This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Economic Growth > Economic Growth – Quiz 52 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Economic Growth Quiz 52 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. An increase in the number of workers produces..... A) More output and potential GDP increase. B) More output and potential GDP decreases. C) Less output and potential GDP increases. D) Less output and potential GDP decreases. Show Answer Correct Answer: A) More output and potential GDP increase. 2. Routes taken to get cattle to auction is called A) Brand. B) Texas Railroad Commission. C) Cattle Trail. D) Treaty of Medicine Lodge. Show Answer Correct Answer: C) Cattle Trail. 3. Countries with strong, well-funded education systems generally have A) Fewer trading partners than other countries. B) More entrepreneurs than other countries. C) Higher unemployment than other countries. D) Lower populations than other countries. Show Answer Correct Answer: B) More entrepreneurs than other countries. 4. A positive output gap puts up with pressure on inflation 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. 5. What is represented on the x-axis on the AD/AS Model? A) Growth. B) Nominal GDP. C) Price Level. D) Real Output GDP. Show Answer Correct Answer: D) Real Output GDP. 6. Between 2002 and 2007, approximately 18 million Latin American households moved out of poverty.Which change in the region is most likely to have caused this fall in poverty? A) A reduction in employment. B) A reduction in exports. C) An increase in inflation. D) An increase in economic growth. Show Answer Correct Answer: D) An increase in economic growth. 7. The supervisor explained to Greg, the owner, they were waiting for the repairman to come and fix the hydraulic press that stamped the grommets out of steel. The supervisor explained that it was the sixth time in the last three months the press had broken and stopped production. A) Greg should have invested in the human capital of the employees who work at the grommet factory. B) Greg should have hired employees with more entrepreneurship to work in the grommet factory. C) Greg should have invested in new capital goods for the grommet factory. D) Greg should have obtained more natural resources for the grommet factory. Show Answer Correct Answer: C) Greg should have invested in new capital goods for the grommet factory. 8. Which of the following is famous for saying, "I will fight no more forever" ? A) Sitting Bull. B) Custer. C) Crazy Horse. D) Chief Joseph. Show Answer Correct Answer: D) Chief Joseph. 9. True or False:Entrepreneurship can stimulate economic growth by creating new jobs and industries. A) Entrepreneurship has no impact on economic growth. B) Entrepreneurship only benefits the individual entrepreneur. C) False. D) True. Show Answer Correct Answer: D) True. 10. What is the difference between GNI and NNI? A) NNI is GNI minus depreciation and indirect taxes. B) NNI is GNI plus depreciation and indirect taxes. C) NNI is GNI plus subsidies and transfer payments. D) NNI is GNI minus inflation and direct taxes. Show Answer Correct Answer: A) NNI is GNI minus depreciation and indirect taxes. 11. What is the immediate reason that some countries are rich? A) They have good institutions. B) They have a lot of physical capital. C) Their workers are very productive. D) They have a dependable legal system. Show Answer Correct Answer: C) Their workers are very productive. 12. How many factors of production are there? A) 11. B) 20. C) 2. D) 4. Show Answer Correct Answer: D) 4. 13. What is the consequence of a country aging before growing rich? A) Increased investment in productivity-boosting skills. B) Higher economic growth. C) Decreased spending on health care and pensions. D) Slower growth and difficulty in investing in infrastructure. Show Answer Correct Answer: D) Slower growth and difficulty in investing in infrastructure. 14. Real GDP may increase for two different reasons:The economy may return to full employment in the expansion phase of the business cycle or potential GDP may increase. A) False. B) True. Show Answer Correct Answer: B) True. 15. How has the Saudi government used its national wealth to change the country? A) All Saudi citizens are given an equal share of the national wealth. B) The Saudi government has spent very little to improve the lives of citizens. C) A majority of the national wealth has been given to religious organizations in the country. D) The government has paid for improvements in transportation, education, health care, and agriculture. Show Answer Correct Answer: D) The government has paid for improvements in transportation, education, health care, and agriculture. 