This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Economic Growth > Economic Growth – Quiz 51 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Economic Growth Quiz 51 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the best explanation of factors of production? A) Raw materials used to produce products. B) Labour and materials. C) Money and financing. D) Resources used by a company to produce good and services. Show Answer Correct Answer: A) Raw materials used to produce products. 2. By devaluing the value of a country's currency, the price of their exports in overseas markets will become more expensive and the price of imports into the country will become cheaper. A) True. B) False. Show Answer Correct Answer: B) False. 3. Which answer choice below defines literacy rate? A) Machines, tools, and factories use to make products and goods. B) The training that workers need to be good at their job. C) The amount of people over 15 in a country that can read write. D) None of above. Show Answer Correct Answer: C) The amount of people over 15 in a country that can read write. 4. What is the effect of capital goods on economics? A) Decreases GDP. B) Increases GDP. C) No impact on GDP. D) Fluctuates GDP. Show Answer Correct Answer: B) Increases GDP. 5. What happens to GDP when education levels go up? A) It decreases. B) It increases. Show Answer Correct Answer: B) It increases. 6. Why did miners in the West create groups of vigilantes? A) To clear forests and prepare for mining. B) To take control of claims from businesses. C) To enforce laws and punish criminals. D) To replace independent prospectors. Show Answer Correct Answer: C) To enforce laws and punish criminals. 7. Agricultural overproduction, scarcity of money, high shipping costs, and debt were: A) Monopoly. B) Push factors of Irish immigration. C) Farmers problems. D) Pull factors of westward expansion. Show Answer Correct Answer: C) Farmers problems. 8. What do you call a mark burned into the hide (skin) of an animal claiming ownership? A) Maverick. B) Cowboy. C) Round up. D) Brand. Show Answer Correct Answer: D) Brand. 9. An example of capital investment is A) Buying computers. B) Building an oil rig. C) Both. D) None of above. Show Answer Correct Answer: C) Both. 10. What did reduced taxes contribute to in the 1920s? A) Income inequality. B) Economic recession. C) Government budget deficits. D) Economic growth and prosperity. Show Answer Correct Answer: D) Economic growth and prosperity. 11. Why does the author mention that "English and Dutch ships carrying rye from the Baltic states reached Spain and Portugal" ? A) To argue that shipping introduced a range of new products. B) To contrast the importance of agricultural products with manufactured products. C) To suggest how extensive trading relations were. D) To suggest that England and the Netherlands were the two most important trading nations in seventeenth-century Europe. Show Answer Correct Answer: C) To suggest how extensive trading relations were. 12. The GDP of "Wonderland" is $ 2380 in 2020, and $ 2615 in 2021. What is the economic growth of Wonderland? A) 9%. B) 12%. C) 10%. D) 11%. E) 8%. Show Answer Correct Answer: C) 10%. 13. Use the information to answer the question. 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) Manufacturing. B) Mining. C) Lumber. D) Agriculture. Show Answer Correct Answer: C) Lumber. 14. ..... alleviates people from low standards of living into proper employment with suitable shelter. A) Economic Development. B) Economic Growth. Show Answer Correct Answer: A) Economic Development. 15. South Africa's economy expands at a rate of 3%. What necessarily follows from this statement? A) There was increased demand which caused inflation. B) The cost of living rose by 3%. C) There was positive economic growth. D) The output of the industrial sector rose by 3%. Show Answer Correct Answer: C) There was positive economic growth. 16. Economic growth is possible if there is a high inflation rate and high unemployment. A) False. B) True. Show Answer Correct Answer: A) False. 17. What is the main focus of export promotion strategy? A) Promoting domestic industries. B) Increasing imports. C) Liberalising trade. D) Reducing FDI flows. Show Answer Correct Answer: C) Liberalising trade. 18. Define full employment level of output A) An increase in real GDP or the real quantity of goods and services produced over a period of time (typically a year), and is usually expressed as a percentage change in real GDP or GDP/capita over a period of time. B) Refers to the natural rate of unemployment, or unemployment of labour that prevails when the economy is producing potential output, or real GDP, determined by the position of the LRAS curve (long run equilibrium). C) Refer to the maximum output of combination of two goods that can be produced in an economy with fixed resources and technology, provided there is full or maximum employment of resource and efficiency in production, implying zero unemployment. D) Levels of income, wealth and consumption of goods and services, including healthcare and education. Show Answer Correct Answer: B) Refers to the natural rate of unemployment, or unemployment of labour that prevails when the economy is producing potential output, or real GDP, determined by the position of the LRAS curve (long run equilibrium). 19. Fencing designed with sharp points A) Barbed wire. B) Boll weevil. C) Creates. D) Texas fever. Show Answer Correct Answer: A) Barbed wire. 20. What are Entrepreneurs? A) People who sell goods. B) People who sell products. C) People who provide the money to start and operate a business. D) People who play professional business men or women. Show Answer Correct Answer: C) People who provide the money to start and operate a business. 21. The term ..... refers to a person who is willing to take a risk to start a business that makes a good or service. A) Land. B) Labor. C) Entrepreneur. D) Capital. Show Answer Correct Answer: C) Entrepreneur. 22. Economic activity is at its highest level when business cycle reaches its: A) Trend. B) Recession. C) Boom. D) Recovery. E) None of the options. Show Answer Correct Answer: E) None of the options. 23. What happens when countries have a low GPD A) They have weaker economies. B) They fail at everything. C) They have no money. D) They are higher than others. Show Answer Correct Answer: A) They have weaker economies. 24. Why would it be unwise for an economy to invest all its money in human and physical capital? A) Overinvestment would cause some industries to fail. B) A country needs to diversify its factors of production. C) There would be no resources to advance technological knowledge. D) No goods and services would be available to consume. E) Other countries cou ld copy its process. Show Answer Correct Answer: D) No goods and services would be available to consume. 25. Which country among the BRIC countries has shown the highest economic growth? A) China. B) India. C) Russia. D) Brazil. Show Answer Correct Answer: A) China. 26. What does the expenditure method of measuring GDP include? A) C + I + G + NX. B) C-I + G + NX. C) C + I + G-NX. D) C + I-G + NX. Show Answer Correct Answer: A) C + I + G + NX. 27. What is one solution for welfare costs? A) Raise the retirement age. B) Decrease the retirement age. C) Raise the amount of money given to the retired people. D) Decrease the number of young people entering the workforce. Show Answer Correct Answer: A) Raise the retirement age. 28. What is the difference between claimant count measure and labor force survey measure in measuring the unemployment? A) The claimant count measure is based on the number of people claiming unemployment benefits, while the labor force survey measure includes those who are out of work and actively seeking employment. B) The claimant count measure includes those who are out of work and actively seeking employment, while the labor force survey measure is based on the number of people claiming unemployment benefits. C) The claimant count measure is based on the number of people claiming unemployment benefits, while the labor force survey measure includes only those who are out of work and actively seeking employment. D) The claimant count measure includes only those who are out of work and actively seeking employment, while the labor force survey measure is based on the number of people claiming unemployment benefits. Show Answer Correct Answer: A) The claimant count measure is based on the number of people claiming unemployment benefits, while the labor force survey measure includes those who are out of work and actively seeking employment. 29. The separate emirates were called Trucial states A) False. B) True. Show Answer Correct Answer: B) True. 30. Investing in the humans who produce goods or services A) Human Capital. B) Economy. C) Capital Goods. D) Economic Continuum. Show Answer Correct Answer: A) Human Capital. ← 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