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Economic History of Economic Growth

Description: This quiz covers the key concepts and events in the economic history of economic growth, from the early days of capitalism to the modern era.
Number of Questions: 15
Created by:
Tags: economic history economic growth capitalism industrial revolution globalization
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Which country is credited with being the birthplace of capitalism?

  1. England

  2. France

  3. Germany

  4. Italy


Correct Option: A
Explanation:

Capitalism, as an economic system, originated in England during the 16th and 17th centuries.

The Industrial Revolution was a period of rapid technological and economic change that began in which country?

  1. England

  2. France

  3. Germany

  4. United States


Correct Option: A
Explanation:

The Industrial Revolution began in England in the late 18th century and spread to other parts of the world.

Which invention is widely regarded as the symbol of the Industrial Revolution?

  1. Steam engine

  2. Cotton gin

  3. Spinning jenny

  4. Power loom


Correct Option: A
Explanation:

The steam engine, invented by James Watt, played a crucial role in powering the factories and transportation systems of the Industrial Revolution.

What was the primary economic activity in pre-industrial societies?

  1. Agriculture

  2. Manufacturing

  3. Services

  4. Trade


Correct Option: A
Explanation:

Before the Industrial Revolution, most people worked in agriculture, producing food for themselves and their communities.

Which economic theory emphasizes the role of free markets and limited government intervention?

  1. Classical economics

  2. Keynesian economics

  3. Marxian economics

  4. Institutional economics


Correct Option: A
Explanation:

Classical economics, associated with economists like Adam Smith and David Ricardo, advocates for free markets and limited government interference.

The Great Depression was a severe worldwide economic crisis that began in the 1930s. What was the primary cause of this crisis?

  1. Stock market crash

  2. Bank failures

  3. Overproduction

  4. Drought


Correct Option: A
Explanation:

The Great Depression was triggered by the stock market crash of 1929, which led to a loss of confidence in the financial system and a decline in investment and spending.

Which economist is known for developing the theory of effective demand, which emphasizes the importance of aggregate demand in determining economic output?

  1. John Maynard Keynes

  2. Milton Friedman

  3. Friedrich Hayek

  4. Karl Marx


Correct Option: A
Explanation:

John Maynard Keynes, through his theory of effective demand, highlighted the role of aggregate demand in driving economic growth.

What is the term used to describe the rapid economic growth experienced by many countries in the post-World War II era?

  1. Economic miracle

  2. Golden age of capitalism

  3. Great Acceleration

  4. Long boom


Correct Option: B
Explanation:

The period from the end of World War II to the early 1970s is often referred to as the 'Golden Age of Capitalism' due to the sustained economic growth experienced by many countries.

Which technological revolution is characterized by the widespread adoption of computers, the internet, and digital technologies?

  1. Industrial Revolution

  2. Information Revolution

  3. Digital Revolution

  4. Technological Revolution


Correct Option: B
Explanation:

The Information Revolution refers to the technological advancements centered around computers, the internet, and digital technologies.

What is the term used to describe the increasing interconnectedness and interdependence of economies and cultures around the world?

  1. Globalization

  2. Internationalization

  3. Liberalization

  4. Economic integration


Correct Option: A
Explanation:

Globalization refers to the process of increasing interconnectedness and interdependence among countries and economies.

The Kuznets curve is a graphical representation of the relationship between which two variables?

  1. Economic growth and income inequality

  2. Economic growth and unemployment

  3. Economic growth and inflation

  4. Economic growth and government spending


Correct Option: A
Explanation:

The Kuznets curve illustrates the relationship between economic growth and income inequality, suggesting that inequality may initially increase during early stages of growth before eventually declining.

Which economic theory emphasizes the importance of institutions, culture, and social norms in shaping economic outcomes?

  1. Institutional economics

  2. Classical economics

  3. Keynesian economics

  4. Marxian economics


Correct Option: A
Explanation:

Institutional economics focuses on the role of institutions, culture, and social norms in shaping economic outcomes.

What is the term used to describe the process of structural transformation in an economy, where the share of agriculture declines while the shares of industry and services increase?

  1. Industrialization

  2. Deindustrialization

  3. Economic diversification

  4. Structural change


Correct Option: D
Explanation:

Structural change refers to the process of transformation in an economy's structure, typically involving a shift from agriculture to industry and services.

Which economic concept refers to the idea that long-term economic growth is driven by technological progress and innovation?

  1. Endogenous growth theory

  2. Exogenous growth theory

  3. Solow growth model

  4. Harrod-Domar model


Correct Option: A
Explanation:

Endogenous growth theory posits that technological progress and innovation are internal to the economic system and drive long-term economic growth.

The concept of 'creative destruction' is associated with which economist?

  1. Joseph Schumpeter

  2. John Maynard Keynes

  3. Milton Friedman

  4. Friedrich Hayek


Correct Option: A
Explanation:

Joseph Schumpeter introduced the concept of 'creative destruction,' emphasizing the role of innovation in driving economic growth and structural change.

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