Question 1

A firm's human capital would increase with

Accepted Answer

On-the-job training helps to improve the skills and knowledge of the employees, making them more valuable to the firm. Therefore, it would increase the firm's human capital.

Question 2

A(n) ________ in capital goods should ________ worker productivity.

Accepted Answer

An increase in capital goods (such as machinery, equipment, and technology) typically leads to an increase in worker productivity. This is because capital goods make work easier, faster, and more efficient, allowing workers to produce more output with the same amount of effort. Therefore, choice D is the correct answer.

Question 3

Krista owns a hair salon. She wants to increase the number of clients she serves each month, so she knows she needs to acquire more resources. Which of the following actions would represent an increase in the physical capital resource at her hair salon?

Accepted Answer

Buying more chairs and hair dryers would increase the physical capital resource of the salon by providing more equipment to serve more clients at one time. Training, hiring more stylists, and giving raises would increase the human capital resource of the salon, while purchasing better-quality shampoo would increase the quality of the salon's products but would not necessarily increase the number of clients served.

Question 4

Lauren owns a bakery. She wants to increase her daily production of baked goods, and she wants to
use a technological advance to do so. ________ would represent a technological advance at her
bakery.

Accepted Answer

Installing a convection oven that can bake bread in half the time would be a technological advance that could increase Lauren's daily production of baked goods. Using higher-quality ingredients or better training for staff may improve the quality of the baked goods, but would not necessarily increase production. Increasing the number of employees or mixing bowls and spoons may increase production, but would not be considered a technological advance.

Question 5

Lauren owns a bakery. She wants to increase her daily production of baked goods, so she knows she needs to acquire more resources. Which of the following actions would represent an increase in the human capital resource at her bakery?

Accepted Answer

Increasing employee training would improve the skills and knowledge of the bakery's employees, which would increase the human capital resource of the bakery. Repairing a broken delivery van would increase the physical capital resource, purchasing ingredients in bulk or buying better-quality ingredients would increase the material resource, and moving into a larger space would increase the space or facilities resource.

Question 6

Lauren owns a bakery. She wants to increase her daily production of baked goods, so she knows she needs to acquire more resources. Which of the following actions would represent an increase in the physical capital resource at her bakery?

Accepted Answer

Moving into a larger space would allow for more storage and for more equipment to be added, which would increase the physical capital resource of the bakery. Increasing employee training, hiring more employees, buying better-quality ingredients, and hiring an accountant are all important for the bakery, but they do not directly increase the physical capital resource.

Question 7

Steve owns a bike shop. He wants to increase the number of bikes he sells each week, and he wants to
use a technological advance to do so. ________ would represent a technological advance at his bike
shop.

Accepted Answer

Utilizing an online ordering system would allow Steve to reach a wider audience and potentially sell bikes across the country, increasing his sales. The other options may be helpful in improving the efficiency of the business or offering additional options to customers, but they may not necessarily lead to a significant increase in sales.

Question 8

Krista owns a hair salon. She wants to increase the number of clients she serves each month, and she
wants to use a technological advance to do so. ________ would represent a technological advance at
her hair salon.

Accepted Answer

Installing a new hair dryer that can dry hair in half the time, with less damage to the hair, would be a technological advance at the hair salon as it would improve the efficiency and quality of the services provided to clients. The other options relate to traditional business improvements, such as increasing staff, training, and physical space, rather than a technological advance.

Question 9

Which of the following would be classified as human capital?

Accepted Answer

Human capital refers to the knowledge, skills, and abilities that people acquire through education, training, and experience. Obtaining a college degree is a form of investment in oneself that can lead to increased knowledge and skills, making it an example of human capital. The other options listed are physical capital, such as a factory, natural resources, such as coal, and consumable goods, such as bread.

Question 10

"Living standards" refer to the well-being of the residents of a country. Generally speaking, higher economic growth leads to higher living standards. But higher living standards today can further contribute to economic growth in the future. Which of the following aspects of higher living standards would contribute most to future economic growth?

Accepted Answer

Improved education for young people would contribute the most to future economic growth as it leads to a more skilled and productive workforce, which can in turn increase innovation and economic output. Access to consumer goods, the internet, cell phones, and automobiles can also contribute to economic growth, but to a lesser extent than education.

Question 11

Steve owns a bike shop. He wants to increase the number of bikes he sells each month, so he knows he needs to acquire more resources. Which of the following actions would represent an increase in the human capital resource at his bike shop?

Accepted Answer

Increasing the number of shop employees would increase the human capital resource at the bike shop by bringing in more knowledge, skills, and experience in bike sales and repairs. The other options (A, B, D, and E) would increase other types of resources (physical capital, inventory, and space), but not necessarily the human capital.

Question 12

Steve owns a bike shop. He wants to increase the number of bikes he sells each month, so he knows he needs to acquire more resources. Which of the following actions would represent an increase in the human capital resource at his bike shop?

Accepted Answer

Increasing the training for his employees would improve the knowledge, skills, and abilities of his workforce, which would increase the human capital resource at his bike shop. The other options would increase the physical or financial capital resources, but not the human capital resource.

Question 13

Which of the following represents the technology used in a classroom?

Accepted Answer

Technology refers to the use of tools and methods to improve performance, efficiency, and effectiveness. While pencils, pens, markers, and erasers are tools used in a classroom, they do not necessarily represent the technology used in a classroom. Desks and chairs, the building in which the classroom is located, and lockers and storage cabinets are also not considered technology. The instructional methods the teacher uses, however, can be considered a form of technology as they are tools and methods that are used to improve the learning experience for students.

