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Economic Growth in the Global Economy MCQ

1. Economic _________has affected bread-winning and consumption in american families.

Globalization

Immunization

Polarization

Deprivation

Answer

Correct Answer: Globalization

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2. The broadest measure to adjust nominal gdp for price changes is _____.

The GDP price index

Not current production

An oven bought by a homeowner

None of these

Answer

Correct Answer: The GDP price index

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3. The _____in an economy whose aggregate real output is growing faster than the total population.

Real GDP per capita is rising

Between 40 and 45 years

Real GDP per capita

Faster technological progress

Answer

Correct Answer: Real GDP per capita is rising

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4. An increase in ________ would lead to an increase in long-run economic growth.

Resources and technology

A movement upward along

A movement downward along

A movement upward opposite

Answer

Correct Answer: Resources and technology

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5. Problem solving is to as problem finding is to .

Expertise; creativity

Subconscious; cognition

Cognition; subconscious

Creativity; expertise

Answer

Correct Answer: Expertise; creativity

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6. _____ is the increase in efficiency gained by producing more output without using more inputs.

Saving

Real GDP per capita

Technological progress

Capital deepening

Answer

Correct Answer: Technological progress

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7. According to classical growth theory, when real gdp per person ______, the population grows.

Rises above the subsistence level

Grows forever

Is constant and does not change

Increases as the population grows

Answer

Correct Answer: Rises above the subsistence level

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8. What did China do between 1980 and 2015 to try to increase economic growth per capita?

It encouraged citizens to have large families so there would be more workers.

It acquired additional land for farming from its neighbors.

It regulated how many children a family could have.

It limited educational access for women.

Answer

Correct Answer: It regulated how many children a family could have.

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9. What is one reason why Malthus’s theory was ultimately incorrect for most of the world?

Improved technology is able to mitigate some of the impact of the law of diminishing returns.

The law of diminishing returns does not apply when labor is involved.

Unenforceable property rights mean that land is constantly changing hands and is not worked to its fullest potential.

Most countries have more natural resources than they can ever hope to use.

Answer

Correct Answer: Improved technology is able to mitigate some of the impact of the law of diminishing returns.

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10. The Reverend Thomas Malthus based his predictions about per capita economic growth and wages on several assumptions, including the idea that ______.

The economy was service based

Humans would choose to control the birthrate

Technology can overcome marginal diminishing returns

There is a fixed supply of land

Answer

Correct Answer: There is a fixed supply of land

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11. Which statement about world population growth is true?

Rapid population growth hindered U.S. economic growth during the mid-nineteenth century.

If population increases more slowly than output, per capita output will fall.

The United Nations expects the world population to level off around 2100.

Most future population growth is expected to occur in developing countries.

Answer

Correct Answer: Most future population growth is expected to occur in developing countries.

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12. Economists refer to a government’s ability to enforce contracts and protect property rights the ______.

Law of diminishing marginal returns

Rule of law

Malthusian Prediction

Standard of ceteris paribus

Answer

Correct Answer: Rule of law

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13. One of the main objectives of the International Monetary Fund and World bank is to ______.

Ensure international economic equality so that no one country becomes too wealthy

Boost savings rates around the world to spur growth

Help channel money to developing countries for investment in infrastructure

Protect private property rights and enforce the rule of law

Answer

Correct Answer: Help channel money to developing countries for investment in infrastructure

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14. Which statement about saving is true?

Higher levels of saving generally lead to greater investment and economic growth.

The standard of living in a nation will rise if every dollar earned is saved.

Economies are more likely to grow if individuals consume the majority of their income.

The link between saving and economic growth is tenuous at best.

Answer

Correct Answer: Higher levels of saving generally lead to greater investment and economic growth.

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15. Which statement regarding democracy and economic growth is true?

Democracy is a natural and inevitable result of economic growth.

Majority voting and some other democratic features can hinder growth.

The highest levels of growth are found in democratic societies.

Authoritarian societies do not pursue policies to increase economic growth.

Answer

Correct Answer: Majority voting and some other democratic features can hinder growth.

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16. An economy can offset diminishing marginal returns by ______.

