This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Economic Growth > Economic Growth – Quiz 52 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Economic Growth Quiz 52 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Investment in human capital is important because A) There will be fewer capital goods and natural resources available. B) Countries will lower their standard of living. C) Companies will earn more subsidies. D) Workers are more productive. Show Answer Correct Answer: D) Workers are more productive. 2. Why is using real GDP as a measure of economic growth important? A) It helps to account for changes in population size. B) It adjusts for inflation, providing a more accurate measure of growth. C) It accounts for environmental impacts of economic growth. D) It reflects the distribution of wealth in a society. Show Answer Correct Answer: B) It adjusts for inflation, providing a more accurate measure of growth. 3. What allows the production of more goods and services in less time, leading to greater economic growth? A) Advanced facilities. B) Skilled workforce. C) Human capital. D) Physical capital. Show Answer Correct Answer: A) Advanced facilities. 4. Which country among the BRIC countries has shown the least stable economic growth? A) Brazil. B) Russia. C) India. D) China. Show Answer Correct Answer: A) Brazil. 5. Credited with the severe pollution of waterways and atmosphere in many mid-western cities. A) Steel manufacturing. B) The automobile. C) The Transcontinental Railroad. D) Vertical Integration. Show Answer Correct Answer: A) Steel manufacturing. 6. Economic growth may provide A) Jobs, income and better standards of living. B) Happiness and free time for all. Show Answer Correct Answer: A) Jobs, income and better standards of living. 7. Productive potential of a country can be increased by raising the quantity or quality of the factors of production 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. 8. At which stage of the economic cycle would you expect to see consumer spending start to increase once again? A) Boom. B) Slump. C) Recovery. D) Recession. Show Answer Correct Answer: C) Recovery. 9. Which one of the following types of unemployment is best defined as 'unemployment for short lengths of time between jobs'? A) Frictional. B) Seasonal. C) Cyclical. D) Structural. Show Answer Correct Answer: A) Frictional. 10. The only government policy with an immediate effect on the AD curve is A) Changing income tax rates. B) Changing business tax rates. C) Changing government spending. D) Changing government transfer payments. E) Changing the supply of money. Show Answer Correct Answer: C) Changing government spending. 11. What is considered a normal unemployment rate? A) 0 to 2 percent. B) 4 to 6 percent. C) 8 to 10 percent. D) 10 to 12 percent. Show Answer Correct Answer: B) 4 to 6 percent. 12. Raw materials from nature-land, time, trees, grass, sunlight, minerals, car, bus, water/pond, cotton A) Natural resources. B) Capital goods. C) Human capital. D) Entrepreneurship. Show Answer Correct Answer: A) Natural resources. 13. If nominal GDP is $ 100 in 2019 and nominal GDP is $ 200 in 2020, how much did the economy grow by? A) It is uncertain. B) $ 100. C) -$ 100. D) None of above. Show Answer Correct Answer: A) It is uncertain. 14. Between 2014 and 2015 the Polish economy expanded at a rate of 3.3%.What necessarily follows from this statement? A) There was increased demand which caused inflation. B) The cost of living rose by 3.3%. C) There was positive economic growth. D) The output of the industrial sector rose by 3.3%. Show Answer Correct Answer: C) There was positive economic growth. 15. A nation with a high GDP typically does not invest in capital, while a nation with a low GDP doesinvest in human capital. A) True. B) False. Show Answer Correct Answer: A) True. 16. Steve Jobs created the technology company Apple, Inc. Which is an example of which economic growth aspect? A) Tariff. B) Specialization. C) Entrepreneurship. D) Capital Goods. Show Answer Correct Answer: C) Entrepreneurship. 17. What social trend caused the demand for beef to rise immediately following the Civil War? A) Mexican immigrants popularized cattle herding. B) New methods of refrigeration made preparing beef easier. C) Cities in the East and West began increasing in population. D) Many former soldiers were cattle herders. Show Answer Correct Answer: D) Many former soldiers were cattle herders. 18. Measure of the proportion of adult population (15 years and up) which can read and write a simple statement A) Education level. B) Literacy rate. Show Answer Correct Answer: B) Literacy rate. 19. During the 1800s the U.S. experienced a dramatic increase in the production of manufactured goods because of A) The amount of European investment in U.S. industry. B) An increase in the number of skilled workers who had a public education. C) The invention of interchangeable parts and the development of other mass-production techniques. D) An increase in the amount of imported raw materials available for production. Show Answer Correct Answer: C) The invention of interchangeable parts and the development of other mass-production techniques. 20. Why is political stability important for economic growth? A) To protect investments. B) To enforce contracts. C) To create competitive and open markets. D) To give investors confidence to invest. Show Answer Correct Answer: D) To give investors confidence to invest. ← 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