This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Economic Growth > Economic Growth – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Economic Growth Quiz 2 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What are the effects of Human Development Index on a country's development? A) HDI has no impact on a country's development. B) HDI has a significant impact on a country's development as it reflects the overall well-being and standard of living of its citizens. C) HDI only affects the environment of a country. D) HDI is only relevant for developed countries. Show Answer Correct Answer: B) HDI has a significant impact on a country's development as it reflects the overall well-being and standard of living of its citizens. 2. RURAL societies typically mean what kind of economy? A) Industrial. B) Agricultural. Show Answer Correct Answer: B) Agricultural. 3. If there is an increase in a nations wages (not necessarily income) then the ..... A) AS curve shifts right. B) AD curve shifts left. C) AS curve shifts left. D) AD curve shifts right. Show Answer Correct Answer: C) AS curve shifts left. 4. Name one indicator used to measure economic development. A) Unemployment rate. B) Population growth rate. C) GDP. D) Inflation rate. Show Answer Correct Answer: C) GDP. 5. Oil, trees and natural gas are examples of A) Human capital. B) Physical capital. C) Natural resources. D) Entrepreneurship. Show Answer Correct Answer: C) Natural resources. 6. What connection can be made between a nation's literacy rate and its economy? A) Literate people are less economically productive than illiterate people. B) Literate people consume fewer natural resources than illiterate people. C) Literate people can get higher paying jobs than illiterate people and increase economic activity. D) Literate people are less likely than illiterate people to look for work outside of their home country. Show Answer Correct Answer: C) Literate people can get higher paying jobs than illiterate people and increase economic activity. 7. How long did it take for Thailand's population to double the share of oldsters from 7% to 14%? A) 2 years. B) 24 years. C) Over a century. D) 72 years. Show Answer Correct Answer: A) 2 years. 8. We have lower levels of foreign investment compared to ASEAN countries because of stricter laws regarding foreign ownership. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 9. Economic development is defined as A) The process by which a nation improves the economic, political, and social well-being of its people. B) An increase in the amount of goods and services produced per head of the population over a period of time. C) Is a system of production, resource allocation and distribution of goods and services within a society or a given geographic area. D) None of the above. Show Answer Correct Answer: A) The process by which a nation improves the economic, political, and social well-being of its people. 10. The physical effort of people to produce goods or services describes which factor of production? A) Land. B) Capital. C) Labour. D) Entrepreneurship. Show Answer Correct Answer: C) Labour. 11. How does a rise in oil prices contribute to a recession? A) It leads to deflation. B) It causes a decline in unemployment. C) It triggers inflation and lower purchasing power. D) It promotes sustainable growth. Show Answer Correct Answer: C) It triggers inflation and lower purchasing power. 12. Argentinean tourists spending money in Brazil? A) BRAZIL trade balance increases. B) ARGENTINA trade balance decreases. C) None of the options are correct. D) Both options are correct. Show Answer Correct Answer: D) Both options are correct. 13. Countries need ..... to fill jobs within the economy A) Different set of skills. B) Different kinds. C) Education. D) Skilled workers. E) Highly-skilled workforce. Show Answer Correct Answer: D) Skilled workers. 14. Balanced growth implies A) Simultaneous development of a variety of activities, which support one another. B) Equal allocation of resources to different sectors. C) Different sectors growing at their natural rates of growth. D) Uniform rate of growth of output over time. Show Answer Correct Answer: C) Different sectors growing at their natural rates of growth. 15. What is it called when you are worried just about your region or area? A) Nationalism. B) Sectionalism. C) Marginalism. D) Republicanism. Show Answer Correct Answer: B) Sectionalism. 16. Which of the following is not something that helps an economy grow? A) Going on protests and strikes. B) Using technology. C) Eliminate waste. D) Having an educated population. Show Answer Correct Answer: A) Going on protests and strikes. 17. True or False:Teddy Roosevelt passed Executive Orders to set aside land that would become national parks, preventing industrialists from using it as raw materials. A) True. B) False. Show Answer Correct Answer: A) True. 18. What is the Economic Freedom Index (EFI) of Japan? A) Highly open to entrepreneurship. B) Not open to entrepreneurship. C) Moderately open to entrepreneurship. D) No impact on entrepreneurship. Show Answer Correct Answer: A) Highly open to entrepreneurship. 19. What is a possible disadvantage of export-led growth strategy? A) Increased access to less expensive imported goods and services. B) Increased income inequality in the country. C) Increased bargaining power in multilateral trade negotiations. D) Increased efficiency in domestic producers. Show Answer Correct Answer: B) Increased income inequality in the country. 20. Which African country has come forward to help support entrepreneurs? A) Botswana. B) Nigeria. C) South Africa. D) Kenya. Show Answer Correct Answer: C) South Africa. 21. How much affordable housing was included in the Trumpington Meadows development? A) 20%. B) 40%. C) 30%. D) 10%. Show Answer Correct Answer: B) 40%. 22. What is the formula for calculating real GDP per capita? A) R%= i%-$\pi$. B) C+I+G+Xn. C) P x Q. D) Real gdp/population. Show Answer Correct Answer: D) Real gdp/population. 23. How many levels of education are there? A) 4. B) 3. C) 1. D) 2. Show Answer Correct Answer: A) 4. 24. An economy has a MPC of 0.8. If investment were to rise by $ 40m, what would be the change in GDP? A) Increase by $ 320m. B) Increase by $ 40m. C) Increase by $ 50m. D) Increase by $ 200m. Show Answer Correct Answer: D) Increase by $ 200m. 25. GDP per capita means A) Real GDP per household. B) Real GDP per head. C) Real GDP per worker. D) None of above. Show Answer Correct Answer: B) Real GDP per head. 26. Investment in better machines, updated factories, and new technology leads to ..... being produced A) Increase in GDP. B) Technology. C) Stronger its economy. D) Boosts a country's exports. E) More goods & services. Show Answer Correct Answer: E) More goods & services. 27. How is the rate of economic growth commonly measured? A) By the growth in real Gross Domestic Product (GDP). B) By the unemployment rate. C) By the increase in a country's population. D) By the growth in the stock market. Show Answer Correct Answer: A) By the growth in real Gross Domestic Product (GDP). 28. What is important to keep a country growing? A) Economic growth. B) Technological growth. C) Economic and technological growth. D) Economic and technological decline. Show Answer Correct Answer: C) Economic and technological growth. 29. Improvements in technology would be included in which measure of economic growth? A) Real Income/GDP. B) Productive capacity. C) Net social welfare. D) None of above. Show Answer Correct Answer: B) Productive capacity. 30. What accounts for MOST of the variation in GDP per capita? A) Average labor productivity. B) Capital market efficiency. C) Openness to trade. D) Proportion of the population engaged in producti on. E) Labor force participation rate. Show Answer Correct Answer: A) Average labor productivity. ← PreviousNext →Related QuizzesMacroeconomics QuizzesEconomics QuizzesEconomic Growth Quiz 1Economic Growth Quiz 3Economic Growth Quiz 4Economic Growth Quiz 5Economic Growth Quiz 6Economic Growth Quiz 7Economic Growth Quiz 8Economic Growth Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books