Economic Growth: Unleashing The Potential Of Human Flourishing
Questions and Answers
- 1.
A sustained increase in the overall output per person is often called a country’s what?
- A.
Economic growth
- B.
Standard of living
- C.
The Economic norm
- D.
Frugal economy
Correct Answer
B. Standard of livingExplanation
A sustained increase in the overall output per person refers to economic growth. Economic growth is a measure of the increase in the total value of goods and services produced by a country over a specific period of time. This increase in output per person reflects an improvement in the standard of living, as it indicates that the country is producing more goods and services per person, leading to higher incomes and a higher quality of life for its citizens. Therefore, the correct answer is standard of living.Rate this question:
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- 2.
Which metric is the best to use when talking about economic well-being?
- A.
Gross domestic product (GDP)
- B.
Minimum wage level
- C.
Income per person
- D.
Unemployment rate
Correct Answer
C. Income per personExplanation
Income per person is the best metric to use when talking about economic well-being because it provides a more comprehensive and individual-focused measure of economic prosperity. While GDP measures the total value of goods and services produced in a country, it does not consider how that wealth is distributed among the population. Minimum wage level and unemployment rate are important indicators, but they do not provide a complete picture of overall economic well-being. Income per person takes into account the average income earned by individuals, allowing for a better understanding of the standard of living and economic opportunities available to the population.Rate this question:
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- 3.
GDP per capita is strongly correlated with:
- A.
Literacy
- B.
Longevity
- C.
Economic regulation
- D.
Both A and B
- E.
All of the above
Correct Answer
D. Both A and BExplanation
GDP per capita is strongly correlated with both literacy and longevity. Literacy rates indicate the level of education and knowledge in a country, which is essential for economic growth and development. Similarly, longevity reflects the overall health and well-being of a population, which is closely linked to economic prosperity. Therefore, countries with higher literacy rates and longer life expectancies tend to have higher GDP per capita. Economic regulation, although important, may not have as direct of an impact on GDP per capita as literacy and longevity do.Rate this question:
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- 4.
Evidence shows that global inequality is falling in which of these categories?
- A.
Life expectancy, health, and educational attainment
- B.
Education attainment, income, and GDP
- C.
Life expectancy, health, and income
- D.
Educational attainment, health, and GDP
Correct Answer
A. Life expectancy, health, and educational attainmentExplanation
The correct answer is Life expectancy, health, and educational attainment. This is supported by evidence that shows improvements in these areas globally. Life expectancy has been increasing in many countries, indicating better overall health outcomes. Additionally, access to education has improved, leading to higher educational attainment rates worldwide. These trends suggest that global inequality is decreasing in terms of life expectancy, health, and educational opportunities.Rate this question:
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- 5.
What accurately describes the relationship between economic growth and national finances?
- A.
Growth increases government revenues and decreases government spending.
- B.
Growth decreases government revenues and increases government spending.
Correct Answer
A. Growth increases government revenues and decreases government spending.Explanation
Economic growth leads to an increase in government revenues as it generates more taxable income and consumption. This allows the government to collect more taxes, such as income tax and sales tax, resulting in higher revenue. Additionally, economic growth reduces government spending as it leads to a decrease in social welfare payments, such as unemployment benefits, and an increase in employment, reducing the need for government assistance. Therefore, growth increases government revenues and decreases government spending.Rate this question:
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- 6.
In order to encourage growth a country should have which of the following:
- A.
An independent judiciary within a constitutionally governed system that respects civil rights
- B.
The principle of equality before the law
- C.
The legitimacy of private property rights
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
An independent judiciary within a constitutionally governed system that respects civil rights, the principle of equality before the law, and the legitimacy of private property rights are all necessary for encouraging growth in a country. An independent judiciary ensures fairness and impartiality in the legal system, which promotes trust and confidence among individuals and businesses. The principle of equality before the law ensures that everyone is treated equally, regardless of their social status or wealth, fostering a level playing field for economic activities. The legitimacy of private property rights provides individuals and businesses with the incentive and security to invest, innovate, and accumulate wealth, which contributes to economic growth.Rate this question:
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- 7.
Which of the following encourages people to protect natural resources?
- A.
Financial rewards
- B.
Policy Solutions
- C.
Enforceable property rights
- D.
Tax breaks
Correct Answer
C. Enforceable property rightsExplanation
Enforceable property rights encourage people to protect natural resources because when individuals have ownership and control over a piece of land or resource, they are more likely to take care of it and prevent its degradation or depletion. With enforceable property rights, individuals have the incentive to invest in the preservation and sustainable use of natural resources, as they can benefit from their long-term value. This approach promotes responsible stewardship and ensures that resources are not exploited or damaged for short-term gains.Rate this question:
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- 8.
According to the "environmental Kuznets curve" (EKC) economic growth has what effect on pollution?
- A.
Makes it worse indefinitely.
- B.
Has no effect.
- C.
Makes pollution worse initially, until new technologies are created to bring levels down.
Correct Answer
C. Makes pollution worse initially, until new technologies are created to bring levels down.Explanation
According to the environmental Kuznets curve (EKC), economic growth initially leads to an increase in pollution levels. This is because as countries develop and industrialize, they tend to prioritize economic growth over environmental concerns. However, as they reach a certain level of economic development, they start investing in cleaner technologies and policies to reduce pollution. Therefore, economic growth makes pollution worse initially, but eventually, new technologies are created to bring pollution levels down.Rate this question:
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- 9.
Which of the following is true about the critiques of economic growth?
- A.
It results in a growing abundance of goods and services that may lead individuals to place their trust in wealth for their security.
- B.
It creates a concern about how growth and the market economy will affect values and morality.
- C.
It leads to a decline in the value of community.
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
All of the above options are true about the critiques of economic growth. Economic growth can result in a growing abundance of goods and services, which may lead individuals to rely on wealth for their security. It also creates concerns about how growth and the market economy may impact values and morality. Additionally, economic growth can lead to a decline in the value of community as the focus shifts towards individual wealth accumulation.Rate this question:
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- 10.
Commercialization can encourage improved moral character because:
- A.
They are allowed opportunities for higher education, where they learn about morals and values in life.
- B.
The value of a good personal reputation and the rewards from being able to collaborate in business with people outside of one's family are so much bigger than before.
- C.
People want to seem honorable and good natured in order to secure a job in the growing economy.
Correct Answer
B. The value of a good personal reputation and the rewards from being able to collaborate in business with people outside of one's family are so much bigger than before.Explanation
Commercialization can encourage improved moral character because the value of a good personal reputation and the rewards from being able to collaborate in business with people outside of one's family are so much bigger than before. In a commercialized society, individuals are more motivated to maintain a positive reputation and demonstrate honorable behavior in order to secure job opportunities and succeed in the growing economy. The potential benefits and opportunities that come with a good reputation incentivize individuals to prioritize morals and values in their personal and professional lives.Rate this question:
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