Economic Growth in the Global Economy MCQs
Economic Growth in the Global Economy MCQs
1: Applications of new knowledge that create new products or improve existing products is called
A. Innovation
B. Productivity
C. Ideas
D. All of these
2: ___ per unit of worker is labour productivity
A. Input
B. Output
C. Person
D. Work
3: Activities undertaken to create new products and processes that will lead to technological progress is research and development
A. True
B. False
4: Economists typically measure economic growth by looking at ______.
A. Standard of living
B. Real GDP per capita
C. Natural rate of output
D. The rule of 70
5: According to the rule of 70, an economy with an annual growth rate of 4 percent will double its output after ______ years.
A. 280
B. 175
C. 28
D. 17.5
6: Which statement about productivity is true?
A. Productivity is usually measured in terms of labor.
B. Productivity measures a nation’s annual output.
C. A nation’s productivity rises as its population grows.
D. A nation’s standard of living falls when its productivity rises.
7: Labor productivity is best defined as ______.
A. The average annual output of a nation
B. The efficient use of resources
C. Output per unit of worker
D. The aggregate value of worker output
8: Which statement about natural resources is true?
A. Access to abundant natural resources tends to enhance national output.
B. Natural resources are the single most telling predictor of a nation’s output.
C. A country that lacks natural resources will not grow economically.
D. Labor is a form of natural resource.
9: Innovation is best defined as the ______.
A. Lowering of firm costs through productivity gains
B. Adoption of a process or product
C. Ability to increase output with fewer workers
D. Use of technology in production
10: An economy can offset diminishing marginal returns by ______.
A. Raising the standard of living
B. Promoting saving
C. Increasing the number of people working on a given task
D. Implementing technological innovations
11: Which statement regarding democracy and economic growth is true?
A. Democracy is a natural and inevitable result of economic growth.
B. Majority voting and some other democratic features can hinder growth.
C. The highest levels of growth are found in democratic societies.
D. Authoritarian societies do not pursue policies to increase economic growth.
12: Which statement about saving is true?
A. Higher levels of saving generally lead to greater investment and economic growth.
B. The standard of living in a nation will rise if every dollar earned is saved.
C. Economies are more likely to grow if individuals consume the majority of their income.
D. The link between saving and economic growth is tenuous at best.
13: One of the main objectives of the International Monetary Fund and World bank is to ______.
A. Ensure international economic equality so that no one country becomes too wealthy
B. Boost savings rates around the world to spur growth
C. Help channel money to developing countries for investment in infrastructure
D. Protect private property rights and enforce the rule of law
14: Economists refer to a government’s ability to enforce contracts and protect property rights the ______.
A. Law of diminishing marginal returns
B. Rule of law
C. Malthusian Prediction
D. Standard of ceteris paribus
15: Which statement about world population growth is true?
A. Rapid population growth hindered U.S. economic growth during the mid-nineteenth century.
B. If population increases more slowly than output, per capita output will fall.
C. The United Nations expects the world population to level off around 2100.
D. Most future population growth is expected to occur in developing countries.
16: The Reverend Thomas Malthus based his predictions about per capita economic growth and wages on several assumptions, including the idea that ______.
A. The economy was service based
B. Humans would choose to control the birthrate
C. Technology can overcome marginal diminishing returns
D. There is a fixed supply of land
17: What is one reason why Malthus’s theory was ultimately incorrect for most of the world?
A. Improved technology is able to mitigate some of the impact of the law of diminishing returns.
B. The law of diminishing returns does not apply when labor is involved.
C. Unenforceable property rights mean that land is constantly changing hands and is not worked to its fullest potential.
D. Most countries have more natural resources than they can ever hope to use.
18: What did China do between 1980 and 2015 to try to increase economic growth per capita?
A. It encouraged citizens to have large families so there would be more workers.
B. It acquired additional land for farming from its neighbors.
C. It regulated how many children a family could have.
D. It limited educational access for women.
19: According to classical growth theory, when real gdp per person ______, the population grows.
A. Rises above the subsistence level
B. Grows forever
C. Is constant and does not change
D. Increases as the population grows
20: _____ is the increase in efficiency gained by producing more output without using more inputs.
A. Saving
B. Real GDP per capita
C. Technological progress
D. Capital deepening
21: Problem solving is to ____ as problem finding is to ____.
A. Expertise; creativity
B. Subconscious; cognition
C. Cognition; subconscious
D. Creativity; expertise
22: An increase in ________ would lead to an increase in long-run economic growth.
A. Resources and technology
B. A movement upward along
C. A movement downward along
D. A movement upward opposite
23: The _____in an economy whose aggregate real output is growing faster than the total population.
A. Real GDP per capita is rising
B. Between 40 and 45 years
C. Real GDP per capita
D. Faster technological progress
24: The broadest measure to adjust nominal gdp for price changes is _____.
A. The GDP price index
B. Not current production
C. An oven bought by a homeowner
D. None of these
25: Economic _________has affected bread-winning and consumption in american families.
A. Globalization
B. Immunization
C. Polarization
D. Deprivation
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Economic Growth in the Global Economy MCQs
