Download Economic Factors Cube Review

Economic Factors Cube Review
Directions:
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Teachers: Review the terms Gross Domestic Product
and Standard of Living with students prior to this
review activity
Take a look at each cube. One cube has sides with
Economic Factors. One cube has questions to answer.
For example, if a player lands on the “Specialization”
side of one cube and the “Examples” side of the other
cube, the player should identify an example of
specialization.
Decide which player will go first.
The first player will roll the two cubes and provide the
correct answer(s). The answer key can be used for
reference (hints) or for checking answers.
Partners take turns rolling cubes.
Economic Factors Cube Review KEY
Physical Capital (Capital)
ƒ Define: the buildings, equipment, tools, technology, etc. used to make products
ƒ Examples: factories, machines, computers, roads/highways, tools, etc.
ƒ Impact on Gross Domestic Product (GDP): When an economy, government, or business
invests in physical capital (capital goods), the country has a higher GDP because
businesses are more efficient, productive, up-to-date, and more safe. Therefore, more
products are produced that can be sold to benefit the economy (GDP).
ƒ Impact on Standard of Living: When an economy, government, or business owner invests
(put money into) in physical capital, more money is made. When businesses make more
profit (money) they raise their standard of living. When workers make more money (due to
their employer/workplace making more money) their standard of living increases.
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Human Capital
Define: people who perform labor; the knowledge and skills that make it possible for workers
to earn a living producing goods or services
Examples: education, training (in technology, skills, safety, etc.)
Impact on Gross Domestic Product (GDP): Countries/businesses where training and
education are more easily available often have higher production levels of goods and
services; therefore, higher gross domestic product. Additionally, the more skills and
education workers have, the better they are able to work without mistakes and are more
efficient; education and the abilities it develops create a smarter and more productive
workforce, which leads to greater economic growth
Impact on Standard of Living: Companies that have invested in their human capital through
training and education are more likely to have profitable businesses and more satisfied
workers. Profitable businesses pay higher salaries to workers which improves their
standard of living. Additionally, more training and education improves literacy which allows
a person to get better, higher paying jobs, which in turn improves standard of living
Entrepreneurship
Define: ideas, innovation, and risk involved in starting a business; entrepreneurs are people
who come up with new ideas to create new businesses and products by using human
capital, capital (physical), and natural resources to bring ideas to the marketplace
Examples: business owner (restaurants, shops, factories); person who may provide services
such as house cleaning, landscaping, website development, etc. Famous entrepreneurs
you see or hear about- founder of McDonalds, Coca-Cola, Home Depot, Papa John’s, etc.
Impact on Gross Domestic Product (GDP): Entrepreneurs use the natural resources, human
capital, and capital goods (physical capital) of their economy in new ways to make their
idea a reality; when an entrepreneur is successful, everyone benefits-the economy grows,
competition increases, and people can buy new and better products.
Impact on Standard of Living: When an entrepreneur is successful, the economy grows which
can have a positive impact on the standard of living. Additionally, the standard of living of
the entrepreneur, his/her family, his/her workers improves if the business is successful.
Additionally, new and better products and ideas can improve standard of living (new
technologies which make life easier, more productive, healthier, etc.)
Natural Resources
ƒ Define: materials that are naturally found in the environment and can be sold as valuable
commodities (something to use or trade); something that is found in the environment that
people need
ƒ Examples: water, trees, rich soil, minerals, oil, iron, gold, diamonds. coal, zinc, uranium, etc.
Economic Factors Cube Review KEY
Natural Resources cont’d
ƒ Impact on Gross Domestic Product (GDP): The more natural resources a country has, the
more products it can be produce at a cheaper cost. Additionally, the more natural resources
a country has, the more money it can make by exporting the “left-over” natural resources to
other countries and the less money it will have to spend for importing natural resources that
it does not have. Valuable natural resources are a source of income when exported and
allow countries to specialize in industries which process these resources for use and
export, which improves GDP.
ƒ Impact on Standard of Living: The presence or use of natural resources plays an important
role in a successful economy. When an economy is successful, its population tends to have
higher paying jobs, which in turn increases a country’s standard of living. Additionally, the
presence of natural resources provides more opportunity for employment. Continued
employment can lead to a higher standard of living. Moreover, improved technologies to
extract or manufacture a country’s natural resources can lead to higher profits, higher
salaries, and in turn higher standard of living.
