This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Economic Growth > Economic Growth – Quiz 83 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Economic Growth Quiz 83 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The production possibilities frontier shows the ..... combinations of two products that may be produced in a particular time period with available resources. A) Minimum attainable. B) Maximum attainable. C) Only. D) Equitable. Show Answer Correct Answer: B) Maximum attainable. 2. A positive output gap will occur during a boom when the economy is overheating 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. 3. What is the only thing that makes an economy grow in the long run? A) Increases in labour productivity growth. B) Decreases in labour productivity growth. C) Increases in the labour force. D) Decreases in the labour force. Show Answer Correct Answer: A) Increases in labour productivity growth. 4. AD curve shift to right to show actual economic growth A) True. B) False. Show Answer Correct Answer: A) True. 5. What did buying on margin refer to in the context of the stock market? A) Investing in mutual funds. B) Selling stocks short. C) Purchasing stocks with cash. D) Borrowing money to purchase stocks. Show Answer Correct Answer: D) Borrowing money to purchase stocks. 6. A person who starts a business is called a/an A) Human capitalist. B) Entrepreneur. C) Natural resource operator. D) Servicer. Show Answer Correct Answer: B) Entrepreneur. 7. Which of the following is a disadvantage of import substitution strategy? A) It leads to inflation. B) It encourages R&D investment. C) It protects jobs in the long run. D) It promotes competition. Show Answer Correct Answer: A) It leads to inflation. 8. Which best describes the reason for inequality in Cambridge? A) Well paid jobs in Cambridge require highly skilled professionals and therefore people with fewer qualifications have to manage high house prices without high salaries. B) High house prices mean that some people cannot afford housing. C) Jobs require particularly high qualifications in some areas and therefore not everyone can access highly paid jobs. D) Many of the jobs in Cambridge are well paid and therefore house prices increase as people are able to pay more and want to live close to their jobs. Show Answer Correct Answer: A) Well paid jobs in Cambridge require highly skilled professionals and therefore people with fewer qualifications have to manage high house prices without high salaries. 9. True or False Developing Countries have strong infrastructure A) True. B) False. Show Answer Correct Answer: B) False. 10. Virginia's government consists of ..... A) 2 branches. B) 3 branches. C) 4 branches. D) 5 branches. Show Answer Correct Answer: B) 3 branches. 11. Which of the following is not considered an 'injection' in the circular flow of income? A) Investments. B) Exports. C) Savings. D) Government spending. Show Answer Correct Answer: C) Savings. 12. When a government changes the laws regarding land ownership and redistributes land based on those laws. A) Bretton Woods Agreement. B) Federal system. C) Land reform. D) Socialized medicine. Show Answer Correct Answer: C) Land reform. 13. Which of the following countries has the LEAST amount of natural resources? A) A. Democratic Republic of Congo. B) B. the United States. C) C. Kuwait. D) D. Japan. E) And. Russia. Show Answer Correct Answer: D) D. Japan. 14. Government program created to encourage settlement in the western territories. A) Homestead Act. B) Cowtown Act. C) National Grange. D) None of above. Show Answer Correct Answer: A) Homestead Act. 15. What is the role of education in human capital? A) Education has no impact on human capital. B) Education enhances human capital by developing knowledge, skills, and abilities that increase productivity and economic value. C) Education decreases human capital by wasting time and resources. D) Education only improves human capital in certain industries. Show Answer Correct Answer: B) Education enhances human capital by developing knowledge, skills, and abilities that increase productivity and economic value. 16. How does voluntary trade help the economy A) Voluntary trade mean prices will always be low. B) Voluntary trade only works when tariffs are in place. C) This sort of trade involves many government regulations. D) It encourages specialization and usually means more profit. Show Answer Correct Answer: D) It encourages specialization and usually means more profit. 17. List two factors contributing to inequality. A) Unequal distribution of wealth and income, lack of access to education and healthcare. B) Government policies and regulations, lack of access to technology and internet. C) Equal distribution of wealth and income, lack of access to education and healthcare. D) High taxes on the wealthy, lack of access to transportation and housing. Show Answer Correct Answer: A) Unequal distribution of wealth and income, lack of access to education and healthcare. 18. Compensation of employees is the payments for labor services, net interest, rental income, corporate profits, and proprietors are the payment for ..... and profit for ..... A) Entrepreneurship, capital and land. B) Land, entrepreneurship. C) Land, capital. D) Capital and land, entrepreneurship. Show Answer Correct Answer: D) Capital and land, entrepreneurship. 19. What was the main purpose of buying stocks on margin? A) To leverage borrowed money for potential higher returns. B) To minimize investment risk. C) To diversify investment portfolio. D) To invest in long-term bonds. Show Answer Correct Answer: A) To leverage borrowed money for potential higher returns. 20. "This is all of the goods that are produced in the country and then used to make other goods & services." Which production factor is this? A) Human Capital. B) Capital Goods. C) Entrepreneurship. D) Natural Resources. Show Answer Correct Answer: B) 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