This quiz works best with JavaScript enabled. Home > Economics > Development > Growth > Economic Growth – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Economic Growth Quiz 4 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Spanish is to Romance as ..... is to Germanic. A) English. B) Italian. C) French. D) Russian. Show Answer Correct Answer: A) English. 2. If a country votes to raise tariffs on steel, what is most likely their goal? A) To lower the cost of making steel. B) To raise demand for steel in Europe. C) To protect its domestic steel industry. D) To increase trade with the United States. Show Answer Correct Answer: C) To protect its domestic steel industry. 3. The increase in the production of goods and services over a specific period is know as A) GDP. B) GNP. C) Economic Growth. D) Economic Development. Show Answer Correct Answer: C) Economic Growth. 4. Nominal GDP can rise in value because of two of the below reasons. Which reason is not correct? A) The output of the country increases. B) The general level of prices in the country decreases. C) The general level of prices in the country increases. D) None of above. Show Answer Correct Answer: B) The general level of prices in the country decreases. 5. What will result in the short run from rising unemployment in an economy? A) The government's budget deficit will fall. B) Any existing inflationary pressure will be reduced. C) Potential output will fall. D) The economy's production possibility curve will shift inwards. Show Answer Correct Answer: B) Any existing inflationary pressure will be reduced. 6. Calculate the economic growth rate if GDP was £60 billion in Year 1 and £63 billion in Year 2. A) 15%. B) 5%. C) 1%. D) 10%. Show Answer Correct Answer: B) 5%. 7. During a recession, which of the following is likely to occur? A) An increase in real wages. B) An increase in production. C) And increase in the GDP growth rate. D) An increase in the unemployment rate. Show Answer Correct Answer: D) An increase in the unemployment rate. 8. Which of the following is right for Green Economy of UAE A) Income by moving away from oil. B) To preserve its environment for future generations. C) New environmental and constructional policies. D) All of these. Show Answer Correct Answer: D) All of these. 9. The percent of a nation's population over the age of 15 who are able to read and write. A) Literacy Rate. B) Literate. C) Private sector. D) Public sector. Show Answer Correct Answer: A) Literacy Rate. 10. There are no truly pure market economic systems, but which of the following countries is closest? A) Cuba. B) Germany. C) Russia. D) United Kingdom. Show Answer Correct Answer: D) United Kingdom. 11. Unemployment that rises during economic downturns and falls when the economy improves. A) Frictional Unemployment. B) Structural Unemployment. C) Cyclical Unemployment. D) Seasonal Unemployment. Show Answer Correct Answer: C) Cyclical Unemployment. 12. Sustainable economic growth depends upon A) Investment, not saving. B) Saving, not investment. C) Both saving and investment. D) Neither saving nor investment. Show Answer Correct Answer: C) Both saving and investment. 13. 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) -17%. B) -14.5%. C) 14.5%. D) 17%. Show Answer Correct Answer: B) -14.5%. 14. What was Japan's economy like after WW2 A) Struggling. B) Very prosperous. C) Declining. D) Neutral (Not good, Not bad). Show Answer Correct Answer: B) Very prosperous. 15. The extent to which workers are willing and able to move to different locations for employment A) Occupational mobility. B) Investment expenditure. C) Productivity. D) Geographical mobility. Show Answer Correct Answer: D) Geographical mobility. 16. Which part of Europe has the lowest literacyrates? A) Eastern Europe. B) Balkans. C) Northern Europe. D) All of Europe has high literacy rates. Show Answer Correct Answer: B) Balkans. 17. A recession is defined as A) Two months of negative economic growth. B) Two quarters of negative economic growth. C) A fall in GDP. D) A fall in national income. Show Answer Correct Answer: B) Two quarters of negative economic growth. 18. Monthly, quarterly, semiannual, or annual price paid for an insurance policy A) Financial system. B) Diversification. C) Borrowers. D) Premium. Show Answer Correct Answer: D) Premium. 19. What is an unavoidable cost of long-run economic growth? A) Greater inequality in the distribution of income. B) An increase in inflation. C) A sacrifice of potential present consumption. D) An increase in the working hours of the population. Show Answer Correct Answer: C) A sacrifice of potential present consumption. 20. Given the following information, calculate the correct GDP per capita. GDP is $ 460 billion, population is 28 million A) #27347. B) $ 16429. C) $ 26923. D) $ 21377. Show Answer Correct Answer: B) $ 16429. 21. Gifts of nature are called ..... A) Human capital. B) Natural resources. C) Capital goods. D) Entrepreneur. Show Answer Correct Answer: B) Natural resources. 22. An increase in which of the following would cause a decrease in aggregate demand? A) Imports. B) Investment. C) Government Spending. D) Exports. Show Answer Correct Answer: A) Imports. 23. What is one way to measure average labor productivity A) The output of the median worker. B) The output of the best workers. C) Output per employed worker. D) Calories in vs calories out, you can't explain that mr lowe. Show Answer Correct Answer: C) Output per employed worker. 24. Which of the following is NOT a goal that our government tries to meet for the people? A) Maintain steady economic growth. B) Ensure economic stability over a long period of time. C) Maintain low unemployment. D) Offer incentives for people to start their own businesses. Show Answer Correct Answer: D) Offer incentives for people to start their own businesses. 25. The maximum potential output of the economy is the definition of what? A) Nominal GDP. B) Net Social Welfare. C) Productive Capacity. D) Real GDP. Show Answer Correct Answer: C) Productive Capacity. 26. How can we fix the problem? A) Investing in education. B) Giving jobs to people. C) Investing in companies. D) Giving money to the people. Show Answer Correct Answer: A) Investing in education. 27. Mass production led to: A) Products being more superior in quality. B) Goods became less expensive. C) Laborers received higher wages. D) Industries moved to rural areas. Show Answer Correct Answer: B) Goods became less expensive. 28. Which one of the following is NOT a method of calculating real GDP? A) Income method. B) Savings method. C) Expenditure method. D) None of above. Show Answer Correct Answer: B) Savings method. 29. According to the Human Development Index, the Philippines has a ..... HDI. A) Medium. B) High. C) Very high. D) Low. Show Answer Correct Answer: B) High. 30. Which one of these is a consequence of a recession? A) Increase in Aggregate Supply. B) Increase in employment. C) Decrease in income. D) Increase in inflation. Show Answer Correct Answer: C) Decrease in income. ← PreviousNext →Related QuizzesDevelopment QuizzesEconomics QuizzesEconomic Growth Quiz 1Economic Growth Quiz 2Economic Growth Quiz 3Economic Growth Quiz 5Economic Growth Quiz 6Economic Growth Quiz 7Economic Growth Quiz 8Economic Growth Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books