POINTS: 0 / 1

2. On average, each year of schooling raises a person's wage in Canada by about a. 3 percent.

b. 10 percent.

c. 15 percent.

d. 25 percent.

ANSWER: B

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3. The primary reason that Canadian living standards are higher today than they were a century ago is that

a. more productive natural resources have been discovered.

b. physical capital per worker has increased.

c. technological knowledge has increase

d.

d. human capital has increased.

ANSWER: C

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4. Many countries in Africa have low growth rates. This is partly due to a. few natural resources

b. high trade barriers.

c. low incomes, making it very difficult for them to grow.

d. All of the above are correct.

ANSWER: B

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5. A government can encourage growth and, in the long run, raise the economy's standard of living by encouraging a. population growth.

b. consumption spending.

c. saving and investment.

d. trade restrictions.

ANSWER: C

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6. Diminishing returns is the notion that

a. as the stock of capital ages, the extra output produced decreases