Remediation: Unit 1 LT 2

How do capital investments lead to economic growth?

• By increasing government spending

• By improving the quality of goods and services

• By providing funds for businesses to save

• By increasing the productivity of an economy

What is an example of capital investment?

• Spending on education

• Buying stocks and bonds

• Purchasing new machines for a factory

• Saving money in a bank account

How does specialization contribute to economic growth?

• By making production more expensive

• By increasing the diversity of jobs

• By allowing workers to become more efficient in their tasks

• By requiring more general knowledge from workers

Which of the following is a benefit of specialization in an economy?

• Increased dependency on other countries

• Higher levels of production

• Reduced need for trade

• More uniform skill sets among workers

What is the relationship between capital investments and productivity?

• Capital investments decrease productivity due to higher costs

• There is no relationship between capital investments and productivity

• Capital investments can lead to higher productivity by updating technology and equipment

• Capital investments only affect the service sector's productivity

Which of the following is NOT an example of capital investment?

• Building a new factory

• Training employees

• Marketing campaigns

• Research and development

What is the primary goal of specialization in an economy?

• To ensure that all workers have the same skills

• To increase the variety of products available

• To make production processes more efficient

• To encourage workers to change jobs frequently

What is a direct effect of increased productivity due to capital investment?

• Decreased profits for businesses

• Lower quality of products

• Higher wages for workers

• Increased unemployment rates

Which of the following best describes the concept of specialization?

• A process where the economy focuses on producing a wide range of products

• A strategy where all workers learn multiple trades

• A focus on the production of a limited range of goods or services to gain efficiency

• A policy where the government controls all aspects of production

How does capital investment affect the competitiveness of a business?

• It decreases competitiveness as it increases costs

• It increases competitiveness as it improves productivity

• It has no effect on the competitiveness of a business

• It decreases competitiveness as it makes the business reliant on technology