This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Economic Growth > Economic Growth – Quiz 55 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Economic Growth Quiz 55 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Sugar processing is one of Cuba's most important industries. However, production is often slowed by old, inefficient technology. Based on this information, what would would be the BEST way to improve the efficiency of Cuba's sugar industry? A) Investing in human capital. B) Increasing tariffs on foreign sugar. C) Reducing quotas on foreign sugar. D) Investing in capital goods. Show Answer Correct Answer: D) Investing in capital goods. 2. Actual economic growth is caused by an increase in quality and quantity of resources. A) False. B) True. Show Answer Correct Answer: A) False. 3. How does entrepreneurship impact economic growth? A) By creating new businesses, jobs, and innovations that increase productivity and stimulate economic activity. B) Entrepreneurship only benefits large corporations and not the overall economy. C) Entrepreneurship leads to increased unemployment and decreased productivity. D) Entrepreneurship has no impact on economic growth. Show Answer Correct Answer: A) By creating new businesses, jobs, and innovations that increase productivity and stimulate economic activity. 4. This man hired a team of experts to create practical inventions. A) Thomas Edison. B) Alexander Graham Bell. C) George Washington Carver. D) Elias Kodak. Show Answer Correct Answer: A) Thomas Edison. 5. LRAS curve shift to right to show potential economic growth A) False. B) True. Show Answer Correct Answer: B) True. 6. When something loses its value, we call this ..... A) Salaries. B) Subsidy. C) Depreciation. D) Inflation. Show Answer Correct Answer: C) Depreciation. 7. The production possibilities frontier shows the ..... combinations of two products that may be produced in a particular time period with available resources. A) Only. B) Minimum attainable. C) Maximum attainable. D) Equitable. Show Answer Correct Answer: C) Maximum attainable. 8. A positive output gap will occur during a boom when the economy is overheating 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. 9. What is the only thing that makes an economy grow in the long run? A) Decreases in labour productivity growth. B) Increases in labour productivity growth. C) Increases in the labour force. D) Decreases in the labour force. Show Answer Correct Answer: B) Increases in labour productivity growth. 10. AD curve shift to right to show actual economic growth A) True. B) False. Show Answer Correct Answer: A) True. 11. What did buying on margin refer to in the context of the stock market? A) Selling stocks short. B) Borrowing money to purchase stocks. C) Investing in mutual funds. D) Purchasing stocks with cash. Show Answer Correct Answer: B) Borrowing money to purchase stocks. 12. A person who starts a business is called a/an A) Entrepreneur. B) Natural resource operator. C) Human capitalist. D) Servicer. Show Answer Correct Answer: A) Entrepreneur. 13. Which of the following is a disadvantage of import substitution strategy? A) It encourages R&D investment. B) It promotes competition. C) It leads to inflation. D) It protects jobs in the long run. Show Answer Correct Answer: C) It leads to inflation. 14. Which best describes the reason for inequality in Cambridge? A) Well paid jobs in Cambridge require highly skilled professionals and therefore people with fewer qualifications have to manage high house prices without high salaries. B) High house prices mean that some people cannot afford housing. C) Jobs require particularly high qualifications in some areas and therefore not everyone can access highly paid jobs. D) Many of the jobs in Cambridge are well paid and therefore house prices increase as people are able to pay more and want to live close to their jobs. Show Answer Correct Answer: A) Well paid jobs in Cambridge require highly skilled professionals and therefore people with fewer qualifications have to manage high house prices without high salaries. 15. True or False Developing Countries have strong infrastructure A) True. B) False. Show Answer Correct Answer: B) False. 16. Virginia's government consists of ..... A) 4 branches. B) 3 branches. C) 2 branches. D) 5 branches. Show Answer Correct Answer: B) 3 branches. 17. Which of the following is not considered an 'injection' in the circular flow of income? A) Government spending. B) Savings. C) Investments. D) Exports. Show Answer Correct Answer: B) Savings. 18. When a government changes the laws regarding land ownership and redistributes land based on those laws. A) Bretton Woods Agreement. B) Federal system. C) Land reform. D) Socialized medicine. Show Answer Correct Answer: C) Land reform. 19. Which of the following countries has the LEAST amount of natural resources? A) A. Democratic Republic of Congo. B) B. the United States. C) C. Kuwait. D) D. Japan. E) And. Russia. Show Answer Correct Answer: D) D. Japan. 20. Government program created to encourage settlement in the western territories. A) Homestead Act. B) Cowtown Act. C) National Grange. D) None of above. Show Answer Correct Answer: A) Homestead Act. 21. What is the role of education in human capital? A) Education has no impact on human capital. B) Education enhances human capital by developing knowledge, skills, and abilities that increase productivity and economic value. C) Education decreases human capital by wasting time and resources. D) Education only improves human capital in certain industries. Show Answer Correct Answer: B) Education enhances human capital by developing knowledge, skills, and abilities that increase productivity and economic value. 22. How does voluntary trade help the economy A) Voluntary trade mean prices will always be low. B) Voluntary trade only works when tariffs are in place. C) This sort of trade involves many government regulations. D) It encourages specialization and usually means more profit. Show Answer Correct Answer: D) It encourages specialization and usually means more profit. 23. List two factors contributing to inequality. A) Unequal distribution of wealth and income, lack of access to education and healthcare. B) Government policies and regulations, lack of access to technology and internet. C) Equal distribution of wealth and income, lack of access to education and healthcare. D) High taxes on the wealthy, lack of access to transportation and housing. Show Answer Correct Answer: A) Unequal distribution of wealth and income, lack of access to education and healthcare. 24. Compensation of employees is the payments for labor services, net interest, rental income, corporate profits, and proprietors are the payment for ..... and profit for ..... A) Entrepreneurship, capital and land. B) Land, entrepreneurship. C) Land, capital. D) Capital and land, entrepreneurship. Show Answer Correct Answer: D) Capital and land, entrepreneurship. 25. What was the main purpose of buying stocks on margin? A) To diversify investment portfolio. B) To leverage borrowed money for potential higher returns. C) To invest in long-term bonds. D) To minimize investment risk. Show Answer Correct Answer: B) To leverage borrowed money for potential higher returns. 26. "This is all of the goods that are produced in the country and then used to make other goods & services." Which production factor is this? A) Human Capital. B) Natural Resources. C) Entrepreneurship. D) Capital Goods. Show Answer Correct Answer: D) Capital Goods. 27. How can a country increase their GDP? A) Spend less money on education. B) Spend less money food. C) Spend less money on healthcare. D) Invest more money in technology. Show Answer Correct Answer: D) Invest more money in technology. 28. What can shift LRAS to the right? A) Increase in taxes. B) Increase in investment. C) Decrease in investment. D) Decrease in taxes. Show Answer Correct Answer: B) Increase in investment. 29. An increase in which of the following would be most likely to increase long-run growth? A) Tariffs on imported oil. B) Subsides to businesses for purchases of capital goods. C) Pension payments. D) Unemployment compensation. E) Tariffs on imported capital goods. Show Answer Correct Answer: B) Subsides to businesses for purchases of capital goods. 30. Calculate the economic growth rate if GDP was £100 billion in Year 1 and £102 billion in Year 2. A) 20%. B) 1%. C) 10%. D) 2%. Show Answer Correct Answer: D) 2%. ← 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