This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Economic Growth > Economic Growth – Quiz 38 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Economic Growth Quiz 38 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is one factor that influences the speed of progression in Rostow's stages of economic growth model? A) Natural resource availability. B) Productivity. C) Political and social decision-making. D) All of the above. Show Answer Correct Answer: D) All of the above. 2. Which of the following is NOT a natural resource that can influence economic growth? A) Human capital. B) Land. C) Labor. D) Technology. Show Answer Correct Answer: A) Human capital. 3. Which region of Europe has countries with a lower standard of living? A) Southern Europe. B) Eastern Europe. C) Northern Europe. D) Western Europe. Show Answer Correct Answer: B) Eastern Europe. 4. A nation with a high GDP typically does not invest in human capital, while a nation with a low GDP does invest in human capital. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 5. What is an important factor that can affect economic growth? A) Metals. B) Climate. C) Water. D) Oil. Show Answer Correct Answer: D) Oil. 6. What makes entrepreneurship difficult in Kenya & Nigeria? A) Human capital. B) Lack of water. C) Disease. D) Government corruption. Show Answer Correct Answer: D) Government corruption. 7. Cattle ranching is important for Brazil's economy. However, large herds of cattle need lots of space to graze. Which of the following industries would MOST LIKELY suffer if cattle ranching expanded in Brazil? A) Agriculture. B) Lumber. C) Mining. D) Manufacturing. Show Answer Correct Answer: B) Lumber. 8. A country's Literacy rate impacts Human Capital. At what age does your personal literacy rate start to get counted into the country's literacy rate? A) 18. B) 17. C) 15. D) 16. Show Answer Correct Answer: C) 15. 9. What is an output gap? A) The difference between the actual level of output and the maximum level of output. B) The difference between the potential level of output and the previous year's output. C) The difference between the actual level of output and the previous year's output. D) The difference between the actual level of output and the potential level of output. Show Answer Correct Answer: D) The difference between the actual level of output and the potential level of output. 10. What might cause a decline in economic output? A) A decrease in sales tax. B) A decrease in income tax. C) An increase in company investment. D) An increase in unemployment. Show Answer Correct Answer: D) An increase in unemployment. 11. What is a boomtown? A) City that quickly grew around a mining site. B) Cities known for violent protests in support of civil rights for African Americans. C) Code name for military bases near volcanoes. D) None of above. Show Answer Correct Answer: A) City that quickly grew around a mining site. 12. What are the effects of Human Development Index? A) It measures the average achievements in technology and innovation. B) It measures the average achievements in health, education, and standard of living. C) It measures the average achievements in sports and entertainment. D) It measures the average achievements in agriculture and farming. Show Answer Correct Answer: B) It measures the average achievements in health, education, and standard of living. 13. A knitting factory worker who loses her job when the factory is sold and converted to a high-tech computer lab is an example of A) Structural unemployment. B) Frictional unemployment. C) Seasonal unemployment. D) Cyclical unemployment. Show Answer Correct Answer: A) Structural unemployment. 14. What are the two phases in a business cycle? A) Peak and trough. B) Peak and recession. C) Expansion and recession. D) Expansion and trough. Show Answer Correct Answer: C) Expansion and recession. 15. Man-made materials-factories, machines, technology, door, desk, trophies, scoreboard, trashcan, bleachers A) Human capital. B) Entrepreneurship. C) Natural resources. D) Capital goods. Show Answer Correct Answer: D) Capital goods. 16. If a country votes to raise tariffs on steel, what is most likely their goal? A) To lower the cost of making steel. B) To raise demand for steel in Europe. C) To protect its domestic steel industry. D) To increase trade with the United States. Show Answer Correct Answer: C) To protect its domestic steel industry. 17. Among the following determinants of growth, which one is a non-economic factor A) Natural resources. B) Population growth. C) Capital accumulation. D) Favourable legislation. Show Answer Correct Answer: D) Favourable legislation. 18. What is sustainable economic growth? A) A growth rate that can be maintained without causing significant economic problems for future generations. B) A rapid rate of economic growth. C) A slow rate of economic growth. D) None of the above. Show Answer Correct Answer: A) A growth rate that can be maintained without causing significant economic problems for future generations. 19. What did Jim Hogg do with the monopoly of the Railroads? A) He broke the monopolies of the railroads and established the Texas Railroad Commission. B) He expanded the monopolies of the railroads. Show Answer Correct Answer: A) He broke the monopolies of the railroads and established the Texas Railroad Commission. 20. Workers are seeking employment but cannot find employment because of widespread low economic activity. Which type of unemployment are these workers experiencing? A) Frictional. B) Cyclical. C) Voluntary. D) Structural. Show Answer Correct Answer: B) Cyclical. 21. Economic Growth can reduce unemployment rates A) True. B) False. Show Answer Correct Answer: A) True. 22. What is a potential consequence of economic growth in terms of income distribution? A) Stable income distribution. B) Reduced government spending. C) Widening income inequalities. D) Decreased poverty. Show Answer Correct Answer: C) Widening income inequalities. 23. Potential economic growth can be represented by: A) Movement of a point on PPF towards a point inside. B) Outward shift of PPF. C) Movement of a point inside towards a point on PPF. D) Inward shift of PPF. Show Answer Correct Answer: B) Outward shift of PPF. 24. Why would the Saudi oil industry need a large investment in human capital? A) The technology is in the oil industry is very complicated. B) Most people working in the Saudi oil industry have little or no real training. C) The Saudis have found it hard to make a profit in the oil industry. D) They hop to have machines take over most of the jobs done by workers now. Show Answer Correct Answer: A) The technology is in the oil industry is very complicated. 25. Many factories in Russia cannot efficiently produce goods because they have old, outdated machinery. Based on this information, what would MOST improve the Russian industrial sector? A) Investment in capital goods. B) Increased government regulation. C) Investment in human capital. D) Increased barriers to trade. Show Answer Correct Answer: A) Investment in capital goods. 26. Why did railroad companies hire Chinese and Irish immigrants to construct the Transcontinental Railroad? A) They would work for low wages. B) They had adapted to the harsh climate they would be working in. C) They were especially skilled in explosive devices. D) None of above. Show Answer Correct Answer: A) They would work for low wages. 27. Which is the best description of literacy rate? A) The ability to tell stories. B) The ability to speak multiple languages. C) The ability to draw. D) The amount inside a country who have the ability to read and write. Show Answer Correct Answer: D) The amount inside a country who have the ability to read and write. 28. The total value of Australia's output (goods and services) over a period of time is Australia's GDP A) False. B) True. Show Answer Correct Answer: B) True. 29. What might a government increase if it wished to raise the growth rate of an economy? A) Expenditure on road building. B) Goods and services tax (value added tax). C) The rate of income tax. D) The rate of interest. Show Answer Correct Answer: A) Expenditure on road building. 30. In a command economic system the ....., makes all economic decisions. A) Businesses. B) Legislature. C) People. D) Government. Show Answer Correct Answer: D) Government. ← 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