Factors of Economic Growth

How did adopting the euro help European Union member-states?

• It created another barrier to trade with nonmembers.

• It eliminated the costs of currency exchange

• It allowed member-states to economically specialize.

• It stopped the fluctuation of currency values

How do capital goods influence economic growth?

• Countries that invest in capital goods, produce less goods than countries that do not

• The more literate a person is, the less work they can do

• Countries that invest in capital goods, produce more goods than countries that do not

Which of the following is a primary factor of economic growth?

• Natural resources

• Fashion trends

• Social media influence

• Celebrity endorsements

How does human capital contribute to economic growth?

• By increasing the number of machines

• By improving worker skills and productivity

• By reducing the number of working hours

• By increasing the number of holidays

What role does technology play in economic growth?

• It decreases production efficiency

• It increases production costs

• It enhances productivity and innovation

• It reduces the need for education

Which sector is most likely to drive economic growth in a developing country?

• Agriculture

• Mining

• Manufacturing

• Tourism

How does infrastructure development affect economic growth?

• It slows down transportation

• It increases communication barriers

• It facilitates trade and connectivity

• It reduces employment opportunities

What is the impact of political stability on economic growth?

• It discourages foreign investment

• It promotes economic uncertainty

• It encourages foreign investment and growth

• It has no impact

Which of the following is a consequence of high inflation on economic growth?

• Increased purchasing power

• Decreased consumer spending

• Stable currency value

• Increased savings

How does education influence economic growth?

• By reducing the workforce

• By increasing unemployment

• By enhancing skills and innovation

• By decreasing productivity