This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Economic Growth > Economic Growth – Quiz 39 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Economic Growth Quiz 39 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If the point where an economy is producing lies inside the PPF curve, this means that the economy's production is ..... A) Over efficient/heating. B) Not efficient. C) Impossible. D) None of the above. Show Answer Correct Answer: B) Not efficient. 2. What would be the result of the actions in the sentence below? A country builds schools and universities and invest in other education programs for its population to attend. A) The population will buy more capital goods. B) The population will have a high literacy rate. C) The country's workforce will decrease. D) None of above. Show Answer Correct Answer: B) The population will have a high literacy rate. 3. Production is A) An output. B) An input. Show Answer Correct Answer: A) An output. 4. Why is investment in education important for a country? A) It improves the skills of workers. B) It serves as a pathway to economic development. C) It modifies behaviour and makes people more empathetic and sympathetic. D) All of the choices are correct. Show Answer Correct Answer: D) All of the choices are correct. 5. Calculate GDP per capita if GDP is £200 billion and the population is 40 million. A) £1, 000. B) £2, 000. C) £5, 000. D) £10, 000. Show Answer Correct Answer: C) £5, 000. 6. How did the U.S. government pay for the construction of the Transcontinental Railroad? A) Government owned land. B) Cash. C) Treasury Bonds. D) None of above. Show Answer Correct Answer: A) Government owned land. 7. What must happen before high quality and high paying jobs can exist? A) The population must be illiterate. B) The population must be literate. C) The country must have little resources. D) Other countries must train citizens. Show Answer Correct Answer: B) The population must be literate. 8. Manufacturing system where workers stay in one place as products pass along a track. A) Moving Assembly Line. B) Mass Production System. C) Morse Code. D) Patent Row. Show Answer Correct Answer: A) Moving Assembly Line. 9. The following information is taken from the national accounts of Zambibia:C = R200 millionI = R50 millionG = R150 millionX = R200 millionM = R180 million Gross Domestic Expenditure is A) R400 million. B) R420 million. C) R600 million. D) R380 million. Show Answer Correct Answer: B) R420 million. 10. When workers are represented by their union during negotiations. A) Collective Bargaining. B) Strike. C) Vertical Integration. D) None of above. Show Answer Correct Answer: A) Collective Bargaining. 11. Which of the following is NOT included when calculating GDP for the United States A) Cars manufactured in Japan, but sold in the United States. B) Cars manufactured in the United States, but sold in Japan. C) Cars manufactured in Michigan, but sold in Minnesota. D) Cars manufactured in Michigan, but sold to the government. Show Answer Correct Answer: A) Cars manufactured in Japan, but sold in the United States. 12. Is that what you earn before taxes and other expenses, or is that your ..... salary? A) Net. B) Productive. C) Inflation. D) None of above. Show Answer Correct Answer: A) Net. 13. How do capital goods influence economic growth? A) Countries that invest in capital goods, produce less goods than countries that do not. B) The more literate a person is, the less work they can do. C) Countries that invest in capital goods, produce more goods than countries that do not. D) None of above. Show Answer Correct Answer: C) Countries that invest in capital goods, produce more goods than countries that do not. 14. How is high GDP per capita linked to quality of life? A) High GDP per capita makes everyone richer. B) High GDP per capita means inflation is low and the cost of goods is lower. C) High GDP per capita usually indicates better nutrition, housing, education, and job opportunities. D) High GDP per capita does not affect quality of life because money can't buy happiness. Show Answer Correct Answer: C) High GDP per capita usually indicates better nutrition, housing, education, and job opportunities. 15. What is a negative output gap? A) When the actual level of output is equal to the potential level of output. B) When the actual level of output is less than the potential level of output. C) When the actual level of output is less than the previous year's output. D) When the actual level of output is greater than the potential level of output. Show Answer Correct Answer: B) When the actual level of output is less than the potential level of output. 16. When a county invests in education for it's citizens, what is it increasing? A) Entrepreneurship. B) Human capital. C) Capital goods. D) Natural resources. Show Answer Correct Answer: B) Human capital. 17. Methods of measuring GDP include: A) Gross National Product (GNP) and Consumer Price Index (CPI). B) Inflation rate and unemployment rate. C) Production, income, and expenditure approaches. D) Fiscal policy and monetary policy. Show Answer Correct Answer: C) Production, income, and expenditure approaches. 18. The value of spending on Australian exports (X) is likely to rise if: A) There was a recession overseas. B) They became cheaper or more competitive for overseas buyers. C) The exchange rate for the A$ rose or became dearer against overseas currencies. D) There was a drought or floods in Australia that destroyed our crops. Show Answer Correct Answer: B) They became cheaper or more competitive for overseas buyers. 19. Which measure of national income accounts for income earned by domestic workers abroad? A) GDP per capita. B) Gross National Income (GNI). C) Real GDP. D) Green GDP. Show Answer Correct Answer: B) Gross National Income (GNI). 20. Which of the following is among the root causes of poverty in the United States? A) Disabilities. B) Underemployment. C) Size of family. D) Lack of education. Show Answer Correct Answer: D) Lack of education. ← 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