Drivers of Economic Transformation Quiz

Population growth does not drive economic transformation but is rather a consequence of it.

Industrialization signifies the transition of a society from primarily agricultural to industrial production and technology.

Globalization involves the increasing interconnectedness and interdependence of economies worldwide.

GDP serves as a key metric for assessing a country's economic performance and standard of living.

Economic growth denotes the increase in a nation's production capacity over time.

Keynesian economics advocates for government intervention to stabilize and stimulate economic growth.

A knowledge-based economy places emphasis on the generation, distribution, and utilization of intellectual capital and information.

Knowledge economies rely more on intellectual capital and innovation rather than heavy dependence on physical assets.

Technology is typically considered a driver of production rather than a factor of production itself in classical economic theory.

Technological progress is a crucial determinant of long-term economic growth according to the Solow Growth Model.

The Lewis Dual Sector Model describes the shift of surplus labor from traditional agriculture to modern industrial sectors.

The Harrod-Domar model suggests that sustained economic growth requires high levels of investment to maintain capital stock and increase productive capacity.

Countries should specialize in producing goods where they have a comparative advantage, meaning they can produce these goods at a lower opportunity cost compared to other countries.

The Heckscher-Ohlin model suggests that countries will export goods that intensively use factors of production that are relatively abundant domestically, such as capital or labor.