This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Economic Growth > Economic Growth – Quiz 66 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Economic Growth Quiz 66 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Australia and Canada both invest in capital goods at higher rates than Ethiopia. Based on this fact, which conclusion below explains what would be most logical? A) Ethiopia has a smaller growth rate. B) Ethiopia has fewer uses for capital. C) Ethiopia has more natural resources. D) Ethiopia can't trade with either country. Show Answer Correct Answer: A) Ethiopia has a smaller growth rate. 2. The literacy rate for the region of Latin America is 90%. Country A has a literacy rate is 51%. Which statement best reflects these factors of economic growth in Country A? A) Country A's low investment in human capital lowers the GDP per capita. B) Country A has greater opportunity for other capital investments than education. C) Country A's GDP per capita would decrease if there was more investment in human capital. D) Country A's high investment in human capital lowers the GDP per capita. Show Answer Correct Answer: A) Country A's low investment in human capital lowers the GDP per capita. 3. Technical progress that increases the productivity of L proportionally more than the productivity of K is called: A) Capital savings. B) Labor saving. C) Neutral. D) Any of the above. Show Answer Correct Answer: A) Capital savings. 4. An economy's output gap moves from being positive to negative. The most likely reason for this is that? A) Taxes have increased. B) Interest rates have been cut. C) Unemployment has fallen. D) Taxes have been cut. Show Answer Correct Answer: A) Taxes have increased. 5. The more a country invests in its capital goods, the ..... and higher the GDP A) Increase in GDP. B) Stronger its economy. C) Technology. D) More goods & services. E) Boosts a country's exports. Show Answer Correct Answer: B) Stronger its economy. 6. What is a key feature of sustainable economic growth? A) High inflation rates. B) Short-term profit maximization. C) Long-term environmental conservation. D) Rapid industrialization regardless of environmental impact. Show Answer Correct Answer: C) Long-term environmental conservation. 7. What does GDP per capita include A) How much wealth there is in an economy. B) How the wealth is distributed within an economy. C) What the living standards are. D) What life expectancy is. Show Answer Correct Answer: A) How much wealth there is in an economy. 8. "to contribute, promote or help" means ..... A) To accompany. B) To foster. C) To interpret. D) To target. Show Answer Correct Answer: B) To foster. 9. Real GDP is when A) GDP has been adjusted to the effects of inflation. B) GDP has been not adjusted to the effects of inflation. Show Answer Correct Answer: A) GDP has been adjusted to the effects of inflation. 10. Economic growth is a situation where an economy's real GDP increase. A) True. B) False. Show Answer Correct Answer: A) True. 11. A cost to economic growth are negative externalities 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. 12. Which answer choice below defines human capital? A) A person that invests their own money in starting a business. B) The training and education that workers need to be good at their job. C) Factories, tools and machines used to produce other goods and products. D) None of above. Show Answer Correct Answer: B) The training and education that workers need to be good at their job. 13. Mexico:$ 9, 00 A) True. B) False. Show Answer Correct Answer: B) False. 14. The rate of growth of an economy mainly depends upon A) The rate of growth of the labour force. B) The proportion of national income saved and invested. C) The rate of technological improvements. D) All of the above. Show Answer Correct Answer: C) The rate of technological improvements. 15. Which one of these is NOT a sign that living standards are improving? A) Decrease in life expectancy. B) Increase in access to education. C) Decrease in poverty rate. D) Improvement in healthcare facilities. Show Answer Correct Answer: A) Decrease in life expectancy. 16. The phrase "an English innovation" in the passage is closest in meaning to A) A type of agreement negotiated in English. B) A type of partnership based on English law. C) An arrangement found only in England. D) A new development introduced by the English. Show Answer Correct Answer: D) A new development introduced by the English. 17. What is a concern related to aid weariness? A) It promotes economic development. B) It leads to increased aid flows. C) It reduces flows of aid. D) It encourages innovation. Show Answer Correct Answer: C) It reduces flows of aid. 18. The costs and benefits of economic growth are best evaluated in the context of ..... ? A) Population size. B) Different economies. C) Political systems. D) Geographic location. Show Answer Correct Answer: B) Different economies. 19. Define GDP per capita A) The income of a country. B) The income of a country divided by its population. C) Average income of the population. D) GDP x population. Show Answer Correct Answer: B) The income of a country divided by its population. 20. Factories are an example of human capital. A) True. B) False tagsS2789894. Show Answer Correct Answer: B) False tagsS2789894. ← 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