This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Economic Growth > Economic Growth – Quiz 28 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Economic Growth Quiz 28 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What best refers to a pattern in which economies with low per capita incomes grow faster than economies with high per capita incomes? A) Convergence. B) Capital Deepening. C) Aggregate Production. D) Productivity. Show Answer Correct Answer: A) Convergence. 2. What is one reason that a population ages? A) There is a rise in health care. B) There is a drop in life expectancy. C) There is a rise in life expectancy. D) There is a rise in the birth rate. Show Answer Correct Answer: C) There is a rise in life expectancy. 3. What was the cowboys' job? A) Their job was to entertain people as they traveled west watching rodeos. B) Their job was to steal cattle before it made it to market. C) Their job was to keep the herd together, protect the herd, and keep it moving. D) None of above. Show Answer Correct Answer: C) Their job was to keep the herd together, protect the herd, and keep it moving. 4. Suppose Congress passed a bill funding research into alternative sources of energy. What best describes this government action? A) Seeking gains in knowledge about the national economy. B) Monitoring and regulating banks and other financial institutions. C) Promoting innovation and invention to help maintain technological advantage. D) Seeking to prevent sudden, drastic shifts in prices. Show Answer Correct Answer: C) Promoting innovation and invention to help maintain technological advantage. 5. Investing in Health A) Capital Goods. B) Human Capital. Show Answer Correct Answer: B) Human Capital. 6. Which of the following acts of Congress contributed to an increase in settlement in the West by granting free land to individuals after they had lived on it for five years? A) The Homestead Act. B) The Morrill Land Grant Act. C) The Indian Removal Act. D) The Dawes Act. Show Answer Correct Answer: A) The Homestead Act. 7. GDP minus indirect taxes + subsidies is ..... A) GDP. B) NNI. C) GNI/GNP. D) GVA. Show Answer Correct Answer: D) GVA. 8. The spent money or a resource for some benefit in the future A) GDP per capita. B) Investment. C) Relationship. D) Human capital. E) GDP. Show Answer Correct Answer: B) Investment. 9. Turkey invests 3 percent of its GDP into education for its citizens-which productive resource is this an example of? A) Standard of Living. B) Capital goods. C) Human capital. D) Entrepreneurship. Show Answer Correct Answer: C) Human capital. 10. Why may an economy experience an increase in potential economic growth despite net investment remaining unchanged? A) Net investment exceeds gross investment. B) Capital consumption exceeds net investment. C) The new capital equipment is longer lasting than the capital equipment it replaces. D) The new capital equipment embodies more advanced technology. Show Answer Correct Answer: D) The new capital equipment embodies more advanced technology. 11. Vertical integration is when a company buys out the Resources (raw materials, fields, forests, and farms), Manufacturing (production and processing), and Distribution (shipping, transportation, delivery to customers). A) False. B) True. Show Answer Correct Answer: B) True. 12. Explain the concept of GDP and its significance in measuring economic growth. A) GDP measures the total value of all goods and services produced within a country's borders and is insignificant in measuring economic growth. B) GDP measures the total value of all goods and services produced within a country's borders and is significant in measuring economic growth. C) GDP measures the total value of all goods and services produced outside a country's borders and is insignificant in measuring economic growth. D) GDP measures the total value of all goods and services consumed within a country's borders and is significant in measuring economic growth. Show Answer Correct Answer: B) GDP measures the total value of all goods and services produced within a country's borders and is significant in measuring economic growth. 13. What is the impact of human capital on economic growth? A) Fluctuates economic growth. B) Increases economic growth. C) No impact on economic growth. D) Decreases economic growth. Show Answer Correct Answer: B) Increases economic growth. 14. If consumer spending is $ 10, exports are $ 5, government spending is $ 6, investment spending is $ 3, and imports are $ 1, what is GDP? A) $ 24. B) $ 23. C) $ 20. D) $ 15. Show Answer Correct Answer: B) $ 23. 15. What best refers to a process whereby an economy as a whole turns economic inputs such as human capital, physical capital, and technology into output measured as GDP per capita? A) Capital Deepening. B) Aggregate Production. C) Productivity. D) Convergence. Show Answer Correct Answer: B) Aggregate Production. 16. Who takes on the financial risk in starting a new business in a market economy? A) Consumers. B) Government planners. C) Individual business people. D) Combination of planners and investors. Show Answer Correct Answer: C) Individual business people. 17. What is one of the policy tools for promoting inclusive economic growth? A) Reducing the national minimum wage. B) Exploiting vulnerable groups. C) Improved access to high-quality education. D) Limiting trade union power. Show Answer Correct Answer: C) Improved access to high-quality education. 18. When the herd begins to run and can't be controlled, it is called a A) Ground quake. B) Stampede. C) Torpedo. D) Avalanche. Show Answer Correct Answer: B) Stampede. 19. Which term refers to the tools, machines, and factories used in the production of goods and services? A) Natural resources. B) Capital resources. C) Entrepreneurship. D) Human resources. Show Answer Correct Answer: B) Capital resources. 20. What did the term 'protective tariffs' refer to in the economic context? A) Taxes on all goods to fund government programs. B) Taxes on exported goods to promote international trade. C) Taxes on imported goods to protect domestic industries. D) Taxes on income to redistribute wealth. Show Answer Correct Answer: C) Taxes on imported goods to protect domestic industries. 21. If economic growth increases, living standards may still fall if: A) Real GDP growth is negative. B) There is a decline in access to helth and education services. C) There is a decline congestion levels on roads. D) There is a decline in work related stress levels. Show Answer Correct Answer: B) There is a decline in access to helth and education services. 22. What best refers to putting advances in knowledge to use in a new product or service? A) Production Function. B) Innovation. C) Invention. D) Labor Productivity. Show Answer Correct Answer: B) Innovation. 23. Non-material living standards refer to: A) The quality aspects of a consumer's life. B) The access consumers have to goods and services. C) The ability of Australian businesses to supply quality clothing to the marketplace. D) All of the above. Show Answer Correct Answer: A) The quality aspects of a consumer's life. 24. A country's economy has natural ups and downs in its business cycle. A) False. B) True. Show Answer Correct Answer: B) True. 25. Which policy is most likely to promote inclusive economic growth? A) Cutting public healthcare funding. B) Reducing corporate taxes. C) Increasing military spending. D) Progressive Taxation. Show Answer Correct Answer: D) Progressive Taxation. 26. Health care made available to all citizens of a country through government regulations of the medical industry and subsidies. A) Socialized medicine. B) Democratic socialism. C) Welfare state. D) Land reform. Show Answer Correct Answer: A) Socialized medicine. 27. The alternative combinations of final goods and services that could be produced in a given time period with all available resources and technology are known as A) Consumption possibilities. B) Real GDP. C) Nominal GDP. D) Production possibilities. Show Answer Correct Answer: D) Production possibilities. 28. Carries out local or regional trading only. A) Stage 3:Take-Off. B) Stage 2:Pre-Condition for Take-Off. C) Stage 4:Drive to Maturity. D) Stage 5:High Mass Consumption. E) Stage 1:Traditional Society. Show Answer Correct Answer: E) Stage 1:Traditional Society. 29. If nominal GDP is $ 300 and real GDP is $ 150, what is the GDP price index (deflator)? A) It is uncertain. B) 200. C) 160. D) 100. Show Answer Correct Answer: B) 200. 30. Able to read and write in one's native language. A) Public sector. B) Literate. C) Literacy Rate. D) Natural Resource. Show Answer Correct Answer: B) Literate. ← 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