Economics Unit Test Review

The country of Liberia seeks to improve its standard of living. Which program could assist them in accomplishing that goal?

• A program that teaches workers how to handle money

• A program that increases the number of police in the country

• A program that builds more airplanes

• A program that assists adults in learning to read and write

Afghanistan, South Sudan and Mali all have literacy rates below 50%. What is the most likely effect of such low literacy rates?

• The citizens living here will have a lower life expectancy.

• These nations will have a relatively high standard of living.

• These nations will have a relatively low standard of living.

• Neighboring nations will pass laws to restrict trade with these countries.

Based on the Literacy Rate of Europe map, what can you conclude about the average European's standard of living?

• He/she has a much higher socio-economic status, much better health, and much better employment prospects than people of a nearby continent.

• He/She has higher socio-economic status but lower health and employment prospects than people on a nearby continent.

• He/She has the same socio-economic status, health, and employment prospects as people on a nearby continent.

• He/She has lower socio-economic status, poorer health, and fewer employment prospects than people on a nearby continent.

What conclusion can be supported by the data in the table?

• The standard of living is higher in most European countries than in most Latin American countries.

• Countries that have higher literacy rates always have lower GDPs.

• GDP per person has no clear connection to literacy rates.

• Citizens in Venezuela have the lowest standard of living.

What is the Gross Domestic Product (GDP)?

• a nasty mistake some factories make

• the limit on goods which can be imported

• the total amount of a tax placed on imports in a given year

• the value of goods and services produced in a country

Most European companies are formed by entrepreneurs. What is an entrepreneur?

• An American that moves to Germany to work.

• A well-known company with lots of employees.

• A former East German apprentice.

• Small business owners that have found a specific good or service to provide.

You want to start an ice cream business. You already own or have access to the following: -Land to build your store on, land that is full of salt that can be mined, land that can be used for grazing cows for fresh cream. Which type of resource do you already have available to you?

• Capital Resources

• Human Capital

• Natural Resources

• Reserve Resources

What is the relationship between investments in human capital and Gross Domestic Product (GDP)?

• Investments in human capital have no impact on GDP

• A well-trained work force contributes to a higher GDP

• The relationships between investments in human capital and GDP are unpredictable

• Human interference in business contributes to a lower GDP

Which activity is an example of investing in human capital by a company?

• A clothing manufacturer purchasing new and better sewing machines and fabric

• A computer company training its employees to use the computers

• A logging company planting new trees

• A waiter serving food and drinks in a restaurant

Oprah is an entrepreneur. In what ways does Oprah contribute to economic growth?

• Oprah doesn't contribute to economic growth because she keeps all of her money.

• Oprah takes jobs away.

• Oprah can provide jobs.

• Oprah can create new currencies.