Unit 14

Why does an increase in literacy rates often accompany an increase in per capita income? People who have higher-paying jobs often have the time available to develop literacy skills. Developing countries have higher-than-average literacy rates, which typically leads to higher income. People who can read and who receive an education are eligible for higher-paying jobs. Developed countries often attempt to raise low literacy rates to improve income.

What are standards designed to do? Check all that apply. protect consumers support domestic industries limit imports ensure safety offer domestic industries an advantage

An economic incentive is best described as something that: benefits producers or consumers when taking action. pushes producers or consumers to act on the government's behalf. motivates producers or consumers to take action. forces producers or consumers to act in a certain way.

Why do developing countries usually have less variety in their economic activities? Limited access to education means that people are not trained to work in industry or technology. Focusing on one or two economic activities leads to more rapid economic development. Developing countries are usually small and have limited populations and resources. People prefer the lifestyle that accompanies traditional activities such as farming.

Which best describes the effect negative incentives have on a certain course of action? They make the action impossible. They make the action less profitable. They make the action difficult. They make the action less likely.

A tariff is a type of: tax. punishment. subsidy. grant.

What type of economic growth do most developed economies experience? rapid growth unpredictable growth moderate growth slow growth

In developed economies, less-educated workers: have more jobs to choose from. are often more highly skilled than other workers. may be outsourced to other nations. can have difficulty finding work.