Unit 4 Study Guide

Coal and iron deposits found in the United Kingdom are sources of what type of resource?

• human capital

• entrepreneurship

• a capital resource

• a natural resource

Answer explanation

Coal and iron deposits are naturally occurring materials found in the environment, making them natural resources. They are essential for various industries, distinguishing them from human capital or entrepreneurship.

How do the literacy rates in European countries affect the standard of living in Europe?

• Literacy enables fewer workers to do many low-skilled jobs.

• Literacy increases participation in and profits from arts performances.

• Literacy opens the door to high-paying jobs in many different industries.

• Literacy reduces the need for teachers, allowing former educators to take new jobs.

Answer explanation

Literacy is crucial for accessing high-paying jobs across various industries, as it enhances skills and qualifications, leading to better employment opportunities and an improved standard of living in Europe.

What conclusion can reasonably be drawn based on the information in the table?

• Germany encourages investment in capital goods more than Russia.

• Tax rates are much higher in the United Kingdom than they are in Germany.

• Russia invests more heavily in human capital than does the United Kingdom.

• The German economy has more command elements than the Russian economy.

Answer explanation

The data indicates that Germany has policies that favor capital goods investment more than Russia, supporting the conclusion that Germany encourages such investments more than Russia does.

Based on the table, which TWO statements are MOST LIKELY true?

• Russia invests the most in human capital.

• Russia invests a lot in occupational training.

• German businesses use outdated technology.

• The United Kingdom invests a lot in education.

• Germany encourages investment in capital goods.

Answer explanation

The United Kingdom is known for its significant investment in education, while Germany actively promotes investment in capital goods to enhance its industrial capacity. These statements align with common economic trends.

What type of economy do the United Kingdom, Germany, and Russia all have?

• mixed economy

• pure command economy

• pure market economy

• traditional economy

Answer explanation

The United Kingdom, Germany, and Russia all have a mixed economy, which combines elements of both market and command economies. This allows for private enterprise alongside government regulation and intervention.

Based on the table, how do the expenditures of these countries' governments compare?

• Germany likely spends the most on education.

• Russia likely spends the most on capital goods.

• The United Kingdom likely spends the least on education.

• The United Kingdom likely spends the least on capital goods.

Answer explanation

Germany likely spends the most on education, as indicated by the data in the table. This suggests a strong investment in educational resources compared to the other countries listed.

Why is it economically important for the United Kingdom to maintain its 99% literacy rate?

• Educated workers are often paid less, because employers had to pay for their training.

• Educated workers are more efficient, leading to decreased demand for capital goods.

• Educated workers are often paid less, because employers do not have to train them.

• Educated workers are more efficient, leading to a more productive workforce.

Answer explanation

Maintaining a high literacy rate ensures a more efficient workforce. Educated workers can perform tasks effectively, leading to increased productivity, which is crucial for economic growth and competitiveness in the global market.

What industry does Germany specialize in?

• natural gas

• automobiles

• mining

• banking

Answer explanation

Germany is renowned for its automobile industry, being home to major manufacturers like Volkswagen, BMW, and Mercedes-Benz. This sector significantly contributes to the country's economy, making it the correct choice.

Which economic sector contributes the LEAST to the United Kingdom's gross domestic product?

• agriculture

• construction

• manufacturing

• service

Answer explanation

Agriculture contributes the least to the UK's GDP compared to construction, manufacturing, and service sectors, which are more significant in terms of economic output.

Which natural resource do Germany, Russia, and the United Kingdom all have large supplies of?

• coal

• fish

• gold

• lumber

Answer explanation

Germany, Russia, and the United Kingdom all have significant coal reserves, making coal the correct answer. While they may have other resources, coal is notably abundant in these countries.