Exploring Key Concepts in 6th Grade Economics

What does GDP stand for and what does it measure in a country?

• Gross Domestic Product, measuring total economic output

• General Domestic Product, measuring total imports and exports

• Gross Domestic Policy, measuring government policies

• General Domestic Policy, measuring internal government operations

Which factor of production includes natural elements used for economic gain?

• Natural Resources

• Entrepreneurship

• Human Capital

• Capital Goods

What is the role of capital goods in production?

• They are used to produce other goods.

• They represent the workforce needed for production.

• They involve taking risks to create new businesses.

• They are natural elements used in production.

Which of the following is not a factor of production?

• Consumer Demand

• Entrepreneurship

• Human Capital

• Natural Resources

How can a country improve its human capital?

• By limiting training for workers

• By reducing its investment in education

• By ignoring health care needs

• By providing education and health care

What impact does investing in education have on a country's economy?

• Enhances the quality and productivity of the workforce

• Increases the unemployment rate

• Decreases the skill level of the workforce

• Has no impact on economic growth

What is the significance of entrepreneurs in a free-market economy?

• They avoid taking any financial risks.

• They play a crucial role by starting new businesses.

• They focus solely on capital goods.

• They do not contribute to economic growth.

What does specialization allow a country to do?

• Decrease its GDP

• Excel in a specific industry or product

• Increase reliance on imports

• Focus on multiple industries equally

What is the opportunity cost of choosing one activity over another?

• The loss of potential gain from other activities not chosen

• The benefits received from the chosen activity

• There is no cost associated with choosing activities

• The cost of the resources used in the chosen activity

What analogy is used to explain the concept of opportunity cost?

• Investing in stock markets

• Choosing between different sports

• Balancing a budget

• Building infrastructure