Raising the standard of living

Promoting saving

Increasing the number of people working on a given task

Implementing technological innovations

Answer

Correct Answer: Implementing technological innovations

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17. Innovation is best defined as the ______.

Lowering of firm costs through productivity gains

Adoption of a process or product

Ability to increase output with fewer workers

Use of technology in production

Answer

Correct Answer: Adoption of a process or product

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18. Which statement about natural resources is true?

Access to abundant natural resources tends to enhance national output.

Natural resources are the single most telling predictor of a nation’s output.

A country that lacks natural resources will not grow economically.

Labor is a form of natural resource.

Answer

Correct Answer: Access to abundant natural resources tends to enhance national output.

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19. Labor productivity is best defined as ______.

The average annual output of a nation

The efficient use of resources

Output per unit of worker

The aggregate value of worker output

Answer

Correct Answer: Output per unit of worker

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20. Which statement about productivity is true?

Productivity is usually measured in terms of labor.

Productivity measures a nation’s annual output.

A nation’s productivity rises as its population grows.

A nation’s standard of living falls when its productivity rises.

Answer

Correct Answer: Productivity is usually measured in terms of labor.

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21. According to the rule of 70, an economy with an annual growth rate of 4 percent will double its output after ______ years.

280

175

17.5

Answer

Correct Answer: 17.5

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22. Economists typically measure economic growth by looking at ______.

Standard of living

Real GDP per capita

Natural rate of output

The rule of 70

Answer

Correct Answer: Real GDP per capita

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23. Activities undertaken to create new products and processes that will lead to technological progress is research and development

True

False

Answer

Correct Answer: True

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24. ___ per unit of worker is labour productivity

Input

Output

Person

Work

Answer

Correct Answer: Output

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25. Applications of new knowledge that create new products or improve existing products is called

Innovation

Productivity

Ideas

All of these

Answer

Correct Answer: Innovation

Note: This Question is unanswered, help us to find answer for this one

Macroeconomics MCQs | Topic-wise

MCQ on Aggregate Demand and Supply	MCQ on Aggregate Expenditure Model
MCQ on Economic Growth in the Global Economy	MCQ on Financial Markets, Saving, and Investment
MCQ on Fiscal Policy in Economics	MCQ on Introduction to Macroeconomics
MCQ on Issues in Macroeconomic Theory and Policy	MCQ on Measuring Economic Performance
MCQ on Monetary Policy of Economics	MCQ on Money, Banking, and the Federal Reserve System
General Macroeconomics MCQs

Economic Growth in the Global Economy MCQ

1. Economic _________has affected bread-winning and consumption in american families.

2. The broadest measure to adjust nominal gdp for price changes is _____.

3. The _____in an economy whose aggregate real output is growing faster than the total population.

4. An increase in ________ would lead to an increase in long-run economic growth.

5. Problem solving is to ____ as problem finding is to ____.

6. _____ is the increase in efficiency gained by producing more output without using more inputs.

7. According to classical growth theory, when real gdp per person ______, the population grows.

8. What did China do between 1980 and 2015 to try to increase economic growth per capita?

9. What is one reason why Malthus’s theory was ultimately incorrect for most of the world?

10. The Reverend Thomas Malthus based his predictions about per capita economic growth and wages on several assumptions, including the idea that ______.

11. Which statement about world population growth is true?

12. Economists refer to a government’s ability to enforce contracts and protect property rights the ______.

13. One of the main objectives of the International Monetary Fund and World bank is to ______.

14. Which statement about saving is true?

15. Which statement regarding democracy and economic growth is true?

16. An economy can offset diminishing marginal returns by ______.

17. Innovation is best defined as the ______.

18. Which statement about natural resources is true?

19. Labor productivity is best defined as ______.

20. Which statement about productivity is true?

21. According to the rule of 70, an economy with an annual growth rate of 4 percent will double its output after ______ years.

22. Economists typically measure economic growth by looking at ______.

23. Activities undertaken to create new products and processes that will lead to technological progress is research and development

24. ___ per unit of worker is labour productivity

25. Applications of new knowledge that create new products or improve existing products is called

5. Problem solving is to as problem finding is to .