This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Economic Growth > Economic Growth – Quiz 26 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Economic Growth Quiz 26 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What would be the result of the actions in the sentence below? A country builds schools and universities and invest in other education programs for its population to attend. A) The population will buy more capital goods. B) The population will have a high literacy rate. C) The country's workforce will decrease. D) None of above. Show Answer Correct Answer: B) The population will have a high literacy rate. 2. Why is investment in education important for a country? A) It improves the skills of workers. B) It serves as a pathway to economic development. C) It modifies behaviour and makes people more empathetic and sympathetic. D) All of the choices are correct. Show Answer Correct Answer: D) All of the choices are correct. 3. Calculate GDP per capita if GDP is £200 billion and the population is 40 million. A) £1, 000. B) £2, 000. C) £10, 000. D) £5, 000. Show Answer Correct Answer: D) £5, 000. 4. How did the U.S. government pay for the construction of the Transcontinental Railroad? A) Government owned land. B) Cash. C) Treasury Bonds. D) None of above. Show Answer Correct Answer: A) Government owned land. 5. What must happen before high quality and high paying jobs can exist? A) The population must be literate. B) The population must be illiterate. C) Other countries must train citizens. D) The country must have little resources. Show Answer Correct Answer: A) The population must be literate. 6. Manufacturing system where workers stay in one place as products pass along a track. A) Moving Assembly Line. B) Patent Row. C) Morse Code. D) Mass Production System. Show Answer Correct Answer: A) Moving Assembly Line. 7. The following information is taken from the national accounts of Zambibia:C = R200 millionI = R50 millionG = R150 millionX = R200 millionM = R180 million Gross Domestic Expenditure is A) R380 million. B) R420 million. C) R400 million. D) R600 million. Show Answer Correct Answer: B) R420 million. 8. When workers are represented by their union during negotiations. A) Collective Bargaining. B) Strike. C) Vertical Integration. D) None of above. Show Answer Correct Answer: A) Collective Bargaining. 9. Which of the following is NOT included when calculating GDP for the United States A) Cars manufactured in Michigan, but sold to the government. B) Cars manufactured in the United States, but sold in Japan. C) Cars manufactured in Michigan, but sold in Minnesota. D) Cars manufactured in Japan, but sold in the United States. Show Answer Correct Answer: D) Cars manufactured in Japan, but sold in the United States. 10. Is that what you earn before taxes and other expenses, or is that your ..... salary? A) Net. B) Productive. C) Inflation. D) None of above. Show Answer Correct Answer: A) Net. 11. How do capital goods influence economic growth? A) Countries that invest in capital goods, produce less goods than countries that do not. B) The more literate a person is, the less work they can do. C) Countries that invest in capital goods, produce more goods than countries that do not. D) None of above. Show Answer Correct Answer: C) Countries that invest in capital goods, produce more goods than countries that do not. 12. How is high GDP per capita linked to quality of life? A) High GDP per capita makes everyone richer. B) High GDP per capita means inflation is low and the cost of goods is lower. C) High GDP per capita usually indicates better nutrition, housing, education, and job opportunities. D) High GDP per capita does not affect quality of life because money can't buy happiness. Show Answer Correct Answer: C) High GDP per capita usually indicates better nutrition, housing, education, and job opportunities. 13. What is a negative output gap? A) When the actual level of output is greater than the potential level of output. B) When the actual level of output is equal to the potential level of output. C) When the actual level of output is less than the previous year's output. D) When the actual level of output is less than the potential level of output. Show Answer Correct Answer: D) When the actual level of output is less than the potential level of output. 14. When a county invests in education for it's citizens, what is it increasing? A) Capital goods. B) Entrepreneurship. C) Human capital. D) Natural resources. Show Answer Correct Answer: C) Human capital. 