This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Economic Growth > Economic Growth – Quiz 31 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Economic Growth Quiz 31 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the main drawback of long term loans as a form of development aid? A) It leads to income equality. B) It reduces demand for skilled workers. C) It encourages domestic production. D) It increases the debt burden on the recipient country. Show Answer Correct Answer: D) It increases the debt burden on the recipient country. 2. Why do government experts track the business cycle? A) To provide a record of what has gone wrong in the past. B) To try to predict what will happen to the U.S. economy. C) To help maintain competitive balance between businesses. D) To give the government a competitive advantage over businesses. Show Answer Correct Answer: B) To try to predict what will happen to the U.S. economy. 3. What is a consequence of not achieving strong and sustainable economic growth on living standards? A) Higher life expectancy. B) Improved environmental conditions. C) Environmental degradation. D) Lower inflation rates. Show Answer Correct Answer: C) Environmental degradation. 4. What are negative effects of Growth A) Increase in resources, increased inflation. B) Resource Depletion, Increased inflation. C) Environmental damage, increases in resources found. D) Increased equity, increased equality. Show Answer Correct Answer: B) Resource Depletion, Increased inflation. 5. Education, training, skills and health care of the workers in a business or country. A) Capital goods. B) None of these. C) Human capital. D) Natural resources. Show Answer Correct Answer: C) Human capital. 6. What has happened to the income of the BRIC countries since 2001? A) It has decreased. B) It has remained the same. C) It has increased rapidly. D) It has fluctuated. Show Answer Correct Answer: C) It has increased rapidly. 7. Virginia's economy is greatly dependent on ..... A) Sheep. B) Gravel. C) Tourism. D) Timber. Show Answer Correct Answer: C) Tourism. 8. Which of the following is a major goal of short-run macroeconomic policy? A) Shift the production possibilities curve outward. B) Move toward the production possibilities curve. C) Shift the aggregate supply curve to the left. D) None of the choices are correct. Show Answer Correct Answer: B) Move toward the production possibilities curve. 9. Human capital includes the ..... people use to produce goods and services. A) Raw materials. B) Factories machines, & technology. C) Skills, knowledge, and experience. D) None of above. Show Answer Correct Answer: C) Skills, knowledge, and experience. 10. ..... drove cattle from ranches to the railheads. A) Cowboys. B) Explorers. C) Railroad officials. D) Meat dealers. Show Answer Correct Answer: A) Cowboys. 11. More people in an economy will normally result in A) Lower GDP per Capita. B) Lower capital. C) Capital Increase. D) More land per person. Show Answer Correct Answer: C) Capital Increase. 12. Thomas Edison invented the ..... A) Refrigerated RR car. B) Telegraph. C) Telephone. D) Light bulb and electricity power plant. Show Answer Correct Answer: D) Light bulb and electricity power plant. 13. Environmental economics is the field of economics which is concerned with the financial and ..... impact of the ..... policies on the economy A) Environmentaleconomy. B) Economicenvironmental. C) Environmentaleconomic. D) Economyenvironmental. Show Answer Correct Answer: B) Economicenvironmental. 14. Natural resources are valuable ..... sold to other countries. A) Imports. B) Exports. C) Gems. D) None of above. Show Answer Correct Answer: B) Exports. 15. What might a government decrease if it wished to slow down the rate of growth in an economy? A) Expenditure on defence. B) Goods and services (value added) tax. C) Interest rates. D) The rate of income tax. Show Answer Correct Answer: A) Expenditure on defence. 16. Economic Development is more likely to occur if the benefits of economic growth are channeled into A) Health and education programmes. B) Government spending on defense. C) Taxation. D) Government tax breaks for the wealthy. Show Answer Correct Answer: A) Health and education programmes. 17. Which of the following is a perceived advantage of import substitution industrialization (ISI)? A) ISI may protect jobs in the short run. B) ISI may lead to high rates of inflation. C) ISI may cause other countries to take retaliatory protectionist measures. D) ISI may lead to inefficiency in domestic industries. Show Answer Correct Answer: A) ISI may protect jobs in the short run. 18. How far the aggregate demand shifts to the right depends upon the marginal propensity to consume and thus the size of the multiplier effect 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. 19. What is the impact of government policies on economic growth? A) Government policies have no impact on economic growth. B) Government policies always impede economic growth. C) Government policies can either stimulate or impede economic growth depending on their nature and implementation. D) Government policies always stimulate economic growth. Show Answer Correct Answer: C) Government policies can either stimulate or impede economic growth depending on their nature and implementation. 20. Full form of GDP is ..... A) General Domestic Product. B) Gross Domestic Product. Show Answer Correct Answer: B) Gross Domestic Product. ← 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