This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Economic Growth > Economic Growth – Quiz 63 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Economic Growth Quiz 63 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the role of investment in economic growth? A) It decreases production capacity. B) It hinders technological progress. C) It enables firms and economies to expand their production capacities. D) It leads to inflation. Show Answer Correct Answer: C) It enables firms and economies to expand their production capacities. 2. The measure of a nation's quality of life based on income, education, life expectancy, and other factors A) Standard of living. B) Standard of excellence. C) Standard of wealth. D) Standard of money. Show Answer Correct Answer: A) Standard of living. 3. Native American ceremony believed to bring a new world free of white people. A) Horse Dance. B) Reservation. C) Christmas. D) Ghost Dance. Show Answer Correct Answer: D) Ghost Dance. 4. ..... are the materials that come from nature, such as land, forests, minerals, water, etc A) Capital Goods. B) Natural resources. C) Human Resources. D) Productive Resources. Show Answer Correct Answer: B) Natural resources. 5. What are the advantages of the 'Doughnut Economics' model? A) It isn't guaranteed to work in developing countries. B) It takes time to implement. C) It assumes people will magically become warier of their surroundings. D) It combines both social and monetary economics. Show Answer Correct Answer: D) It combines both social and monetary economics. 6. How do you measure the strength of a nations economy? A) Adding up how many natural resources it has. B) Looking at a nations GDP and GDP per capita. C) Adding up how many entrepreneurs a nation has. D) Asking all citizens to complete the census every 10 years. Show Answer Correct Answer: B) Looking at a nations GDP and GDP per capita. 7. Why is the natural environment important? A) Gives us a wealth of services that are difficult to measure in dollars. B) Helps clean our air, purify our water, produce food and medicines, . C) Green spaces help keep us healthy. D) All of the above. Show Answer Correct Answer: D) All of the above. 8. The total sum of all goods and services produced in a certain time period. A) GDP per capita. B) GNP. C) GDP. D) GNH. Show Answer Correct Answer: C) GDP. 9. Which year is the one designed to meet those goals? A) 2030. B) 1990. C) 2022. D) 2031. Show Answer Correct Answer: A) 2030. 10. What are the key institutions for economic growth? A) Property rights, honest government, political stability, a dependable legal system, and competitive and open markets. B) Physical capital, human capital, and technological knowledge. C) Incentives and organization. D) History, ideas, culture, geography, and luck. Show Answer Correct Answer: A) Property rights, honest government, political stability, a dependable legal system, and competitive and open markets. 11. Purchases of high order goods become more and more common. A) Stage 3:Take-Off. B) Stage 4:Drive to Maturity. 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. 12. In GDP, this is long-term spending by businesses and individuals. A) Net exports. B) Imports. C) Investment. D) Consumption. Show Answer Correct Answer: C) Investment. 13. Which statement is true about the circular flow diagram? [Product Market:where final G&S are sold. Factor Market:factors of production (land, labour ..... )] A) Households are demanders in the product market and suppliers in the factor market. B) Businesses are demanders in the product market and suppliers in the factor market. C) Households are demanders in the factor market and suppliers in the product market. D) Businesses and households are not components of the circular flow diagram. Show Answer Correct Answer: A) Households are demanders in the product market and suppliers in the factor market. 14. Suppose that in the country of Xanadu, the real GDP in 2004 was R1883 billion. In 2005, real GDP was R1610 billion. In Xanadu, real GDP grew by A) 14.5%. B) -14.5%. C) 17%. D) -17%. Show Answer Correct Answer: B) -14.5%. 15. What is the term used to describe the phase when growth is rampant and above potential? A) Slowdown. B) Recession. C) Boom. D) Trough. Show Answer Correct Answer: C) Boom. 16. What are the four main categories of productive resources? A) Food, games, and drinks. B) Air, trees, life, and water. C) I dont know the answer . D) Human capital, capital goods, and entrepreneurship. Show Answer Correct Answer: D) Human capital, capital goods, and entrepreneurship. 17. What is the term coined by Joseph Schumpeter to describe the replacement of old methods with new and more productive ways? A) Technological unemployment. B) Creative inception. C) Innovation today. D) Appropriation. E) Creative destruction. Show Answer Correct Answer: E) Creative destruction. 18. The relationship between the literacy rate and standard of living in Southwest Asia is ..... A) The literacy rate has no effect on the standard of living. B) The standard of living is independent of the literacy rate. C) A low literacy rate creates a higher standard of living. D) The higher the literacy rate the higher the standard of living. Show Answer Correct Answer: D) The higher the literacy rate the higher the standard of living. 19. Sustainable economic growth aims to: A) Maximize short-term gains regardless of long-term consequences. B) Deplete natural resources as quickly as possible to boost the economy. C) Balance economic development with environmental and social considerations. D) Maintain high inflation rates for an extended period. Show Answer Correct Answer: C) Balance economic development with environmental and social considerations. 20. If everyone who wants to work can can find a job, a country has: A) Full Employment. B) Inflation. C) Economic Freedom. D) Employment Insurance. Show Answer Correct Answer: A) Full Employment. 21. In an economy, economic growth always occurs when: A) There is more spending on goods and services between one year and the next. B) There is more production of goods and services between one year and the next. C) There are more resources available between one year and the next. D) Business activity is steady between one year and the next. Show Answer Correct Answer: B) There is more production of goods and services between one year and the next. 22. Using the chart under Data analysis, (on page 51) What country has the highest literacy rate? A) Haiti. B) Brazil. C) Mexico. D) All of the above. Show Answer Correct Answer: B) Brazil. 23. True or False:The assembly line created a large number of unskilled labor jobs in cities. A) False. B) True. Show Answer Correct Answer: B) True. 24. Which is true of industrialized nations? A) They have high literacy rates. B) They offer no education. C) They have little economy. D) They offer basic military training. Show Answer Correct Answer: A) They have high literacy rates. 25. Which is the best description of Gross Domestic Product (GDP)? A) Grocery stores. B) Public banking. C) Estimate of the goods and services that are manufactured and produced within one year of a country. D) A measurement that compares and contrasts real estate and real estate investments. Show Answer Correct Answer: C) Estimate of the goods and services that are manufactured and produced within one year of a country. 26. What is the Economic Freedom Index (EFI) of Israel? A) Moderately open to entrepreneurship. B) Highly open to entrepreneurship. C) Not open to entrepreneurship. D) No impact on entrepreneurship. Show Answer Correct Answer: A) Moderately open to entrepreneurship. 27. Things needed to produce goods and services A) Capital Goods. B) Factors of Production. C) Standard of Living. D) Gross Domestic Product (GDP). Show Answer Correct Answer: B) Factors of Production. 28. Germany specializes in the production of automobiles. Based on this information, which statement is MOST LIKELY correct? A) Germany has no natural resources that other countries demand. B) Germany has a low gross domestic product and high unemployment. C) Germany can produce automobiles more efficiently than other countries. D) Germany sells automobiles to domestic consumers for very low prices. Show Answer Correct Answer: C) Germany can produce automobiles more efficiently than other countries. 29. Which concept describes how investment in business can lead to wider improvements in the local area? A) Multiplier effect. B) Hoyt sector model. C) Gini coefficient. D) Demographic Transition Model. Show Answer Correct Answer: A) Multiplier effect. 30. How does investment in capital (money) influence GDP? A) Education and healthcare will increase. B) To put in time, money, or energy will decrease the GDP. C) If you invest money, you will make more money and then the GDP will increase. D) None of above. Show Answer Correct Answer: C) If you invest money, you will make more money and then the GDP will increase. ← 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