Macroeconomics- Chapter 25

ability to produce goods and services

A basic principle of economics is that a country's standard of living depends on its

the productivity of its workers

A nation's standard of living is determined by

has few natural resources

Despite its status as one of the richest countries in the world, Japan

knowledge and skills that workers have acquired

Human capital is

knowledge and skills that workers acquire through education, training, and experience

Human capital is the

either the demand for it increased or the supply of it decreased

If a good has become more scarce, then we know for sure that

for both nations and individuals

In determining living standards, productivity plays a key role

D. All of the above

Industrial machinery is an example of A. a factor of production that in the past was an output from the production process B. physical capital C. something that influences productivity D. all of the above

C. what she's learned from experience but not her tractor

Janet is a farmer. Which of the following are included in her human capital? A. her tractor and what she's learned from experience B. her tractor but not what she's learned from experience C. what she's learned from experience but her tractor D. Neither her tractor nor what she's learned from experience

D. All of the above

Natural resources A. are inputs provided by nature B. include land, rivers, and mineral deposits C. take two forms: renewable and nonrenewable D. all of the above

that is known or controlled only by the company that discovered it

Proprietary technology is technology

Technological knowledge

Society's understanding of the best ways to produce goods and services

Natural Resources

The inputs into the production of goods and services that are provided by nature, such as land, rivers, and mineral deposits

Human Capital

The knowledge and skills that workers acquire through education, training, and experience

productivity

The one variable that stands out as the most significant explanation of large variations in living standards around the world is

Diminishing returns

The property whereby the benefit from an extra unit of an input declines as the quantity of the input increases

physical captial

The saws, lathes, and drill presses that woodworkers at Cedar Valley Furniture use to produce furniture are called

D. All of the above

Which of the following is a determinant of productivity? A. human capital per worker B. physical capital per worker C. natural resources per worker D. all of the above

B. oil

Which of the following is an example of a nonrenewable resource? A. corn B. oil C. livestock D. All of the above

C. lumber

Which of the following is an example of a renewable natural resource? A. the knowledge possessed by scientists B. carpenters' labor services C. lumber D. all of the above are correct

A. In the late 1800s, real GDP per person was higher in the UK than in the US

Which of the following statements is correct? A. In the late 1800s, real GDP per person was higher in the UK than in the US B. In 2014, real GDP per person was higher in the UK than in the US C. The average annual growth rate of real GDP was higher in the UK than in the US between the late 1800s and 2014 D. All of the above are correct

D. All of the above are correct

Which of the following would increase productivity? A. an increase in the physical capital stock per worker B. an increase in human capital per worker C. an increase in natural resources per worker D. All of the above are correct

Catch-up effect

the property whereby countries that start off poor tend to grow more rapidly than countries that start off rich

Productivity

the quantity of goods and services produced from each unit of labor input

Physical Capital

the stock of equipment and structures that are used to produce goods and services