This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Economic Growth > Economic Growth – Quiz 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Economic Growth Quiz 10 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Long-run economic growth is also known as potential growth 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. 2. A benefit of economic growth is that there will be funds to invest in cleaner and more efficient production processes thus reducing the environmental impact 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. An economy that has characteristics of both command and market economies A) Mixed Economy. B) Market Economy. C) Traditional Economy. D) Command Economy. Show Answer Correct Answer: A) Mixed Economy. 4. What is a county's GDP divided by its population called? A) Literacy rate. B) GDP per capita. C) Human capital. D) Capital goods. Show Answer Correct Answer: B) GDP per capita. 5. Why is it important for a country to invest in human capital? A) Because businesses need money in order to pay for their workers. B) Because businesses enjoy workers getting extra training and job opportunities. C) Because businesses are more successful when the workers have good training and health care. D) Because businesses are not responsible for the training and health care of the workers they employ. Show Answer Correct Answer: C) Because businesses are more successful when the workers have good training and health care. 6. What happened as a result of the Berlin Conference? A) European and African nations went to war with each other. B) The European leaders allowed the African leaders to be apart of the governing process of the colonies. C) Imperialism in Africa ended. D) Europeans divided Africa into colonies without considering the cultural and ethnic differences of the African people. Show Answer Correct Answer: D) Europeans divided Africa into colonies without considering the cultural and ethnic differences of the African people. 7. What is true about literacy rate and how well off people are (or, the standard of living) in a country? A) The higher the literacy rate, the higher the standard of living. B) The lower the literacy rate, the higher the standard of living. C) There is no relationship between the two. D) None of above. Show Answer Correct Answer: A) The higher the literacy rate, the higher the standard of living. 8. Economic Growth can be defined as: A) An increase in consumer wealth. B) An increase in the labor force. C) An increase in real GDP. D) An increase in the Dow Jones Industrial Average. Show Answer Correct Answer: C) An increase in real GDP. 9. "Economic Growth" refers to: A) Increases in the PRODUCTION CAPACITY of a country. B) Increased in the PRODUCTS of a country. C) Increases in the PRODUCTION DAYS of a country. D) None of above. Show Answer Correct Answer: A) Increases in the PRODUCTION CAPACITY of a country. 10. What did the reduction in taxes on luxury items and consumer goods aim to do? A) Support small businesses. B) Encourage saving. C) Promote international trade. D) Boost consumer spending. Show Answer Correct Answer: D) Boost consumer spending. 11. Why is Real GDP better than Nominal GDP A) It shows actual increases or decreases in output. B) It allows economists to see if there is more growth. C) It shows whether there has been an actual increase in inflation. D) Nominal GDP doesn't allow people to see an increase in output. Show Answer Correct Answer: A) It shows actual increases or decreases in output. 12. Bella can produce either a combination of 60 silk roses and 80 silk leaves or a combination of 70 silk roses and 55 silk leaves. If she now produces 60 silk roses and 80 silk leaves, what is the opportunity cost of producing an additional 10 silk roses? A) 2.5 silk leaves. B) 10 silk leaves. C) 25 silk leaves. D) 55 silk leaves. Show Answer Correct Answer: C) 25 silk leaves. 13. Which of the following is an effect of Spindletop? A) Oil companies closed down. B) People started drilling for oil all over the state. C) There were less jobs available because of the oil industry. D) People started drilling for oil all over the world. Show Answer Correct Answer: B) People started drilling for oil all over the state. 14. Nigeria exports more than ..... million barrels of oil daily. A) 100. B) 56. C) 3. D) 10. Show Answer Correct Answer: C) 3. 15. What are two causes of economic barriers? A) Low consumer demand and high competition. B) Government regulations and trade restrictions. C) Lack of innovation and technological advancement. D) Globalization and free trade agreements. Show Answer Correct Answer: B) Government regulations and trade restrictions. 