This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Economic Growth > Economic Growth – Quiz 53 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Economic Growth Quiz 53 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is Nominal GDP? A) Seeing changes to output. B) Using inflation to show growth. C) Using current value of money on the day. D) Showing the growth of an economy by looking at output increases. Show Answer Correct Answer: C) Using current value of money on the day. 2. MOST LIKELY if a country has a high literacy rate they will have a A) Low standard of living. B) High standard of living. C) Traditional economy. D) Standard of living that stays the same. Show Answer Correct Answer: B) High standard of living. 3. In the Lewis model, what does the term "surplus labor" refer to A) Labor that is exploited by the capitalist class. B) Labor that can be withdrawn from the low productivity agricultural sector without a decrease in the total production. C) Labor that does not have at least a primary level education. D) An amount of labor that is so high that it deflates wages throughout the economy. Show Answer Correct Answer: B) Labor that can be withdrawn from the low productivity agricultural sector without a decrease in the total production. 4. During times of economic recession the unemployment rate usually A) Decreases. B) Stays around 25%. C) Stays the same. D) Increases. Show Answer Correct Answer: D) Increases. 5. Saudi Arabia's specializes in the oil production. The government maintains training programs to ensure that workers have the skills needed to produce oil. This is an example of investing in what? A) Human capital. B) Entrepreneurs. C) Capital resources. D) Natural resources. Show Answer Correct Answer: A) Human capital. 6. Tools used in the production of goods and services A) Human Capital. B) Capital Goods. C) Economic Continuum. D) Economy. Show Answer Correct Answer: B) Capital Goods. 7. Lumber is an example of this A) Entrepreneur. B) Capital Goods. C) Natural Resources. D) Human Capital. Show Answer Correct Answer: C) Natural Resources. 8. Can a desk be considered human capital? A) No. B) Yes. Show Answer Correct Answer: A) No. 9. When labour supply curve shifts left, equilibrium price will ..... and equilibrium qty of labour will ..... A) Decrease / increase. B) Increase / decrease. C) Increase / increase. D) Decrease / decrease. Show Answer Correct Answer: B) Increase / decrease. 10. The maximum potential output of the economy is the definition of what? A) Real GDP. B) Nominal GDP. C) Productive Capacity. D) Net Social Welfare. Show Answer Correct Answer: C) Productive Capacity. 11. Potential growth measures A) The present rate of growth of an economy. B) The fastest growth an economy has ever achieved. C) The rate of growth that could be achieved if resources were fully employed. D) The growth of the fastest economy in the world. Show Answer Correct Answer: C) The rate of growth that could be achieved if resources were fully employed. 12. The index to measure economic well-being is ..... A) GPD per person. B) All answers are correct. C) Inflation rate. D) The unemployment growth rate. Show Answer Correct Answer: B) All answers are correct. 13. The measurement of the annual income of citizens in acountry A) Sector. B) Capital. C) Obsolete. D) Relationship. E) GDP per capita. Show Answer Correct Answer: E) GDP per capita. 14. Which of these might indicate that the national economy is stable? A) Prices for groceries and other daily needs go down from year to year. B) Prices for groceries and other daily needs stay about the same from year to year. C) Prices for groceries and other daily needs go up from year to year. D) Prices for groceries and other daily needs are tightly regulated. Show Answer Correct Answer: B) Prices for groceries and other daily needs stay about the same from year to year. 15. How do you work out rate of growth? A) Original GDP/change in GDP. B) Original GDP/change in GDP x100. C) Change in GDP/original GDP x100. D) Change in GDP/original GDP. Show Answer Correct Answer: C) Change in GDP/original GDP x100. 16. What is a key objective of inclusive growth policies? A) To increase income inequality. B) To limit access to economic advancements. C) To create a more balanced and just society. D) To promote discrimination in the workforce. Show Answer Correct Answer: C) To create a more balanced and just society. 17. How are goods transported to Mumbai from the rest of India? A) By road. B) By sea. C) By rail. D) By air. Show Answer Correct Answer: C) By rail. 18. What is the role of entrepreneurs in a capitalist society? A) To bring ideas, people, and capital together to produce valuable products. B) To enforce contracts and borrow and lend money. C) To protect investments through property rights. D) To create competitive and open markets. Show Answer Correct Answer: A) To bring ideas, people, and capital together to produce valuable products. 19. What can a government do in order to ensure economic growth? A) Increase interest rates. B) Increase taxes. C) Keep high employment rates. D) Print more money. Show Answer Correct Answer: C) Keep high employment rates. 20. ..... was a leader in the hair care product industry. A) Rockefeller. B) Walker. C) Carnegie. D) Morgan. E) Vanderbilt. Show Answer Correct Answer: B) Walker. 21. Economic growth MOST directly leads to A) Increases in economic actors. B) Fluctuations in economic activity. C) Increases in tax rates. D) Reductions in socia l well-being. E) Improvements in living standards. Show Answer Correct Answer: E) Improvements in living standards. 22. What does obsolete mean? This is what describes North Korea's capital goods. A) Perfect. B) Old. C) New. D) Modern. Show Answer Correct Answer: B) Old. 23. What contributed to increased production efficiencies during the 1920s? A) Assembly line production. B) None of the above. C) Both A and B. D) Standardization of product sizes, weights, and packaging units. Show Answer Correct Answer: C) Both A and B. 24. Productive Resources A) The materials and labor used to create goods and services. B) The percentage of adults who can read and write. C) A good means to send it to another country to be sold. D) To bring in a good from another country to sell. Show Answer Correct Answer: A) The materials and labor used to create goods and services. 25. Economic growth guarantees development occurs for all people. A) FALSE. B) TRUE. Show Answer Correct Answer: A) FALSE. 26. What happens when countries have a higher GPD A) They have stronger economies. B) They fail. C) I don't know what happens. D) They get more money. Show Answer Correct Answer: A) They have stronger economies. 27. In order for a country to have an increasing GDP, it can't invest in human capital through education & training, and it must produce goods that have value to be sold within the country or exported. A) I disagree. B) I agree. Show Answer Correct Answer: A) I disagree. 28. If a country does not invest in its human capital, how can it affect the country's gross domestic product (GDP)? A) Investment in human capital has little effect on the GDP. B) Most workers want to keep their jobs and do not care about the GDP. C) GDP is only affected if workers pay for the investment out of their own pocket. D) GDP may go down because poorly trained workers will not be able to do their jobs well. Show Answer Correct Answer: D) GDP may go down because poorly trained workers will not be able to do their jobs well. 29. What would cause AD to decrease? A) An increase in government spending. B) Keeping government spending constant. C) A decrease tax rates. D) An increase in tax rates. Show Answer Correct Answer: D) An increase in tax rates. 30. Which one is the correct formula to calculate economic growth rate A) (GDP in current year + GDP in previous year) / GDP in previous year * 100. B) (GDP in current year-GDP in previous year) / GDP in previous year * 100. C) (GDP in current year-GDP in previous year) / GDP in current year * 100. D) (GDP in current year-GDP in previous year) / GDP in previous year. Show Answer Correct Answer: B) (GDP in current year-GDP in previous year) / GDP in previous year * 100. ← 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