This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Economic Growth > Economic Growth – Quiz 49 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Economic Growth Quiz 49 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Of the following policy initiatives, which one is least likely to increase aggregate supply in the economy? A) Increased government spending on infrastructure. B) Increased government spending on education and training. C) Increased government outlays allocated to payment of unemployment benefits. D) A reduction in company tax rates. Show Answer Correct Answer: D) A reduction in company tax rates. 2. Why is it beneficial for a country to have an abundance of natural resources? A) Countries that have a lot of natural resources are able to use them to produce goods and services cheaper than a country that has to import them. Therefore, a country with a lot of natural resources usually has a greater GDP than a country with little natural resources. B) They cannot become communist. C) They cannot become communist. D) There is no advantage since most natural resources are worthless. Show Answer Correct Answer: A) Countries that have a lot of natural resources are able to use them to produce goods and services cheaper than a country that has to import them. Therefore, a country with a lot of natural resources usually has a greater GDP than a country with little natural resources. 3. Growing your business by buying companies along your supply chain (like delivery, assembly, raw materials) is called ..... integration. A) Vertical. B) Horizontal. C) Diagonal. D) None of above. Show Answer Correct Answer: A) Vertical. 4. What is the impact of economic growth on current and future living standards? A) Decrease in consumer concern about the environment. B) Increase in average wages. C) Increase in damage to the environment. D) Decrease in public service improvement. Show Answer Correct Answer: B) Increase in average wages. 5. Stagflation means: A) A higher price level and lower GDP. B) A higher price level and higher GDP. C) A lower price level and lower GDP. D) A lower price level and higher GDP. Show Answer Correct Answer: A) A higher price level and lower GDP. 6. Why is real GDP considered a better measure of growth than nominal GDP? A) It shows the distribution of income in the economy. B) It includes inflation. C) It includes non-economic factors. D) It takes into account price changes. Show Answer Correct Answer: D) It takes into account price changes. 7. At which stage of the economic cycle would you expect to growth to be at its highest? A) Recession. B) Recovery. C) Slump. D) Boom. Show Answer Correct Answer: D) Boom. 8. At which stage of the economic cycle would you expect to unemployment to be at its highest? A) Slump. B) Boom. C) Recovery. D) Recession. Show Answer Correct Answer: D) Recession. 9. What is GDP (Gross Domestic Product)? A) A person who takes a risk to start a new business. B) The value that people bring to the workforce. C) The total amount of goods and services produced in a country in one year. D) Tools that make other goods. Show Answer Correct Answer: C) The total amount of goods and services produced in a country in one year. 10. ..... however is concerned with sustainability which means meeting the needs of the present without compromising future needs. These environmental effects are becoming more of a problem for Governments now that the pressure has increased on them due to Global warming. A) Economic Development. B) Economic Growth. Show Answer Correct Answer: A) Economic Development. 11. What is a country's GDP divided by its population called? A) GDP per year. B) GDP per calendar. C) GDP per country. D) GDP per capita. Show Answer Correct Answer: D) GDP per capita. 12. Supply-side fiscal policies affect aggregate demand, aggregate supply, and potential output in the short run and long run by influencing ..... that affect household and business economic behavior. A) Incentives. B) Politicians. C) The costs. D) None of above. Show Answer Correct Answer: A) Incentives. 13. True or False:Until laws were passed to protect laborers, the police and courts sided with companies if there was a disagreement. A) True. B) False. Show Answer Correct Answer: A) True. 14. What animal made it easier for Native American tribes to hunt the buffalo? A) Cow. B) Horse. C) Boar. D) Giraffe. Show Answer Correct Answer: B) Horse. 