Choose one of the following countries - United Kingdom, Germany, or Russia. Identify which country you chose and then answer these 5 questions. Make sure to number your responses.

I chose the United Kingdom

1. How has the investment in Human Capital Goods influenced the economic growth of your chosen country?

2. How has the role of Natural Resources influenced the economic growth of your chosen country?

3. How has the investment in Capital Goods influenced the economic growth of your chosen country?

4. How has the role of Entrepreneurship influenced the economic growth of your chosen country?

5. Summarize your thoughts about your chosen country's Economic Growth

1 The fundamental economic problem occurs because resources have to be allocated amongst competing uses since wants are infinite whilst resources are scarce.

i You and your family: unless you are very wealthy, you and your family will never have enough money/income to satisfy all of your wants. For example, you might want to go to see a film but do not have enough money to do so; your family may want to buy the latest flat-screen TV but does not have enough spare income to purchase it.

ii Government: all governments face the economic problem since they never have enough money in their budgets to be able to fund all of the wants that are required. As a result choices and priorities have to be made. Typical choices to be made are, for example, between spending more on an infant health programme or on an infant educational programme. The limited budget means that both cannot be funded.

iii Manufacturing business: revenue and capital funds for any business are limited either through what is available inside a business or what can be borrowed outside. So, a firm might like to replace all of its outdated machinery but because it lacks the capital available to be able to do so can only replace some of it.

2 A typical answer, which includes examples from your country, could be:

   Description

Typical Examples

  Land

Labour

Capital

Enterprise

Natural resources

Workers, human resources

Man-made aids for production

Organisation of production, taking risks

Copper, water, tropical climate Labourers, supervisors, managers Factories, machines airports Business managers, entrepreneurs

       3 A possible

Specialisation is where a firm concentrates its production on those goods where it has an advantage over others. It can apply in the case of people in the workplace, for example, where a firm concentrates production on a limited range of products. A consequence of specialisation is that the firm can produce more than if it is producing a wider range of products with the same resources. The division of labour is where the production process is split into individual tasks that are carried out in order. It has important benefits for a firm and for the economy including an increase in productivity and quality of goods that are produced compared to if each worker was making the product from scratch.

4 i Free market economy: Singapore

The market mechanism operates across a wide range of goods and services; there is limited government  intervention, mainly in terms of regulations, budgetary and foreign policy. Minimal provision of public goods and merit goods.

Explanation:

answer; /// the above statement is (true);

answer; when circuit courts do not agree on a decision in similar fact pattern;