16. A country's ..... is the percentage of adults who can read and write. A) GDP per Capita. B) Capital goods. C) GDP. D) Literacy rate. Show Answer Correct Answer: D) Literacy rate. 17. GDP is the total value of goods and services A) Produced all over the world. B) Produced in one month. C) Produced within a nation's borders. D) Produced by a singl company. Show Answer Correct Answer: C) Produced within a nation's borders. 18. Germany has a system of universal higher education, meaning that everyone in the country can attend a university to earn an academic degree for free. For what economic reason does Germany have a system of universal higher education? A) A well-educated population generates a high gross domestic product. B) German people do not like to work in the industrial sector. C) Germany lacks a large industrial labor force. D) The government wants to encourage people to get jobs in other countries. Show Answer Correct Answer: A) A well-educated population generates a high gross domestic product. 19. United states:$ 54, 541 A) True. B) False. Show Answer Correct Answer: A) True. 20. How does entrepreneurship contribute to economic growth? A) Entrepreneurship leads to higher unemployment rates and lower productivity. B) Entrepreneurship has no impact on economic growth. C) Entrepreneurship contributes to economic growth through job creation, innovation, and increased productivity. D) Entrepreneurship only benefits a few individuals and does not contribute to overall economic growth. Show Answer Correct Answer: C) Entrepreneurship contributes to economic growth through job creation, innovation, and increased productivity. 21. Discuss the role of government policies in promoting industrial and economic growth. A) Government policies have no impact on industrial and economic growth. B) Government policies only benefit large corporations and not small businesses. C) Government policies provide incentives, infrastructure development, trade policies, and regulations to support businesses and industries. D) Government policies are too restrictive and hinder economic growth. Show Answer Correct Answer: C) Government policies provide incentives, infrastructure development, trade policies, and regulations to support businesses and industries. 22. What are the causes of economic recession? A) Positive demand-side shocks. B) A rise in business and consumer confidence. C) A fall in real GDP over a period of six months or more. D) A rise in fuel costs. Show Answer Correct Answer: D) A rise in fuel costs. 23. Productive resources are used to make what? A) Human Capital. B) Natural Resources. C) Entrepreneurs. D) Goods and Services. Show Answer Correct Answer: D) Goods and Services. 24. What will result in the short run from rising unemployment in an economy? A) The government's budget deficit will fall. B) Any existing inflationary pressure will be reduced. C) Potential output will fall. D) The economy's production possibility curve will shift inwards. Show Answer Correct Answer: B) Any existing inflationary pressure will be reduced. 25. Economic growth in a country is NOT measured by the country's Gross Domestic Product (GDP) in one year. A) I disagree. B) I agree. Show Answer Correct Answer: A) I disagree. 26. What is the definition of Gross Domestic Product (GDP)? A) The sum of all the goods and services a country produces in a year. B) The sum of all goods imported within a year. C) The sum of taxes collected in a year. D) The sum of all goods produced by entrepreneurs in a year. Show Answer Correct Answer: A) The sum of all the goods and services a country produces in a year. 27. Final output products value that is produced by citizens in a country, regardless of where they are located is known as A) GNI. B) GNP. C) GDP. D) GNE. Show Answer Correct Answer: C) GDP. 28. The United Kingdom has large deposits of coal, petroleum, natural gas, iron ore, lead, zinc, and gold. The country will use these items to create products to sell. Which factor of production is being used to increase the GDP? A) Natural resources. B) Human capital. C) Entrepreneurship. D) Capital goods. Show Answer Correct Answer: A) Natural resources. 29. The percentage of adults who can read and write A) Standard of living. B) Literacy rate. C) Natural resources. D) Human capital. Show Answer Correct Answer: B) Literacy rate. 30. Better roads and railroads allowed all of the following EXCEPT ..... A) Virginia's cities to grow. B) Virginia is able to export coal and tobacco. C) Tobacco farming and products became important again. D) Virginia's economy changes from industrial to agricultural. Show Answer Correct Answer: D) Virginia's economy changes from industrial to agricultural. ← 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