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- 1. Multiple Choice
Economic growth is a situation where an economy's real GDP increase.
True
False
- 2. Multiple Choice
Actual economic growth is a situation where an economy's growth is fueled by high total spending in an economy.
True
False
- 3. Multiple Choice
Potential economic growth is a situation where an economy's productive capacity improved.
True
False
- 4. Multiple Choice
AD curve shift to right to show potential economic growth
True
False
- 5. Multiple Choice
AD curve shift to right to show actual economic growth
True
False
- 6. Multiple Choice
LRAS curve shift to right to show potential economic growth
True
False
- 7. Multiple Choice
Which of the following is the reason for an actual economic growth to occur?
Quality of education improved
Better technology used
Household's income level increase
Discovery of new resources
- 8. Multiple Choice
Which of the following are the reasons for a potential economic growth to occur?
Quality of education improved
Better technology used
Household's income level increase
Discovery of new resources
- 9. Multiple Choice
Economic growth always improve one's living standard.
True
False
- 10. Multiple Choice
Achieving economic growth is one of the government objectives.
True
False
- 11. Multiple Choice
What are the 4 factors that lead to a country’s economic growth?
investment in human capital, investment in physical capital, land (natural resources), entrepreneurship
good international relations, a democratic president, strict laws, freedom of press
a powerful military, strong dictatorial leadership, communist regime, little personal freedom
a monarchy, the World Bank, a parliamentary democracy, personal freedom
- 12. Multiple Choice
What are natural resources?
resources that are gone from nature
resources that are manufactured for the environment
resources that are considered worthless
materials or substances that occur in nature and can be used for economic gain.
- 13. Multiple Choice
What does human capital mean?
the place where the most people live within a country
the place where the most work is performed within a country
the people who perform labor (work)
the building where most people work in a country or state
- 14. Multiple Choice
Why should countries invest in developing human capital?
because the more people you have working in one area like a capital the more productive it will be
it leads to a lower GDP
it leads to lower literacy rate
investment in the education and skills training of people creates a smarter and more productive workforce, which relates to a higher GDP.
- 15. Multiple Choice
What are capital goods?
goods that are produced in the capital
the factories, machinery, and technology used to produce goods and services
goods that are produced without natural resources
goods that are produced by the government
- 16. Multiple Choice
Why should countries invest in developing capital goods?
they shouldn't, it is too expensive
because capital goods cannot be sold to other countries
when countries invest in capital goods, they are providing better facilities, resources, and/or materials for the people who perform the labor, which creates a more productive workforce leading to greater economic growth (higher GDP).
because capital goods are less expensive than private goods
- 17. Multiple Choice
What do entrepreneurs do?
represent business at the capital
make all the laws in regards to business
start their own business, invent something new, or change the way something was previously done so that it works better
work in politics with regards to foreign business
- 18. Multiple Choice
How does entrepreneurship influence economic growth?
it creates jobs and reduces unemployment
it encourages people to take risks,and in doing so, create better materials, products, and technologies
the more entrepreneurs a country has, the higher the country's GDP
answers 1,2,and 3 are all correct
- 19. Multiple ChoiceEconomic growth can be seen by an outward shift ofa) The Production Possibility Frontierb) The Gross Domestic Barrierc) The Marginal Consumption Frontierd) The Minimum Efficient Scale
- 20. Multiple ChoicePotential growth measuresa) The growth of the fastest economy in the worldb) The fastest growth an economy has ever achievedc) The present rate of growth of an economyd) The rate of growth that could be achieved if resources were fully employed
- 21. Multiple ChoiceIn a recession, GDPa) Grows negativelyb) Grows slowlyc) Grows by 0%d) Grows rapidly
- 22. Multiple ChoiceIn a booma) Unemployment is likely to fallb) Prices are likely to fallc) Demand is likely to falld) Imports are likely to fall
- 23. Multiple ChoiceThe concept of economic growth isa) Identical with the concept of economic developmentb) Narrower than the concept of economic developmentc) Wider as compared to that of economic developmentd) Unrelated to the concept of economic development
- 24. Multiple Choice
What are benefits of economic growth?
more income
more jobs
more pollution
more food
- 25. Multiple Choice
What are some disadvantages of economic growth?
environmental pollution
greater stress on workers to produce more
higher standard of living
more choice of products
- 26. Multiple Choice
What do we call it if the economy is doing really well?
a boom
an explosion
recession
slump
- 27. Multiple Choice
What do we call the period when the economy improves again after a recession?
recovery
redone
reborn
slump
- 28. Multiple Choice
Which is not a phase of the economic cycle?
boom
slum
recession
recovery
- 29. Multiple Choice
consumers spend a lot of money
boom
slump
recession
recovery
- 30. Multiple Choice
Confidence in the economy starts to decrease
boom
slump
recession
recovery
- 31. Multiple Choice
Characteristics of a recession
high unemployment rate
high prices
low investment
high production rate
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