This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Economic Growth > Economic Growth – Quiz 29 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Economic Growth Quiz 29 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. An innovation is A) A new idea that can be monetize. B) An invention. Show Answer Correct Answer: A) A new idea that can be monetize. 2. The "Fire" Nation's GDP in 2018 was £2380 & 2019 was £2615. If we use 2018 as the base year, how much will the Fire Nation's economy grow? A) 8%. B) 9%. C) 10%. D) 11%. E) 12%. Show Answer Correct Answer: C) 10%. 3. A place where business pay little or no tax. A) Tax-Free Zone. B) Business Bay. C) Free Zone. D) Hypermarket. Show Answer Correct Answer: C) Free Zone. 4. What is the primary consequence of a fall in asset prices during a recession? A) Increased consumer confidence. B) Decline in investment. C) Higher budget surplus. D) Rise in production. Show Answer Correct Answer: B) Decline in investment. 5. What is the state in which a country's successes become the norm, or habit, according to Rostow's model? A) Traditional Society. B) Preconditions for Takeoff. C) Drive to Maturity. D) High Mass Consumption. Show Answer Correct Answer: C) Drive to Maturity. 6. Which of the following is NOT a possible outcome when AD increases? A) Higher general price level. B) Higher real national income. C) Higher unemployment. D) Higher material standard of living. Show Answer Correct Answer: C) Higher unemployment. 7. Edoardo tutors children in need and gets paid in cash each week. Is this included in GDP? A) Yes-Consumer Spending. B) Yes-Investment. C) No-Underground Economy. D) No-Purely financial transaction. Show Answer Correct Answer: C) No-Underground Economy. 8. At which stage of the economic cycle would you expect consumers to have the highest levels of disposable income? A) Slump. B) Recovery. C) Recession. D) Boom. Show Answer Correct Answer: D) Boom. 9. GDP = Consumption by households + Investment by producers + government spending + (imports-exports) A) True. B) False. Show Answer Correct Answer: B) False. 10. Why have the Israelis made a big investment in human capital? A) They need capital tools to extract the abundance of oil profits. B) Investing in human capital will decrease the standard of living an overall quality of life. C) They have to bring in workers (labor) from other countries. D) They need well trained workers because their economy is diversified with advanced technology. Show Answer Correct Answer: D) They need well trained workers because their economy is diversified with advanced technology. 11. Future rates of economic growth are likely to decline as a consequence of: A) Stronger productivity growth. B) An ageing population. C) An increased labour force participation rate. D) Decreased incidence of health pandemiccoronavirus). Show Answer Correct Answer: B) An ageing population. 12. What does standard of living mean? A) How to live where you are living. B) Different levels of living for different people. C) Standards of how everyone should live in countries. D) Levels of wealth and material comfort available in a country. Show Answer Correct Answer: D) Levels of wealth and material comfort available in a country. 13. Which factor is being described in the following list:oil, plants, water, gold? A) Capital goods. B) Natural resources. C) Human resources. D) Entrepreneur. Show Answer Correct Answer: B) Natural resources. 14. Which of the following is not a part of the National Income? A) Undistributed profits. B) Income from government expenditure. C) The interest amount on the unproductive national debt. D) The payments made by a household to a firm for purchasing goods and services. Show Answer Correct Answer: C) The interest amount on the unproductive national debt. 15. What was the main effect of buying stocks on margin? A) Increased government revenue. B) Led to economic recession. C) Stabilized the stock market. D) Created quick wealth. Show Answer Correct Answer: D) Created quick wealth. 16. The percentage of people who are over 15 years old who have the ability to read and write A) Literacy. B) Literacy rate. C) Standard of living. D) Balkans. Show Answer Correct Answer: B) Literacy rate. 17. Which one of the following would have an effect on the rate of economic growth that is different to that of the other three? A) The government announces a cut in income tax. B) Households feel pessimistic about future employment prospects and fear that they may soon become unemployed. C) The rate of economic growth in the United States and Japan strengthens, combined with a lower exchange rate for the A$ . D) Interest rates fall following an announcement by the RBA. Show Answer Correct Answer: B) Households feel pessimistic about future employment prospects and fear that they may soon become unemployed. 18. Economic growth can be measured as the growth rate in ..... over time. A) Real GDP per capita. B) Real GDP. C) Price levels. D) CPI. Show Answer Correct Answer: A) Real GDP per capita. 19. According to paragraph 2, one effect of the desire to increase food production was that A) Forests and wetlands were used for farming. B) Land was cultivated in a different way. C) The rural economy was weakened. D) More farmers were needed. Show Answer Correct Answer: A) Forests and wetlands were used for farming. 20. Give an example of a natural resource used in the economy. A) Oil. B) Water. C) Coal. D) Gold. Show Answer Correct Answer: A) Oil. ← 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