16. What is one of the reasons for the limited economic growth of the BRIC countries after 2010? A) Lack of foreign investment. B) Increase in commodity prices. C) Political instability. D) Decrease in commodity prices. Show Answer Correct Answer: D) Decrease in commodity prices. 17. Samuel Morse invented the ..... A) Model T (assembly line car). B) Telegraph. C) Telephone. D) Light bulb and electricity power plant. E) Airplane. Show Answer Correct Answer: B) Telegraph. 18. Which of the following would be likely to lead to a fall in the level of exports? A) An increase in inflation rates among trading partners. B) An increase in the exchange rate. C) An increase in free trade. D) An increase in foreign incomes. Show Answer Correct Answer: B) An increase in the exchange rate. 19. It is risky and expensive to be an entrepreneur because they often ..... (or borrow it) to start their business A) Reduce the risk. B) Creates more jobs. C) Fresh ideas. D) Could lose money. E) Invest their own money. Show Answer Correct Answer: E) Invest their own money. 20. A naturally-made item, such as a tree, mineral, or fresh water, that people can use to help meet a need or want A) Telephones. B) Tires. C) Tv screens. D) Natural resource. Show Answer Correct Answer: D) Natural resource. 21. Through which of the following combinations do firms produce output? A) Capital and labour. B) Capital and productivity. C) Labour and productivity. D) Labour and land. Show Answer Correct Answer: A) Capital and labour. 22. Actual economic growth is a situation where an economy's growth is fueled by high total spending in an economy. A) False. B) True. Show Answer Correct Answer: B) True. 23. Which statement below describes entrepreneurship? A) The ability to harvest and use natural resources to create products to be sold to consumers. B) Machines, tools, and devices used for production. C) Putting together productive resources to produce a good or service. D) The physical talents of people to build things. Show Answer Correct Answer: A) The ability to harvest and use natural resources to create products to be sold to consumers. 24. TX Declaration of Independence 1836US annexes Texas 1845Gadsden Purchase 1853? 1861 Which event best replaces the question marks in the timeline above? A) Texas becomes and independent country. B) The city of Austin become the capital of Texas. C) Texas joins the Confederate States of America. D) Mexico invades Texas. Show Answer Correct Answer: C) Texas joins the Confederate States of America. 25. Brownville's GDP impressively increased 9.2% from 2006 to 2007. This fact supports which statement about Brownville's workforce? A) During this time, there was less immigration into Brownsville. B) Brownville's workforce is producing fewer goods now than it did before independence. C) This increase in production can only be explained by Brownville's workforce getting larger. D) Since the 1990s there has been an increase in spending on education and training. Show Answer Correct Answer: D) Since the 1990s there has been an increase in spending on education and training. 26. Which part of Europe has the lowest literacyrates? A) Eastern Europe. B) Balkans. C) Northern Europe. D) All of Europe has high literacy rates. Show Answer Correct Answer: B) Balkans. 27. Long-run growth shows an increase in the trend rate of growth 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. 28. The total dollar value of all goods and services produced in one year defines what ..... ? A) Gross Domestic Product (GDP). B) Taxable income. C) Tariffs. D) Standard of living. Show Answer Correct Answer: A) Gross Domestic Product (GDP). 29. The diagram shows a country's production possibility curve and a number of alternative production points. Which change in the country's output would be most likely to lead to a fall in potential growth? A) Y to X. B) Y to Z. C) U to X. D) U to V. Show Answer Correct Answer: B) Y to Z. 30. What is the main objective of the Marshall Plan in post-World War II Europe? A) To promote international trade. B) To provide economic aid for reconstruction. C) To reduce government intervention. D) To increase debt burden on recipient countries. Show Answer Correct Answer: B) To provide economic aid for reconstruction. ← 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