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Contents
1 ECONOMIC GROWTH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.1 ECONOMIC GROWTH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1. ECONOMIC GROWTH
NARAYAN CHANGDER
1.1 ECONOMIC GROWTH
1. Define economic growth grees.What type of investment is de-
scribed?
A. an increase in real GDP or the real
quantity of goods and services produced
over a period of time (typically a year),
and is usually expressed as a percentage
change in real GDP or GDP/capita over a
period of time
B. refers to the natural rate of unemploy-
ment, or unemployment of labour that pre-
vails when the economy is producing po- A. entrepreneurship
tential output, or real GDP, determined by
the position of the LRAS curve (long run B. capital goods
equilibrium) C. human capital
C. refer to the maximum output of combi- D. Specialization
nation of two goods that can be produced
in an economy with fixed resources and 3. What are the 4 factors that lead to a coun-
technology, provided there is full or max- try’s economic growth?
imum employment of resource and effi-
ciency in production, implying zero unem-
ployment
D. levels of income, wealth and consump-
tion of goods and services, including
healthcare and education
2. The Kenyan government has begun a new A. investment in human capital, invest-
policy of giving away scholarships to stu- ment in physical capital, land (natural re-
dents looking to pursue engineering de- sources), entrepreneurship
1. A 2. C 3. A
1.1 ECONOMIC GROWTH 3
B. good international relations, a demo- 8. What are the things that influence labor
cratic president, strict laws, freedom of productivity growth?
press

A. Physical Capital Growth
C. a powerful military, strong dictatorial
leadership, communist regime, little per- B. Human Capital Growth
sonal freedom C. Technological Advances
D. a monarchy, the World Bank, a parlia- D. Environmental Capital Growth
mentary democracy, personal freedom
4. the ability to read and write 9. Real GDP is different from nominal GDP
because it:
A. literacy
A. Only includes goods and services pro-
B. literacy rate
duced by a country’s citizens
C. standard of living
B. Considers the value of all goods and
D. Balkans services produced in a country
5. Which of the following distinguishes nom- C. Accounts for inflation when measuring
inal GDP from real GDP? economic growth
A. Nominal GDP represents output D. Only includes government spending
whereas real GDP represents income and investments
B. Nominal GDP is the GDP level at cur-
rent prices whereas real GDP is adjusted 10. Germany’s literacy rate is 99%. Based
to remove the effects of inflation on this information, what can be concluded
C. Real GDP is the GDP level at current about Germany?
prices where nominal GDP is adjusted to A. Germany’s workforce has valuable hu-
remove the effects of inflation man capital.
D. Real GDP represents output where B. Germany’s businesses have valuable
nominal GDP represents income capital goods.
6. Which of the following represents an in- C. Germany has a low gross domestic
vestment in capital resources/goods? product.
A. providing free healthcare D. Germany has a low standard of living.
B. modernizing machinery
C. providing skills training 11. How could an economy incentivize ad-
vancements in human capital?
D. subsidizing the cost of attending uni-
versity A. reducing trade barriers
7. In the context of economic growth, what is B. giving legal protections to new techno-
the significance of reallocating resources? logical developments
A. It leads to inflation. C. providing tax credits for research and
B. It hinders economic growth. development
C. It improves efficiency and economic D. offering subsidies fo r college educa-
growth. tion
D. It causes a decline in GDP. E. encouraging investment in industry
4. A 5. B 6. B 7. C 8. A 8. B 8. C 9. C 10. A 11. D 12. A

12. What is the correct correlation (relation- 17. Why should countries invest in developing
ship) between natural resources and GDP? human capital?
A. GDP goes down when there is an abun-
dance of natural resources.
B. GDP goes up when there is an abun-
dance of natural resources.
13. Investment in capital goods typically leads
NARAYAN CHANGDER
to an A. it leads to lower literacy rate
A. increase in GDP B. investment in the education and skills
training of people creates a smarter and
B. decrease in GDP
more productive workforce, which relates
C. no change in GDP to a higher GDP.
D. none of above 18. the economic growth
14. What are the different types of industries A. economic growth
that contribute to economic growth? B. economic development
A. Manufacturing, agriculture, services, C. economic growth
and technology D. economic security
B. Finance, entertainment, and hospital-
19. A country with an aging population is
ity
MOST LIKELY to face rapidly rising costs
C. Education, healthcare, and transporta- for which of the following?
tion
A. refugees
D. Construction, mining, and retail B. pensions
15. a measure of the material aspects of an C. pollution
economy (includesthe level of wealth and D. unemployment
material comfort available to people)
20. a. an decrease in quantity and quality of
A. literacy
education
B. literacy rate A. Increase economic growth
C. standard of living B. Decrease economic growth
D. Balkans C. No change in economic growth
16. The concept of economic growth is D. none of above
A. Identical with the concept of economic 21. What does a Sheriff do to help govern a
development city?
B. Narrower than the concept of eco- A. Makes decisions about what laws
nomic development should be made.
C. Wider as compared to that of eco- B. -Main Jailer for the county-Enforces
nomic development laws-Ensures Peace
D. Unrelated to the concept of economic C. Tells the deputy to get to work
development D. Tells weather a person is guilty or not
13. A 14. A 15. C 16. B 17. B 18. C 19. B 20. B 21. B

22. A policy promoting education and skills D. Increase and decrease of prices of
training impacts inclusive economic growth goods and services in relation to the value
by: of money

A. Increasing consumer spending 26. Level 2A target market is a group of
B. Reducing the need for technology that the has decided to aim its market-
ing efforts and ultimately its merchandise
C. Enhancing workforce productivity
towards.
D. Decreasing export competitiveness
23. What are the two characteristics en-

trepreneurs must have? (select two)
A. innovative
B. challenging
C. difficult A. Companies, Business
D. risk taker B. Companies, Research
C. Customer, Business
24. What is the correct correlation (relation-
ship) between entrepreneurs affect GDP? D. Business, Customer
A. When a country invests in human cap- 27. The development of national housing (pe-
ital it has the ability to foster more en- rumnas) carried out by the government is
trepreneurs, the more entrepreneurs a an example of national development.
country has the higher the GDP.
B. When a country invests in human cap-
ital it has the ability to foster more en-
trepreneurs, the more entrepreneurs a
country has the lower the GDP.
25. What does inflation mean?

A. True
B. False
28. Growth of money and forms of saving

A. Savings are considered the corner-
stones of economic growth
B. Capital is formed through savings by
the private households, the state and the
A. Overall output of all goods and ser- private sector
vices
C. The less money that is saved, the more
B. Production, distribution and buying available for economic growth and devel-
and selling of products and services opment
C. The amount of money people have left- D. As savings by households, state and
over to spend private sector increase, banks and other
22. C 23. A 23. D 24. A 25. D 26. C 27. A 28. A 28. B 28. D
financial institutions have more money A. Increased employment opportunities,

available to lend to new and expanding technological advancements, improved
businesses standard of living
29. How does literacy influence economic B. Reduced poverty rates, increased gov-
growth? ernment revenue, enhanced economic
competitiveness
A. People that can read and write can-
C. Environmental degradation, depletion
not get better jobs and will not earn more
of natural resources, income inequality,
NARAYAN CHANGDER
money
and economic instability.
B. People that can read and write, can se-
D. Stable economic growth, balanced re-
cure better jobs and make more money.
gional development, increased foreign in-
They can then spend that money
vestment
C. People with low literacy can work bet-
ter jobs and make more money 33. Which of the following does the dimen-
sion of enhancing technology adoption and
D. none of above
stimulating innovation belong to?
30. How does entrepreneurship influence eco- A. Pagbabago (enhancing the social fab-
nomic growth? ric)
B. Caring (reducing inequality)
C. Enhancing growth potential
D. none of above
34. What is a type of development aid that

aims to raise the level of technology in a
A. it creates jobs and reduces unemploy- developing country?
ment
A. Tied aid
B. it encourages people to take risks, and
B. Technical Assistance Aid
in doing so, create better materials, prod-
ucts, and technologies C. Long term loans
C. the more entrepreneurs a country has, D. Project aid
the higher the country’s GDP
35. If labor productivity increases, production
D. answers 1, 2, and 3 are all correct is possible
31. What is technological knowledge? A. Increased
A. Tools in the mind or the stuff in peo- B. Decrease
ple’s heads
36. What principle of government is divided
B. Tools in the broadest sense like shov- into three branches and have their own
els and tractors functions?
C. Knowledge about how the world works A. Republicanism
D. The best technological knowledge B. Individual Rights
32. What are the long-term consequences of C. Separation of Powers

unsustainable economic growth? D. Popular Sovereignty
29. B 30. D 31. C 32. C 33. C 34. B 35. A 36. C 37. C

37. The percentage of a nations labour force B. Child Labor

that is unemployed. C. Per capita GDP

A. Balance of Employment D. none of above
B. Balance of Payments
42. What are the effects of Human Develop-
C. Unemployment ment Index on a country’s development?
D. Employment
A. HDI has no impact on a country’s de-
38. In which type of unemployment workers velopment
find it hard to obtain new jobs without re- B. HDI has a significant impact on a coun-
training, gaining additional education, or try’s development as it reflects the overall
relocating? well-being and standard of living of its cit-
izens.
C. HDI only affects the environment of a
country
D. HDI is only relevant for developed
countries
43. RURAL societies typically mean what kind

A. cyclical of economy?
B. frictional A. industrial
C. structural B. agricultural
D. all of them 44. If there is an increase in a nations wages
39. The part of the economy owned and oper- (not necessarily income) then the
ated by the national government A. AD curve shifts right
A. Public Sector B. AD curve shifts left
B. Private Sector C. AS curve shifts right
C. Profit D. AS curve shifts left
D. Natural Resource
45. Name one indicator used to measure eco-
40. Economic growth in India will happen nec- nomic development.
essarily if there is A. GDP
A. Population growth B. Population growth rate
B. Capital formation C. Inflation rate
C. Technical progress in the global econ- D. Unemployment rate
omy
D. All the above 46. Oil, trees and natural gas are examples of
A. human capital
41. the total dollar value of all goods and ser-
vices produced by a country in 1 year; you B. physical capital
can think of it as the size of the economy. C. entrepreneurship
A. GDP (Gross Domestic Product) D. natural resources
38. C 39. A 40. B 41. A 42. B 43. B 44. D 45. A 46. D

