This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Economic Growth > Economic Growth – Quiz 88 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Economic Growth Quiz 88 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What does it mean to invest? A) To put in time, money, or energy in the hopes that something better will come out of it. B) Education and healthcare. C) A person who takes a risk to start a new business. D) None of above. Show Answer Correct Answer: A) To put in time, money, or energy in the hopes that something better will come out of it. 2. A person opens up a new sandwich shop and hires people to work at the restaurant is an example of a/an A) Human capital. B) Entrepreneur. C) Capital goods. D) Physical capital. Show Answer Correct Answer: B) Entrepreneur. 3. An import ..... is a tax aimed to reduce imported goods. A) Tariff. B) Quota. C) Income. D) Direct. Show Answer Correct Answer: A) Tariff. 4. Which of the following is the term for "the value of the output of all goods and services produced within a country in a year" A) Human capital. B) Gross domestic product. C) Capital goods. D) Entrepreneurship. Show Answer Correct Answer: B) Gross domestic product. 5. Given a government spending investment on infrastructure of £10 million, with a final GDP increase of £45 million, find the MULTIPLIER. A) 3. B) 4. C) 3.5. D) 4.5. Show Answer Correct Answer: D) 4.5. 6. The ..... amendment started prohibition. A) 13th Amendment. B) 15th Amendment. C) 20th Amendment. D) 18th Amendment. Show Answer Correct Answer: D) 18th Amendment. 7. Which factor of economic growth is All of the things found in or on the earth; "gifts of nature" ? A) Entrepreneurship. B) Natural Resources. C) Human Capital. D) Capital Goods. Show Answer Correct Answer: B) Natural Resources. 8. What are the factors that can cause fluctuations in actual growth? A) Predictable shocks. B) Demand side shocks. C) Supply side shocks. D) Stable economic conditions. Show Answer Correct Answer: C) Supply side shocks. 9. What is not a leakage from the circular flow of income? A) Expenditure on foreign goods. B) Indirect taxes. C) Undistributed profits. D) Unemployment benefits. Show Answer Correct Answer: D) Unemployment benefits. 10. What is the BEST way for a country to encourageeconomic growth in its private sector? A) Restricting trade with other countries. B) Reducing barriers to entrepreneurship. C) Increasing government spending. D) Nationalizing important industries. Show Answer Correct Answer: B) Reducing barriers to entrepreneurship. 11. If Israel's literacy rate is high, what can be concluded about their standard of living in Israel? A) The standard of living is low in Israel. B) The standard of living is high in Israel. C) The standard of living is not affected by the literacy rate. D) The standard of living will decrease as the GDP increases. Show Answer Correct Answer: B) The standard of living is high in Israel. 12. How much share/assets can a foreign investor own for corporations in the Philippines in general? A) 40%. B) 50%. C) 60%. D) None of the above. Show Answer Correct Answer: A) 40%. 13. What is South Africa's main export A) Oil. B) Textiles. C) Gold and diamonds. D) Agricultural products. Show Answer Correct Answer: C) Gold and diamonds. 14. If the economy were in the contracting phase of the business cycle, how might that affect your ability to find work? A) It might be easier to find work because businesses would be more likely to hire new employees. B) It might be easier to find work because businesses would have fewer workers to choose from. C) It might be more difficult to find work because businesses would be less likely to hire new employees. D) It would have no effect on finding work. Show Answer Correct Answer: C) It might be more difficult to find work because businesses would be less likely to hire new employees. 15. Why are literacy rates for girls lower than those for boys in both Kenya and Sudan? A) Very few schools have been opened for girls in either country. B) Girls have shown they cannot do schoolwork as easily as boys. C) Traditional cultures teach that females should marry rather than seek an education. D) Most girls in these countries do not want to go to school. Show Answer Correct Answer: C) Traditional cultures teach that females should marry rather than seek an education. 16. Foreigners cannot fully own land in the Philippines. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 17. What was the primary goal of the Dawes Act? A) To provide education to American Indians. B) To preserve reservations for American Indians. C) To protect American Indian cultures. D) To encourage American Indians to become farmers. Show Answer Correct Answer: D) To encourage American Indians to become farmers. 18. What is a major issue with using Green GDP as a measure of economic growth? A) Difficulty in putting a monetary value on environmental costs. B) Inclusion of informal activity. C) Risk of double counting. D) Exclusion of income earned abroad. Show Answer Correct Answer: A) Difficulty in putting a monetary value on environmental costs. 19. The total market value of goods and services produced is ..... A) GDP. B) GNP/GNI. C) NNI. D) GVA. Show Answer Correct Answer: A) GDP. 20. What is the potential output of an economy? A) The level of output that an economy could produce if resources were not fully employed. B) The level of output that an economy could produce if resources were fully employed. C) The actual level of output that an economy produces. D) The maximum level of output that an economy can produce. Show Answer Correct Answer: B) The level of output that an economy could produce if resources were fully employed. ← 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