Back
0

Economic Growth and Its Determinants

Description: This quiz covers the concepts and factors related to economic growth and its determinants.
Number of Questions: 15
Created by:
Tags: economics economic growth determinants of economic growth
Start the Quiz
Attempted 0/15 Correct 0 Score 0
‹
›

Which of the following is NOT a determinant of economic growth?

  1. Technological progress

  2. Capital accumulation

  3. Natural resources

  4. Government policies

Show answer
Correct Option: C
Explanation:

While natural resources can contribute to economic growth, they are not a determinant of economic growth in the same way that technological progress, capital accumulation, and government policies are.

Which of the following is an example of technological progress?

  1. The development of new machinery

  2. The discovery of new energy sources

  3. The invention of new products

  4. All of the above

Show answer
Correct Option: D
Explanation:

Technological progress encompasses all of these advancements and innovations.

What is the relationship between capital accumulation and economic growth?

  1. Capital accumulation leads to economic growth.

  2. Economic growth leads to capital accumulation.

  3. They are independent of each other.

  4. None of the above

Show answer
Correct Option: A
Explanation:

Capital accumulation, such as investment in machinery and equipment, contributes to increased productivity and output, leading to economic growth.

How do government policies affect economic growth?

  1. Government policies can promote economic growth.

  2. Government policies can hinder economic growth.

  3. Government policies have no effect on economic growth.

  4. Both A and B

Show answer
Correct Option: D
Explanation:

Government policies such as taxation, regulation, and infrastructure investment can both promote or hinder economic growth, depending on their design and implementation.

Which of the following is an example of a government policy that can promote economic growth?

  1. Reducing taxes on businesses

  2. Investing in education and infrastructure

  3. Deregulating industries

  4. All of the above

Show answer
Correct Option: D
Explanation:

All of these policies can potentially promote economic growth by encouraging investment, innovation, and productivity.

What is the Solow growth model?

  1. A model that explains how technological progress drives economic growth.

  2. A model that explains how capital accumulation drives economic growth.

  3. A model that explains how government policies affect economic growth.

  4. A model that combines all of the above factors to explain economic growth.

Show answer
Correct Option: D
Explanation:

The Solow growth model is a neoclassical economic growth model that incorporates technological progress, capital accumulation, and government policies to explain economic growth.

What is the steady-state growth rate in the Solow growth model?

  1. The rate of growth at which the economy reaches equilibrium.

  2. The rate of growth at which the economy experiences constant returns to scale.

  3. The rate of growth at which the economy experiences diminishing returns to scale.

  4. None of the above

Show answer
Correct Option: A
Explanation:

The steady-state growth rate is the rate of growth at which the economy reaches equilibrium, where the capital stock and output per worker are constant.

What is the role of human capital in economic growth?

  1. Human capital contributes to economic growth through increased productivity.

  2. Human capital contributes to economic growth through increased innovation.

  3. Human capital contributes to economic growth through increased entrepreneurship.

  4. All of the above

Show answer
Correct Option: D
Explanation:

Human capital, which encompasses education, skills, and knowledge, contributes to economic growth through increased productivity, innovation, and entrepreneurship.

Which of the following is an example of a country that has experienced rapid economic growth in recent decades?

  1. China

  2. India

  3. South Korea

  4. All of the above

Show answer
Correct Option: D
Explanation:

China, India, and South Korea have all experienced rapid economic growth in recent decades, driven by factors such as technological progress, capital accumulation, and government policies.

What are the challenges to achieving sustainable economic growth?

  1. Environmental degradation

  2. Resource depletion

  3. Income inequality

  4. All of the above

Show answer
Correct Option: D
Explanation:

Achieving sustainable economic growth requires addressing challenges such as environmental degradation, resource depletion, and income inequality.

What is the role of international trade in economic growth?

  1. International trade can promote economic growth through specialization and comparative advantage.

  2. International trade can promote economic growth through increased competition and innovation.

  3. International trade can promote economic growth through increased investment and capital flows.

  4. All of the above

Show answer
Correct Option: D
Explanation:

International trade can promote economic growth through specialization and comparative advantage, increased competition and innovation, and increased investment and capital flows.

What is the relationship between economic growth and economic development?

  1. Economic growth is a necessary condition for economic development.

  2. Economic development is a necessary condition for economic growth.

  3. They are independent of each other.

  4. None of the above

Show answer
Correct Option: A
Explanation:

Economic growth is a necessary condition for economic development, as it provides the resources and capabilities for improving living standards and social well-being.

What are the key indicators used to measure economic growth?

  1. Gross domestic product (GDP)

  2. Gross national product (GNP)

  3. Per capita income

  4. All of the above

Show answer
Correct Option: D
Explanation:

Key indicators used to measure economic growth include gross domestic product (GDP), gross national product (GNP), and per capita income.

What is the difference between economic growth and economic development?

  1. Economic growth is an increase in the quantity of goods and services produced, while economic development is an improvement in the quality of life.

  2. Economic growth is an increase in the size of the economy, while economic development is an improvement in the structure of the economy.

  3. Economic growth is a short-term phenomenon, while economic development is a long-term process.

  4. All of the above

Show answer
Correct Option: D
Explanation:

Economic growth and economic development are distinct concepts, with economic growth referring to an increase in the quantity and size of goods and services produced, while economic development encompasses improvements in the quality of life, structure of the economy, and long-term sustainability.

What are the main sources of economic growth in developing countries?

  1. Agriculture

  2. Manufacturing

  3. Services

  4. All of the above

Show answer
Correct Option: D
Explanation:

In developing countries, economic growth can be driven by agriculture, manufacturing, services, or a combination of these sectors.

- Hide questions
ADVERTISEMENT

Find more quizzes from top tags

general knowledge
3615 Quizzes
119858 Questions
 technology
307 Quizzes
36705 Questions
 sports
963 Quizzes
19148 Questions
 history
1187 Quizzes
13475 Questions
 physics
598 Quizzes
13441 Questions
 biology
1160 Quizzes
12174 Questions
 science & technology
551 Quizzes
11015 Questions
 chemistry
490 Quizzes
9892 Questions
 maths
518 Quizzes
9324 Questions
 softskills
0 Quizzes
7131 Questions