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