Factors Affecting Economic Development Quiz

Test your knowledge on development economics with questions about economic theories, indicators, factors of production, and more.

#1

Which of the following is NOT a factor affecting economic development?

Access to education
Political stability
Population density
Natural resource abundance
1 answered
#2

Which economic indicator measures the total value of all goods and services produced within a country's borders in a specific time period?

Gross Domestic Product (GDP)
Consumer Price Index (CPI)
Unemployment rate
Balance of trade
1 answered
#3

Which of the following is a characteristic of a developed economy?

High income inequality
Low literacy rate
High level of industrialization
High unemployment rate
1 answered
#4

Which of the following is NOT considered a factor of production?

Labor
Land
Money
Capital
1 answered
#5

What is the term for a sustained increase in the general price level of goods and services in an economy over a period of time?

Deflation
Inflation
Stagflation
Hyperinflation
1 answered
#6

Which economic theory suggests that government intervention in the economy should be minimal?

Keynesian economics
Neoclassical economics
Marxian economics
Mercantilism
1 answered
#7

What is the primary focus of human capital theory in economic development?

Investment in physical infrastructure
Maximizing profit for shareholders
Investment in education and healthcare
Exploitation of natural resources
1 answered
#8

What is the term for the total value of a country's exports minus the total value of its imports?

Trade deficit
Trade surplus
Balance of payments
Current account balance
1 answered
#9

Which economic concept refers to the ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than other producers?

Comparative advantage
Absolute advantage
Elasticity
Marginal utility
1 answered
#10

Which of the following is an example of a monetary policy tool?

Taxation
Government spending
Open market operations
Minimum wage laws
1 answered
#11

According to the Solow growth model, what is the main driver of long-term economic growth?

Technological progress
Government intervention
Labor force participation
Natural resource availability
1 answered
#12

According to the Harrod-Domar model, what is the key determinant of economic growth?

Savings and investment
Government spending
Technological progress
Population growth
1 answered
#13

What is the term for the level of output that maximizes the use of available resources without causing inflation?

Full employment level of output
Equilibrium level of output
Production possibilities frontier
Marginal level of output
1 answered

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