47. What connection can be made between a C. is a system of production, resource

nation’s literacy rate and its economy? allocation and distribution of goods and
A. Literate people are less economically services within a society or a given geo-
productive than illiterate people. graphic area
D. none of the above
B. Literate people consume fewer natu-
ral resources than illiterate people. 52. The physical effort of people to produce
C. Literate people can get higher paying goods or services describes which factor
of production?
NARAYAN CHANGDER
jobs than illiterate people and increase
economic activity. A. Land
D. Literate people are less likely than il- B. Capital
literate people to look for work outside of C. Labour
their home country.
D. Entrepreneurship
48. High levels of GDP per capita indicate
53. How does a rise in oil prices contribute to
A. Higher levels of happiness a recession?
B. Higher standard of living A. It leads to deflation.
C. Equal levels of wealth B. It causes a decline in unemployment.
D. Self-sufficient communities C. It triggers inflation and lower purchas-
ing power.
49. How long did it take for Thailand’s popu- D. It promotes sustainable growth.
lation to double the share of oldsters from
7% to 14%? 54. Argentinean tourists spending money in
A. 2 years Brazil?
A. BRAZIL trade balance increases
B. 24 years
B. ARGENTINA trade balance decreases
C. 72 years
C. none of the options are correct
D. Over a century
D. both options are correct
50. We have lower levels of foreign invest-
55. Countries need to fill jobs within the
ment compared to ASEAN countries be-
economy
cause of stricter laws regarding foreign
ownership. A. highly-skilled workforce
A. TRUE B. skilled workers
B. FALSE C. different kinds
D. different set of skills
51. Economic development is defined as
E. education
A. the process by which a nation im-
proves the economic, political, and social 56. Balanced growth implies
well-being of its people A. Simultaneous development of a variety
B. an increase in the amount of goods of activities, which support one another
and services produced per head of the B. Equal allocation of resources to differ-
population over a period of time ent sectors
47. C 48. B 49. A 50. A 51. A 52. C 53. C 54. D 55. B 56. C 57. A
C. Different sectors growing at their nat- 62. What is the Economic Freedom Index (EFI)
ural rates of growth of Japan?

D. Uniform rate of growth of output over A. Not open to entrepreneurship
time B. Highly open to entrepreneurship
57. Who benefits from a stable economy? C. No impact on entrepreneurship
A. Consumers D. Moderately open to entrepreneurship
B. Producers 63. What is a possible disadvantage of export-
C. Reserve Bank led growth strategy?
D. Investors A. Increased access to less expensive im-
ported goods and services
58. What is it called when you are worried just
about your region or area? B. Increased income inequality in the
country
A. Nationalism
C. Increased bargaining power in multi-
B. Marginalism
lateral trade negotiations
C. Sectionalism
D. Increased efficiency in domestic pro-
D. Republicanism ducers
59. Which of the following is not something 64. Why should countries invest in developing
that helps an economy grow? human capital?
A. Going on protests and strikes
B. using technology
C. eliminate waste
D. having an educated population
60. As inflation increases every dollar in value
increases? A. The more people you have working in
one area, say producing capital, the more
productive it will be
B. It will lead to a lower GDP
C. It will lead to more consumption in the
economy
A. True D. It will create a smarter and more pro-

ductive workforce, which in turn will lead
B. False to a higher GDP
61. True or False:Teddy Roosevelt passed Ex- 65. Which African country has come forward
ecutive Orders to set aside land that to help support entrepreneurs?
would become national parks, preventing
industrialists from using it as raw materi- A. Nigeria
als. B. South Africa
A. True C. Botswana
B. False D. Kenya
57. B 57. D 58. C 59. A 60. B 61. A 62. B 63. B 64. D 65. B
66. How much affordable housing was in- C. technology

cluded in the Trumpington Meadows devel-
D. more goods & services
opment?
A. 10% E. boosts a country’s exports
B. 20%
72. How is the rate of economic growth com-
C. 30% monly measured?
D. 40% A. By the growth in the stock market
NARAYAN CHANGDER
67. What is the formula for calculating real B. By the increase in a country’s popula-
GDP per capita? tion
A. C+I+G+Xn C. By the growth in real Gross Domestic
B. P x Q Product (GDP)
C. r%= i%-π D. By the unemployment rate
D. real gdp/population
73. What is important to keep a country grow-
68. How many levels of education are there? ing?
A. 1 A. economic growth
B. 2
B. technological growth
C. 3
C. economic and technological growth
D. 4
D. economic and technological decline
69. An economy has a MPC of 0.8. If invest-
ment were to rise by $40m, what would 74. Improvements in technology would be
be the change in GDP? included in which measure of economic
A. Increase by $40m growth?
B. Increase by $50m A. Real Income/GDP
C. Increase by $200m B. Productive capacity
D. Increase by $320m C. Net social welfare
70. GDP per capita means D. none of above
A. real GDP per household
75. What accounts for MOST of the variation
B. real GDP per head
in GDP per capita?
C. real GDP per worker
A. openness to trade
D. none of above
B. proportion of the population engaged
71. Investment in better machines, updated in producti on
factories, and new technology leads to
being produced C. labor force participation rate
A. increase in GDP D. capital market efficiency

B. stronger its economy E. average labor productivity
66. D 67. D 68. D 69. C 70. B 71. D 72. C 73. C 74. B 75. E 76. D
76. Why is a low literacy rate bad for a coun- 81. GDP per capita is
try’s economy?
A. GDP per a household

A. It will be difficult for the country to find
B. GDP per head of population
trading partners.
C. GDP per head of government
B. Members of the country’s workforce
are likely to emigrate. D. none of above
C. The country’s natural resources will be
82. How does Bangladesh’s economic growth
quickly exhausted.
compare to other South Asian countries?
D. Businesses will have difficulty finding
A. It is higher than some South Asian
skilled workers.
countries and lower than others.
77. People that have training are more likely B. It is the lowest among all South Asian
to contribute to technological advances, countries
which leads to finding better uses of natu-
ral resources & producing more goods. C. It is the highest among all South Asian
countries
A. False
D. It is the same as all other South Asian
B. True
countries
78. What factor has recently affected eco-
nomic growth by introducing new ideas 83. Which of the following IS a positive envi-
into the marketplace? ronmental impact of economic growth?
A. Entrepreneurship A. Depletion of natural resources

B. Human capital B. Increased pollution and waste
C. Natural resources C. Loss of non renewable resources
D. Physical capital D. Increased investment in sustainable
production methods
79. Which government agency is in charge of
developing and coordinating the Philippine 84. What is the purpose of GDP?
Development Plan?
A. To help entrepreneurs start a new
A. National Economic Development Au- business
thority
B. to increase mining of Uranium
B. Department of Public Works and High-
ways C. To determine the economic health of a
country
C. Department of Trade and Industry
D. it provides loan money to en-
D. none of above
trepreneurs
80. The part of the economy owned and oper-
ated by the national government. 85. Gross Domestic product is measured in the
A. public sector A. Zillions and quadrillion

B. private sector B. hundreds and thousands
C. natural resources C. millions, billions and trillions
D. literacy rate D. thousands and millions
77. B 78. A 79. A 80. A 81. B 82. A 83. D 84. C 85. C 86. B
86. Which of these African nations produces C. Technological advancement

the MOST crude oil on an annual basis?
D. Discovery of new mineral deposits
A. Congo
B. Nigeria 92. Which measure of national income includes
factors such as education and healthcare
C. Sudan performance?
D. South Sudan A. GDP per capita
NARAYAN CHANGDER
87. Which of the following are markets in- B. Gross National Income (GNI)
volved in the circular flow model?
C. Real GDP
A. Factor Market and Resource Market
D. Human Development Index (HDI)
B. Labor Market and Product Market
C. Factor Market and Product Market 93. What is the accumulated knowledge (from
education and experience), skills, and ex-
D. Resource Market and Labor Market
pertise that the average worker in an econ-
88. In what year did Ireland last experience omy possesses?
recession? A. Human Capital
A. 2018 B. Labor Productivity
B. 2008
C. Physical Capital
C. 2012
D. Technological Change
D. 1998
94. Why was barbed wire considered a prob-
89. What can affect economic growth if a coun-
lem for cattle drives?
try is overpopulated?
A. Cowboys could no longer guide their
A. Limiting purchases
cattle north through open prairies.
B. Decline in economy
B. Barbed wire was too expensive for
C. All of the above cowboys to purchase.
D. Increase in unemployment rates C. There was not enough barbed wire in
90. A downturn in the economy in which when Texas.
businesses aren’t doing so well for an ex- D. It got in the way of farming.
tended period of time
A. Extermination 95. What did the term ‘laissez-faire’ refer to
in the economic context?
B. Recession
A. Equal distribution of wealth
C. Procession
B. Government ownership of all indus-
D. Confession
tries
91. Which of the following is NOT a reason for C. Government control of all economic ac-
the growth of the PPF? tivities
A. Accumulation of capital D. Hands-off approach to government in-
B. Decrease in population tervention in the economy
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96. Why is most of Nigeria’s population living 102. Which of the following is the reason for
in poverty when the country exports more an actual economic growth to occur?
than 3 million barrels of oil each day?

A. Quality of education improved
A. Most people are literate. B. Better technology used
B. Most people are illiterate. C. Household’s income level increase
C. Oil profits bypass the people & go to D. Discovery of new resources
corrupt politicians. Explanation:Actual economic growth is
D. Oil profits are spread out evenly when AD shifts right (demand sided). In-
across the continent. crease income will increase consumption.
97. is the effect of inflation remove from 103. What are the immediate causes of why
the current GDP figures. some countries are rich and others are
A. Nominal wage poor?
B. Real wages A. Factors of production
C. CPI B. Incentives
D. Real GDP C. Good institutions

D. History, ideas, culture, geography,
98. Rapid urbanization takes place. and luck
A. Stage 1:Traditional Society
104. When a country invests in new machin-
B. Stage 2:Pre-Condition for Take-Off ery, technology, and factories, it is increas-
C. Stage 3:Take-Off ing its:
D. Stage 4:Drive to Maturity A. Natural resources
E. Stage 5:High Mass Consumption B. Human capital
99. If Real GDP has grown by 3 per cent, then C. Capital goods
the economy is producing 3 per cent more D. Entrepreneurship
goods and services after adjusting for in-
flation when compared with the previous 105. What is industrial growth?
year. A. Decrease in the production and expan-
A. True sion of industries within an economy
B. False B. Increase in the production and expan-
sion of industries within an economy
100. Literate C. Stagnation in the production and ex-
A. Ability to read and write pansion of industries within an economy
B. Level of wealth and comfort D. Increase in the production and expan-
sion of agriculture within an economy
101. National income can be measured in
A. 3 ways 106. Which factor of economic growth is all of
the skills, talents, education, and abilities
B. 4 ways that human workers possess and the
C. 2 ways value thatthey bring to the marketplace?
D. 1 way A. Natural Resources

