This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Economic Growth > Economic Growth – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Economic Growth Quiz 1 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Define economic growth A) An increase in real GDP or the real quantity of goods and services produced over a period of time (typically a year), and is usually expressed as a percentage change in real GDP or GDP/capita over a period of time. B) Refers to the natural rate of unemployment, or unemployment of labour that prevails when the economy is producing potential output, or real GDP, determined by the position of the LRAS curve (long run equilibrium). C) Refer to the maximum output of combination of two goods that can be produced in an economy with fixed resources and technology, provided there is full or maximum employment of resource and efficiency in production, implying zero unemployment. D) Levels of income, wealth and consumption of goods and services, including healthcare and education. Show Answer Correct Answer: A) An increase in real GDP or the real quantity of goods and services produced over a period of time (typically a year), and is usually expressed as a percentage change in real GDP or GDP/capita over a period of time. 2. The ability to read and write A) Literacy. B) Literacy rate. C) Standard of living. D) Balkans. Show Answer Correct Answer: A) Literacy. 3. Which of the following distinguishes nominal GDP from real GDP? A) Nominal GDP represents output whereas real GDP represents income. B) Nominal GDP is the GDP level at current prices whereas real GDP is adjusted to remove the effects of inflation. C) Real GDP is the GDP level at current prices where nominal GDP is adjusted to remove the effects of inflation. D) Real GDP represents output where nominal GDP represents income. Show Answer Correct Answer: B) Nominal GDP is the GDP level at current prices whereas real GDP is adjusted to remove the effects of inflation. 4. Which of the following represents an investment in capital resources/goods? A) Providing free healthcare. B) Modernizing machinery. C) Providing skills training. D) Subsidizing the cost of attending university. Show Answer Correct Answer: B) Modernizing machinery. 5. In the context of economic growth, what is the significance of reallocating resources? A) It leads to inflation. B) It hinders economic growth. C) It improves efficiency and economic growth. D) It causes a decline in GDP. Show Answer Correct Answer: C) It improves efficiency and economic growth. 6. Real GDP is different from nominal GDP because it: A) Only includes goods and services produced by a country's citizens. B) Considers the value of all goods and services produced in a country. C) Accounts for inflation when measuring economic growth. D) Only includes government spending and investments. Show Answer Correct Answer: C) Accounts for inflation when measuring economic growth. 7. Germany's literacy rate is 99%. Based on this information, what can be concluded about Germany? A) Germany's workforce has valuable human capital. B) Germany's businesses have valuable capital goods. C) Germany has a low gross domestic product. D) Germany has a low standard of living. Show Answer Correct Answer: A) Germany's workforce has valuable human capital. 8. How could an economy incentivize advancements in human capital? A) Reducing trade barriers. B) Giving legal protections to new technological developments. C) Providing tax credits for research and development. D) Offering subsidies fo r college education. E) Encouraging investment in industry. Show Answer Correct Answer: D) Offering subsidies fo r college education. 9. What is the correct correlation (relationship) between natural resources and GDP? A) GDP goes down when there is an abundance of natural resources. B) GDP goes up when there is an abundance of natural resources. Show Answer Correct Answer: A) GDP goes down when there is an abundance of natural resources. 10. Investment in capital goods typically leads to an ..... A) Increase in GDP. B) Decrease in GDP. C) No change in GDP. D) None of above. Show Answer Correct Answer: A) Increase in GDP. 11. What are the different types of industries that contribute to economic growth? A) Manufacturing, agriculture, services, and technology. B) Finance, entertainment, and hospitality. C) Education, healthcare, and transportation. D) Construction, mining, and retail. Show Answer Correct Answer: A) Manufacturing, agriculture, services, and technology. 12. A measure of the material aspects of an economy (includesthe level of wealth and material comfort available to people) A) Literacy. B) Literacy rate. C) Standard of living. D) Balkans. Show Answer Correct Answer: C) Standard of living. 13. The concept of economic growth is A) Identical with the concept of economic development. B) Narrower than the concept of economic development. C) Wider as compared to that of economic development. D) Unrelated to the concept of economic development. Show Answer Correct Answer: B) Narrower than the concept of economic development. 14. The economic growth A) Economic growth. B) Economic development. C) Economic growth. D) Economic security. Show Answer Correct Answer: A) Economic growth. 15. A country with an aging population is MOST LIKELY to face rapidly rising costs for which of the following? A) Refugees. B) Pensions. C) Pollution. D) Unemployment. Show Answer Correct Answer: B) Pensions. 16. A. an decrease in quantity and quality of education A) Increase economic growth. B) Decrease economic growth. C) No change in economic growth. D) None of above. Show Answer Correct Answer: B) Decrease economic growth. 17. What does a Sheriff do to help govern a city? A) Makes decisions about what laws should be made. B) -Main Jailer for the county-Enforces laws-Ensures Peace. C) Tells the deputy to get to work. D) Tells weather a person is guilty or not. Show Answer Correct Answer: B) -Main Jailer for the county-Enforces laws-Ensures Peace. 18. A policy promoting education and skills training impacts inclusive economic growth by: A) Increasing consumer spending. B) Reducing the need for technology. C) Enhancing workforce productivity. D) Decreasing export competitiveness. Show Answer Correct Answer: C) Enhancing workforce productivity. 19. What is the correct correlation (relationship) between entrepreneurs affect GDP? A) When a country invests in human capital it has the ability to foster more entrepreneurs, the more entrepreneurs a country has the higher the GDP. B) When a country invests in human capital it has the ability to foster more entrepreneurs, the more entrepreneurs a country has the lower the GDP. Show Answer Correct Answer: A) When a country invests in human capital it has the ability to foster more entrepreneurs, the more entrepreneurs a country has the higher the GDP. 20. How does literacy influence economic growth? A) People that can read and write cannot get better jobs and will not earn more money. B) People that can read and write, can secure better jobs and make more money. They can then spend that money. C) People with low literacy can work better jobs and make more money. D) None of above. Show Answer Correct Answer: B) People that can read and write, can secure better jobs and make more money. They can then spend that money. 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