Economic Growth

1. Which of the following is not a consequence of economic growth?

• Increased standard of living
• Decreased national income
• More employment opportunities
• Technological advancement

2. The PPC (Production Possibility Curve) moves inward during a...?

• Boom
• Recession
• Stable Economy
• Expansion

3. Which of these factors does not promote economic growth?

• Increased consumer confidence
• Technological stagnation
• Increased investment
• Quality of the factors of production

4. GDP per capita is a measure that considers...?

• Total GDP
• Total population
• Both GDP and population
• Neither GDP nor population

5. A decrease in total demand can result in...?

• Movement from outside the PPC to inside
• Movement from inside the PPC to the right
• Movement from the right of PPC to the left
• No movement on the PPC

6. How do changes in technology primarily affect economic growth?

• By reducing total production
• By decreasing the quality of factors of production
• By enabling more efficient production processes
• By reducing the demand for goods and services

7. Which policy might not promote economic growth?

• Decreasing interest rates
• Increasing taxes on all goods and services
• Investing in infrastructure
• Promoting technological research

8. A high GDP per capita necessarily indicates...?

• An equal distribution of income
• A high standard of living
• A large population size
• High national debt

9. One potential negative consequence of rapid economic growth is...?

• Lower inflation
• Reduced income inequality
• Environmental degradation
• Decreased technological innovation

10. If a country is experiencing a recession, which of these might be observed?

• PPC shifting outward
• Decrease in unemployment
• Decrease in total demand
• Increase in investment