#1
Which of the following is a measure of economic growth?
Gross Domestic Product (GDP)
Consumer Price Index (CPI)
Unemployment Rate
Stock Market Index
#2
What is the primary focus of macroeconomic perspectives on economic growth?
Micro-level factors influencing individual industries
Government policies affecting international trade
Aggregate economic variables at the national level
Social and cultural influences on consumer behavior
#3
Which of the following is NOT a factor that can contribute to economic growth?
Increase in labor force participation rate
Decrease in investment in physical capital
Technological innovation
Improvement in education levels
#4
What does the term 'convergence' refer to in the context of economic growth?
The tendency for countries with lower per capita incomes to catch up to those with higher per capita incomes
The process of diverging economic performance among countries
The movement of labor from one industry to another
The convergence of inflation rates across different countries
#5
What is the relationship between economic growth and unemployment?
Economic growth and unemployment have a positive correlation
Economic growth and unemployment have a negative correlation
There is no relationship between economic growth and unemployment
Economic growth leads to an increase in unemployment
#6
Which theory suggests that technological progress drives economic growth?
Keynesian Economics
Classical Economics
Neoclassical Growth Theory
Structuralist Economics
#7
What is the Solow Growth Model primarily used for?
Predicting short-term fluctuations in economic output
Analyzing the impact of fiscal policy on economic growth
Explaining long-run economic growth based on factors like capital accumulation and technological progress
Assessing the effects of inflation on consumer purchasing power
#8
Which of the following is a characteristic of sustainable economic growth?
High inflation rates
Increased income inequality
Environmental degradation
Balanced economic development over time
#9
What role does human capital play in fostering economic growth?
It has no significant impact on economic growth
It only affects short-term economic performance
It enhances labor productivity and promotes technological innovation
It primarily affects government spending patterns
#10
What is the significance of the Harrod-Domar model in understanding economic growth?
It explains the relationship between inflation and unemployment
It focuses on the impact of technological progress on economic growth
It emphasizes the role of savings and investment in promoting economic growth
It analyzes the effects of government intervention on market equilibrium
#11
According to endogenous growth theory, what drives sustained economic growth?
Exogenous factors like government intervention
Exponential population growth
Endogenous factors such as human capital accumulation and technological innovation
Natural resource abundance
#12
In the context of economic growth, what does the term 'diminishing returns to capital' imply?
As investment in physical capital increases, the additional output generated decreases
Investment in human capital yields decreasing returns over time
Higher levels of inflation reduce the effectiveness of capital investment
Government intervention is required to achieve optimal returns from capital investment
#13
Which of the following is a potential consequence of sustained economic growth?
Decreased productivity levels
Increased income inequality
Environmental sustainability
Decreased consumer spending
#14
What is the relationship between economic growth and environmental sustainability?
Economic growth is always detrimental to environmental sustainability
Economic growth and environmental sustainability are unrelated
Economic growth can be achieved without harming environmental sustainability with proper policies and technologies
Environmental sustainability is only achievable at the expense of economic growth
#15
What is the impact of technological innovation on economic growth?
It only benefits developed countries
It leads to short-term economic growth but has no long-term impact
It drives productivity gains, fosters new industries, and boosts overall economic growth
It primarily leads to job losses and economic stagnation