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Economic Growth

Total questions: 15

Worksheet time: 14mins

Name
Class
Date
1.
Economic growth measures the
a)
a)     Growth of productivity
b)
b)     Increase in nominal income
c)
c)     Increase in output
d)
d)     None of the above
2.
Which of the following explains the term economic growth
a)
a)     Increase in per capita production
b)
b)     Increase in per capita real income
c)
c)     Structural change in the economy
d)
d)     All of the above
3.

Potential economic growth is a situation where an economy's productive capacity improved.

a)

True

b)

False

4.

AD curve shift to right to show potential economic growth

a)

True

b)

False

5.

AD curve shift to right to show actual economic growth

a)

True

b)

False

6.

LRAS curve shift to right to show potential economic growth

a)

True

b)

False

7.

Which of the following is the reason for an actual economic growth to occur?

a)

Quality of education improved

b)

Better technology used

c)

Household's income level increase

d)

Discovery of new resources

8.

Which of the following are the reasons for a potential economic growth to occur?

a)

Quality of education improved

b)

Better technology used

c)

Household's income level increase

d)

Discovery of new resources

9.

A period of macroeconomic expansion or growth, followed by a period of contraction, or decline.

a)

Business Cycle

b)

Circular Flow

c)

Equilibrium

d)

GDP

10.
Economic growth can be seen by an outward shift of
a)
a)     The Production Possibility Frontier
b)
b)     The Gross Domestic Barrier
c)
c)     The Marginal Consumption Frontier
d)
d)     The Minimum Efficient Scale
11.
Mass production led to:
a)
Products being more superior in quality
b)
goods became less expensive
c)
laborers received higher wages
d)
industries moved to rural areas
12.

What will result in the short run from rising unemployment in an economy?

a)

The government’s budget deficit will fall.

b)

Any existing inflationary pressure will be reduced.

c)

Potential output will fall.

d)

The economy’s production possibility curve will shift inwards

13.

How do literacy rates affect their standard of living?

a)

The higher the literacy rates the lower the standard of living.

b)

The higher the standard of living the lower the literacy rate.

c)

The higher the literacy rates the higher the standard of living.

d)

The lower the literacy rates the higher the standard of living.

14.

What is a life expectancy?

a)

is the average number of years a person can expect to live at any given age

b)

is the average of how much everyone in the country makes

c)

is the lack of both money and the basic necessities needed for life, including: food, water, shelter, healthcare

d)

the amount of babies that die before their first birthday per year

15.

What is the economic growth rate in year 2?

a)

5%

b)

10%

c)

11%

d)

20%