This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Economic Growth > Economic Growth – Quiz 82 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Economic Growth Quiz 82 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. When a government has the acceptance and support of its citizens A) Dissidents. B) Legitimacy. C) Federal system. D) Nationalization. Show Answer Correct Answer: B) Legitimacy. 2. How might an increase in investment in capital goods affect the economies of Kenya and Nigeria? A) It would lead to a decrease in both GDP and GDP per capita. B) It would lead to an increase in both GDP and GDP per capita. C) . It would lead to a decrease in GDP, but an increase in GDP per capita. D) It would lead to an increase in GDP, but a decrease in GDP per capita. Show Answer Correct Answer: B) It would lead to an increase in both GDP and GDP per capita. 3. What is the main drawback to growth and development in developing countries? A) Lack of trade liberalisation. B) Excessive government intervention. C) High level of debt repayments. D) Low level of foreign aid. Show Answer Correct Answer: C) High level of debt repayments. 4. ..... does not consider the size of the informal economy. The informal economy is also known as the black economy which is unrecorded economic activity. A) Economic Growth. B) Economic Development. Show Answer Correct Answer: A) Economic Growth. 5. Which is an example of a capital good? A) Factories. B) Education. C) Job Training. D) Tariffs. Show Answer Correct Answer: A) Factories. 6. If there is improved technique of Production in both of the goods on a PPC, how will the PPC will be affected? A) Leftward shift of PPC. B) Rightward shift of PPC. C) Movement outwards of the x or y axis, not both. D) None of the above. Show Answer Correct Answer: B) Rightward shift of PPC. 7. Why would a business invest money in capital goods? A) If you invest money, you will make more money. B) If you have better machines, you will be more productive and make more money. C) More natural resources allows you to make more goods. D) None of above. Show Answer Correct Answer: B) If you have better machines, you will be more productive and make more money. 8. Unemployment is most likely to occur during an economic expansion A) True. B) False. C) 12. D) Mr. Bush. Show Answer Correct Answer: B) False. 9. Why did Gullah evolve? A) Because of a need to have a common language on the Sea Islands. B) Planters brought the Gullah people from different tribes. C) Planters freed their mistresses and form a group called the "Gullah People". D) Because of the desire to have a written language. Show Answer Correct Answer: A) Because of a need to have a common language on the Sea Islands. 10. Name one type of capital good. A) Raw materials. B) Equipment. C) Tools. D) Machinery. Show Answer Correct Answer: D) Machinery. 11. True or False:Globalization can lead to both positive and negative effects on economic growth. A) False. B) Only positive effects. C) Only negative effects. D) True. Show Answer Correct Answer: D) True. 12. India's government has invested heavily in factories, modern machinery, and technology. This investment in is called ..... A) Human Capital. B) Capital Goods. C) Monetary Capital. D) Currency Exchange. Show Answer Correct Answer: B) Capital Goods. 13. Of the countries below, check all those whose economies are expected to grow in 2020? A) USA. B) China. C) Germany. D) United Kingdom. Show Answer Correct Answer: B) China. 14. How can we increase a countries GDP per capita? A) Increase the unemployment rate. B) Invest in education and healthcare. C) Increase the poverty rate. D) Increase the tax rate. Show Answer Correct Answer: B) Invest in education and healthcare. 15. Sugar processing is one of Cuba's most important industries. However, production is often slowed by old, inefficient technology. Based on this information, what would would be the BEST way to improve the efficiency of Cuba's sugar industry? A) Investing in capital goods. B) Investing in human capital. C) Reducing quotas on foreign sugar. D) Increasing tariffs on foreign sugar. Show Answer Correct Answer: A) Investing in capital goods. 16. Actual economic growth is caused by an increase in quality and quantity of resources. A) True. B) False. Show Answer Correct Answer: B) False. 17. How does entrepreneurship impact economic growth? A) By creating new businesses, jobs, and innovations that increase productivity and stimulate economic activity. B) Entrepreneurship only benefits large corporations and not the overall economy. C) Entrepreneurship leads to increased unemployment and decreased productivity. D) Entrepreneurship has no impact on economic growth. Show Answer Correct Answer: A) By creating new businesses, jobs, and innovations that increase productivity and stimulate economic activity. 18. This man hired a team of experts to create practical inventions. A) Thomas Edison. B) Alexander Graham Bell. C) George Washington Carver. D) Elias Kodak. Show Answer Correct Answer: A) Thomas Edison. 19. LRAS curve shift to right to show potential economic growth A) True. B) False. Show Answer Correct Answer: A) True. 20. When something loses its value, we call this ..... A) Salaries. B) Depreciation. C) Inflation. D) Subsidy. Show Answer Correct Answer: B) Depreciation. ← 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