#1
Which of the following is a commonly used indicator of macroeconomic growth?
Gross Domestic Product (GDP)
ExplanationGDP measures the total value of goods and services produced within a country's borders.
#2
What does the term 'productivity' refer to in economics?
The amount of output produced per unit of input
ExplanationProductivity measures the efficiency of resource use in generating goods and services.
#3
Which of the following is a measure of labor productivity?
Output per worker per hour
ExplanationLabor productivity measures the amount of output produced per unit of labor input.
#4
What is the relationship between economic growth and human capital?
Higher levels of human capital lead to faster economic growth
ExplanationHuman capital, which includes skills, education, and health, enhances productivity and innovation.
#5
Which of the following is NOT a factor influencing macroeconomic growth?
Social media usage
ExplanationSocial media usage is not a direct determinant of macroeconomic growth.
#6
What is the Solow growth model used for?
To explain the long-run growth of an economy
ExplanationThe Solow growth model focuses on factors such as capital accumulation and technological progress.
#7
Which of the following is a characteristic of technological progress?
Increases the production possibilities of an economy
ExplanationTechnological progress expands the economy's ability to produce goods and services.
#8
What is the role of entrepreneurship in fostering macroeconomic growth?
Entrepreneurship leads to innovation and new business ventures
ExplanationEntrepreneurship drives innovation, which fuels economic growth by creating new products and markets.
#9
What is the difference between economic growth and economic development?
Economic growth refers to the increase in GDP, while economic development encompasses broader measures of well-being.
ExplanationEconomic growth is a quantitative measure, while economic development includes qualitative improvements in living standards, education, and healthcare.
#10
According to the Harrod-Domar model, what is the primary driver of economic growth?
Investment in capital goods
ExplanationThe Harrod-Domar model emphasizes the role of investment in increasing productive capacity.
#11
According to the neoclassical growth theory, what determines the long-run rate of economic growth?
Savings and investment rates
ExplanationNeoclassical theory posits that long-run economic growth depends on the savings and investment rates.
#12
What does the term 'total factor productivity' (TFP) measure?
The efficiency with which inputs are used to produce output
ExplanationTFP measures the effectiveness of combining labor, capital, and other inputs to generate output.
#13
According to the AK model of economic growth, what role does knowledge play in the growth process?
Knowledge accumulation is the primary driver of economic growth.
ExplanationIn the AK model, knowledge accumulation through research and development fuels economic growth.
#14
Which of the following best describes the concept of 'convergence' in economic growth theory?
The tendency of developing countries to catch up to the income levels of developed countries over time.
ExplanationConvergence theory suggests that poorer countries grow faster than richer ones and eventually reach similar income levels.