This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Economic Growth > Economic Growth – Quiz 97 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Economic Growth Quiz 97 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Why should countries invest in developing capital goods? A) They shouldn't, it is too expensive. B) Because capital goods cannot be sold to other countries. C) When countries invest in capital goods, they are providing better facilities, resources, and/or materials for the people who perform the labor, which creates a more productive workforce leading to greater economic growth (higher GDP). D) Because capital goods are less expensive than private goods. Show Answer Correct Answer: C) When countries invest in capital goods, they are providing better facilities, resources, and/or materials for the people who perform the labor, which creates a more productive workforce leading to greater economic growth (higher GDP). 2. Because of inflation, you should use: A) Real GDP. B) Net GDP. C) Gross GDP. D) All options are correct. E) None of the options are correct. Show Answer Correct Answer: A) Real GDP. 3. Spreads entrepreneurial mentality. People begin to start and run their own businesses and industries. A) Stage 1:Traditional Society. B) Stage 2:Pre-Condition for Take-Off. C) Stage 3:Take-Off. D) Stage 4:Drive to Maturity. E) Stage 5:High Mass Consumption. Show Answer Correct Answer: C) Stage 3:Take-Off. 4. What major issue led to the Republican Party? A) Slavery. B) Farming. C) Immigration. D) Women's Suffrage. Show Answer Correct Answer: A) Slavery. 5. Which of the following is an increase by society in the average level of physical and/or human capital per person? A) Aggregate Production. B) Capital Deepening. C) Economic Output. D) Productivity. Show Answer Correct Answer: B) Capital Deepening. 6. What was the result of the Homestead Strike at a Carnegie Steel mill? A) The strike collapsed months later and the union was defeated. B) Higher wages were granted to the union strikers after months of negotiating. C) The government increased its support for striking workers. D) The union succeeded once the Supreme Court ruled in their favor. Show Answer Correct Answer: A) The strike collapsed months later and the union was defeated. 7. The presence or absence of these factors determine the country's GDP for the year A) False. B) True. Show Answer Correct Answer: B) True. 8. Which statement best describes the relationship between a country's literacy rate & it's standard of living. A) The higher the literacy rate, the lower the standard of living. B) The higher the literacy rate, the increase in government corruption. C) The higher the literacy rate, the higher the standard of living. D) The higher the literacy rate, the more animals living there. Show Answer Correct Answer: C) The higher the literacy rate, the higher the standard of living. 9. There are ..... stages in the economic cycle A) 3. B) 4. Show Answer Correct Answer: B) 4. 10. What is one reason that a country could have a high GDP? A) Because they have high wages. B) Because they have a highly educated population. C) Because they have low taxes. D) Because they love going to space. Show Answer Correct Answer: B) Because they have a highly educated population. 11. When prices are compared without adjusting them for inflation, this is called ..... A) Real comparison. B) Adjusted comparison. C) Inflated comparison. D) Nominal comparison. Show Answer Correct Answer: D) Nominal comparison. 12. Explorers from what European country brought cattle to North America? A) England. B) Italy. C) Portugal. D) Spain. Show Answer Correct Answer: D) Spain. 13. An economy that depends on agriculture and bartering, where decisions are made based on traditions, customs, habits, or beliefs A) Mixed Economy. B) Market Economy. C) Traditional Economy. D) Command Economy. Show Answer Correct Answer: C) Traditional Economy. 14. A country with high GDP has a low standard of living. A) True. B) False. Show Answer Correct Answer: A) True. 15. A ..... is a plant where crude oil is purified into petroleum. A) Petrol Station. B) Petrol Factory. C) A High. D) Refinery. Show Answer Correct Answer: D) Refinery. 16. Which of these is NOT a consequence of economic growth A) Improved living standards. B) Increase in income. C) Increase in unemployment. D) Consumption of more luxury products. Show Answer Correct Answer: C) Increase in unemployment. 17. The countries with the highest HDIs mostly belong to which continent? A) Asia. B) Africa. C) Europe. D) None of above. Show Answer Correct Answer: C) Europe. 18. An increased in the stock of capital (a major cause of economic growth) is described as ..... A) Mobility. B) Non replaceable. C) Per head. D) Net investment. E) Leisure. Show Answer Correct Answer: D) Net investment. 19. What is an example of an investment in human capital? A) A company pays for its workers to go to graduate school. B) A company buys a new computer system to improve productivity. C) A company hires a lobbyist to fight government regulations. D) A company starts using better materials to improve product quality. Show Answer Correct Answer: A) A company pays for its workers to go to graduate school. 20. Israel's GDP per Capita is about $ 35, 000 while Turkey's is about $ 20, 000. Which country more than likely has a higher standard of living? A) Israel. B) Turkey. C) Saudi Arabia. D) Not enough info to answer the question. Show Answer Correct Answer: A) Israel. ← 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