15. Labor demand is..... A) The money wage rate divided by the price level. B) The relationship between the quantity of labor demanded and the real wage rate. C) The relationship between the amount of labor supplied and the real wage rate. D) The forces of supply and demand operate in labor markets just as they do in markets for goods and services. Show Answer Correct Answer: B) The relationship between the quantity of labor demanded and the real wage rate. 16. Gross Domestic product is the total value of goods produced and services provided in a country A) True. B) False. Show Answer Correct Answer: A) True. 17. Which of the following were the impacts the Continental Railroad had on the US? A) Enabled people to have quicker access to the Asian markets. B) Caused conflicts with native Americans. C) Encouraged people to settle the west. D) All of the above. Show Answer Correct Answer: D) All of the above. 18. South Africa's role in the international gold market is relatively stable due to which of the following? A) Effective government regulation of gold mining. B) Stable markets and revenue-generating tariffs. C) Possession of two-fifths of the world's gold supply. D) The strength of the South African rand against the US dollar. Show Answer Correct Answer: C) Possession of two-fifths of the world's gold supply. 19. Which of the following best explains the term Marginal Propensity to Consume? A) The proportion of an extra dollar of income spent on consumption. B) The proportion of total income remaining after taxation. C) The proportion of an extra dollar remaining after taxation. D) The proportion of total income remaining after consumption. Show Answer Correct Answer: A) The proportion of an extra dollar of income spent on consumption. 20. The GDP (Gross Domestic Product) is: A) The number of products purchased by an average household. B) Number of products the country exports. C) The total output of a country. D) The total output of a firm. Show Answer Correct Answer: C) The total output of a country. 21. The family is the first place we gain education. A) False. B) True. Show Answer Correct Answer: B) True. 22. What are the four factors of production that influence economic growth within a country? A) Natural ResourcesHuman CapitalCapital GoodsEntrepreneurship. B) Natural DisasterGlobal WarmingCapital TradeBusiness Ventures. C) Gold DiamondsOilGas. D) LandWaterAirSilver. Show Answer Correct Answer: A) Natural ResourcesHuman CapitalCapital GoodsEntrepreneurship. 23. Which of the following statements best describes fiscal policy? A) Using taxation and government expenditure policy to influence the level of aggregate demand. B) Using money supply to alter interest rates and thereby the level of aggregate demand. C) A set of policies aimed at increasing the economy's productive capacity. D) Reducing the barriers to trade between nations. Show Answer Correct Answer: A) Using taxation and government expenditure policy to influence the level of aggregate demand. 24. The level of wealth and material comfort available. A) Standard of living. B) Literacy rate. C) Production. D) Capital goods. Show Answer Correct Answer: A) Standard of living. 25. In Australia, what is the proportion of consumption (C) in national income? A) 20%. B) 50%. C) 40%. D) 60%. Show Answer Correct Answer: D) 60%. 26. If someone says that Japan's citizens make an average of $ 48, 919 a year, they are describing Japan's ..... A) Natural resources. B) GDP. C) Capital goods. D) GDP per capita. Show Answer Correct Answer: D) GDP per capita. 27. The 'big-push' strategy of development was first advocated by A) W.A, Lewis. B) A.O.Hirshman. C) Paul N-Rosenstein-Rodan. D) Simon Kuznets. Show Answer Correct Answer: C) Paul N-Rosenstein-Rodan. 28. What is the role of entrepreneurship in economic growth? A) Fluctuates economic growth. B) Decreases economic growth. C) No impact on economic growth. D) Increases economic growth. Show Answer Correct Answer: D) Increases economic growth. 29. What is the role of government policies in economic development? A) Government policies have no impact on economic development. B) Government policies play a crucial role in economic development. C) Government policies are only important in certain industries for economic development. D) Government policies hinder economic development. Show Answer Correct Answer: B) Government policies play a crucial role in economic development. 30. What is Schumpeterian Destruction? A) Inefficient firms fail in a recession to allow better firms to survive. B) Businesses fire workers to gain more revenue. C) Pubs benefit in a recession. D) Firms buy out other firms to grow. Show Answer Correct Answer: A) Inefficient firms fail in a recession to allow better firms to survive. ← 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