This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Economic Growth > Economic Growth – Quiz 79 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Economic Growth Quiz 79 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Samuel Morse invented the ..... A) Model T (assembly line car). B) Telegraph. C) Telephone. D) Light bulb and electricity power plant. E) Airplane. Show Answer Correct Answer: B) Telegraph. 2. Which of the following would be likely to lead to a fall in the level of exports? A) An increase in foreign incomes. B) An increase in inflation rates among trading partners. C) An increase in free trade. D) An increase in the exchange rate. Show Answer Correct Answer: D) An increase in the exchange rate. 3. It is risky and expensive to be an entrepreneur because they often ..... (or borrow it) to start their business A) Reduce the risk. B) Fresh ideas. C) Creates more jobs. D) Invest their own money. E) Could lose money. Show Answer Correct Answer: D) Invest their own money. 4. A naturally-made item, such as a tree, mineral, or fresh water, that people can use to help meet a need or want A) Tv screens. B) Telephones. C) Natural resource. D) Tires. Show Answer Correct Answer: C) Natural resource. 5. Through which of the following combinations do firms produce output? A) Capital and labour. B) Capital and productivity. C) Labour and productivity. D) Labour and land. Show Answer Correct Answer: A) Capital and labour. 6. Actual economic growth is a situation where an economy's growth is fueled by high total spending in an economy. A) True. B) False. Show Answer Correct Answer: A) True. 7. Which statement below describes entrepreneurship? A) The ability to harvest and use natural resources to create products to be sold to consumers. B) Machines, tools, and devices used for production. C) Putting together productive resources to produce a good or service. D) The physical talents of people to build things. Show Answer Correct Answer: A) The ability to harvest and use natural resources to create products to be sold to consumers. 8. TX Declaration of Independence 1836US annexes Texas 1845Gadsden Purchase 1853? 1861 Which event best replaces the question marks in the timeline above? A) Texas becomes and independent country. B) The city of Austin become the capital of Texas. C) Texas joins the Confederate States of America. D) Mexico invades Texas. Show Answer Correct Answer: C) Texas joins the Confederate States of America. 9. Brownville's GDP impressively increased 9.2% from 2006 to 2007. This fact supports which statement about Brownville's workforce? A) During this time, there was less immigration into Brownsville. B) Brownville's workforce is producing fewer goods now than it did before independence. C) This increase in production can only be explained by Brownville's workforce getting larger. D) Since the 1990s there has been an increase in spending on education and training. Show Answer Correct Answer: D) Since the 1990s there has been an increase in spending on education and training. 10. Which part of Europe has the lowest literacyrates? A) Eastern Europe. B) Balkans. C) Northern Europe. D) All of Europe has high literacy rates. Show Answer Correct Answer: B) Balkans. 11. Long-run growth shows an increase in the trend rate of growth 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. The total dollar value of all goods and services produced in one year defines what ..... ? A) Gross Domestic Product (GDP). B) Taxable income. C) Tariffs. D) Standard of living. Show Answer Correct Answer: A) Gross Domestic Product (GDP). 13. The diagram shows a country's production possibility curve and a number of alternative production points. Which change in the country's output would be most likely to lead to a fall in potential growth? A) U to V. B) U to X. C) Y to X. D) Y to Z. Show Answer Correct Answer: D) Y to Z. 14. What is the main objective of the Marshall Plan in post-World War II Europe? A) To increase debt burden on recipient countries. B) To promote international trade. C) To reduce government intervention. D) To provide economic aid for reconstruction. Show Answer Correct Answer: D) To provide economic aid for reconstruction. 15. What is Nominal GDP? A) Using inflation to show growth. B) Using current value of money on the day. C) Seeing changes to output. D) Showing the growth of an economy by looking at output increases. Show Answer Correct Answer: B) Using current value of money on the day. 16. MOST LIKELY if a country has a high literacy rate they will have a A) Low standard of living. B) High standard of living. C) Traditional economy. D) Standard of living that stays the same. Show Answer Correct Answer: B) High standard of living. 17. In the Lewis model, what does the term "surplus labor" refer to A) An amount of labor that is so high that it deflates wages throughout the economy. B) Labor that does not have at least a primary level education. C) Labor that can be withdrawn from the low productivity agricultural sector without a decrease in the total production. D) Labor that is exploited by the capitalist class. Show Answer Correct Answer: C) Labor that can be withdrawn from the low productivity agricultural sector without a decrease in the total production. 18. During times of economic recession the unemployment rate usually A) Stays around 25%. B) Stays the same. C) Increases. D) Decreases. Show Answer Correct Answer: C) Increases. 19. Saudi Arabia's specializes in the oil production. The government maintains training programs to ensure that workers have the skills needed to produce oil. This is an example of investing in what? A) Capital resources. B) Human capital. C) Natural resources. D) Entrepreneurs. Show Answer Correct Answer: B) Human capital. 20. Tools used in the production of goods and services A) Economic Continuum. B) Economy. C) Human Capital. D) Capital Goods. Show Answer Correct Answer: D) Capital Goods. ← 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