Question 1

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

Acquiring more chairs and hair dryers would represent an increase in the physical capital resource of the salon, as it would allow for more clients to be served at the same time. The other options may improve the quality of service or the human capital of the salon, but they do not directly address the issue of increasing the number of clients served.

Question 2

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 increase the number of individuals with the knowledge and skills necessary to provide hair care services, which would qualify as an increase in the human capital resource. Buying more chairs and hair dryers, moving into a larger salon, purchasing better-quality shampoo, and buying more scissors and combs would increase the physical capital resource or the quality of materials, but would not directly increase the human capital resource.

Question 3

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 number of people working at the bakery, thereby increasing the human capital resource. Buying additional ovens, repairing a broken delivery van, buying better-quality ingredients, and moving into a larger space would all increase the physical capital resource but not necessarily the human capital resource.

Question 4

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 entail acquiring new physical resources such as ovens, mixers, display cases, and other equipment needed to fill the expanded space. This would be an increase in physical capital resources. Increasing employee training, hiring more employees, buying better quality ingredients, and hiring an accountant do not represent an increase in physical capital resources.

Question 5

A firm's human capital would increase with:

Accepted Answer

Human capital refers to the skills, knowledge, and abilities that employees possess, which contribute to the productivity and competitiveness of a firm. On-the-job training helps to develop and enhance these skills, leading to an increase in the firm's human capital. A decrease in the number of employees (A) would mean a decrease in the firm's overall capacity, and new equipment (B) and a larger facility (C) would not necessarily lead to an increase in the human capital of existing employees. Fewer managers per worker (E) may improve efficiency, but it is not directly related to human capital.

Question 6

An increase in human capital would tend to:

Accepted Answer

Increasing human capital means improving workers' skills, knowledge, and education level. This can lead to increased productivity as workers become more proficient and efficient in their jobs, resulting in higher-quality work and output.

Question 7

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 represent an increase in the human capital resource at Steve's bike shop. This would improve the knowledge, skills, and abilities of his employees, making them more productive and better equipped to assist customers.

Question 8

A(n) _____________ in capital goods should ____________ worker productivity.

Accepted Answer

A capital good is a long-term asset that is used in the production of goods and services. Examples include machinery, equipment, and buildings. Investing in capital goods, such as providing workers with updated machinery and equipment, should increase their productivity. This is because newer and better equipment often means that work can be done more efficiently and effectively. Therefore, the correct answer is D: increase; increase.

Question 9

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 represent an increase in human capital, as it represents an investment in the skills and knowledge of the individuals who work in the bike shop.

Question 10

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

If the total amount of capital available does not increase at least at the same rate as population growth, there will be less capital for each worker, resulting in decreased productivity. Therefore, the total amount of capital available must increase at a rate at least equal to population growth in order to maintain worker productivity.

Question 11

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 constitute an increase in human capital resources. Repairing a broken delivery van would be an increase in physical capital resources. Purchasing ingredients in bulk and buying better-quality ingredients would be an increase in material resources. Moving into a larger space would be an increase in physical capital resources, but it would not necessarily result in an increase in the bakery's productivity or human capital resources.

Question 12

Which of the following would be classified as human capital?

Accepted Answer

Human capital refers to the education, skills, and training that individuals possess, and through which they can contribute to the economy. Obtaining a college degree is an example of human capital because it represents an investment in education and skills that can lead to higher earnings and improved productivity in the workforce.

Question 13

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 allow for more baked goods to be produced in a shorter amount of time, therefore increasing daily production. The other choices may improve the quality and efficiency of the bakery, but would not necessarily increase production.

Question 14

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 as it would improve the efficiency of the salon and attract clients who want faster and less damaging hair drying services. The other options, such as more scissors and combs or increasing the number of employees, would not necessarily lead to an increase in the number of clients served per month. Better training for staff and a larger salon with more chairs could potentially lead to more clients, but they are not specifically technological advances.

Question 15

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 16

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 larger audience beyond his local community and potentially increase the number of bikes he sells each week. Increasing inventory, employees, or accessories may help with sales in the short run, but they do not necessarily represent a technological advance. Better training for staff may improve the quality of service but may not directly lead to an increase in sales.

Question 17

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 a technological advance and could potentially increase the number of coffee drinks sold per week by allowing for faster service and shorter wait times. The other options listed do not necessarily qualify as a technological advance and may not directly increase the number of coffee drinks sold.

Question 18

"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 not only leads to higher individual incomes and productivity, but also contributes to technological advancements, innovation, and a more skilled workforce, all of which have positive effects on long-term economic growth. Access to consumer goods, the Internet, cell phones, and automobiles can also contribute to economic growth, but to a lesser extent in comparison to education.

Question 19

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

Accepted Answer

With more capital, workers have access to better tools and equipment, which allows them to produce more efficiently and effectively. This leads to an increase in worker productivity.

Question 20

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 her stylists would improve their skills and knowledge, thus increasing the quality of service at the salon. This would help attract more clients and increase the number of clients served each month. Buying more chairs, hair dryers, scissors, and combs, as well as purchasing better-quality shampoo, would not necessarily increase the number of clients served, but rather improve the efficiency or quality of service for the existing number of clients. Moving into a larger salon may accommodate more clients but would not inherently increase the number of clients served each month.

Quiz 11: Economic Growth and the Wealth of Nations

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?

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?

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?

A firm's human capital would increase with:

An increase in human capital would tend to:

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?

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

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?

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:

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?

Which of the following would be classified as human capital?

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.

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 represents the technology used in a classroom?

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.

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.

Why would an increase in capital resources lead to an increase in 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 human capital resource at her hair salon?