B. Human Capital
C. Capital Goods
D. Entrepreneurship
107. Factories, machinery, technology, etc.

are examples of:
A. They can increase the country’s unem-
A. Human capital ployment rate.
NARAYAN CHANGDER
B. Entrepreneurship B. They are an economic system that
C. Natural resources hampers the privitization of businesses.
D. Capital goods C. They are a factor of production that

helps to grow the economy.
108. How can Government help a countries D. They can make their own economic de-
economic growth? cisions about capital tools for production.
A. Help businesses to get finance loans. 112. The investing of money or capital in or-
B. Give people access to being able to der to gain profitable returns, as interest,
study and up skill. income, or appreciation in value.
C. Make sure political parties don’t fight. A. capital goods

B. literacy rate
D. Sort out corruption
C. per capita
109. Consumer D. investment
A. someone who takes risks to start a
113. Which of the following is the best mea-
new business
surement of a country’s living standard?
B. (per person) the total amount of money
A. Nominal GDP
made by a country, divided by its number
of citizens B. Real GDP
C. someone who makes things C. GDP per capita
D. someone who buys things D. Real GDP per capita
114. In what way is capitalism good for con-

110. Which of the following is a cost of eco- sumers?
nomic growth?
A. Increased competition leads to quality
A. A fall in unemployment products at low prices.
B. A rise in employment B. Government programs provide jobs to
C. A reduction in poverty citizens.
C. Trains citizens for war.
D. Loss of non-renewable resources
D. Provides consumers free education.
111. Why are entrepreneurs (someone who
starts business or new product) impor- 115. This value is adjusted for inflation
tant? A. Real GDP

B. Nominal GDP B. Entrepreneur

C. GDP per capita C. Human Capital

D. Other things being equal D. Natural Resources
116. ideas and organization, board of educa- 120. A nation’s productive resources deter-
tion, Mrs. Mason, God, Kendall Brantley mine the strength of its economy.
A. natural resources A. True

B. False
B. capital goods
C. human capital 121. In which country do entrepreneurs play a
vital role but few banks are willing to fund
D. entrepreneurship their ideas.
117. Why did a number of the countries of the A. South Africa
United Nations have an embargo on South B. Botswana
Africa?
C. Nigeria
A. South Africa refused to take part in in-
D. Egypt
ternational trade.
B. They wanted South Africa to end its 122. The part of the economy owned and op-
system of apartheid. erated by private citizens.
C. Some were hoping for better oil deals A. public sector

from the South African government. B. private sector
D. They wanted South Africa to lower the C. natural resources
world price of gold and diamonds. D. literacy rate
118. The opportunity cost of increasing produc- 123. Labor productivity is measured as the
tion from 7, 000 to 9, 000 trucks is A. Dollar value of output per unit of labor.
B. Output per labor-hour.
C. Hourly wage rate divided by output per
labor-hour.
D. Dollar value of inputs per unit of out-
put.
124. What does Gross Domestic Product
(GDP) measure?
A. The total value of all goods and ser-
vices produced by a country’s citizens, in-
A. Scarcity cluding those produced abroad
B. 2, 000 boats B. The total value of imports and exports
C. 2, 000 trucks of a country
D. 3, 000 boats C. The total wealth of a country’s citizens
D. The total value of all goods and ser-
119. Taking a CPR class to be able to babysit. vices produced within a country’s borders
A. Capital Goods in a given time period

125. Level 1What do entrepreneurs do? C. Europe

D. United Arab Emirates
130. How did the Transcontinental Railroad im-

pact he population of the western territo-
ries?
A. Their population increased and many
became states.
NARAYAN CHANGDER
A. Purchase goods from the businesses. B. Their population decreased and were
sold to other countries.
B. Take risks and start a new business.
C. They contribute to the unemployment C. The Transcontinental Railroad had no
rate. impact on their populations.
D. They inform the government on how D. none of above

the spending and consuming of the econ- 131. Depends upon primary sector activities,
omy should happen. such as farming, fishing, and hunting, for
126. Developing your skills make you earn subsistence.
more money. A. Stage 1:Traditional Society
A. true B. Stage 2:Pre-Condition for Take-Off
B. false C. Stage 3:Take-Off
127. Does social work affect emigration? D. Stage 4:Drive to Maturity
A. Negatively since there would be less E. Stage 5:High Mass Consumption
demand for products.
132. What are the key factors for achieving
B. It would not affect to economy in any macroeconomic stability?
way.
A. High inflation, fluctuating exchange
C. It has nothing to do with it. rates, unsustainable fiscal policies, and
D. Positively since there will be more and an unstable financial system.
more work demand. B. Maintaining high inflation, fluctuating
exchange rates, unsustainable fiscal poli-
128. The branch of government that deter-
cies, and an unstable financial system.
mines if a law applies with Virginia’s state
constitution is the C. Maintaining low inflation, fluctuating
A. executive branch
cies, and an unstable financial system.
B. legislative branch
D. Maintaining low inflation, stable ex-
C. judicial branch change rates, sustainable fiscal policies,
D. none of above and a stable financial system.
129. Which country is an example of an emerg- 133. What are capital goods?
ing economy? A. goods that are produced in the capital
A. Brazil B. goods that are produced without natu-
B. United Kingdom ral resources

C. the factories, machinery, and technol- C. a person who takes a risk to start a
ogy used to produce goods and services new business

D. goods that are produced by the govern- D. materials that are a source of wealth-
ment gifts from the earth
134. According to the Human Development In- 138. Investing in Skills

dex, the Philippines has a HDI. A. Human Capital
A. low B. Capital Goods
B. very high
139. What is the GDP per capita?
C. high
A. The annual income of citizens with a
D. medium nation
135. What of the following would result in ac- B. The countries import and export costs
tual growth? C. The amount of banks that open in a cer-
A. Fall in wages tain area
B. Fall in trading partners’ income D. The amount of houses and building
that are constructed
C. Reduction in interest rates
D. Rise in personal income tax rates 140. What does point Y represent on the PPC?
136. Which of the following correctly shows

how natural resources are unevenly dis-
tributed in Southwest Asia?
A. Efficient
B. Unattainable / impossible
A. Abundance of oil, but a scarcity of wa-
ter C. Inefficient
B. Abundance of coal, but a scarcity of D. Nothing

copper 141. How is human capital MOST similar to
C. Abundance of natural gas, but a physical capital?
scarcity of oil A. It is intangible.
D. Abundance of water, but a scarcity of B. It is a private good.
phosphates
C. It requires technological knowledge.
137. What are natural resources D. It is protected by the political and legal
A. the value that people bring to the work environment.
force E. It is created by sacrificing current con-
B. tools that make other goods sumption.

142. Education and training does NOT lead to

economic development.
A. true
B. false
143. Which item is an example of a natural re-

A. income equality
source?
B. capital accumulation
NARAYAN CHANGDER
A. Oil
C. population growth
B. Education
D. none of above
C. Ovens
D. Cars 148. Which factor of production would you
consider a cow?
E. Workers
144. What is the main focus of supply-side

policies during a recession?
A. Boosting consumer spending.
B. Increasing government spending.
C. Enhancing the flexibility of labor mar-
kets. A. Land
D. Reducing inflation. B. Labor
C. Capital
145. If the rate of growth of aggregate de-
mand becomes greater than the trend rate D. Entrepreneur
of economic growth of output, then in the
short run the economy is likely to experi- 149. Chris is writing a report about Virginia’s
ence top manufactured products. Which items
are likely to be included in his report? (se-
A. a decrease in national output lect any that apply)
B. an increase in unemployment A. beverages like soda
C. an increase in the rate of inflation B. ships
D. a decrease in the demand for imports C. bananas
146. Focusing on education and skills is an ex- D. tobacco

ample of: E. car parts
A. capital
150. Cowboys led from Texas to northern
B. human capital cities.
C. natural resources A. Troops
D. infrastructure B. American Indians
147. The important factors that influence eco- C. Cattle Drives

nomic growth are as follows, except D. Expeditions

151. Which of the following would consumers A. Rise in interest rates

MOST OFTEN need to consider when try- B. Increase in consumer and business
ing to make a rational economic decision?

confidence
A. The impact of government subsidies C. Financial crises
B. Potential opportunity costs D. None of the above
C. Factors of Productions 155. The graph shows the annual percentage
D. Net Exports changes in Mexico’s GDP between 1994
and 1999.What can be concluded from the
152. Which statement about aggregate supply information.
policy in Australia is incorrect?
A. The skilled migration policy has prob-
ably helped to slow the rise in wage
costs and improve internationalcompeti-
tiveness.
B. National infrastructure projects includ- A. GDP fell between 1998 and 1999.
ing the NBN have helped to grow produc-
B. GDP rose between 1997 and 1998.
tive capacity and cutproduction costs.
C. GDP was highest in 1997.
C. Budget outlays on education and train-
ing help to grow Australia’s productive ca- D. Prices fell in 1995.
pacity, but only in theshort-term. 156. What are the main factors in technologi-
D. Government research and develop- cal progress?
ment grants can help to grow techni- A. open markets, strong patent laws, and
cal efficiency and internationalcompeti- minimal regulation
tiveness.
B. scientific research, innovation, scale
153. What is the main difference between eco- of the market, education and experience,
nomic growth and economic development? and natural resource use
A. Economic growth focuses on real GDP C. consumers buying electronic gadgets
increase, while economic development re- D. low taxes, fewer regulations, and
lates to improvements in well being. higher investment
B. Economic growth focuses on improv- 157. Based on the information in the chart,
ing employment opportunities, while eco- which country would MOST LIKELY have
nomic development relates to increasing the most stable government?
GDP.
C. Economic growth focuses on increas-
ing government revenue, while economic
development relates to reducing poverty.
D. Economic growth focuses on increas-
ing exports, while economic development A. Country A
relates to reducing trade barriers. B. Country B
154. Which of the following is NOT a cause of C. Country C
a recession? D. Country D

158. Labor, talent and skills of people. 164. Which of the following were goals of the
Knights of Labor? Select all that apply!
A. Human Capital
A. Shorten the workday
B. Capital Goods
B. Get rid of child labor
C. Natural Resources
C. Increase worker efficiency
D. Standard of Living
D. Help government take over factories
159. Physical capital used in a factory to pro-
NARAYAN CHANGDER
duce is 165. Who was the first African American gov-
ernor in the United States?
A. An output
A. L. Douglas Wilder
B. An input
B. Arthur Ashe
160. Which among the following countries C. Harry F Byrd
would probably have the lowest HDI?
D. Linwood Holton
A. Philippines
166. The Human Development Index uses all
B. Singapore
these indicators to measure the human
C. Thailand standard of living EXCEPT:
D. Malaysia A. level of education (mean years of
schooling)
161. Choose the correct option
B. life expectancy
C. per capita income (GDP divided by pop-
ulation)
D. electricity access
A. Human Capital 167. Israel continuously upgrades roads,

bridges, and transportation systems to
B. Capital Goods allow for efficient transport of goods
C. Natural Resources throughout the country. This is and ex-
ample of investing in
D. Entrepreneurship
162. business hub is needing no outside help

in satisfying one’ s basic needs.
A. true
B. false
163. How to calculate GDP?

