#1
Which of the following is a key indicator of economic growth?
Rise in real GDP
ExplanationReal GDP growth reflects overall economic expansion.
#2
Which of the following factors can contribute to economic growth?
Expansion of international trade
ExplanationTrade expansion boosts market size and efficiency.
#3
What is the main difference between economic growth and economic development?
Economic growth refers to an increase in GDP, while economic development refers to improvements in living standards.
ExplanationGrowth focuses on output, while development emphasizes welfare.
#4
What is the role of entrepreneurship in economic growth?
It fosters innovation, creates jobs, and drives economic growth
ExplanationEntrepreneurship spurs dynamism and market innovation.
#5
Which of the following is a measure of economic growth that accounts for changes in population?
GDP per capita
ExplanationIt gauges economic output per person, adjusting for population changes.
#6
What is the primary driver of economic growth in modern economies?
Technological innovation
ExplanationTechnological advancements spur productivity and progress.
#7
Which sector typically contributes the most to GDP in developed economies?
Tertiary sector
ExplanationServices dominate GDP due to advanced economies' focus on services.
#8
What is a common measure of economic growth per capita?
GNI (Gross National Income)
ExplanationGNI per capita measures the average income of citizens.
#9
What is the Solow Growth Model used to explain?
The determinants of long-run economic growth
ExplanationIt analyzes factors influencing sustained economic expansion.
#10
Which of the following is a potential consequence of rapid economic growth?
Increased environmental degradation
ExplanationRapid growth often strains natural resources and ecosystems.
#11
What role does human capital play in economic growth?
It is a major driver of economic growth through innovation and productivity
ExplanationSkilled labor fosters innovation and enhances productivity.
#12
Which of the following is an example of a supply-side policy to promote economic growth?
Implementing tax cuts for businesses
ExplanationTax cuts incentivize investment and entrepreneurship.
#13
What is the name given to the phenomenon when a country's economy stops growing?
Stagnation
ExplanationStagnation marks a prolonged period of economic standstill.
#14
According to the Harrod-Domar model, what is the key factor determining economic growth?
Investment rate
ExplanationInvestment drives capital accumulation and growth.
#15
Which of the following factors can lead to a decrease in potential economic growth?
Aging population
ExplanationAn aging workforce can reduce labor force participation and productivity.
#16
What is the 'rule of 70' used to estimate?
Economic growth rate
ExplanationIt estimates the time required for an economy to double in size.
#17
Which of the following is a characteristic of sustainable economic growth?
Balanced utilization of resources to meet current and future needs
ExplanationSustainable growth ensures resources are managed for long-term benefit.
#18
What is the name of the phenomenon where technological advancements lead to an increase in productivity and economic growth?
Technological revolution
ExplanationTechnological breakthroughs drive efficiency and economic expansion.
#19
According to the neoclassical growth theory, what is the primary driver of economic growth?
Physical capital accumulation
ExplanationAccumulating capital goods enhances productivity and growth.
#20
Which of the following is NOT a factor affecting economic growth?
Income inequality
ExplanationIncome inequality typically relates more to distribution than overall growth.
#21
Which of the following is NOT a characteristic of sustained economic growth?
Decreasing productivity
ExplanationSustained growth entails consistent or increasing productivity.
#22
Which economic theory suggests that economic growth is primarily driven by increasing returns to scale?
Endogenous Growth Theory
ExplanationIt emphasizes internal factors promoting continuous growth.
#23
Which of the following is NOT a potential constraint on economic growth?
Abundant natural resources
ExplanationAbundant resources typically facilitate growth, not hinder it.
#24
What is the term used to describe the maximum level of output an economy can sustain over the long term?
Full employment output
ExplanationIt denotes the optimal output level without inflationary pressures.
#25
What does the term 'convergence' refer to in the context of economic growth?
The tendency for poorer countries to catch up to richer countries in terms of economic growth
ExplanationConvergence suggests equalizing growth rates between economies over time.