Factors of Economic Growth

The German government has provided education and job training to people. How did the German government try to improve its economy?

• It made investments in human capital.

• It took advantage of its natural resources.

• It reduced barriers to starting new businesses.

• It helped companies invest in capital resources.

Germany specializes in the production of automobiles. Based on this information, which statement is MOST LIKELY correct?

• Germany has no natural resources that other countries demand.

• Germany has a low gross domestic product and high unemployment.

• Germany can produce automobiles more efficiently than other countries.

• Germany sells automobiles to domestic consumers for very low prices.

Trading without anyone forcing you to do so is one of the main economic reasons for the creation of the EU and the elimination of trade barriers. Which of the following best represents this idea?

• Voluntary Trade

• Embargo

• Trade Barrier

• Import

How do investments in human capital help improve a nation's economy?

• by reducing competition between businesses

• by improving access to natural resources

• by improving the job skills of the population

• by reducing the efficiency of production

Which of the following is a primary factor of economic growth?

• Natural resources

• Political stability

• Cultural heritage

• Geographical location

What role does human capital play in economic growth?

• Increases labor productivity

• Decreases technological advancement

• Reduces investment in infrastructure

• Limits access to natural resources

How does technological innovation contribute to economic growth?

• By increasing production efficiency

• By reducing the labor force

• By limiting access to resources

• By decreasing consumer demand

Which factor is most likely to lead to sustainable economic growth?

• Investment in education

• Exploitation of natural resources

• Increase in population

• Political instability

What is the impact of political stability on economic growth?

• Encourages investment

• Reduces consumer confidence

• Increases inflation

• Limits technological advancement

How does infrastructure development affect economic growth?

• Improves transportation and trade

• Decreases employment opportunities

• Reduces technological innovation

• Limits access to education