This quiz works best with JavaScript enabled. Home > Economics > Development > Growth > Economic Growth – Quiz 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Economic Growth Quiz 6 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which is an example of investing in physical capital by a company? A) Purchasing new computer software for the business. B) Keeping old taxi cabs. C) Keeping old machinery in order to save. D) Training workers new skills for the job. Show Answer Correct Answer: A) Purchasing new computer software for the business. 2. If a country has many well educated healthy workers you would say that country has invested highly in ..... A) Capital Goods. B) Entrepreneurship. C) Natural Resources. D) Human Capital. Show Answer Correct Answer: D) Human Capital. 3. With economic growth, the proportion of labour-force engaged in agriculture A) Remains unaffected. B) Changes in an uncertain manner. C) Increases. D) Decreases. Show Answer Correct Answer: D) Decreases. 4. A price index determined by measuring the price of a standard group of goods meant to represent the market basket of a typical consumer. A) Customer Purchasing Index. B) Inflation. C) Consumer Policy Index. D) Consumer Price Index. Show Answer Correct Answer: D) Consumer Price Index. 5. When an economy produces more output per capital the economy is said to be having A) Inflation. B) Economic growth. C) Economic planning. D) Living standard. Show Answer Correct Answer: B) Economic growth. 6. What is the name of the "central bank" of the United States? A) Bank of the U.S. B) The Federal Bank of America. C) The Federal Reserve. D) U.S. Congressional Bank. Show Answer Correct Answer: C) The Federal Reserve. 7. To boost economic growth the government is most likely to A) Provide incentives to save. B) Provide incentives to invest. C) Increase interest rates. D) Increase taxation rates. Show Answer Correct Answer: B) Provide incentives to invest. 8. The movement from one point beneath the PPF to another point beneath the PPF shows a change in A) Capacity. B) Output. C) Both capacity and output. D) Neither capacity nor output. Show Answer Correct Answer: B) Output. 9. This reflects the value of goods and services produced in a year in a nation by an average person. A) G.D.P. per product. B) G.D.P. C) G.D.P. per capita. D) G.D.P. per person. Show Answer Correct Answer: C) G.D.P. per capita. 10. What happens when countries have a higher GPD A) They fail. B) I don't know what happens. C) They have stronger economies. D) They get more money. Show Answer Correct Answer: C) They have stronger economies. 11. In 2019 the Australian economy grew by 2.3%. This statement necessarily means A) Inflation occurred. B) Industrial output rose by 2.3%. C) Everyone in Australia was 2.3% better off. D) None of the above is true. Show Answer Correct Answer: D) None of the above is true. 12. If the real GDP for a given period is divided by the size of the population for that same period, it is known as A) Real GDP. B) GDP per capita. C) GDP at market prices. D) GDP at factor cost. Show Answer Correct Answer: B) GDP per capita. 13. Which Cuban industry depends mostly on a labor force with a high human capital? A) Cuba's tourist industry. B) Cuba's health care industry. C) Cuba's tobaccos industry. D) Cuba's sugar and agri-businesses. Show Answer Correct Answer: B) Cuba's health care industry. 14. Economic growth can be measured as the growth rate in ..... over time. A) Real GDP. B) Real GDP per capita. C) CPI. D) Price levels. Show Answer Correct Answer: B) Real GDP per capita. 15. What are the two sections of every economy? A) Private sector and public sector. B) Banking regulations and competition. C) Government control and tariffs. D) Cultural biases and trade barriers. Show Answer Correct Answer: A) Private sector and public sector. 16. Spending to boost the capital stock of an economy A) Labour force. B) Productivity. C) Occupational mobility. D) Investment expenditure. Show Answer Correct Answer: D) Investment expenditure. 17. Does social work affect emigration? A) Negatively since there would be less demand for products. B) It would not affect to economy in any way. C) It has nothing to do with it. D) Positively since there will be more and more work demand. Show Answer Correct Answer: D) Positively since there will be more and more work demand. 18. Which of the following DOESN'T cause economic growth? A) Increased labour productivity. B) Increased investment. C) Less investment in education. D) Improved technology. Show Answer Correct Answer: C) Less investment in education. 19. The measure of the efficiency of the production of goods and services is ..... A) Unemployment. B) Specialization. C) Gross Domestic Product. D) Productivity. Show Answer Correct Answer: D) Productivity. 20. Which category is when you change the way of doing or making something to make it better? A) Entrepreneurship. B) Natural resources. C) Human capital. D) Capital goods. Show Answer Correct Answer: A) Entrepreneurship. 21. Which has "Easy to Start up" as an advantage? A) Corporation/Inflation. B) Partnership/Corporation. C) Sole Proprietorship/Corporation. D) Sole Proprietorship/Partnership. Show Answer Correct Answer: D) Sole Proprietorship/Partnership. 22. If a new factory was built by a company, what would be the effect on their PPF? A) Movement of the 'dot' away from the frontier. B) Movement of the 'dot' closer to the frontier. C) Inward move of the frontier. D) Outward move of the frontier. Show Answer Correct Answer: D) Outward move of the frontier. 23. During the roaring expansion what "bubble" accumulated? A) Commodity Bubble. B) Housing Bubble. C) Stock Market Bubble. D) Asset Bubble. Show Answer Correct Answer: D) Asset Bubble. 24. What two factors are able to shift a PPF outwards? A) Higher prices and more demand for goods. B) Higher employment levels and less machinery. C) Higher output of goods and of services. D) Higher quality or quantity of resources and improved technology. Show Answer Correct Answer: D) Higher quality or quantity of resources and improved technology. 25. What were the results of Abenomics? A) The economy got stronger. B) To weak to do anything. C) The economy began to decline. D) It worked. Show Answer Correct Answer: B) To weak to do anything. 26. Economic growth is A) Increase in per capita production. B) Increase in per capita real income. C) Structural change in the economy. D) All of the above. Show Answer Correct Answer: D) All of the above. 27. Which of the following policies can attract more foreign direct investment?(1) lowering government rent(2) offering tax exemption to foreign companies(3) lowering the minimum wage rate of domestic workers A) (1) and (2) only. B) (1) and (3) only. C) (2) and (3) only. D) (1), (2) and (3). Show Answer Correct Answer: D) (1), (2) and (3). 28. The abbreviation GDP stands for A) Gross Deceptive Proximation. B) General Domestic Product. C) Gross Domestic Product. D) General Demand for Products. Show Answer Correct Answer: C) Gross Domestic Product. 29. What is Entrepreneurship? A) Someone who runs a business. B) A manager for a business. C) Someone who takes risks to start a business. D) A person who has a job. Show Answer Correct Answer: C) Someone who takes risks to start a business. 30. Economic growth can be represented by A) An outward shift of the production possibility frontier. B) An outward shift of the consumption possibility frontier. C) A rightward shift of the short run aggregate supply curve. D) A rightward shift of the aggregate demand curve. Show Answer Correct Answer: A) An outward shift of the production possibility frontier. ← PreviousNext →Related QuizzesDevelopment QuizzesEconomics QuizzesEconomic Growth Quiz 1Economic Growth Quiz 2Economic Growth Quiz 3Economic Growth Quiz 4Economic Growth Quiz 5Economic Growth Quiz 7Economic Growth Quiz 8Economic Growth Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books