This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Economic Growth > Economic Growth – Quiz 40 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Economic Growth Quiz 40 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Infrastructure is the basic physical and organizational structures and facilities such as building. A) False. B) True. Show Answer Correct Answer: B) True. 2. GDP at market prices that is not adjusted for inflation is called A) Real GDP. B) Potential GDP. C) Nominal GDP. D) None of above. Show Answer Correct Answer: C) Nominal GDP. 3. Literacy rates in Cuba are among the highest in the world, but standard of living is very poor. Why? A) Cuba's democratic government gave too much power to the people and not enough governmentregulation. B) Cuba's communist government gave too much power to the people and not enough governmentregulation. C) Cuba's communist government mismanaged much of their money resulting in poverty for its citizens. D) None of above. Show Answer Correct Answer: C) Cuba's communist government mismanaged much of their money resulting in poverty for its citizens. 4. The federal government can pursue economic policies such as spending or taxation to stimulate an economy that is contracting or to cool one that is expanding too rapidly. When the government acts to influence the economy in these ways, what is its goal? A) To maintain consumers' freedom of choice. B) To encourage economic citizenship. C) To promote stability in the business cycle. D) To support self-regulation in the marketplace. Show Answer Correct Answer: C) To promote stability in the business cycle. 5. Natural rate of unemployment includes structural unemployment and..... A) Cyclical unemployment. B) Frictional unemployment. Show Answer Correct Answer: B) Frictional unemployment. 6. Supply Side Policy is A) Designed to increase aggregate supply and hence increase productive potential. B) Implement an expansionary fiscal policy. C) Reducing taxes to spend more on goods and services. D) None of above. Show Answer Correct Answer: A) Designed to increase aggregate supply and hence increase productive potential. 7. Governments need to always keep ..... moving in order to ensure economic growth A) Country. B) Economy. C) Business. D) Population. Show Answer Correct Answer: B) Economy. 8. Is changing the way something was previously done so that it works better a sign of entrepreneurship? A) Yes. B) No. Show Answer Correct Answer: A) Yes. 9. A benefit of economic growth is that firms will earn greater profits which they can reinvest in improve technology and hiring more employees 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. 10. One of the main causes of economic growth is changes in ..... ? A) Investment. B) Weather patterns. C) Currency values. D) Consumer preferences. Show Answer Correct Answer: A) Investment. 11. How does technological innovation impact economic growth? A) Technological innovation has no impact on economic growth. B) Technological innovation leads to a decrease in productivity and economic development. C) Technological innovation only benefits a few industries and does not create new jobs. D) Technological innovation impacts economic growth by increasing productivity, creating new industries and jobs, improving efficiency, and driving overall economic development. Show Answer Correct Answer: D) Technological innovation impacts economic growth by increasing productivity, creating new industries and jobs, improving efficiency, and driving overall economic development. 12. Why did people leave their farms to move to cities? A) Arid farming conditions. B) Floods ruining the crops. C) Jobs and an opportunity to increase their income. D) Get away from the Native Indians. Show Answer Correct Answer: C) Jobs and an opportunity to increase their income. 13. What is one benefit of economic growth? A) Decrease in employment opportunities. B) Lower living standards. C) Increase in availability of goods and services. D) None of the above. Show Answer Correct Answer: C) Increase in availability of goods and services. 14. What a country invests in education for its citizens, what is it increasing? A) Human Capital. B) Capital Goods. C) Technology. D) Natural Resources. Show Answer Correct Answer: A) Human Capital. 15. When you spend money at the store, you're contributing to your town's ..... A) Inflation. B) Import. C) Economy. D) None of above. Show Answer Correct Answer: C) Economy. 16. Building a machine that helps put automobiles together faster A) Capital Goods. B) Natural Resources. C) Entrepreneur. D) Human Capital. Show Answer Correct Answer: A) Capital Goods. 17. What are some factors contributing to Bangladesh's wealth? A) Tourism, technology, and construction. B) Agriculture, mining, and fishing. C) Manufacturing, education, and healthcare. D) Garment industry, remittances, and service sector. Show Answer Correct Answer: D) Garment industry, remittances, and service sector. 18. Friend of Sam Houston and was killed at the Battle of Neches. A) Chief Kicking Bird. B) William Goyens. C) Chief Philip Bowles. D) Mirabeau. B. Lamar. Show Answer Correct Answer: C) Chief Philip Bowles. 19. This type of marxist socialism doesn't seek a violent uprising of the working class, but rather tries achieve change gradually through an existing democratic system. A) Rationalization. B) Welfare state. C) Reformist socialism. D) Federal system. Show Answer Correct Answer: C) Reformist socialism. 20. We gain formal education from the family. A) False. B) True. Show Answer Correct Answer: A) False. 21. Which of these factors does not promote economic growth? A) Increased consumer confidence. B) Quality of the factors of production. C) Technological stagnation. D) Increased investment. Show Answer Correct Answer: C) Technological stagnation. 22. What is the main reason for the high population growth in Mumbai? A) Improved healthcare facilities. B) Migration from rural areas. C) High birth rate. D) Low death rate. Show Answer Correct Answer: B) Migration from rural areas. 23. Level 3A. Social and Cultural Environment:Demographics and cultural dimensions that govern the relevant entrepreneurial behaviorB. Political and Legal Environment:It governs business practices as well as the permits, approvals, and licenses necessary to operate the business A) A is correct while B is incorrect. B) A is incorrect while B is correct. C) Both are correct. D) Both are incorrect. Show Answer Correct Answer: C) Both are correct. 24. Will we likely ever see prices stay the same if we promote true economic growth? A) It's not likely that demand will increase by exactly the same amount as the LRAS increases however it is likely. B) Demand always increases at the same rate as technology increases. C) Our insatiable appetite for more causes prices to go up faster than supply ever grows. D) None of above. Show Answer Correct Answer: A) It's not likely that demand will increase by exactly the same amount as the LRAS increases however it is likely. 25. Innovation, improving capital stock, raising agricultural output by using genetically modified crops, increasing spending on education and training to improve human capital, and increasing the population size to increase the workforce can all shift long run aggregate supply to the right 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. 26. Investments in social infrastructure (schools, hospitals, etc.) A) Stage 5:High Mass Consumption. B) Stage 3:Take-Off. C) Stage 1:Traditional Society. D) Stage 2:Pre-Condition for Take-Off. E) Stage 4:Drive to Maturity. Show Answer Correct Answer: E) Stage 4:Drive to Maturity. 27. If AD shifts to the left, what happens to real wages (wages adjusted for inflation) in the short run? A) Real wages will increase. B) Real wages will decrease. C) Real wages will be unaffected. D) None of above. Show Answer Correct Answer: A) Real wages will increase. 28. A negative output gap is also known as a recessionary gap 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. 29. What is the literacy rate of Iran? A) 50%. B) 85.0%. C) 87.2%. D) 97.1%. Show Answer Correct Answer: B) 85.0%. 30. How might a government stimulate economic growth if the quality of human capital is poor? A) Increase taxes. B) Invest in education and vocational training. C) Reduce government spending. D) None of the above. Show Answer Correct Answer: B) Invest in education and vocational training. ← 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