Economics Quiz 1-3

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

• True

• False

Economic 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 performed 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 Alpha?

• an influx of immigrants form other countries

• the discovery of an abundant natural resource

• a long draught

• all of the above

In the mythical country of 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 curve?

• It would not change

• It would make the curve smaller

• it would expand the curve

• it would change the shape of the curve

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 practicing in...

• enterpreneurship

• human capital

• the product market

• the factor market