Question 14

Krista owns a hair salon. She wants to increase the number of clients she serves each month, so she knows she needs to acquire more resources. Which of the following actions would represent an increase in the human capital resource at her hair salon?

Accepted Answer

Hiring more stylists would represent an increase in human capital for the salon, as it would add to the skill and knowledge base of the salon's workforce. The other options, such as buying more equipment or moving to a larger space, would represent an increase in physical capital resources. Purchasing better-quality shampoo or more scissors and combs would not necessarily lead to an increase in the number of clients served, nor would they represent an increase in human capital.

Question 15

Nathan owns a coffee shop. He wants to increase the weekly number of coffee drinks he sells, and he
wants to use a technological advance to do so. ________ would represent a technological advance at
his coffee shop.

Accepted Answer

Acquiring a new espresso machine that can prepare coffee drinks faster than his current model would be considered a technological advance that could increase the efficiency and speed of Nathan's coffee shop, potentially leading to an increase in the number of coffee drinks sold each week. The other choices may improve the overall customer experience, but may not directly impact the number of coffee drinks sold.

Question 16

Populations tend to grow over time, meaning there are more workers. In order to maintain a constant level of worker productivity, the total amount of capital available to them must

Accepted Answer

In order for worker productivity to remain constant, the total amount of capital available to them must increase at a rate at least equal to population growth. This allows for the same level of capital per worker, maintaining productivity. If the amount of capital does not increase at a rate equal to or greater than population growth, worker productivity will decrease due to limited resources.

Question 17

An increase in human capital would tend to

Accepted Answer

Human capital refers to the knowledge, skills, and experience possessed by workers. Increasing human capital through education and training would lead to an increase in worker productivity as they become more efficient and effective in their work.

Question 18

Krista owns a hair salon. She wants to increase the number of clients she serves each month, so she knows she needs to acquire more resources. Which of the following actions would represent an increase in the human capital resource at her hair salon?

Accepted Answer

Increasing the amount of training for stylists would improve their skills and knowledge, increasing the salon's human capital resource. The other choices listed would either increase the salon's physical capital resource (A, B, D, E) or have no direct impact on either (D).

Question 19

Lauren owns a bakery. She wants to increase her daily production of baked goods, so she knows she needs to acquire more resources. Which of the following actions would represent an increase in the human capital resource at her bakery?

Accepted Answer

Hiring more employees would increase the human capital resource at the bakery because it would bring in additional workers with skills and knowledge that can contribute to the production and quality of the baked goods. The other options (buying additional ovens, repairing a broken delivery van, buying better-quality ingredients, and moving into a larger space) do not directly increase the human capital resource, although they may contribute to the overall production capability of the bakery.

Question 20

Why would an increase in capital resources lead to an increase in worker productivity?

Accepted Answer

With an increase in capital resources, workers will have better tools and equipment to work with, which will lead to an increase in their productivity. They will be able to produce more efficiently and with less effort.

Quiz 11: Economic Growth and the Wealth of Nations

A firm's human capital would increase with

A(n) in capital goods should worker productivity.

Krista owns a hair salon. She wants to increase the number of clients she serves each month, so she knows she needs to acquire more resources. Which of the following actions would represent an increase in the physical capital resource at her hair salon?

Lauren owns a bakery. She wants to increase her daily production of baked goods, and she wants to use a technological advance to do so. ________ would represent a technological advance at her bakery.

Lauren owns a bakery. She wants to increase her daily production of baked goods, so she knows she needs to acquire more resources. Which of the following actions would represent an increase in the human capital resource at her bakery?

Lauren owns a bakery. She wants to increase her daily production of baked goods, so she knows she needs to acquire more resources. Which of the following actions would represent an increase in the physical capital resource at her bakery?

Steve owns a bike shop. He wants to increase the number of bikes he sells each week, and he wants to use a technological advance to do so. ________ would represent a technological advance at his bike shop.

Krista owns a hair salon. She wants to increase the number of clients she serves each month, and she wants to use a technological advance to do so. ________ would represent a technological advance at her hair salon.

Which of the following would be classified as human capital?

Steve owns a bike shop. He wants to increase the number of bikes he sells each month, so he knows he needs to acquire more resources. Which of the following actions would represent an increase in the human capital resource at his bike shop?

Steve owns a bike shop. He wants to increase the number of bikes he sells each month, so he knows he needs to acquire more resources. Which of the following actions would represent an increase in the human capital resource at his bike shop?

Which of the following represents the technology used in a classroom?

Krista owns a hair salon. She wants to increase the number of clients she serves each month, so she knows she needs to acquire more resources. Which of the following actions would represent an increase in the human capital resource at her hair salon?

Nathan owns a coffee shop. He wants to increase the weekly number of coffee drinks he sells, and he wants to use a technological advance to do so. ________ would represent a technological advance at his coffee shop.

Populations tend to grow over time, meaning there are more workers. In order to maintain a constant level of worker productivity, the total amount of capital available to them must

An increase in human capital would tend to

Krista owns a hair salon. She wants to increase the number of clients she serves each month, so she knows she needs to acquire more resources. Which of the following actions would represent an increase in the human capital resource at her hair salon?

Lauren owns a bakery. She wants to increase her daily production of baked goods, so she knows she needs to acquire more resources. Which of the following actions would represent an increase in the human capital resource at her bakery?

Why would an increase in capital resources lead to an increase in worker productivity?