A. GDP = C-G + I + NX A. human capital
B. GDP = C + G + I + NX B. capital resources
C. GDP = C + G-I + NX C. natural resources
D. GDP = C + G + I-NX D. entrepreneurship

168. long-run growth is caused by an increase B. U.S. Senators

in the capacity or productive potential of C. The American People
the economy

D. none of above
A. Yes, I understand this from the notes
B. No, I don’t understand this from the 173. Capital Deepening is the process of?
notes A. increasing consumer spending
C. No, I don’t understand this, as I have B. selling off obsolete equipment
not read the notes C. decreasing the amount of capital per
D. none of above worker.
D. increasing the amount of capital per
169. What is the role of oil in a country’s econ-
worker.
omy?
A. No impact on GDP 174. Consumers save due to:
B. Decreases GDP A. Become not financially secure
C. Increases GDP B. Build a house, buy a car, etc.
D. Fluctuates GDP C. Pay for unforeseen expenses
D. Provide a safety net for emergencies
170. A recession is defined as:
A. A decrease in real GDP 175. How does human capital influence GDP?
B. Two consecutive quarters of negative A. good education and better health care
real GDP growth will lead to a better worker who can ef-
ficiently produce which leads to a profit
C. A fall in real GDP per capita
which leads to a higher GDP
D. A fall in GNI
B. if you have better machines, you will be
171. In 2003 Japan experienced a decline in more productive and make more money
economic output.What might cause a de- C. if you invest money, you will make
cline in economic output? more money and then GDP will increase
A. a decrease in income tax
B. a decrease in sales tax D. none of above
C. an increase in unemployment 176. Define livings standards
D. an increase in company investment A. an increase in real GDP or the real
172. According to this drawing, who has the over a period of time (typically a year),
power in government? and is usually expressed as a percentage
change in real GDP or GDP/capita over a
period of time
ment, or unemployment of labour that pre-
vails when the economy is producing po-
tential output, or real GDP, determined by
the position of the LRAS curve (long run
A. Trusts Monopolies equilibrium)

C. refer to the maximum output of combi- C. tools that make other goods
D. none of above
in an economy with fixed resources and
technology, provided there is full or max-
181. Which of the following is the reason for
an potential economic growth to occur?
ployment A. Improvement to quality of education in
D. levels of income, wealth and consump- the country
NARAYAN CHANGDER
tion of goods and services, including B. Better technology used in production
healthcare and education in the country
177. How does human capital influence eco- C. Fall in prices of raw materials
nomic growth? Explanation:recall:what is potential
growth and how is potential growth
A. When a workforce is trained for their
achieved.
job, more people will buy goods or ser-
vices from the business D. none of above
B. When a workforce is trained for their
job, less people will buy goods and prod- 182. which of the following is an injection into
ucts from the business the circular flow of income?
C. It does not matter if the workforce is A. Money

trained for their job B. Savings
D. none of above
C. Investment
178. Act of combining productive resources to D. Imports
make goods and services
A. literacy rate 183. Doubling L is likely to:
B. natural resources A. increase the relative price of the inten-
C. human capital sity product L.
D. production B. reduce the relative value of the inten-

sity product K.
179. What are the benefits of economic
C. reduce the relative value of the inten-
growth for consumers?
sity product L.
A. Decrease in consumer confidence
D. any of the above.
B. Higher levels of demand-pull inflation
C. Higher average consumer income 184. the talents, skills, and labor of people
that can be used toproduce goods and ser-
D. More shoe leather costs
vices
180. What is human capital? A. human capital
A. Materials that are a source of wealth- B. Americas Got Talent
gifts from nature
C. skills
B. the value that people bring to the work
force D. work force united

185. Level 1Which one is incorrect between B. Reducing access to healthcare

the successful entrepreneurs?
C. Limiting infrastructure development

D. Promoting income-earning opportuni-
ties for the rich
189. Which activity is an example of investing

in physical capital by a company?
A. constructing a new factory
A. Worked hard. B. throwing away old delivery trucks
B. Overcame disillusionment and failure. C. giving workers more time off to rest
C. Never struggled. D. training workers to do their jobs better
D. Remained enthusiastic about their en- 190. Which headline below would MOST
terprise. LIKELY be used to describe a country that
186. What are some challenges to achieving will experience future economic growth?
economic development in developing coun- A. “Country experiences population re-
tries? duction.”
A. Lack of infrastructure, limited access B. “Inflation rate hits new highs.”
to capital and financial services, political
C. “Government to offer new educational
instability, corruption, inadequate educa-
opportunities.”
tion and healthcare systems, and high lev-
els of poverty and inequality. D. “Central bank to raise interest rates.”
B. Lack of market opportunities, inade-
quate infrastructure, cultural barriers
an actual economic growth to occur?
C. High population growth, inadequate
government policies, lack of skilled work- A. Quality of education improved
force B. Better technology used
D. Lack of natural resources, limited ac- C. Household’s income level increase
cess to technology, lack of foreign invest-
ment D. Discovery of new resources
187. Which of the following is the equation for 192. Mercantile law and the development of
the multiplier? business forms
A. 1 / MPT A. Mercantile law had no roots from the
medieval times
B. 1 / MPW
B. The rules became law
C. 1 / MPC
D. 1 / MPX + MPM C. When individuals contravene the code
they were kicked out by fellow traders
188. What is a recommended policy for ad- D. The rules were accepted by local and
dressing inequality? international governments and protected
A. Conditional cash transfer programs both parties to the trading contract

193. Iron, minerals, coal and plants are exam- 199. How has Russia worked to improve its
ples of which productive resource? GDP per capita in recent years?
A. Land A. Focusing on saving, not spending
B. Labour B. Spending billions to train its workforce
C. Entrepreneurship and update its factories
D. Capital C. Spending billions to build defenses for
possible wars.
194. Which population has the LOWEST human
NARAYAN CHANGDER
D. none of above
capital?
A. Egypt 200. healthcare
B. Nigeria A. public health
C. South Africa B. food and water security
D. Sudan C. farming policy
D. health benefits
195. The diagram that illustrates the set of in-
teractions between the major sets of eco- 201. What is human capital?
nomic actors in our economy is called the
A. circular flow model
B. business model
C. economic agent model
D. household model
E. agent-principal model A. the value of a person’s skills and edu-
196. something that comes from Earth or na- cation, scientists, doctors, or workers
ture that is useful to humans B. aperson who takes a risk to start a
A. human capital new business
B. capital goods C. goodsusedto make other goods
C. natural resources D. giftsofthe earth
D. none of the above 202. When inflation is high the of the dol-
lar decreases
197. What did eager consumers use to pur-
chase goods during the 1920s? A. cost value
A. Credit cards B. purchasing power
B. Bartering C. importance
C. Installment plans D. validity
D. Cash payments 203. What value is assigned to the “base
year” of a price index?
198. True or False-A country will always have
a strong economy if it has one valuable re- A. 100
source. B. 90
A. True C. 120
B. False D. 1

204. A recession is D. The public sector grows the GDP be-

A. a slowdown in the economy cause it is operated by government who
start businesses.

B. an economic recovery
205. Doubling L with trade in a large L- 209. Sustainability refers to the process of us-
sufficient country is more likely to: ing resources so as not to
A. increase the social welfare of the coun- A. deplete them.
try. B. re-use them.
B. hampers the country’s terms of trade.
C. reduce them.
C. reduce the volume of trade.
D. recycle them.
D. increase the welfare of individual citi-
zens. 210. Which country is sometimes added to the
BRIC countries to form the group ‘Mint’?
206. is composed of goods and services
produced for sale in the market and also A. Mexico
includes some nonmarket production, such
B. Indonesia
as defense or education services provided
by the government C. Turkey
A. GDP D. Nigeria
B. Import
211. Ca.ital goods are the people use to
C. Export produce goods and services
D. Consumption of Government
A. Raw materials
207. A model of government in which the pow- B. Factories machines, & technology
ers and responsibilities of governing a
country are divided between national and C. Skills, knowledge, and experience
local authorities D. none of above
A. Federal system
B. Welfare system 212. a period of strong economic growth fol-
lowed by a period of sharp decline
C. Recession
A. Westward Expansion
D. Democratic socialism
B. open-range system
208. Which sector normally grows a nations
GDP and why? C. Richard King
A. The private sector grows the GDP be- D. Boom and Bust Cycle
cause it is operated by entrepreneurs who
start businesses. 213. Which of the following industries made
an impact on the Texas economy?
B. The public sector grows the GDP be-
cause it is operated by entrepreneurs who A. Cotton
start businesses. B. Railroads
C. The private sector grows the GDP be-
C. Oil
cause it is operated by government who
start businesses. D. All of the above

214. The wealth effect states that higher C. Decrease

prices the purchasing power or the real D. Stagnate
value of the nation’s households’ wealth
and savings. 218. Farming organization created to promote
teamwork between farmers and reduce
A. increase
their costs.
B. stagnate A. National Grange
C. reduce B. Ku Klux Klan
NARAYAN CHANGDER
D. double C. Corporation
215. How does technological advancement im- D. Populist Party
pact industrial and economic growth? 219. Which of the following equations repre-
A. It only benefits a few industries and sents Aggregate Demand
has no overall impact on economic growth A. GDP = X + I + C + (Y-Z)
B. It leads to decreased efficiency and B. GDP = C + I + G + (X-M)
productivity in industries, hindering eco-
C. GDP = C + I + X + (G-T)
nomic growth
D. GDP = (1/MPS)*G + I + C
C. It leads to increased efficiency, pro-
ductivity, and innovation in industries, 220. In which year was Akbar born?
driving economic growth. A. 1500
D. It has no impact on industrial and eco- B. 1542
nomic growth
C. 1674
216. What is GDP per capita? D. 1951
221. The countries of Europe’s southeastern
Balkan peninsula.
A. Europe
B. Northern Europe
C. Balkans
D. Germany
A. a country’s GDP divided by its imports 222. What event led to a decrease in labor
and exports union membership?
B. a country’s GDP divided by its total A. Haymarket Riot
population
B. Triangle Fire
C. a country’s GDP divided by its goods C. Invention of light bulb
and services
D. none of above
D. none of above
223. If the national income increases from one
217. What is likely to happen to unemploy- year to another then economic growth oc-
ment during a recession? curs
A. Remain low A. True
B. Increase B. False

