Economic Growth Quiz 8 (20 MCQs)

Quiz Instructions

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1. Which country's economy is closest to a command economy?

Correct Answer: A) Russia.

2. When a country invests in new machinery, technology, and factories, it is increasing its:

Correct Answer: C) Capital goods.

3. This language family is spoken in Russia and other eastern European countries

Correct Answer: D) Slavic.

4. The knowledge, skills, and relative health of a nation's labor force/

Correct Answer: A) Human Capital.

5. What does obsolete mean? This is what describes North Korea's capital goods.

Correct Answer: A) Old.

6. In a recession, the curve of the GNP is

Correct Answer: D) Below the Trend.

7. Why may GDP not be a good measure to compare the living standard of two countries?

Correct Answer: B) It does not take account of population size.

8. What was the main source of making money for the people of Gulf between 19th and 20th century?

Correct Answer: B) Pearl diving and fishing.

9. All of the following make up the human development index EXCEPT

Correct Answer: D) Gender equality.

10. The part of the economy owned and operated by private citizens.

Correct Answer: A) Private Sector.

11. Which is an example of investing in physical capital by a company?

Correct Answer: C) Purchasing new computer software for the business.

12. If a country has many well educated healthy workers you would say that country has invested highly in .....

Correct Answer: D) Human Capital.

13. With economic growth, the proportion of labour-force engaged in agriculture

Correct Answer: B) Decreases.

14. A price index determined by measuring the price of a standard group of goods meant to represent the market basket of a typical consumer.

Correct Answer: B) Consumer Price Index.

15. When an economy produces more output per capital the economy is said to be having

Correct Answer: B) Economic growth.

16. What is the name of the "central bank" of the United States?

Correct Answer: B) The Federal Reserve.

17. To boost economic growth the government is most likely to

Correct Answer: C) Provide incentives to invest.

18. The movement from one point beneath the PPF to another point beneath the PPF shows a change in

Correct Answer: B) Output.

19. This reflects the value of goods and services produced in a year in a nation by an average person.

Correct Answer: B) G.D.P. per capita.

20. What happens when countries have a higher GPD

Correct Answer: B) They have stronger economies.