6th Grade Unit 6 LP 4 Formative Assessment

Which country likely has the HIGHEST standard of living?

• a country that imports most necessities due to its lack of resources

• a country with a command economy that invests little in capital goods

• a country with a high literacy rate that invests heavily in human capital

• a country that raises revenue by imposing high tariffs on international trade

Country X has a literacy rate of nearly 99%, while Country Y has a literacy rate of about 75%. Based on this information, which statement is MOST LIKELY correct?

• A. Country Y has more natural resources than Country X.

• B. The standard of living is higher in Country X than in Country Y.

• C. Country Y invests more in human capital than Country X.

• D. The unemployment rate is higher in Country X than Country Y.

Based on the data presented, which countries do NOT follow this pattern?

• A. Bolivia and Brazil

• B. Chile and Colombia

• C. Paraguay and Guyana

• D. Uruguay and Argentina

What would be the MOST effective way for the Brazilian government to improve the standard of living in the country?

• The government should nationalize the country's major industries.

• The government should increase investment in public education.

• The government should create barriers to trade with other countries.

• The government should spend less on investments in human capital.

Why do low literacy rates in a country hinder that country's economic development?

• They limit the volume of trade with other countries.

• They limit the natural resources the country controls.

• They limit the population's ability to perform skilled labor.

• They limit the government's ability to control information.

President Laura Chinchilla's quote supports which of the following economic concepts?

• Investing in human capital is the only way to grow an economy.

• Investing in human capital usually has a positive impact on the economy.

• Investing in human capital is more important than investing in capital goods.

• Investing in human capital only works when investments are also made in capital resources.

What usually results from investment in human capital?

• increases in unemployment

• increases in entrepreneurship

• decreases in consumer spending

• decreases in productive efficiency

How does investment in capital goods relate to a country's gross domestic product (GDP)?

• Such investments usually increase GDP by increasing the skills and knowledge of the country's workforce.

• Such investments usually increase GDP by helping businesses produce goods faster and more efficiently.

• Such investments usually decrease GDP by increasing the prices of most consumer goods.

• Such investments usually decrease GDP by reducing profits for businesses in the country.

Based on the table, which statement is MOST LIKELY correct?

• Mexico invests more in capital goods than Cuba.

• Cuba invests more in capital goods than Mexico.

• Mexico relies more on international trade than Cuba.

• Cuba relies more on international trade than Mexico.

Which statement about natural resources is BEST supported by the information in the passage?

• Exporting natural resources plays a primary role in many nations' economies.

• The importation of natural resources is a sign of a wealthy and developed country.

• Most countries only use natural resources to support human, plant, and animal life.

• Many nations have strict laws forbidding the use of natural resources beyond their borders.