224. What is likely to be an advantage of eco- C. Dollars

nomic growth? D. GDP

A. The country’s resources will be de-
229. Which country has been building more
pleted.
schools in rural areas, improving roads and
B. The price level will increase. providing more electricity in order to help
C. The rate of employment will fall. it’s economy grow?
D. The standard of living will increase. A. Kenya
B. Sudan
225. What did the term ‘laissez-faire’ imply
about government intervention in the econ- C. South Africa
omy? D. Nigeria
A. Complete government control 230. Saudi Arabia’s specializes in the oil pro-
B. Extensive government intervention duction. The government maintains train-
ing programs to ensure that workers have
C. Minimal government intervention
the skills needed to produce oil. This is an
D. Selective government intervention example of investing in what?
226. What did Warren Harding’s Return to
Normalcy aim to achieve?
A. Stimulate economic growth
B. Reduce international trade
C. Promote social equality
D. Increase government intervention
A. capital resources
227. Which is not the type of unemployment? B. human capital
C. natural resources
D. entrepreneurs
231. What is the Economic growth rate at the
moment
A. 0.67
B. 1.2
C. 0.94
A. frictional
D. 0.8
B. functional
232. The total value of goods and services pro-
C. cyclical
duced within the borders of a country dur-
D. structural ing a specific time period, usually one year.
228. What is the measurement that shows A. GDP
how poor or rich a country is? B. GNI
A. Money C. GDP per capita
B. Economy D. HDI

233. Who started and owned the largest Cat- C. Goods and tools manufactured in a
tle Ranch in Texas? country rather than bought by businesses
A. Oliver Loving D. Goods and tools shipped globally
rather than being exported internationally
B. Richard King
C. Charles Goodnight 237. Take off stage’ in an economy means
A. steady growth begins
D. Bill Pickens
B. economy is stagnant
NARAYAN CHANGDER
234. What are the different types of capital C. economy is about to collapse
goods?
D. all controls are removed
A. Machinery, equipment, vehicles, and
buildings 238. The word Vigilante means:
A. People who didn’t obey the law
B. Raw materials, labor, and technology
B. People who obeyed the law
C. Consumer goods, services, and natu-
ral resources C. People who kept a lookout for Indian
attacks
D. Money, stocks, and bonds
D. People who took the law into their own
235. How does investment in human capital hands
generally lead to economic growth? 239. What is economic growth
A. The total value of all finished goods in
an economy over a year.
B. The growth of a firm’s factory.
C. The growth of a government’s tax.
D. The growth of unemployment.
240. Nominal GDP can rise in value because of
two of the below reasons. Which reason
A. by enabling governments to collect is not correct?
higher taxes from citizens A. The output of the country increases
B. by enabling consumers to have greater B. The general level of prices in the coun-
access to foreign-made goods try decreases
C. by enabling businesses to charge C. The general level of prices in the coun-
higher prices for goods they produce try increases
D. by enabling workers to be more pro- D. none of above
ductive and earn more money
241. What was the purpose of raising protec-
236. What is Capital Goods? tive tariffs during the 1920s?
A. Lower consumer prices
A. Goods and tools that are used in pro-
ducing other goods, rather than being B. Protect domestic industries from for-
bought by consumers eign competition
B. Good and tools purchased rather than C. Promote free trade agreements
imported to another country D. Encourage foreign investment

242. High interest rates will benefit 246. If there is an improvement in technology
then the
A. borrowers

A. AD curve shifts right
B. businesses wanting to invest
B. AD curve shifts left
C. savers
C. AS curve shifts right
D. businesses wanting to expand
D. AS curve shifts left
243. Which was a major result of the Home-
247. Human resources can be developed
stead Act of 1862?
through education and health care.
A. Increased public awareness of the A. true
need for conservation of natural re-
sources. B. false
B. Increased development of western 248. What are the two ways you can invest in
lands. human capital?
C. Decreased conflicts between Ameri- A. education and training
can Indians and white settlers. B. training and capital goods
D. Decreased economic opportunities for C. education and healthcare
easterners.
D. none of above
244. Which of the following statements accu-
249. What is an unavoidable cost of long-run
rately describes Demand-side sources of
economic growth?
economic growth?
A. an increase in inflation
A. Demand-side sources of growth focus
on increasing the factors of production, B. an increase in the working hours of the
such as labor and capital. population
B. Demand-side growth is driven by C. a sacrifice of potential present con-

technological advancements and improve- sumption
ments in efficiency. D. greater inequality in the distribution of
income
C. Demand-side sources emphasise
boosting consumer spending and govern- 250. What is human capital?
ment expenditure.
A. knowledge of another country
D. Demand-side sources primarily in-
B. skills of the military in another country
volve increasing exports and improving
international trade. C. a committee that regulates and main-
tains basic human rights
245. What is the lowest point of the actual D. knowledge and skills of a workforce
growth line called? within a nation
A. Boom
251. What is the main industry contributing to
B. Slowdown Bangladesh’s wealth?
C. Recession A. Textile and garment industry
D. Trough B. Agriculture

C. Technology A. Japan’s population growth has

D. Mining stopped.
B. Japan receives reduced prices on im-
252. What are some examples of government ports.
policies that can promote economic devel-
C. Japan has a well-educated skilled la-
opment?
bor force.
A. increasing taxes on businesses, reduc-
D. Japan has a powerful military that in-
ing government spending, implementing
NARAYAN CHANGDER
fluences other countries.
strict regulations on businesses, limiting
international trade, cutting funding for ed- 257. Point A is the initial economic equilibrium
ucation and training programs and then the economy moves to point B,
B. investment in infrastructure, tax incen- this is described as a:
tives for businesses, deregulation, trade
policies, education and training programs
253. What is the latest generation of technol-

ogy used by the Port of Singapore to im-
prove its performance and efficiency?
A. Technology
B. Social media
A. Shift of the AD curve
C. Robots
B. Shift along the AD curve
D. Computers
C. Shift of the AS curve
254. A decent job is one that D. Shift along the AS curve
A. Originates honest work. 258. What are the factors that contribute to
B. Protect the rights. economic growth?
C. Ensure labor protection. A. Investment, technological progress,
education, infrastructure, and natural re-
D. All of the above are correct.
sources
255. Economic development is usually accom- B. Lack of access to technology
panied by? C. Rising unemployment rates
A. inflation D. Decreased government spending
B. deflation
259. What is literacy rate?
C. stagflation
D. increased unemployment
256. Japan has been an economic superpower

since 1900. Yet Japan is physically iso-
lated and dependent on foreign oil, im-
ported agricultural products, and mineral
resources. How can Japan remain so pros-
perous?

A. percentage of people that can read D. Entrepreneurs create new markets

B. percentage of people that can write that provide jobs.

C. percentage of people that can read
264. Which of these countries had the best in-
and write
come equality
D. none of above
A. Finland
260. How is saving linked to increased capi-
B. Japan
tal?
A. Low savings means there is more C. Netherlands
money put toward capital formation. D. Belgium
B. When money is saved, it is left in the
bank and not available for capital forma- 265. Producer
tion
A. the materials and labor used to create
C. Saving provides money for investment goods and services
in human and physical capital.
B. someone who takes risks to start a
D. When savings rise, the GDP drops,
new business
making capital formation more difficult.
C. to bring in a good from another coun-
261. According to W.W. Rostow, the stages of try to sell
economic growth are
D. someone who makes things
A. 2
B. 4 266. If a country has not built new factories or
C. 5 used new technology in many years, then
D. 3 the country is not investing in what?
A. opportunity costs
262. Use of technology starts to become more
common and widespread. B. natural resources
A. Stage 1:Traditional Society C. human capital
B. Stage 2:Pre-Condition for Take-Off
D. physical or capital goods
C. Stage 3:Take-Off
D. Stage 4:Drive to Maturity 267. I know what is meant by positive output
gap, and I am able to draw this on an ag-
E. Stage 5:High Mass Consumption
gregate demand and aggregate supply di-
263. How are entrepreneurs important to a agram
country’s growth? A. Yes, I understand this from the notes
A. Entrepreneurs provide political stabil-
B. No, I don’t understand this from the
ity.
notes
B. Entrepreneurs provide compulsory ed-
ucation. C. No, I don’t understand this, as I have
not read the notes
C. Entrepreneurs strengthen governmen-
tal control. D. none of above

268. Which of the following would be an ex- A. the place where the most people live
ample of a Natural Resource? within a country
B. the place where the most work is per-
formed within a country
C. the people who perform labor (work)
D. the building where most people work
in a country or state
NARAYAN CHANGDER
A. Opals from a mine in Coober Pedy, Aus-
272. The Japanese government spends mil-
tralia
lions of dollars each year on technology for
B. Opals made in to earrings at the store its computer industry.
C. Opal customers who demand the prod-
A. human capital
ucts
D. Opal miners in Australia near Coober B. physical capital
Pedy
273. The word key in the passage is closest in
269. When economy outlook is good and more
meaning to
foreign companies are opening up, there
will be a/an: A. Historical
A. increase in labour demand B. Many
B. decrease in labour demand
C. Important
C. increase in labour supply
D. decrease in labour supply D. Hidden
270. The table shows the figures for consump- 274. What are the two main industries that
tion, capital formation and depreciation in generate the most employment in Mexico?
four economies, all measured in US $.As-
suming that the state of technology re-
mains unchanged, which economy is most
likely to experience economic growth?
A. 100; 20; 30
B. 500; 200; 200
C. 1000; 1400; 1200
D. 20, 000; 5, 000; 6, 000
271. What does human capital mean?
A. Industries and services