15. Methods of measuring GDP include: A) Gross National Product (GNP) and Consumer Price Index (CPI). B) Inflation rate and unemployment rate. C) Production, income, and expenditure approaches. D) Fiscal policy and monetary policy. Show Answer Correct Answer: C) Production, income, and expenditure approaches. 16. The value of spending on Australian exports (X) is likely to rise if: A) The exchange rate for the A$ rose or became dearer against overseas currencies. B) They became cheaper or more competitive for overseas buyers. C) There was a drought or floods in Australia that destroyed our crops. D) There was a recession overseas. Show Answer Correct Answer: B) They became cheaper or more competitive for overseas buyers. 17. Which measure of national income accounts for income earned by domestic workers abroad? A) Gross National Income (GNI). B) Green GDP. C) Real GDP. D) GDP per capita. Show Answer Correct Answer: A) Gross National Income (GNI). 18. Which of the following is among the root causes of poverty in the United States? A) Disabilities. B) Size of family. C) Lack of education. D) Underemployment. Show Answer Correct Answer: C) Lack of education. 19. What is Standard of Living? A) The degree of wealth and material comfort available to a person or community. B) The degree of wealth a person has in the bank. C) The degree of wealth a person has in the stock market. D) The degree of wealth a person gets that is passed down from generation to generation. Show Answer Correct Answer: A) The degree of wealth and material comfort available to a person or community. 20. Which combination of factors is most likely to result in economic growth? A) An increase in management productivity together with a reduction in the hours worked per employee. B) Increased educational enrollment together with an increase in business regulation. C) The discovery of a new raw material deposit together with significant emigration of labour. D) The invention of a technology together with the investment to use it in the economy. Show Answer Correct Answer: D) The invention of a technology together with the investment to use it in the economy. 21. Investment in human capital and capital goods leads to: A) A decrease in GDP. B) In increase in GDP. C) An increase in natural resources. D) A decrease in natural resources. Show Answer Correct Answer: B) In increase in GDP. 22. What is the main goal of Indonesia by 2045? A) Attaining Economic Stability. B) Achieving Sustainable Development. C) Realizing Golden Indonesia. D) Becoming a Global Superpower. Show Answer Correct Answer: C) Realizing Golden Indonesia. 23. Identify the reason for a rapid economic growth from the following. A) Political Stability. B) Steady growth in primary sector. C) Improving the quality of land. D) Investment in new capital and infrastructure. Show Answer Correct Answer: D) Investment in new capital and infrastructure. 24. What was a result of railroads being built in Texas? A) The population of Texas grew. B) Travel became faster and easier. C) Texas was now connected to other states. D) All of the above. Show Answer Correct Answer: D) All of the above. 25. A country wants to increase its gross domestic product (GDP). The government votes to lower corporate taxes. It also makes it easier to start businesses by reforming regulations. To help business owners succeed, the government also provides training programs on how to run a business. What is this country trying to do? A) Reduce the cost of capital investments. B) Eliminate barriers to trade. C) Encourage entrepreneurship. D) Improve access to natural resources. Show Answer Correct Answer: C) Encourage entrepreneurship. 26. Climate change impacts tend to be regressive, falling more heavily on the poor than the rich A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 27. Materials that come from the Earth (land). A) Gross Domestic Product. B) Human Capital. C) Natural Resources. D) Capital Goods. Show Answer Correct Answer: C) Natural Resources. 28. What is a common effect of a fall in real wages during a recession? A) Increased consumer spending. B) Rise in demand. C) Decrease in income and demand. D) Expansionary fiscal policies. Show Answer Correct Answer: C) Decrease in income and demand. 29. What kind of policies affect growth? A) Government policies that invest in infrastructure and technology. B) Wealth transfers. C) Universal Basic Income. D) None of above. Show Answer Correct Answer: A) Government policies that invest in infrastructure and technology. 30. Apa rumus pendapatan per kapita?What is the formula of per capita income? A) GDP-GDPt-1:GDPt-1 x100%. B) IPC-IPCt-1:IPCt-1 x 100. C) GNP:total population. D) GDP+GNP. Show Answer Correct Answer: C) GNP:total population. ← 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