This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Economic Growth > Economic Growth – Quiz 58 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Economic Growth Quiz 58 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Workers are seeking employment but cannot find employment because of widespread low economic activity. Which type of unemployment are these workers experiencing? A) Cyclical. B) Structural. C) Frictional. D) Voluntary. Show Answer Correct Answer: A) Cyclical. 2. Economic Growth can reduce unemployment rates A) True. B) False. Show Answer Correct Answer: A) True. 3. What is a potential consequence of economic growth in terms of income distribution? A) Widening income inequalities. B) Decreased poverty. C) Stable income distribution. D) Reduced government spending. Show Answer Correct Answer: A) Widening income inequalities. 4. Potential economic growth can be represented by: A) Outward shift of PPF. B) Inward shift of PPF. C) Movement of a point inside towards a point on PPF. D) Movement of a point on PPF towards a point inside. Show Answer Correct Answer: A) Outward shift of PPF. 5. Why would the Saudi oil industry need a large investment in human capital? A) The technology is in the oil industry is very complicated. B) The Saudis have found it hard to make a profit in the oil industry. C) Most people working in the Saudi oil industry have little or no real training. D) They hop to have machines take over most of the jobs done by workers now. Show Answer Correct Answer: A) The technology is in the oil industry is very complicated. 6. Many factories in Russia cannot efficiently produce goods because they have old, outdated machinery. Based on this information, what would MOST improve the Russian industrial sector? A) Increased barriers to trade. B) Investment in capital goods. C) Investment in human capital. D) Increased government regulation. Show Answer Correct Answer: B) Investment in capital goods. 7. Why did railroad companies hire Chinese and Irish immigrants to construct the Transcontinental Railroad? A) They would work for low wages. B) They had adapted to the harsh climate they would be working in. C) They were especially skilled in explosive devices. D) None of above. Show Answer Correct Answer: A) They would work for low wages. 8. Which is the best description of literacy rate? A) The ability to tell stories. B) The ability to speak multiple languages. C) The ability to draw. D) The amount inside a country who have the ability to read and write. Show Answer Correct Answer: D) The amount inside a country who have the ability to read and write. 9. The total value of Australia's output (goods and services) over a period of time is Australia's GDP A) True. B) False. Show Answer Correct Answer: A) True. 10. What might a government increase if it wished to raise the growth rate of an economy? A) Expenditure on road building. B) Goods and services tax (value added tax). C) The rate of income tax. D) The rate of interest. Show Answer Correct Answer: A) Expenditure on road building. 11. In a command economic system the ....., makes all economic decisions. A) Government. B) Legislature. C) People. D) Businesses. Show Answer Correct Answer: A) Government. 12. Which is part of a country's human capital? A) Skills and knowledge workers have. B) Taxes collected from a country's workers. C) Money paid to workers for producing goods. D) The amount of goods sold in foreign trade in a year. Show Answer Correct Answer: A) Skills and knowledge workers have. 13. In 1979 in the UK the marginal rate of income tax imposed on the highest earners was 83% which increased to 98% if income was received from interest or dividends. By 1989 the highest marginal rate was reduced to 40%. Despite this reduction, the tax revenue raised from the highest earners increased substantially. Which theoretical concept illustrates this relationship between tax rates and tax revenue? A) Laffer curve. B) Lorenz curve. C) Marshall condition. D) Keynesian AD/AS curve. Show Answer Correct Answer: A) Laffer curve. 14. Which of the following is most likely to be an advantage of interventionist supply-side policies to increase economic development? A) Additional regulations on businesses. B) Political influence of government. C) Cost of spending on improving education. D) Development is more likely to be sustainable . Show Answer Correct Answer: D) Development is more likely to be sustainable . 15. Money or time put into something with the goal of earning a futurebenefit A) Investment. B) Professional development. C) Professional learning units. D) Staff meeting. Show Answer Correct Answer: A) Investment. 16. What is one reason why inventors may choose not to invest in R&D projects with good average returns? A) The inherent risk of invention. B) Lack of funding. C) Lack of knowledge. D) Lack of interest. E) The pessimism of the future. Show Answer Correct Answer: A) The inherent risk of invention. 17. The forces of supply and demand operate in the labor market as well as in the market for goods and services. A) The Demand for Labor. B) The Real Wage Rate. C) Labor Market Equilibrium. D) The Supply of Labor. Show Answer Correct Answer: C) Labor Market Equilibrium. 18. How do corporations benefit from having investors? A) Corporations use investor money to improve the company. B) Corporations assume less risk. C) They can have more control of a board of directors. D) None of above. Show Answer Correct Answer: A) Corporations use investor money to improve the company. 19. Between 2010 and 2018, Romania has seen a rise in its labour productivity of 46%. Other factors remaining equal, a rise in labour productivity is likely to cause A) An increase in AS and will benefit firms. B) A fall in employment of labour leading to lower wage rate pressures. C) An outward shift of aggregate demand leading to higher prices for consumers. D) A fall in business profits and investment leading to a fall in internationalcompetitiveness. Show Answer Correct Answer: A) An increase in AS and will benefit firms. 20. Why was the production of oil in 1859 important and what was its most significant use? A) Tractors. B) Automobiles. C) To make different kinds of medicine. D) Lawn mowers. Show Answer Correct Answer: C) To make different kinds of medicine. ← 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