B. Natural gas and widening
C. All of the above
D. none of above

275. Which will likely raise the GDP of a coun- C. Physical Capital
try? D. Technology

A. Picking trade partners
280. Which country is rapidly greying and has
B. Tariffs and Banking a GDP per person of just $7, 000 in 2021?
C. Imports and exports A. Japan
D. Investing in new technology for work- B. South Korea
ers C. Thailand
276. What is the term used to describe two D. Indonesia
successive quarters of negative growth?
281. Which is an example of investing in phys-
A. Boom ical capital by a company?
B. Slowdown A. Keeping old taxi cabs
C. Recession B. Keeping old machinery in order to save
D. Trough C. Purchasing new computer software
for the business
277. What must you do in order to purchase
goods or services when visiting a country D. Training workers new skills for the job
which uses a currency different from your 282. What was the main contributing factor
own? for population growth in Texas from 1900-
A. Currency Exchange 1930?
B. Import Currency A. discovery of gold
C. Specialize B. invention of the automobile
D. Invest C. discovery of oil
D. cattle drives
278. Based on the following statement, deter-
mine whether it will result in positive OR 283. In Country B, the government has offered
negative growth AND a shift in PPC OR incentives to companies that invest in im-
movement towards the PPC-“Industrial proved technology and machinery in their
pollution destroys the environment” factories. What factor of economic growth
is the country working to improve?
A. Positive
A. capital goods
B. Negative
B. human capital
C. Shift in PPC curve
D. Movement towards PPC curve
D. entrepreneurship
279. What best refers broadly to all new
284. draw conclusions based on the results of
methods of production, which include ma-
the study
jor scientific inventions but also small in-
ventions and even better forms of manage- A. to interpret the findings
ment or company organization? B. to understand the conclusion
A. Capital Deepening C. to interpret the research
B. Human Capital D. to come to conclusion

285. Why would a federal government deci- A. parking lot

sion to increase spending be a matter of B. farm
macroeconomic policy?
C. gym
A. Macroeconomics concerns the overall
D. stockyard
performance of the government.
B. Macroeconomics concerns the overall 289. The total value of all goods and services
performance of the economy. produced within a country during a year is
known as
NARAYAN CHANGDER
C. Macroeconomics concerns the perfor-
mance of households. A. Human capital or human resources
D. Macroeconomics concerns the perfor- B. Capital goods or capital resources

mance of small businesses. C. Gross Domestic Product
D. Mixed Economy
286. What are the challenges faced in achiev-
ing sustainable industrial and economic 290. Israel continuously upgrades roads,
growth? bridges, and transportation systems to
A. Decrease in demand for goods and ser- allow for efficient transport of goods
vices throughout the country. This is and ex-
ample of investing in
B. Resource depletion, environmental im-
pact, social inequality, and technological A. human capital
innovation B. capital resources
C. Lack of government regulations C. natural resources
D. Political stability and peace D. none of above
287. What is economic growth? 291. What was the total income of the BRIC
countries in 2001 as a percentage of the
A. A decrease of wealth produced over world income?
time
A. 8%
B. An increase of wealth produced over
B. 23%
time
C. 40%
C. An increase of prices over time
D. 60%
D. A decrease of unemployment over
time 292. What is GDP?
288. A place with pens and sheds where cattle

are kept before being shipped is a
A. the total value of all imports and ex-

ports sold and bought in one year
B. the total value of all tariffs, quotas,
and embargoes used in one year

C. the total value of all goods and ser- B. it is closer to the surface
vices produced in a country in one year
C. It is not easier than mining gold.

D. none of above
D. none of above
293. Which country has invested capital goods
toward oil and natural gas (energy sec- 297. Which of the following would not tend to
tor)? lift Australia’s long-term, sustainable rate
of economic growth?
A. Russia
A. A fall in the female participation rate in
B. Germany
the labour force
C. United Kingdom
B. The adoption of best work practice
D. none of above by local firms, managers and employees
which increases productivity
294. Select all the items that are included in
the Human Development Index (HDI). C. Encouragement of mineral exploration
A. Nominal GDP and R&D to expand our capital resources
B. Life expectancy D. A decrease in interest rates

C. Real GDP per capita 298. What impacts human capital?
D. GNP
A. Literacy Rate
E. Literacy rates
B. Exports
295. BMW recently decided to build a manu- C. GDP
facturing plant in Shenyang, China. At this
plant, BMW is able to take advantage of D. Consumer Goods tagsS2789894
paying lower wages to its Chinese work-
ers than it pays its German workers, but it 299. GDP per capita is a measure that consid-
also sacrifices the high levels of technical ers ?
training possessed by its German workers. A. Total GDP
In deciding to open the Shenyang plant,
BMW. B. Total population
A. faced no trade-offs because employing C. Both GDP and population
lower-wage workers increased efficiency. D. Neither GDP nor population
B. faced a trade-off between higher cost
and lower precision 300. Labor productivity can be incresed by in-
creasing training and education in workers,
C. adopted a negative technological
and investing in their health or incomes.
change because it replaced high-skilled
workers with lowskilled workers. A. TRUE
D. eroded some of its competitiveness in B. FALSE
the luxury car market because of its de-
creased cost of production. 301. Identify the invention in the image. This
invention helped to close off the open
296. Why is Uranium easier to mine than gold? range making cattle drives dangerous and
A. It is radioactive contributing to the Open Range War.

A. Barbed Wire
A. 9 million tons of paper
NARAYAN CHANGDER
B. Wooden Fence
B. 16 million tons of paper
C. Metal Fence
C. 2 million tons of steel
D. Wooden Post
D. zero
302. What is NOT an example of human capi-
tal? 306. If a reporter interviewed a member of the
A. YouTube channel skills General Assembly, what question might
he ask?
B. reading skills
C. math skills A. How do you make sure the state laws
are carried out?
D. musical abilities
B. How do you decide what should be-
303. Which factor has been least associated come a new law?
with the rapid growth of many economies
C. How long have you been the leader of
recently?
Virginia?
A. high savings rates as a percentage of
D. Do you enjoy working as a Supreme
national income
Court Justice?
B. more efficient mechanisms for trans-
mitting funds from savers to investors 307. What are natural resources?
C. more emphasis on detailed govern- A. resources that are gone from nature
ment planning
B. resources that are considered worth-
D. more openness to foreign trade and in- less
vestment
C. resources that are manufactured for
304. A firm purchases a new photocopier for the environment
its printing room. Which of the following
D. materials or substances that occur in
components of aggregate demand would
nature and can be used for economic gain.
increase?
A. Imports 308. What would be most likely to stimulate
B. Exports long-run growth in an economy?
C. Investments A. employment protection legislation

D. Consumption B. government policy toc aggregate de-
mand
305. Refer to figure 1.2, If the economy is cur-
C. technical innovations by firms
rently producing at point Y, what is the
opportunity cost of moving to point W? D. the development of trade unions

309. The services included in economic infras- B. Stage 2:Pre-Condition for Take-Off
tructure is/ are
C. Stage 3:Take-Off

A. Energy
D. Stage 4:Drive to Maturity
B. Transport
C. Communication
D. All of these 315. Samuel Gompers was the founder of
A. telegraph
310. What’s the average salary per week in
South Cambridgeshire? B. U.S. Steel
A. £714 C. AFL
B. £2500 D. Knights of Labor
C. £586
316. Which of the following is NOT part of
D. £274 GDP definition?
311. Why is economic growth important? A. Market value
A. To decrease government revenue B. Intermediate goods and services
B. To increase per Capita income C. Produced within a country
C. To limit capital investment D. Given time period
D. To stagnate technological advance-
317. Cody buys a new baler for his cotton
ments
field.
312. What is the literacy rate of Saudi Arabia? A. Capital Goods
A. 97.1% B. Entrepreneur
B. 85.0% C. Human Capital
C. 87.2%
D. Natural Resources
D. 50%
318. The stated goal of the Organization of
313. Which of the following is the cost of eco- Petroleum Exporting Countries is to
nomic growth
A. stabilize the market for oil.
A. Create poverty and hunger
B. remove barriers to trade in oil.
B. Negative impacts on the environment,
social inequality, and depletion of natural C. invest in new oil technologies.
resources D. standardize tariffs on crude oil.
C. Same level of job opportunities
319. What percentage of India’s international
D. Increase the level of choice and pos- trade goes through Mumbai?
sibly international transaction such as im-
port A. 10%
B. 15%
314. Creates new industries while strengthen-
ing the existing ones. C. 20%
A. Stage 1:Traditional Society D. 25%

320. For a given population and a given quan-

tity of labor employed, what will happen
to aggregate production and income per
capita if there is an increase in a nation’s
capital stock?
A. Aggregate production will increase,
and income per capita will decrease.
B. Aggregate production will increase, A. if a country’s economy is growing or
NARAYAN CHANGDER
and income per capita will increase. shrinking
C. Aggregate production will decrease, B. if a country is rich or poor

and income per capita will be indetermi- C. what natural resources a country has
nate.
D. what a country specializes in
D. Aggregate production will decrease,
and income per capita will increase. 325. In division of labour, workers are
A. Independent
321. Which of the following is a method to
measure the National Income? B. Interdependent
A. Expenditure method 326. Educated workers have helped the U.S. to
B. Income method have a high gross domestic product.
C. Product method A. True
D. All of the option B. False tagsS2789894
322. All of the following are reasons why 327. To boost economic growth the govern-
early European settlers came to Carolina ment is most likely to
and the new world, EXCEPT: A. Increase interest rates
A. To gain religious freedom B. Increase taxation rates
B. To find silver and gold C. Provide incentives to invest
C. To establish colonies D. Provide incentives to save
D. To civilize the Indians Explanation:real GDP = C + I + G + (X-
M)
323. What can we do to fix some of the is-
sues? 328. It is an increase in a country’s real level
of national output.which can be caused by
A. Cry an increase in the quality of resources (by
B. Provide youth the best opportunity to education etc.), increase in the quantity of
transition to a decent job resources & improvements in technology
or in another way an increase in the value
C. invest in bitcoin and start your own
of goods and services produced by every
business
sector of the economy.
D. give up unfair jobs
A. Economic Growth
324. What 2 things can GDP tell you? B. Economic Development

329. The diagram shows an economy’s pro- C. wages

duction possibility curve. What causes a
D. taxes
movement from point X to point Y?