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Specialization
Define: products a country makes best and that are in demand on the world market;
Specialization is when an individual or a company specializes in doing one part of a task,
and relies on others to complete the other parts.
Examples: Australia specializes in exporting coal and wool. China buys wool from Australia
and China specializes in exporting computers to Australia. Other real or made up examples
are acceptable as long as the concept is evident
Impact on Gross Domestic Product (GDP): Countries sell products they specialize in making
which helps their GDP. Specialization is a way to build a profitable economy (which
translates to a high GDP).
Impact on Standard of Living: Specialization helps make businesses more profitable, and
improves the standard of living in countries because when businesses are more successful,
workers make more money. When workers make more money, they raise their own
standard of living.
Literacy Rate
Define: Literacy is the ability to read and write
Examples: The United States has a high literacy rate; Europe, Canada, and Australia all have
high literacy rates. Most countries in Latin America have high literacy rates; however, some
Latin American countries such as Haiti have a low literacy rate. Countries in Africa
generally have lower literacy rates than most countries. Countries in the Middle East have
fairly high literacy rates; however, the gap between males and females is greater.
Impact on Gross Domestic Product: Lack of education (which is usually a factor in literacy)
also prevents many young people from becoming the engineers, doctors, scientists, etc.
that modern economies need in order to bring improvements to their countries and improve
the country’s GDP. Educated and skilled workers are an important because educated
citizens are more productive and will contribute their ideas and innovations to society which
can have a positive impact on GDP.
Impact on Standard of Living: Those who cannot read or write have a very difficult time
finding decent jobs. Unemployment or low paying jobs results in a low standard of living
because people do not have the money to improve their daily lives (better housing, better
healthcare, better means of transportation, etc.) If you can read, you can learn. If you can
learn, you can improve your work skills, and get a better job that pays a better salary. If you
have a better salary, you can improve your standard of living.
Economic Factors Cube Review
Roll #
1
Economic Factor
Name________________________ Blk____
Question?
Your Response
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Check to see if there are any combinations that you did not roll and use the table below to respond without having to roll.
Economic Factor
Question?
Your Response
Which economic system would you expect to be present in countries with higher GDPs and higher standards of living? Why?
Economic Factors Review
Name___________________________ BLK_____
1. What is physical capital (capital)? _____________________________________________
2. Examples of physical capital ________________________________________________
3. How does physical capital impact a country’s GDP? ______________________________
__________________________________________________________________________
4. How does physical capital impact a country’s standard of living? ____________________
__________________________________________________________________________
5. What is human capital? _____________________________________________________
6. Examples of human capital _________________________________________________
7. How does human capital impact a country’s GDP? _______________________________
__________________________________________________________________________
8. How does human capital impact a country’s standard of living? _____________________
__________________________________________________________________________
9. What are natural resources? _________________________________________________
10. Examples of natural resources______________________________________________
11. How does the presence (or lack) of natural resources impact a country’s GDP?
__________________________________________________________________________
__________________________________________________________________________
12. How does the presence (or lack) of natural resources impact a country’s standard of
living? ____________________________________________________________________
__________________________________________________________________________
13. What is entrepreneurship? _________________________________________________
__________________________________________________________________________
14. Examples of entrepreneurship ______________________________________________
__________________________________________________________________________
Economic Factors Review
Name___________________________ BLK_____
15. How does entrepreneurship impact a country’s GDP? ____________________________
__________________________________________________________________________
16. How does entrepreneurship impact a country’s standard of living? __________________
__________________________________________________________________________
17. What is specialization? ____________________________________________________
__________________________________________________________________________
18. Examples of specialization _________________________________________________
__________________________________________________________________________
19. How does specialization impact a country’s GDP? _______________________________
__________________________________________________________________________
20. How does specialization impact a country’s standard of living? _____________________
__________________________________________________________________________
21. What is literacy rate? ______________________________________________________
22. Examples of literacy rate __________________________________________________
23. How does literacy rate impact a country’s GDP? ________________________________
__________________________________________________________________________
24. How does literacy rate impact a country’s standard of living? ____________________
__________________________________________________________________________
Natural
Resources
Literacy
Rate
Specialization
Human
Capital
Physical
Capital
Entrepreneurship
Define
Impact on
Standard
of Living
Impact
on GDP
Impact on
Standard
of Living
Impact
on GDP
Examples