Unit 4 - Economic Growth

What is economic growth?

• An increase in a nation's capacity to produce goods and services over time
• A decrease in a nation's capacity to produce goods and services over time
• The total market value of goods and services
• None of the above

What is Gross Domestic Product (GDP)?

• The average income per person
• The total market value of all final goods and services produced within an economy
• The rate of unemployment
• None of the above

What is the difference between Real GDP and Nominal GDP?

• Real GDP measures output at current prices, while Nominal GDP measures output at constant prices
• Real GDP measures output at constant prices, while Nominal GDP measures output at current prices
• There is no difference between Real GDP and Nominal GDP
• None of the above

How is GDP per capita calculated?

• GDP * Population
• GDP - Population
• GDP / Population
• None of the above

What does an increase in real GDP over time indicate?

• Economic decline
• Economic stagnation
• Economic growth
• None of the above

On a Production Possibility Curve (PPC), how is economic growth illustrated?

• An inward shift of the PPC
• A point inside the PPC
• An outward shift of the PPC
• None of the above

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

• Technological advancements
• Decrease in resource allocation
• Discovery of more natural resources
• Investment in capital and infrastructure

What is one benefit of economic growth?

• Decrease in employment opportunities
• Lower living standards
• Increase in availability of goods and services
• None of the above

Which of the following is a drawback of economic growth?

• Stable inflation
• Environmental issues like pollution and climate change
• Increased availability of goods and services
• None of the above

What is sustainable economic growth?

• A growth rate that can be maintained without causing significant economic problems for future generations
• A rapid rate of economic growth
• A slow rate of economic growth
• None of the above