A. a positive output gap E. revenue
B. a recession 335. True or False:The Dawes Act broke up

C. actual economic growth tribal reservations into individual lots, like
the Homestead Act.
D. potential economic growth
A. True
330. A factor for urbanization (movement
to cities from rural areas) was jobs. B. False
A. Push 336. Which is an example of entrepreneur-
B. Pull ship?
C. Sweep A. Tre volunteers at a local nursing home
D. Fear that is in need of help.
B. Peter got a job at a mechanic’s shop
331. Economic growth can be shown diagram-
repairing cars and trucks.
matically as
A. a rightward shift of the SRAS curve C. Sarah does her chores every day in or-
der to earn her allowance. D.
B. a rightward shift of the LRAS curve
D. Jemele uses her money to open a
C. a rightward shift of AD curve restaurant in her neighborhood.
D. All of the options
337. In what area did airplanes for prove to
332. What invention did Joseph Glidden in- be of practical value?
vent?
A. Stunt shows.
A. The Light Bulb
B. Mail delivery.
B. Oil
C. Barbed Wire C. Tourism.
D. Revolver D. Military operations.
333. An example of human capital is 338. Russia has a high literacy rate (99%),
A. Job training and education just like United Kingdom and Germany.
However, the GDP of Russia is lower
B. New factories and technology than that of United Kingdom and Germany.
C. Natural resources Which factors of production could Russia
invest in to increase their GDP? (you will
D. Value of all goods and services pro-
select more than one)
duced in a year
A. capital goods
334. What do firms receive in return for sell-
ing goods and services? B. human capital
A. expenditures C. natural resources
B. rent D. entrepreneurship

339. Human resources MUST be (a) if citizens A. countries that have a lot of natural re-
are to be (b), happy and (c) . sources are able to use them to produce
A. a developed goods and services cheaper than a coun-
try that has to import them. Therefore,
B. b healthy a country with a lot of natural resources
C. c productive usually has a greater GDP than a country
D. skilled with little natural resources.
E. talented B. they cannot become communist
NARAYAN CHANGDER
340. Evaluate the table above. Based on the 343. What are the consequences of economic
information provided in the table, what is recession?
the relationship of literacy rates to stan-
dard of living? A. Tax revenue may increase
B. Unemployment may decrease
C. Negative economic growth rate for at
least 2 quarters
D. Government spending on benefits may
A. Countries with more money per person decrease
and greater life expectancy have higher lit-
eracy rates. 344. Real Gross Domestic Product (GDP) is:
B. The higher the literacy rate, the worse A. GDP adjusted for terms of trade
off people in the country are.
B. GDP at market prices adjusted for the
C. There is little impact of literacy rates effects of inflation
to standard of living for a country or to life
expectancy. C. A measure of production at current
prices
D. Population has more affect on stan-
dard of living than literacy rates. D. The total market value of final goods
and services
341. What happened as a result of the discov-
ery of Oil in Spindletop? 345. Long-run economic growth is also known
A. demand for lumber as potential growth
B. demand for kerosene A. Yes, I understand this from the notes
C. shipping B. No, I don’t understand this from the
D. boomtowns notes
C. No, I don’t understand this, as I have
342. Why is it beneficial for a country to have
not read the notes
an abundance of natural resources?
D. none of above
346. A benefit of economic growth is that

there will be funds to invest in cleaner and
more efficient production processes thus
reducing the environmental impact

B. No, I don’t understand this from the 351. Why is it important for a country to in-
notes vest in human capital?

C. No, I don’t understand this, as I have A. because businesses need money in or-
not read the notes der to pay for their workers
D. none of above B. because businesses enjoy workers
getting extra training and job opportuni-
347. What are entrepreneurs?
ties
C. because businesses are more success-
ful when the workers have good training
and health care
D. because businesses are not responsi-
ble for the training and health care of the
A. workers and their skills, talents, and workers they employ
education
352. What happened as a result of the Berlin
B. factories, machines, and technology
Conference?
C. raw materials from the Earth
A. European and African nations went to
D. people who start their own businesses war with each other.
348. An economy that has characteristics of B. The European leaders allowed the
both command and market economies African leaders to be apart of the govern-
A. Mixed Economy ing process of the colonies.
B. Market Economy C. Imperialism in Africa ended.
C. Traditional Economy D. Europeans divided Africa into colonies
D. Command Economy without considering the cultural and eth-
nic differences of the African people.
mine whether it will result in positive OR 353. What is true about literacy rate and how
negative growth AND a shift in PPC OR well off people are (or, the standard of liv-
movement towards the PPC-“A violent ing) in a country?
conflict destroys a portion of a country’s A. The higher the literacy rate, the higher
factories, machines and road system” the standard of living.
A. Positive B. The lower the literacy rate, the higher
B. Negative the standard of living.
C. Shift in PPC curve C. There is no relationship between the
D. Movement towards PPC curve two.
D. none of above
350. What is a county’s GDP divided by its
population called? 354. State governments work with the federal
A. GDP per capita government to create a more efficient pub-
B. Human capital lic school system. Will economic growth
occur? Which growth factor contributed is
C. Literacy rate the cause? (If none, only select one an-
D. Capital goods swer)

A. Growth will occur C. It shows whether there has been an

B. Growth will not occur actual increase in inflation
C. Technology D. Nominal GDP doesn’t allow people to

see an increase in output
D. Human Capital
E. Economic Environment 360. Bella can produce either a combination of
355. In a recession, GDP 60 silk roses and 80 silk leaves or a combi-
nation of 70 silk roses and 55 silk leaves.
NARAYAN CHANGDER
A. Grows negatively If she now produces 60 silk roses and 80
B. Grows slowly silk leaves, what is the opportunity cost
C. Grows by 0% of producing an additional 10 silk roses?
D. Grows rapidly A. 2.5 silk leaves
356. Economic Growth can be defined as: B. 10 silk leaves

A. An increase in real GDP C. 25 silk leaves
B. An increase in the Dow Jones Indus- D. 55 silk leaves
trial Average
C. An increase in the labor force 361. Which of the following is an effect of
D. An increase in consumer wealth Spindletop?
A. Oil companies closed down.
357. “Economic Growth” refers to:
A. Increases in the PRODUCTION CAPAC- B. People started drilling for oil all over
ITY of a country the state.
B. Increased in the PRODUCTS of a coun- C. There were less jobs available be-
try cause of the oil industry.
C. Increases in the PRODUCTION DAYS D. People started drilling for oil all over
of a country the world.
D. none of above
362. Nigeria exports more than million
358. What did the reduction in taxes on luxury barrels of oil daily.
items and consumer goods aim to do?
A. 56
A. Support small businesses
B. Encourage saving B. 10
C. Promote international trade C. 100
D. Boost consumer spending D. 3
359. Why is Real GDP better than Nominal
363. Public Sector
GDP
A. It shows actual increases or de- A. The part of the economy owned and op-
creases in output erated by the national government
B. It allows economists to see if there is B. The part of the economy owned and op-
more growth erated by private citizens

364. What are two causes of economic barri-

ers?
B.

A. Low consumer demand and high com-
petition
B. Government regulations and trade re-
strictions
C.
C. Lack of innovation and technological
advancement
D. Globalization and free trade agree-
ments
D.
365. Which statement about natural resources
is supported by the map above?
368. A country’s is the percentage of
adults who can read and write.
A. GDP per Capita
B. capital goods
C. literacy rate
D. GDP
A. You can only find natural resources 369. GDP is the total value of goods and ser-
along the coast of Brazil vices
B. Natural resources are not important to A. produced all over the world
Brazil. B. produced in one month
C. Only Brazil relies on natural resources C. produced within a nation’s borders
to help their economy.
D. produced by a singl company
D. Natural resources are a very impor-
tant part of Brazil’s economy. 370. How do we know if a country has eco-
nomic growth?
366. When economy outlook is good and more
foreign companies are opening up, there
will be a/an:
A. increase in labour demand
C. increase in labour supply
D. decrease in labour supply
A. If it has low unemployment rate.
367. Which diagram shows economic growth? B. If it has high population growth.
C. If its GDP(Gross Domestic Product) is
A. growing.
D. If it has lots of inmigrants year after
year.

371. Germany has a system of universal 375. How does entrepreneurship contribute to
higher education, meaning that everyone economic growth?
in the country can attend a university to A. Entrepreneurship leads to higher un-
earn an academic degree for free. For employment rates and lower productivity.
what economic reason does Germany have
a system of universal higher education? B. Entrepreneurship has no impact on
economic growth.
A. Germany lacks a large industrial labor
force C. Entrepreneurship contributes to eco-
NARAYAN CHANGDER
nomic growth through job creation, inno-
B. German people do not like to work in
vation, and increased productivity.
the industrial sector
C. A well-educated population generates D. Entrepreneurship only benefits a few
a high gross domestic product individuals and does not contribute to
overall economic growth.
D. The government wants to encourage
people to get jobs in other countries 376. Benefits of economic growth include
which of the following? Choose 2
372. United states:$54, 541
A. Increase employment
A. True
B. False B. Higher inflation
C. Improve living standards
373. What is the vertical line called on the
AD/AS Model? D. Lower tax revenues
A. short-run aggregate supply 377. Discuss the role of government policies in
B. aggregate demand promoting industrial and economic growth.
C. long run aggregate supply A. Government policies have no impact
D. r GDP on industrial and economic growth
B. Government policies only benefit large
374. What does point B represent?
corporations and not small businesses
C. Government policies provide incen-
tives, infrastructure development, trade
policies, and regulations to support busi-
nesses and industries.
D. Government policies are too restric-
tive and hinder economic growth
378. What are the causes of economic reces-

A. Production at greater than the coun- sion?
try’s minimum potential
A. Positive demand-side shocks
B. Production is less than the country’s
minimum potential B. A rise in business and consumer confi-
dence
C. Production is greater than the coun-
try’s maximum potential C. A fall in real GDP over a period of six
D. Production at the country’s maximum months or more
potential D. A rise in fuel costs

379. Productive resources are used to make C. increase in people’s life expectancy
what? D. none of above

A. Human Capital
384. Final output products value that is pro-
B. Natural Resources duced by citizens in a country, regardless
C. Entrepreneurs of where they are located is known as
D. Goods and Services A. GNP
380. What will result in the short run from ris- B. GDP
ing unemployment in an economy? C. GNI
A. The government’s budget deficit will D. GNE
fall.
385. The United Kingdom has large deposits of
B. Any existing inflationary pressure will coal, petroleum, natural gas, iron ore, lead,
be reduced. zinc, and gold. The country will use these
C. Potential output will fall. items to create products to sell. Which fac-
D. The economy’s production possibility tor of production is being used to increase
curve will shift inwards the GDP?
A. capital goods
381. Economic growth in a country is NOT
measured by the country’s Gross Domes- B. human capital
tic Product (GDP) in one year. C. natural resources
A. I agree D. entrepreneurship
B. I disagree 386. The percentage of adults who can read
and write
382. What is the definition of Gross Domestic
Product (GDP)? A. standard of living
A. The sum of all the goods and services B. literacy rate
a country produces in a year C. natural resources
B. The sum of all goods imported within a D. human capital
year
387. How is economic growth calculated
C. The sum of taxes collected in a year
A. GDP
D. The sum of all goods produced by en-
trepreneurs in a year B. GDP per capita
C. GNI
383. The benchmark for economic growth is
D. HDI
388. Better roads and railroads allowed all of
the following EXCEPT
A. Virginia’s cities to grow.
B. Virginia is able to export coal and to-
bacco.
A. increase in consumption C. Tobacco farming and products became
B. reduction in poverty rates important again.

