Economic Growth And Productivity - Practice Quiz

8 Questions | Total Attempts: 493

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Economic Growth And Productivity - Practice Quiz


Questions and Answers
  • 1. 
    A rapid increase in population will result in
    • A. 

      An increase in real GDP and per capita GDP.

    • B. 

      An increase in real GDP but a decrease in per capita GDP.

    • C. 

      A decrease in real GDP but an increase in per capita GDP.

    • D. 

      A decrease in both real GDP and per capita GDP.

    • E. 

      No change in per capita GDP but a decrease in real GDP.

  • 2. 
    Increases in the capital stock will lead to
    • A. 

      Decreases in wages and GDP.

    • B. 

      Increases in wages and decreases in GDP.

    • C. 

      Decreases in wages and increases in GDP.

    • D. 

      Increases in wages and GDP.

    • E. 

      No change in wages or the GDP.

  • 3. 
    Technological progress occurs when the economy gets more output
    • A. 

      Without using any more capital or labor.

    • B. 

      By using more capital per worker.

    • C. 

      By using more capital but not more workers.

    • D. 

      By using more labor but not more capital.

    • E. 

      By using more capital but not more labor.

  • 4. 
    Human capital consists of
    • A. 

      Machines that require workers in order to produce most efficiently.

    • B. 

      Any production technique developed by humans.

    • C. 

      Workers' education and skills.

    • D. 

      Workers in factories.

    • E. 

      Workers who can be used instead of machines.

  • 5. 
    To determine the change in the capital stock, the level of gross investment must be adjusted for depreciation because some new investment
    • A. 

      Is not used immediately.

    • B. 

      Replaces existing, but worn out, capital.

    • C. 

      Replaces existing workers.

    • D. 

      Is more efficient than existing capital.

    • E. 

      Is usually unproductive.

  • 6. 
    GDP per capita is
    • A. 

      GDP per person.

    • B. 

      GDP in real terms.

    • C. 

      The same as the GNP.

    • D. 

      GDP nominal terms.

    • E. 

      GDP adjusted for inflation.

  • 7. 
    One way that a government can encourage economic growth is by encouraging
    • A. 

      Population growth.

    • B. 

      Consumption.

    • C. 

      Saving and investment.

    • D. 

      Imports.

    • E. 

      Accumulation of wealth.

  • 8. 
    Economists compare how rich or poor different nations are by measuring their
    • A. 

      GDP.

    • B. 

      Debt-to-GDP ratio.

    • C. 

      GNP.

    • D. 

      GDP per unit of capital.

    • E. 

      Per capita GDP.

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