#1
Which of the following is a key indicator of economic growth?
Gross Domestic Product (GDP)
ExplanationGDP measures the total value of goods and services produced within a country.
#2
During which period did the Industrial Revolution primarily occur?
18th century
ExplanationThe Industrial Revolution occurred predominantly in the 18th century, transforming economies through mechanization.
#3
What term is used to describe the total value of all final goods and services produced within a country's borders in a specific time period?
Gross Domestic Product (GDP)
ExplanationGDP measures the economic output of a country within a specific time frame, indicating its overall economic activity.
#4
Which of the following is NOT considered a factor of production in economics?
Technology
ExplanationTechnology is a product of human innovation and creativity, rather than a factor of production like land, labor, and capital.
#5
What economic term describes the situation where the price of a good increases as its supply decreases?
Scarcity
ExplanationScarcity refers to the limited availability of resources relative to unlimited wants, leading to the necessity of making choices.
#6
Which economist introduced the concept of 'creative destruction'?
Joseph Schumpeter
ExplanationJoseph Schumpeter introduced the idea that innovation disrupts existing economic structures, paving the way for progress.
#7
What is the Solow Growth Model primarily used to analyze?
Long-run economic growth
ExplanationThe Solow Growth Model examines factors contributing to sustained economic growth over time.
#8
What is the primary factor driving economic growth according to the neoclassical growth theory?
Technological progress
ExplanationAccording to neoclassical growth theory, technological progress is the main driver of economic growth.
#9
Which of the following is NOT a characteristic of sustainable economic growth?
Increasing income inequality
ExplanationSustainable economic growth aims to reduce income inequality rather than increase it.
#10
What economic theory emphasizes the importance of demand-side policies such as government spending to stimulate economic growth?
Keynesian economics
ExplanationKeynesian economics advocates for government intervention, especially during economic downturns, to stimulate demand and promote growth.
#11
Which country experienced the 'Asian Tiger' phenomenon characterized by rapid economic growth in the late 20th century?
South Korea
ExplanationSouth Korea was one of the Asian Tigers, experiencing rapid industrialization and economic growth.
#12
Who developed the concept of the 'Golden Rule' savings rate in economics?
Robert Solow
ExplanationRobert Solow proposed the 'Golden Rule' savings rate to achieve optimal long-term economic growth.
#13
Which country experienced hyperinflation during the early 20th century, leading to the adoption of a new currency?
Germany
ExplanationGermany faced hyperinflation after World War I, leading to the adoption of a new currency.
#14
Who proposed the theory of 'convergence' in economics, suggesting that poorer countries tend to grow faster than richer ones?
Robert Solow
ExplanationRobert Solow proposed the theory of convergence, stating that less developed countries tend to catch up with richer ones over time.
#15
Which economic concept suggests that as individuals earn more income, they tend to spend a smaller proportion of any additional income they receive?
Marginal propensity to consume
ExplanationThe marginal propensity to consume measures the proportion of additional income that individuals spend rather than save.