This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Economic Growth > Economic Growth – Quiz 26 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Economic Growth Quiz 26 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Most people in developing nations earn their living by- A) Farming. B) Working in offices and companies. C) Working in manufacturingindustries. D) Working in service industries. Show Answer Correct Answer: A) Farming. 2. A cost to economic growth is that finite resources may be used up A) Yes, I understand this from the notes. B) No, I don't understand this from the notes. C) No, I don't understand this, as I have not read the notes. D) None of above. Show Answer Correct Answer: A) Yes, I understand this from the notes. 3. The things that nations invest in to increase productivity and manufacture things more efficiently are ..... A) Natural resources. B) Capital goods. C) Trade barriers. D) Gross Domestic Product. Show Answer Correct Answer: B) Capital goods. 4. A cost to economic growth is income inequality A) Yes, I understand this from the notes. B) No, I don't understand this from the notes. C) No, I don't understand this, as I have not read the notes. D) None of above. Show Answer Correct Answer: A) Yes, I understand this from the notes. 5. What are net exports? A) The difference between the quantity of exports and the quantity of imports. B) The quantity of total exports in an economy. C) The value of total exports in an economy. D) The difference between export revenue and import expenditure. Show Answer Correct Answer: D) The difference between export revenue and import expenditure. 6. If someone says that the country of China is worth over $ 12 trillion dollars, they are talking about their A) Human capital. B) GDP. C) Capital goods. D) GDP per capita. Show Answer Correct Answer: B) GDP. 7. If we create real economic growth, should we see price increases? A) No, because the long-run and short-run curves both shift to the right. Prices should minimally stay the same. B) Yes because the long-run curve shifts to the right and that meets supply at a higher price point. Show Answer Correct Answer: A) No, because the long-run and short-run curves both shift to the right. Prices should minimally stay the same. 8. S + T + M > I + G + X means that the national income will A) Fall. B) Increase. C) Stay the same. D) None of above. Show Answer Correct Answer: A) Fall. 9. What is the impact of having natural resources on a country's GDP? A) If you have better machines, you will be more productive and make more money. B) The total amount of goods and services produced in a country in one year. C) More natural resources allows you to make more goods. more goods equals more profit, and more profit equals an increase in GDP. D) Tools that make other goods. Show Answer Correct Answer: C) More natural resources allows you to make more goods. more goods equals more profit, and more profit equals an increase in GDP. 10. What are the 4 factors that lead to a country's economic growth? A) Nvestment in human capital, investment in physical capital, land (natural resources), entrepreneurship. B) A powerful military, strong dictatorial leadership, communist regime, little personal freedom. C) Good international relations, a democratic president, strict laws, freedom of press. D) A monarchy, the World Bank, a parliamentary democracy, personal freedom. Show Answer Correct Answer: A) Nvestment in human capital, investment in physical capital, land (natural resources), entrepreneurship. 11. An economy is most likely to be in the boom phase of the economic cycle when there is a rise in A) The household savings ratio. B) The demand for imports. C) The budget (fiscal) deficit. D) The level of house repossessions. Show Answer Correct Answer: B) The demand for imports. 12. Why might Net Social Welfare be a better measure of growth than real GDP? A) It includes inflation. B) It shows how incomes are distributed in the economy. C) It includes economic and non economic factors. D) It only includes non-economic factors. Show Answer Correct Answer: C) It includes economic and non economic factors. 13. An increase in the labour force participation rate is most likely to A) Increase productivity. B) Increase productive capacity. C) Decrease government revenue. D) Increase government expenses. Show Answer Correct Answer: B) Increase productive capacity. 14. A product sent and sold to another country. A) Export. B) Net. C) Import. D) None of above. Show Answer Correct Answer: A) Export. 15. GDP is A) The amount of goods and services produced. B) The amount of goods and services produced by a country over a year. C) The value of goods and services produced by a country over a year. D) Great domestic product. Show Answer Correct Answer: C) The value of goods and services produced by a country over a year. 16. If Mrs. Sherman's family find oil in her back yard, how can she invest in capital goods to help her make money off of her newfound oil? A) She can pay for her kids to be trained in the oil refinery industry. B) She can sell it to the highest investor at a bank. C) She can buy machines that will allow her to take the oil out of the ground and refine it. D) She can pay to have it inspected by an agency. Show Answer Correct Answer: C) She can buy machines that will allow her to take the oil out of the ground and refine it. 17. The closer the HDI is to 0, the ..... developed the country is. A) Less. B) More. Show Answer Correct Answer: A) Less. 18. Your friend and you decide to open a snow cone stand. The training you give to the people you hire to run the stand are examples of which factor of production? A) Capital Resources/Goods. B) Entrepreneurship. C) Human Capital. D) Natural Resources. Show Answer Correct Answer: C) Human Capital. 19. Economic migration has to do with people that choose to move to improve the standard of living by gaining a better paid job A) True. B) False. Show Answer Correct Answer: A) True. 20. Depreciation is when ..... A) The value of an asset decreases over time. B) The value of an asset remains constant over time. C) The value of an asset is not affected by time. D) The value of an asset increases over time. Show Answer Correct Answer: A) The value of an asset decreases over time. ← 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