This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Economic Growth > Economic Growth – Quiz 84 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Economic Growth Quiz 84 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. How can a country increase their GDP? A) Spend less money on education. B) Spend less money on healthcare. C) Invest more money in technology. D) Spend less money food. Show Answer Correct Answer: C) Invest more money in technology. 2. What can shift LRAS to the right? A) Increase in taxes. B) Increase in investment. C) Decrease in taxes. D) Decrease in investment. Show Answer Correct Answer: B) Increase in investment. 3. An increase in which of the following would be most likely to increase long-run growth? A) Pension payments. B) Unemployment compensation. C) Tariffs on imported capital goods. D) Tariffs on imported oil. E) Subsides to businesses for purchases of capital goods. Show Answer Correct Answer: E) Subsides to businesses for purchases of capital goods. 4. Calculate the economic growth rate if GDP was £100 billion in Year 1 and £102 billion in Year 2. A) 1%. B) 2%. C) 10%. D) 20%. Show Answer Correct Answer: B) 2%. 5. Which of the following is not a form of labour? A) Children's work. B) Adult's work. C) Machine's work. D) Immigrant's work. Show Answer Correct Answer: C) Machine's work. 6. Which of the following does not fall within the category of land as a factor of production? A) A building. B) Trees. C) Coal. D) Water. Show Answer Correct Answer: C) Coal. 7. Which country in order of GDP is the highest A) Brazil. B) Cuba. C) Haiti. D) Mexico. Show Answer Correct Answer: A) Brazil. 8. I calculated the country's ..... education spending by diving its education budget by its population. A) Economy. B) Per capita. C) Net. D) None of above. Show Answer Correct Answer: B) Per capita. 9. Explain how poverty cycle impacts economic growth. A) The poverty cycle only affects individual households and does not impact economic growth. B) The poverty cycle increases productivity and access to education and healthcare, and creates high consumer demand. C) The poverty cycle reduces productivity, limits access to education and healthcare, and creates a lack of consumer demand. D) The poverty cycle has no impact on economic growth. Show Answer Correct Answer: C) The poverty cycle reduces productivity, limits access to education and healthcare, and creates a lack of consumer demand. 10. The total GDP divided by the population of the said country A) Real GDP. B) Nominal GDP. C) GDP per capita. D) Other things being equal. Show Answer Correct Answer: C) GDP per capita. 11. What occurs over decades and generations, when seemingly small differences of a few percentage points in the annual rate of economic growth make an enormous difference in per capita GDP? A) Convergence. B) Human Capital. C) Labor Productivity. D) Sustained Economic Growth. Show Answer Correct Answer: D) Sustained Economic Growth. 12. In the long run, sustained economic growth requires ..... ? A) A stable political system. B) Consistent weather patterns. C) Growth in the factors of production. D) A fixed exchange rate. Show Answer Correct Answer: C) Growth in the factors of production. 13. It is often argued that the present rate of economic growth will soon lead to the exhaustion of reserves of material resources, such as minerals and oil. What does this argument fail to take into account? A) The drawbacks of present GDP levels as an indicator of the 'happiness' of the population. B) The effect of increasing resource prices on the discovery and exploitation of new reserves. C) The right of future generations to enjoy present standards of living. D) The role of education in economic development. Show Answer Correct Answer: B) The effect of increasing resource prices on the discovery and exploitation of new reserves. 14. What does the smooth upward sloping line on the diagram represent? A) Actual growth. B) Trend growth. C) Boom phase. D) Recession phase. Show Answer Correct Answer: B) Trend growth. 15. Movement of settlers into the American West, began with the Louisiana Purchase and the belief in "manifest destiny" . A) Westward Expansion. B) Buffalo Soldiers. C) James Hogg. D) Open-range system. Show Answer Correct Answer: A) Westward Expansion. 16. What does "gross domestic product" mean? A) Total number of natural resources. B) GDP per capita. C) Total number of people that cannot read or write. D) Total value of goods & services produced in one year. Show Answer Correct Answer: D) Total value of goods & services produced in one year. 17. Which Cuban industry depends mostly on a labor force with a high human capital? A) Cuba's tourist industry. B) Cuba's health care industry. C) Cuba's tobaccos industry. D) Cuba's sugar and agri-businesses. Show Answer Correct Answer: B) Cuba's health care industry. 18. What does a Tax Commissioner do to help govern a city? A) -Pays taxes for county-Maintains Tax Records-Receives Tax Returns. B) -Sets the amount of income a person can receive. C) -Judges a court hearing. D) Helps the sheriff keep the citizens safe. Show Answer Correct Answer: A) -Pays taxes for county-Maintains Tax Records-Receives Tax Returns. 19. What best refers to the the widespread use of power-driven machinery and the economic and social changes that occurred in the first half of the 1800s? A) Mercantilism. B) Industrial Revolution. C) Modern Economic Growth. D) Special Economic Zone. Show Answer Correct Answer: B) Industrial Revolution. 20. What is an example of capital goods? A) Tools. B) Equipment. C) Technology. D) Lumber. E) All of the above. Show Answer Correct Answer: E) All of the above. ← 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