Question

From 2011 to 2012, real gross domestic product (GDP) in the United States increased by:

	a.	2.2%.
	b.	3.8%.
	c.	1%.
	d.	2.8%.
	e.	5.4%.

Lauren owns a bakery. She wants to increase her daily production of baked goods, so she knows she needs to acquire more resources. Which of the following actions would represent an increase in the physical capital resource at her bakery?

	a.	moving into a larger space
	b.	hiring more employees
	c.	hiring an accountant to handle payroll
	d.	buying better-quality ingredients
	e.	increasing employee training

Lauren owns a bakery. She wants to increase her daily production of baked goods, and she wants to use a technological advance to do so. _______________ would represent a technological advance at her bakery.

	a.	Installing a convection oven that can bake bread in half the time
	b.	Using higher-quality flour and other ingredients
	c.	Increasing the number of mixing bowls and spoons
	d.	Increasing the number of employees
	e.	Better training for bakery staff

Answer 1

From 2011 to 2012, the gross GDP in the US grew at 2.2%. The correct option is a.

Increase in physical capital of production refers to an increase in the scale of production. b, c and e refer to an increase in labour inputs while d refers to an increase in input quantity. The increase physical capital may be moving to a larger space. The correct option is a.

Installing a convention that can bake bread in half the time is an instance of technological advance. The correct option is a.