#1
Which of the following is a key indicator of economic growth?
Increase in GDP
ExplanationGDP reflects the overall economic output of a country and is a primary measure of its growth.
#2
What is the main goal of industrialization in an economy?
To boost economic growth
ExplanationIndustrialization aims to increase productivity and output, thus enhancing economic growth.
#3
What is the term for the total value of all goods and services produced by a country in a specific time period?
Gross Domestic Product (GDP)
ExplanationGDP quantifies a nation's economic output within a defined timeframe, including goods and services.
#4
Which of the following is a characteristic of a developed economy?
High per capita income
ExplanationDeveloped economies typically exhibit high levels of per capita income, indicating widespread prosperity.
#5
What is the term for the total market value of all final goods and services produced within a country in a given period of time?
Gross Domestic Product (GDP)
ExplanationGDP represents the aggregate value of a nation's goods and services produced within its borders during a specified time frame.
#6
Which economic theory advocates for minimal government intervention in the market?
Classical economics
ExplanationClassical economics asserts that markets function best with limited interference from governments.
#7
What is the term used to describe the transition from an agrarian society to an industrial one?
Industrial revolution
ExplanationThe Industrial Revolution marks the shift from manual labor and agriculture to mechanized manufacturing.
#8
What is the Solow Growth Model used to explain?
Economic growth over time
ExplanationThe Solow Growth Model explores factors influencing economic growth rates over extended periods.
#9
Which sector typically experiences the initial stages of industrialization in an economy?
Agricultural sector
ExplanationIndustrialization often begins with advancements in agricultural techniques and productivity.
#10
What is the role of entrepreneurship in fostering economic growth?
Drives innovation and creates jobs
ExplanationEntrepreneurship spurs innovation, creates employment opportunities, and drives economic expansion.
#11
Which factor is considered a crucial driver of long-term economic growth?
Technological innovation
ExplanationTechnological innovation drives productivity gains, leading to sustained economic growth.
#12
According to the Lewis Dual Sector Model, what is the role of the 'unlimited supply of labor' in the process of industrialization?
Accelerates industrialization
ExplanationAbundant labor at low wages fuels industrial growth and expansion.
#13
What is the primary focus of Human Development Index (HDI) as an economic indicator?
Quality of life and well-being
ExplanationHDI assesses factors beyond economic output, including health and education, to gauge overall well-being.
#14
Which country is often cited as an example of rapid industrialization in East Asia during the late 20th century?
China
ExplanationChina's industrialization surge in the late 20th century fueled its economic transformation.
#15
In the context of industrialization, what does the term 'deindustrialization' refer to?
Shift from manufacturing to services
ExplanationDeindustrialization denotes a decline in the manufacturing sector's relative importance, often accompanied by a rise in service industries.