HE5091 Principles of Economics Lecture 8 Quiz

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What is the main factor that contributes to average labor productivity according to the text?

Technology

Land and natural resources

Human capital (correct)

Physical capital

Which country used human capital effectively for economic growth, as mentioned in the text?

Bangladesh

Switzerland

Germany (correct)

Indonesia

What is the most important source of productivity improvement according to the text?

Physical capital

Technology (correct)

Land and natural resources

Entrepreneurship

Which factor can lead to diminishing returns to capital according to the text?

Adding more machines to a firm Signup and view all the answers

What contributes to increasing worker productivity besides human capital?

Land and natural resources Signup and view all the answers

Which factor is essential for a dynamic and growing economy according to the text?

Entrepreneurship Signup and view all the answers

What is crucial for promoting a free and open exchange of ideas according to the text?

Incentives for exploiting market opportunities Signup and view all the answers

What can encourage new capital formation and saving in the private sector according to the text?

Investment tax credits Signup and view all the answers

Which of the following is not one of the six factors that determine average labor productivity?

Geographic location of the country Signup and view all the answers

The text states that Japan and Germany were able to achieve economic growth by emphasizing which aspect of human capital?

Providing apprenticeship and on-the-job training Signup and view all the answers

Which of the following is a potential cost or downside of economic growth?

Depletion of some natural resources Signup and view all the answers

The text mentions that some types of research, such as basic science, create externalities that a private firm cannot capture. What does the text suggest the government should do in response to this?

Fund basic science research through government agencies Signup and view all the answers

What is one way the government can encourage new capital formation and saving in the private sector?

Offer investment tax credits to private firms Signup and view all the answers

The text suggests that the "opportunity cost" of increasing the capital stock is what?

Fewer consumer goods being produced Signup and view all the answers

Which of the following is not mentioned as a way that the government can promote economic growth in least developed countries?

Nationalizing key industries to ensure stability Signup and view all the answers

The text states that the "single most important source of productivity improvement" is what?

New technologies and innovations Signup and view all the answers

What is one way the government can promote sustainable economic growth in the face of environmental challenges?

Encouraging the use of market-based mechanisms to address scarcity Signup and view all the answers

The text mentions that Japan, Hong Kong, Singapore, and Switzerland have high levels of GDP per capita despite having a "limited resource base." What does this suggest about the importance of natural resources in determining economic productivity?

Natural resources are not a significant factor in determining economic productivity Signup and view all the answers