29 Economic Growth

The diagram shows a country's economic growth over the period 2012 to 2016.

Which statement is correct?

• output was highest in 2012

• output was highest in 2016

• output fell from 2014 to 2016

• output was unchanged between 2012 and 2013

What is meant by economic growth?

• an increase in exports

• an increase in population

• an increase in real GDP

• an increase in the price level

If consumer expenditure is $30bn, government expenditure is  $10bn, investment is $20bn, exports are $16bn and imports are $20bn, what is GDP?

• $56bn

• $76bn

• $80bn

• $96bn

What is most likely to cause economic growth?

• an increase in capital depreciation

• an increase in education and training of workers

• an increase in taxation

• an increase in unemployment

What does Gross Domestic Product

mean?

• The total value of all goods and services a country imports.

• The total value of all goods and services a country exports.

• The total value of all goods and services produced within a country in one year.

• The net loss in profits within a country due to imports.

The___________ a country’s GDP, the better the country’s standard of living.

• 
  lower

• greater

• smaller

• lower and smaller are correct

What are the 4 factors that lead to a country’s economic growth?

• investment in human capital, investment in physical capital, land (natural resources), entrepreneurship

• good international relations, a democratic president, strict laws, freedom of press

• a powerful military, strong dictatorial leadership, communist regime, little personal freedom

• a monarchy, the World Bank, a parliamentary democracy, personal freedom

Which cause of economic growth would involve the least cost for present and future generations of a country’s population?

• increased exploitation of a country’s mineral resources

• investment financed by borrowing from abroad

• investment financed by high rates of domestic savings

• technological innovations in productive processes

What is meant by potential economic growth?

• an increase in the total demand in the economy

• an increase in productive capacity of an economy

• the economy’s export revenue being greater than its import expenditure

• the economy operating at full employment

The recurrent pattern of fairly predictable fluctuations in the growth rate of real GDP over time.

• recession

• real GDP

• value added

• business cycle