Title: QUIZ: Why Are Some Countries Rich and Others Poor? -- Page One Economics®
Course: Kelly's Copying and Exporting Course > Section: Why Are Some Countries Rich and Others Poor? -- Page One Economics®

Q: Which economic indicator is a measure of standard of living within a country?
- GDP per capita
- GDP
- Prices per capita
- Inflation per capita
A: GDP per capita

Q: Assume a country’s GDP is $100,000. The population of the country is 1,000 people. What is the GDP per capita?
- $100,000
- $1,000
- $100
- $10,000
A: $100

Q: An economy’s production is a function of its inputs or factors of production, which include all of the following EXCEPT
- financial resources.
- natural resources.
- labor resources.
- capital resources.
A: financial resources.

Q: A tariff imposed by the government on imports from a specific country is an example of a(n)
- trade tariff.
- import deficit.
- government imposition.
- trade barrier.
A: trade barrier.

Q: Which of the following is most likely to lead a country out of poverty?
- Increasing the amount of money in circulation
- Investing in capital resources to increase productivity
- Decreasing access to international trade
- Eliminating a trade deficit and exclusively exporting goods
A: Investing in capital resources to increase productivity

Q: How can international trade increase total factor production (TFP) within a country?
- It allows countries to access capital resources, which enables them to increase their TFP.
- It prevents other countries from having comparative advantage.
- It maintains a country’s ability to have absolute advantage in some areas, which increases TFP.
- International trade does not increase TFP within a country.
A: It allows countries to access capital resources, which enables them to increase their TFP.

Q: Why is economic growth key for countries who want to escape poverty?
- A lower rate of economic growth means more goods produced per person, generating lower incomes.
- A higher rate of economic growth means more goods produced per person, generating lower incomes.
- A higher rate of economic growth means more goods produced per person, generating higher incomes.
- A lower rate of economic growth means more goods produced per person, generating consistent incomes.
A: A higher rate of economic growth means more goods produced per person, generating higher incomes.

Q: Which of the following theories suggests that if government provides strong property rights, free markets, and the rule of law, then markets will thrive and the economy will grow?
- Institutional Theory
- Wealth Theory
- International trade
- Comparative advantage
A: Institutional Theory

Q: Which of the following do economists suggest create the strongest incentive and opportunities for individuals to produce goods and services for trade?
- Price controls
- Private property rights
- Absence of open markets
- Trade barriers
A: Private property rights

Q: The  ____________________ provides a sense of stability and certainty for economic transactions. People and businesses can feel confident that the “rules of the game” will remain stable.
- right to private property
- free and open market
- international trade rule
- rule of law
A: rule of law