Title: QUIZ: Economic Growth -- Economic Lowdown Audio Series
Course: Andria Testing FRE2 > Section: Economic Growth -- Economic Lowdown Audio Series

Q: Long-run economic growth can be defined as __________.
- a sustained increase in a nation's production of goods and services over time
- the total market value of all final goods and services produced in an economy in a given year
- an increase in a family's income over time
- an increase in the money supply over time
A: a sustained increase in a nation's production of goods and services over time

Q: What is real GDP?
- It is the total market value of final goods and services produced in an economy in a given year.
- It is a sustained increase in the average price level of goods and services.
- It is the total market value of all final goods and services produced in an economy in a given year, adjusted for inflation.
- It is an increase in the money supply.
A: It is the total market value of all final goods and services produced in an economy in a given year, adjusted for inflation.

Q: What are the factors of production?
- Land, services, entrepreneurship, and capital
- Labor, land, and goods and services
- Labor, land, services, and capital
- Labor, land, capital, and entrepreneurship
A: Labor, land, capital, and entrepreneurship

Q: What is human capital?
- The number of workers in the labor force
- The knowledge and skills attained through education, experience, and training
- The cost of labor for a skilled worker
- The cost of labor for an unskilled worker
A: The knowledge and skills attained through education, experience, and training

Q: What is physical capital?
- The goods, tools and equipment used to provide human capital
- The goods, tools and equipment used to produce exponentially profitable goods
- The goods, tools and equipment that a firm uses to produce other goods and services
- The goods, tools and equipment used to produce services for others
A: The goods, tools and equipment that a firm uses to produce other goods and services

Q: What is an entrepreneur?
- An individual who is willing to take risks in order to develop new products and start new businesses
- An individual who is assigned to run a business
- An unskilled worker that is overpaid
- A skilled worker that is underpaid
A: An individual who is willing to take risks in order to develop new products and start new businesses

Q: What is the biggest driver of economic gain?
- Decreased worker productivity
- Increased labor costs
- Tax restrictions
- Technological progress
A: Technological progress

Q: What encourages innovation?
- Incentives that reward productivity
- A lack of informal institutions
- A lack of formal institutions
- Political instability
A: Incentives that reward productivity