This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Economic Growth > Economic Growth – Quiz 15 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Economic Growth Quiz 15 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is true about literacy rate and how well off people are (or, the standard of living) in a country? A) The higher the literacy rate, the higher the standard of living. B) The lower the literacy rate, the higher the standard of living. C) There is no relationship between the two. D) None of above. Show Answer Correct Answer: A) The higher the literacy rate, the higher the standard of living. 2. Economic Growth can be defined as: A) An increase in real GDP. B) An increase in the Dow Jones Industrial Average. C) An increase in the labor force. D) An increase in consumer wealth. Show Answer Correct Answer: A) An increase in real GDP. 3. "Economic Growth" refers to: A) Increases in the PRODUCTION CAPACITY of a country. B) Increased in the PRODUCTS of a country. C) Increases in the PRODUCTION DAYS of a country. D) None of above. Show Answer Correct Answer: A) Increases in the PRODUCTION CAPACITY of a country. 4. What did the reduction in taxes on luxury items and consumer goods aim to do? A) Support small businesses. B) Encourage saving. C) Promote international trade. D) Boost consumer spending. Show Answer Correct Answer: D) Boost consumer spending. 5. Why is Real GDP better than Nominal GDP A) It shows actual increases or decreases in output. B) It allows economists to see if there is more growth. C) It shows whether there has been an actual increase in inflation. D) Nominal GDP doesn't allow people to see an increase in output. Show Answer Correct Answer: A) It shows actual increases or decreases in output. 6. Bella can produce either a combination of 60 silk roses and 80 silk leaves or a combination of 70 silk roses and 55 silk leaves. If she now produces 60 silk roses and 80 silk leaves, what is the opportunity cost of producing an additional 10 silk roses? A) 2.5 silk leaves. B) 10 silk leaves. C) 25 silk leaves. D) 55 silk leaves. Show Answer Correct Answer: C) 25 silk leaves. 7. Which of the following is an effect of Spindletop? A) Oil companies closed down. B) People started drilling for oil all over the state. C) There were less jobs available because of the oil industry. D) People started drilling for oil all over the world. Show Answer Correct Answer: B) People started drilling for oil all over the state. 8. Nigeria exports more than ..... million barrels of oil daily. A) 56. B) 10. C) 100. D) 3. Show Answer Correct Answer: D) 3. 9. Public Sector A) The part of the economy owned and operated by the national government. B) The part of the economy owned and operated by private citizens. Show Answer Correct Answer: A) The part of the economy owned and operated by the national government. 10. What are two causes of economic barriers? A) Low consumer demand and high competition. B) Government regulations and trade restrictions. C) Lack of innovation and technological advancement. D) Globalization and free trade agreements. Show Answer Correct Answer: B) Government regulations and trade restrictions. 11. A country's ..... is the percentage of adults who can read and write. A) GDP per Capita. B) Capital goods. C) Literacy rate. D) GDP. Show Answer Correct Answer: C) Literacy rate. 12. GDP is the total value of goods and services A) Produced all over the world. B) Produced in one month. C) Produced within a nation's borders. D) Produced by a singl company. Show Answer Correct Answer: C) Produced within a nation's borders. 13. Germany has a system of universal higher education, meaning that everyone in the country can attend a university to earn an academic degree for free. For what economic reason does Germany have a system of universal higher education? A) Germany lacks a large industrial labor force. B) German people do not like to work in the industrial sector. C) A well-educated population generates a high gross domestic product. D) The government wants to encourage people to get jobs in other countries. Show Answer Correct Answer: C) A well-educated population generates a high gross domestic product. 14. United states:$ 54, 541 A) True. B) False. Show Answer Correct Answer: A) True. 15. How does entrepreneurship contribute to economic growth? A) Entrepreneurship leads to higher unemployment rates and lower productivity. B) Entrepreneurship has no impact on economic growth. C) Entrepreneurship contributes to economic growth through job creation, innovation, and increased productivity. D) Entrepreneurship only benefits a few individuals and does not contribute to overall economic growth. Show Answer Correct Answer: C) Entrepreneurship contributes to economic growth through job creation, innovation, and increased productivity. 16. Discuss the role of government policies in promoting industrial and economic growth. A) Government policies have no impact on industrial and economic growth. B) Government policies only benefit large corporations and not small businesses. C) Government policies provide incentives, infrastructure development, trade policies, and regulations to support businesses and industries. D) Government policies are too restrictive and hinder economic growth. Show Answer Correct Answer: C) Government policies provide incentives, infrastructure development, trade policies, and regulations to support businesses and industries. 17. What are the causes of economic recession? A) Positive demand-side shocks. B) A rise in business and consumer confidence. C) A fall in real GDP over a period of six months or more. D) A rise in fuel costs. Show Answer Correct Answer: D) A rise in fuel costs. 18. Productive resources are used to make what? A) Human Capital. B) Natural Resources. C) Entrepreneurs. D) Goods and Services. Show Answer Correct Answer: D) Goods and Services. 19. What will result in the short run from rising unemployment in an economy? A) The government's budget deficit will fall. B) Any existing inflationary pressure will be reduced. C) Potential output will fall. D) The economy's production possibility curve will shift inwards. Show Answer Correct Answer: B) Any existing inflationary pressure will be reduced. 20. Economic growth in a country is NOT measured by the country's Gross Domestic Product (GDP) in one year. A) I agree. B) I disagree. Show Answer Correct Answer: B) I disagree. ← PreviousNext →Related QuizzesMacroeconomics QuizzesEconomics QuizzesEconomic Growth Quiz 1Economic Growth Quiz 2Economic Growth Quiz 3Economic Growth Quiz 4Economic Growth Quiz 5Economic Growth Quiz 6Economic Growth Quiz 7Economic Growth Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books