This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Economic Growth > Economic Growth – Quiz 59 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Economic Growth Quiz 59 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is a major issue with using Green GDP as a measure of economic growth? A) Difficulty in putting a monetary value on environmental costs. B) Risk of double counting. C) Inclusion of informal activity. D) Exclusion of income earned abroad. Show Answer Correct Answer: A) Difficulty in putting a monetary value on environmental costs. 2. The total market value of goods and services produced is ..... A) GVA. B) NNI. C) GDP. D) GNP/GNI. Show Answer Correct Answer: C) GDP. 3. What is the potential output of an economy? A) The actual level of output that an economy produces. B) The maximum level of output that an economy can produce. C) The level of output that an economy could produce if resources were fully employed. D) The level of output that an economy could produce if resources were not fully employed. Show Answer Correct Answer: C) The level of output that an economy could produce if resources were fully employed. 4. What are the characteristics of a successful entrepreneur? A) Determination, passion, creativity, resilience, adaptability, strong work ethic, risk-taking ability, leadership skills, and the ability to learn from failures. B) Laziness, lack of passion, and fear of failure. C) Weak work ethic, lack of determination, and inability to learn from failures. D) Inflexibility, lack of creativity, and aversion to risk. Show Answer Correct Answer: A) Determination, passion, creativity, resilience, adaptability, strong work ethic, risk-taking ability, leadership skills, and the ability to learn from failures. 5. In a traditional economy, how are economic decisions made? In a traditional economy, how are economic decisions made? A) Custom and habit. B) Government leaders. C) Consumers and planners. D) Combination of consumers and producers. Show Answer Correct Answer: A) Custom and habit. 6. ..... are long-term changes in systems of production and distribution of goods and services that affecting human welfare. A) Economic Development. B) Economic Growth. Show Answer Correct Answer: A) Economic Development. 7. Which country was the earliest to reach the maturity stage according to Rostow's model? A) Canada. B) Great Britain. C) United States. D) Russia. Show Answer Correct Answer: B) Great Britain. 8. What measuring instrument can be used to assess the level of economic growth in a country? What method can be used to assess economic growth of a country? A) For Capita Income. B) Future Income. C) Present Value. D) Gross Domestic Product. Show Answer Correct Answer: D) Gross Domestic Product. 9. Which of the following is a type of aid that involves extension on a loan, reduced rates of interest or an agreement not to repay some of the loan? A) Debt relief. B) Soft Aid. C) Bilateral aid. D) Tied aid. Show Answer Correct Answer: A) Debt relief. 10. What is the risk of double counting when using GDP as a measure of growth? A) Including income earned abroad. B) Including environmental costs. C) Including informal activity. D) Including the value of output in multiple sectors. Show Answer Correct Answer: D) Including the value of output in multiple sectors. 11. The Rybczynski theorem claims that doubling L at constant relative product prices: A) Doubles the production of the product of intensity L. B) Reduces the production of the K intensity product. C) Increases production of both products. D) Reduces production of both products. Show Answer Correct Answer: B) Reduces the production of the K intensity product. 12. Monetary policy to combat deflation might include: A) Lowering interest rates. B) Raising bank reserve requirements. C) Decreasing money supply. D) Tightening credit availability. Show Answer Correct Answer: A) Lowering interest rates. 13. Which of the following shifts a PPC outward? A) Increase in unemployment. B) Increase in capital stock. C) A recession. D) Increase in resource costs. Show Answer Correct Answer: B) Increase in capital stock. 14. Which of the following is a benefit of being an investor? A) Can receive a shar of company profits. B) Control of day to day decisions. C) Seat on board of directors. D) None of above. Show Answer Correct Answer: A) Can receive a shar of company profits. 15. Estimated total value of goods and services produced in nation in a years time: A) Gross Domestic Product. B) Wage. C) Entrepreneurship. D) For Capita. Show Answer Correct Answer: A) Gross Domestic Product. 16. If there has been an increased in economic growth there has been A) An increase in the value of goods produced in an economy. B) An increase in resources available to use in the economy. C) More goods produced in the economy. D) More goods exported overseas than imported into the country. Show Answer Correct Answer: C) More goods produced in the economy. 17. What led boomtowns to turn into ghosttowns? A) People left once there was nothing left to extract from the mine. B) People left due to the high crime rates. C) People left because the mine was haunted. D) None of above. Show Answer Correct Answer: A) People left once there was nothing left to extract from the mine. 18. The most accurate method of measuring ..... is the Human Development Index (HDI) which considers the literacy rates & life expectancy which affects productivity and could lead to Economic Growth. A) Economic Growth. B) Economic Development. Show Answer Correct Answer: B) Economic Development. 19. What does Real GDP growth rate take out? A) Deflation. B) Inflation. C) Recession. D) Stagnation. Show Answer Correct Answer: B) Inflation. 20. If the Organization of the Petroleum Exporting Countries reduced its oil production target, the MOST LIKELY result would be that A) Tariffs on oil would increase. B) Prices for oil would increase. C) Prices for oil would decrease. D) Tariffs on oil would decrease. Show Answer Correct Answer: B) Prices for oil would increase. 21. ..... is a narrower concept than economic development. A) Economic Growth. B) Economic Development. Show Answer Correct Answer: A) Economic Growth. 22. Desires to create an egalitarian (belief that people are equal and deserve equal rights and opportunities) society. A) Stage 4:Drive to Maturity. B) Stage 3:Take-Off. C) Stage 1:Traditional Society. D) Stage 5:High Mass Consumption. E) Stage 2:Pre-Condition for Take-Off. Show Answer Correct Answer: D) Stage 5:High Mass Consumption. 23. Someone who has an idea and takes a risk to produce their ideas is a ..... A) Entrepreneur. B) Miner. C) Bantu. D) Nomad. Show Answer Correct Answer: A) Entrepreneur. 24. What type of jobs are created in Mumbai's growing financial and IT sectors? A) Cleaners and mechanics. B) Taxi drivers and recycling operatives. C) High-skilled and educated positions. D) Factory workers and small-scale business owners. Show Answer Correct Answer: C) High-skilled and educated positions. 25. According to paragraph 3, what was one reason villages had such great economic potential? A) Village inhabitants established markets within their villages. B) Some village inhabitants made investments in industrial development. C) Villages were located in regions where agricultural production was relatively advanced. D) Villages were relatively small in population and size compared with urban areas. Show Answer Correct Answer: C) Villages were located in regions where agricultural production was relatively advanced. 26. If a citizen of Russia wishes to travel to the United Kingdom for vacation, they should first visit which of these institutions in order to exchange their Russian rubles for British pounds? A) Bank. B) Stock market. C) Any Russian store. D) Any British store. Show Answer Correct Answer: A) Bank. 27. True or False:An advantage of mass production (on an assembly line) is that there were interchangeable parts to fix products available. A) False. B) True. Show Answer Correct Answer: B) True. 28. What is the term used to describe a sudden increase in the price of raw materials? A) Supply side shock. B) Boom. C) Slowdown. D) Recession. Show Answer Correct Answer: A) Supply side shock. 29. According to Robert Solow, what happens to GDP per capita as capital increases? A) It increases by a larger amount. B) It increases by a smaller amount. C) It remains constant. D) It decreases. E) It decreases by a smaller amount. Show Answer Correct Answer: B) It increases by a smaller amount. 30. We can obtain some idea of what is happening to the average standard of living by looking at what is happening to real GNP ..... A) Non replacement. B) Per head. C) Net investment. D) Leisure. E) Mobility. Show Answer Correct Answer: B) Per head. ← 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