7SS unit 9

What is one way a government can invest in human capital?

• 
  by creating tax breaks for industrial equipment

• by creating a low corporate tax rate

• by providing no-interest loans for higher education

• by providing unemployment insurance

How can maintaining a high literacy rate positively affect a nation's standard of living?

• Literate people do not commit crimes against others.

• Literate people are better able to secure skilled jobs.

• 
  Literacy prevents political division amongst voters.

• Literacy helps members of different religions coexist.

Which of the following explains why international trade requires a system for exchanging currencies between nations?

• A currency exchange rate creates more money.

• A currency exchange rate raises human capital.

• A currency exchange rate encourages specialization.

• A currency exchange rate allows sellers to be paid in their own nation’s currency.

What would most likely raise the literacy rate in a country?

• specialization in certain industries

• investment in capital goods

• nationalization of certain industries

• 
  investment in human capital

The most pressing economic issues facing South Africa are which of the following?

• unemployment and inequality

• shortages of minerals and oil

• lack of skilled labor and management

• 
  disease and insufficient health services

Emphasizing which economic practice most helps African economies benefit from international trade?

• specialization

• 
  generalization

• raising interest rates

• lowering inflation rates

Which situation is likely to occur in a market economy?

• The government owns all businesses.

• There are few obstacles to starting businesses.

• 
  There are many obstacles to starting businesses.

• The government sets production quotas for goods.

Which situation is likely to occur in a pure command economy?

• There is free trade between businesses.

• There are strong private property protections.

• There are few obstacles to starting businesses.

• The government sets production quotas for goods.

Use the table to answer the question.

Which country most likely has the LOWEST investment in human capital?

• Egypt

• Nigeria

• South Africa

• Sudan

Why is it important for nations to economically specialize?

• Specialization limits the effects of globalization.

• Specialized economies use resources more efficiently.

• Specialization limits foreign influence over a nation's economy.

• Specialized nations can profit from otherwise worthless goods.