Russians live in poverty

• Europe has some of the lowest literacy rates across the southern region, particularly in the Balkans

What is the definition of the term 'standard of living'?

• A country with low literacy rates

• A person who can read and write in one language

• A level of wealth and material comfort available to all people

• A percentage of a nation's population who are over the age of 15

What term is used to describe the final goods and services a nation produces in a year or what a nation is worth?

• Taxes

• Sanctions

• Exchange rate

• Gross domestic product

Which of the following statements is TRUE about the relationship between human capital and gross domestic product in Europe?

• Focusing on a narrow range of products helps maintain mutually agreed-upon trade.

• Without a method to exchange money, trade between countries would be very different

• A nation's worth connects to the education and training a country provides

• In order to protect markets, countries sometimes have to issue a limit on imported goods

What is described as the knowledge, skills, and health of a nation's labor force?

• Currency

• Literacy rate

• Human capital

• Standard of living

What is the relationship between capital goods and gross domestic product?

• Supply and demand determine what services are provided

• In order for trade to exist in Europe, monetary values must be converted

• Some exchanges are in place to protect countries, while others exist to block dangerous products

• The more investment a country makes in new technology, the more likely it is that the services produced in the country will increase

What is the result of Germany investing in capital goods?

• The population is found mostly in cities located near the Rhine River

• It will withdraw from the European Union because of a 2016 referendum

• People who are able to read help improve the standard of living for a society

• The auto industry makes significant contributions to the gross domestic product

What would most likely slow the growth of a country's gross domestic product?

• Taxes

• Printing money

• Exchange rates

• Old Machinery

What is a natural resource?

• The resources necessary to build an industry

• Materials on earth that have an economic value

• The skills and knowledge of a nation's workers

• The part of the economy that includes resources controlled by the government