This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Economic Growth > Economic Growth – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Economic Growth Quiz 7 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Cowboys led ..... from Texas to northern cities. A) Troops. B) American Indians. C) Cattle Drives. D) Expeditions. Show Answer Correct Answer: C) Cattle Drives. 2. Which of the following would consumers MOST OFTEN need to consider when trying to make a rational economic decision? A) The impact of government subsidies. B) Potential opportunity costs. C) Factors of Productions. D) Net Exports. Show Answer Correct Answer: B) Potential opportunity costs. 3. Which statement about aggregate supply policy in Australia is incorrect? A) The skilled migration policy has probably helped to slow the rise in wage costs and improve internationalcompetitiveness. B) National infrastructure projects including the NBN have helped to grow productive capacity and cutproduction costs. C) Budget outlays on education and training help to grow Australia's productive capacity, but only in theshort-term. D) Government research and development grants can help to grow technical efficiency and internationalcompetitiveness. Show Answer Correct Answer: C) Budget outlays on education and training help to grow Australia's productive capacity, but only in theshort-term. 4. What is the main difference between economic growth and economic development? A) Economic growth focuses on real GDP increase, while economic development relates to improvements in well being. B) Economic growth focuses on improving employment opportunities, while economic development relates to increasing GDP. C) Economic growth focuses on increasing government revenue, while economic development relates to reducing poverty. D) Economic growth focuses on increasing exports, while economic development relates to reducing trade barriers. Show Answer Correct Answer: A) Economic growth focuses on real GDP increase, while economic development relates to improvements in well being. 5. Which of the following is NOT a cause of a recession? A) Rise in interest rates. B) Increase in consumer and business confidence. C) Financial crises. D) None of the above. Show Answer Correct Answer: B) Increase in consumer and business confidence. 6. What are the main factors in technological progress? A) Open markets, strong patent laws, and minimal regulation. B) Scientific research, innovation, scale of the market, education and experience, and natural resource use. C) Consumers buying electronic gadgets. D) Low taxes, fewer regulations, and higher investment. Show Answer Correct Answer: B) Scientific research, innovation, scale of the market, education and experience, and natural resource use. 7. Labor, talent and skills of people. A) Human Capital. B) Capital Goods. C) Natural Resources. D) Standard of Living. Show Answer Correct Answer: A) Human Capital. 8. Physical capital used in a factory to produce is A) An output. B) An input. Show Answer Correct Answer: B) An input. 9. Which among the following countries would probably have the lowest HDI? A) Philippines. B) Singapore. C) Thailand. D) Malaysia. Show Answer Correct Answer: A) Philippines. 10. Business hub is needing no outside help in satisfying one' s basic needs. A) True. B) False. Show Answer Correct Answer: B) False. 11. How to calculate GDP? A) GDP = C-G + I + NX. B) GDP = C + G + I + NX. C) GDP = C + G-I + NX. D) GDP = C + G + I-NX. Show Answer Correct Answer: B) GDP = C + G + I + NX. 12. Who was the first African American governor in the United States? A) L. Douglas Wilder. B) Arthur Ashe. C) Harry F Byrd. D) Linwood Holton. Show Answer Correct Answer: A) L. Douglas Wilder. 13. The Human Development Index uses all these indicators to measure the human standard of living EXCEPT: A) Level of education (mean years of schooling). B) Life expectancy. C) Per capita income (GDP divided by population). D) Electricity access. Show Answer Correct Answer: D) Electricity access. 14. Long-run growth is caused by an increase in the capacity or productive potential of the economy 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. 15. What is the role of oil in a country's economy? A) No impact on GDP. B) Decreases GDP. C) Increases GDP. D) Fluctuates GDP. Show Answer Correct Answer: C) Increases GDP. 16. A recession is defined as: A) A decrease in real GDP. B) Two consecutive quarters of negative real GDP growth. C) A fall in real GDP per capita. D) A fall in GNI. Show Answer Correct Answer: B) Two consecutive quarters of negative real GDP growth. 17. In 2003 Japan experienced a decline in economic output.What might cause a decline in economic output? A) A decrease in income tax. B) A decrease in sales tax. C) An increase in unemployment. D) An increase in company investment. Show Answer Correct Answer: C) An increase in unemployment. 18. Capital Deepening is the process of? A) Increasing consumer spending. B) Selling off obsolete equipment. C) Decreasing the amount of capital per worker. D) Increasing the amount of capital per worker. Show Answer Correct Answer: D) Increasing the amount of capital per worker. 19. How does human capital influence GDP? A) Good education and better health care will lead to a better worker who can efficiently produce which leads to a profit which leads to a higher GDP. B) If you have better machines, you will be more productive and make more money. C) If you invest money, you will make more money and then GDP will increase. D) None of above. Show Answer Correct Answer: A) Good education and better health care will lead to a better worker who can efficiently produce which leads to a profit which leads to a higher GDP. 20. Define livings standards A) An increase in real GDP or the real quantity of goods and services produced over a period of time (typically a year), and is usually expressed as a percentage change in real GDP or GDP/capita over a period of time. B) Refers to the natural rate of unemployment, or unemployment of labour that prevails when the economy is producing potential output, or real GDP, determined by the position of the LRAS curve (long run equilibrium). C) Refer to the maximum output of combination of two goods that can be produced in an economy with fixed resources and technology, provided there is full or maximum employment of resource and efficiency in production, implying zero unemployment. D) Levels of income, wealth and consumption of goods and services, including healthcare and education. Show Answer Correct Answer: D) Levels of income, wealth and consumption of goods and services, including healthcare and 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 8Economic Growth Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books