This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Economic Growth > Economic Growth – Quiz 70 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Economic Growth Quiz 70 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Consecutive means A) Randomly scattered. B) Opposite in order. C) Skipping in order. D) Following in order. Show Answer Correct Answer: D) Following in order. 2. In an effort to avoid recession, the government implements a tax rebate program, effectively cutting taxes for households. We would expect this to: A) Affect neither aggregate supply nor aggregate demand. B) Increase aggregate demand. C) Reduce aggregate demand. D) Reduce aggregate supply. Show Answer Correct Answer: B) Increase aggregate demand. 3. Improving the economic situation $\rightarrow$ better lives for people A) Urbanization. B) Industrialization. C) Modernization. D) Economic Development. Show Answer Correct Answer: D) Economic Development. 4. The business cycle ..... A) Describes the evolution of the trade balance. B) Describes the evolution of the interest rates. C) None of the options are correct. D) Describes the evolution of the businesses. E) Describes the evolution of the balance of payments. Show Answer Correct Answer: C) None of the options are correct. 5. Why may GDP not be a good measure to compare the living standard of two countries? A) It does not include government expenditure. B) It does not take account of population size. C) It is based on sample basket of goods. D) It only compares export prices with import prices. Show Answer Correct Answer: B) It does not take account of population size. 6. A lack of investment in human capital has led to high poverty (70%) & unemployment in which country? A) Kenya. B) South Africa. C) Nigeria. D) Egypt. Show Answer Correct Answer: C) Nigeria. 7. What can a government do to increase demand in its economy? A) Budget for a surplus. B) Cut taxes. C) Encourage savings. D) Reduce its expenditure. Show Answer Correct Answer: B) Cut taxes. 8. Tradeoffs, Opportunity costs, marginal costs, marginal benefits, and personal priorities are all important to consider when A) Dealing with fiscal policy. B) Using credit. C) Making a rational economic choice. D) Responding to monetary policy. Show Answer Correct Answer: C) Making a rational economic choice. 9. The percentage change in real GDP from one period to another is called A) Real GDP. B) Nominal GDP. C) The growth rate. D) GDP per capita. Show Answer Correct Answer: C) The growth rate. 10. A deflationary gap is characterized by: A) Excessive spending. B) Low levels of unemployment. C) Aggregate demand being lower than potential output. D) Rapid economic growth. Show Answer Correct Answer: C) Aggregate demand being lower than potential output. 11. What are the 3 questions countries need to ask in when setting up their economic system up? A) What to produce, where to produce, how to produce. B) What to produce, who is going to produce it, how to produce. C) What kind of producing, where to produce, how to produce. D) What to produce, how to produce, for whom to produce. Show Answer Correct Answer: D) What to produce, how to produce, for whom to produce. 12. Which of the following is both a demand and supply factor influencing the level of Economic Growth? A) Productivity. B) The level of disposable income. C) Consumer confidence. D) Interest rates. Show Answer Correct Answer: D) Interest rates. 13. Households do NOT use income to A) Save money. B) Buy services. C) Pay taxes. D) Buy factors of production. E) Purchase goods. Show Answer Correct Answer: D) Buy factors of production. 14. What is the usual relationship between a country's standard of living and the literacy rate of that country? A) The higher the standard of living, the lower the literacy rate. B) There is no relationship between these two items. C) The lower the literacy rate, the lower the standard of living. D) If there is a low population, there will be a low literacy rate. Show Answer Correct Answer: C) The lower the literacy rate, the lower the standard of living. 15. A country's ..... is the total dollar value of all goods and services produced in one year. A) Gross Domestic Product (GDP). B) Gross Domestic Imports (GDI). C) Gross Domestic Resources (GDR). D) Gross Domestic Exports (GDE). Show Answer Correct Answer: A) Gross Domestic Product (GDP). 16. Outdated and slow A) Sector. B) Obsolete. C) GDP per capita. D) Capital. E) Relationship. Show Answer Correct Answer: B) Obsolete. 17. What is the relationship between adding elements of a market system to a country's economy and the country's economic growth? A) When there is total government control. B) When countries lift some government control, they experience economic growth. C) When countries have no government or citizen control, then they will experience economic growth. D) None of above. Show Answer Correct Answer: B) When countries lift some government control, they experience economic growth. 18. Human resources can be developed through sports and culture. A) True. B) False. Show Answer Correct Answer: A) True. 19. According to paragraph 1, what was true of Europe during the medieval period? A) The general level of prosperity declined. B) Foreign trade began to play an important role in the economy. C) There was relatively little economic growth. D) Agricultural productivity declined. Show Answer Correct Answer: C) There was relatively little economic growth. 20. Economic growth happens when A) The needs and wants of a growing population are satisfied and new jobs are created for those who enter the workforce. B) The needs and wants of a population are satisfied and new jobs are created for those who enter the workforce. C) The needs and wants of a growing population are satisfied. D) None of above. Show Answer Correct Answer: A) The needs and wants of a growing population are satisfied and new jobs are created for those who enter the workforce. ← 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