D. Virginia’s economy changes from in- 393. What do we call the phase in an economic
dustrial to agricultural. cycle when the economy is doing really
well?
389. What must be present for an economy to A. An explosion
be measured?
B. A boom
A. some form of measurement
C. A recession
B. a nation watching D. A trough
NARAYAN CHANGDER
C. a union 394. What is an entrepreneur?
D. trade barriers A. a person who takes a risk to start a
new business
390. Mass production led to:
B. gifts from nature
A. Products being more superior in qual- C. the value that people bring to the work
ity force
B. goods became less expensive D. none of above
C. laborers received higher wages 395. A country experiencing a high rate of eco-
D. industries moved to rural areas nomic growth may take some of the bene-
fits in the form of increased
391. What are natural resources? A. mobility
B. leisure
C. net investment
D. per head
E. non replaceable
396. Economic growth is measured through
GDP while human development is mea-
A. Resources that are gone from nature sured through levels of education, health-
B. Resources that are manufactured for care and other quality of life measures.
the environment A. TRUE
C. Resources that are considered worth- B. FALSE
less 397. Which of the following BEST completes
D. Materials or substances that occur in Box 1 in the diagram above?
nature and can be used for economic gain
392. Who was one of the most successful cow-

girls in Texas history?
A. Amelia Earhart
A. Tariffs
B. Lizzie Johnson B. Subsides
C. Sam Houston C. Embargoes
D. Ladybird Johnson D. Quotas

398. What role does education play in eco- 403. What is the latest scientific method and
nomic growth? production technique that helps increase
productivity?

A. Education leads to the depletion of re-
sources and slows down economic growth A. Social media
B. Education leads to the development of B. Robots
human capital, which increases productiv- C. Technology
ity and innovation, and can lead to the cre-
D. Computers
ation of new industries and the growth of
existing ones. 404. How have investments in Human Capi-
C. Economic growth is solely dependent tal and capital goods impacted the UK and
on natural resources and not education Germany’s economy?
A. Both have high GDP and strong
D. Education has no impact on economic
economies
growth
B. Both have low GDP and weak
399. A country can increase its human capital economies
by investing in C. Both have good football clubs
A. Education for its citizens D. Both have terrible capital cities
B. New machinery for factories 405. Why is recession a concern for the gov-
C. Railroads and airports ernment?
D. none of above A. Fall in business/consumer confidence
B. Rise in unemployment
400. The curve above shows economic
growth C. Rise in public debt
D. Fall in standard of living
A. Catch-Up
B. No catch-up 406. Standard of Living
A. The level of wealth and material com-
401. The economy fluctuates between peri- fort available to a people.
ods of in the short run, but economic
B. Those who risk their own money and
growth can occur in the long run.
resources to create a new businesses or
A. expansion and contraction service.
B. day and night 407. A benefit of economic growth is that the
C. fight or flight government tax revenue will increase, and
the amount spent on unemployment bene-
D. war and peace fits reduce
402. Higher the literacy rate, generally the A. Yes, I understand this from the notes
A. lower the standard of living B. No, I don’t understand this from the
notes
B. higher the standard of living
C. standard of living decreases not read the notes
D. standard of living stays the same D. none of above

408. Using the chart under Data analysis, (on D. An increase in consumer confidence
page 51) Which country has the lowest lit-
eracy rate? 413. In a production possibilities frontier
model, a point the frontier is produc-
A. Brazil tively inefficient.
B. Haiti A. along
C. Mexico B. inside
D. All the above C. outside
NARAYAN CHANGDER
409. When an economy produces more output D. at either intercept of
per capital the economy is said to be hav-
414. Apple has invented a phone that is im-
ing
planted in our eyes and is controlled using
A. Inflation our brain waves. Will economic growth
B. Economic growth occur? Which growth factor contributed is
C. Economic planning the cause? (If none, only select one an-
swer)
D. Living standard
A. Growth will occur
410. An economic recession is defined as B. Growth will not occur
A. two consecutive quarters of economic C. Technology
contraction
D. Human Capital
B. two consecutive weeks of economic
E. Economic Environment
contraction
C. two consecutive months of economic 415. Which of the following is NOT a form of
contraction capital?
D. two consecutive years of economic A. knowledge
contraction B. machinery
411. What will generally happen to the aggre- C. tools
gate demand curve when consumer confi- D. workers
dence is too low?
416. What are the costs of economic growth
A. AD Curve shifts left
for consumers?
B. No change in the AD curve
A. Increase in inequality
C. AD Curve slopes up
B. Increase in consumer confidence
D. AD Curve shifts right
C. Decrease in demand-pull inflation
412. Which of the following events will in- D. Decrease in shoe leather costs
crease the Aggregate Demand in the econ-
omy. (mark 3) 417. Which country has invested capital good
toward telecommunications?
A. The government increasing Income
Tax A. Russia
B. lowering interest rates B. Germany
C. an increase in people’s income in an- C. United Kingdom
other country D. none of above

418. What measures could help India take ad- 423. The (value of exports-value of imports)
vantage of Western efforts to shift supply is also used to calculate GDP.
chains out of China?

A. True
A. Privatisation and looser foreign- B. False
investment rules
424. Which of the following is a criticism of
B. Increased retirement ages and finan-
using expansionary fiscal policy?
cial market reforms
A. There is a multiplier effect
C. Improved health insurance and social
care B. Fiscal policy is highly ineffective in
solving demand-deficient recessions
D. Higher female participation in the
C. The government may need to run a
labour force
budget deficit
419. Which of these natural resources is in ex- D. The economy will not necessarily self-
tremely short supply in the Middle East? correct when aggregate demand isde-
pressed
A. Water
B. Coal 425. America’s is calculated by adding up
consumer spending, government spending,
C. Iron national investments and net exports.
D. Oil A. per capita
420. a resource used to produce a good or ser- B. gross domestic product

vice C. inflation
A. manufacturing D. none of above
B. building 426. Which of the following is a injection into
C. productive resource the circular flow diagram?
D. creation
421. Low labour mobility can lead to unem-

ployment:
A. No, it cannot
B. Yes, structural unemployment
C. Yes, cyclical unemployment
A. Saving, Imports, un-spent tax revenue
D. Yes, general unemployment B. Increased Consumption, Exports, Gov-
ernment Stimulus
422. GDP stands for?
C. Loans, Interest on Loans, Investment
A. Garden Darter Plant
D. Imports, Exports, Money Spent on GS
B. Gross Domestic Product
427. Who would be most likely to OPPOSE the
C. Grapes Domino Pizza
concept of ‘Free Silver’ and the Populist
D. Chickpeas Domino Pizza Party?

A. Bankers 433. True or False:Robber Barons used both

B. Soldiers vertical and horizontal integration to form
their monopolies.
C. Farmers
A. True
D. none of above
B. False
428. Export
A. the materials that come from nature, 434. When economic growth is high in a coun-
try which of the following would you NOT
NARAYAN CHANGDER
such as land, forests, minerals, water,
etc. expect to see?
B. a physical object that is sold to make A. Increased construction

money B. Increased unemployment
C. a good means to send it to another C. Increased number of businesses
country to be sold
D. Increased inequality
D. to bring in a good from another country
to sell 435. climatic extremes
429. a calculation of what a nation is worth A. environmental recovery
A. investment B. welfare of population
B. GDP C. farming policy
C. GDP per capita D. climate emergencies
D. human capital
E. relationship
430. A nation with a high GDP invests in hu-

man capital
A. True
B. False
431. “per capita” means

A. Human Capital
A. per person
B. Capital Goods
B. per student
C. grade point average
D. Entrepreneurship
D. new video game app
432. A country that wants to focus on policies 437. What is meant by Low Capital Forma-
promoting economic growth should priori- tion?
tize ? A. low public desire to start a business
A. Restricting trade with other nations B. people prefer to spend their money
B. Investing in education and training abroad
C. Reducing the size of its population C. low public desire to save and invest
D. Maintaining high interest rates D. none of above

438. If China’s economy is larger than that of

Taiwan, then it MUST be true that

A. China has an absolute advantage over
Taiwan
B. Chinese citizens are more productive
A. it creates jobs and reduces unemploy-
than Taiwanese citizens
ment
C. China has a highe r GDP per capita
B. it encourages people to take risks, and
than Taiwan
in doing so, create better materials, prod-
D. Chinese citizens have greater con- ucts, and technologies
sumer surplus than Taiwanese citizens
C. the more entrepreneurs a country has,
E. China has fewer trade barriers than the higher the country’s GDP
Taiwan D. answers 1, 2, and 3 are all correct
439. Boomtowns were mostly occupied by: 443. Improved standard of health care would
A. Railroad workers be included in which measure of economic
growth?
B. Homesteaders
A. Real Income/GDP
C. Miners
B. Productive capacity
D. Cowboys
C. Net social welfare
440. What entitlements do individuals have D. none of above
that affords them the opportunity to enter
into agreements with others regarding the 444. Greater leisure time would be included in
use of their property providing recourse which measure of economic growth?
through the legal system in the event of A. Real Income/GDP
noncompliance?
A. Contractual Rights
B. Let it happen
D. none of above
C. Production Functions
445. Man-made resources used in the produc-
D. Rule of Law
tion process i.e. machines in a factory.
441. What factor of economic growth is Peo- A. Labour
ple who provide the money to start and B. Capital
operate a business?
C. Household
A. Natural Resources
D. Revenue
B. Human Capital
446. The three main determinants of growth
C. Capital Goods
are
D. Entrepreneurship
A. energy, technological change and edu-
442. How does entrepreneurship influence eco- cation
nomic growth? B. workforce, machines and investments

C. labour, capital and technological 451. What term best describes this image?
progress
D. none of above
447. Is this an example of Human Capital?
NARAYAN CHANGDER
A. spider
B. the terminator
C. entrepreneur
A. Yes
B. No D. Freddy Krueger
C. Both Physical and Human Capital 452. Given MPM = 0.3, MPS = 0.2, and MPT
D. none of above = 0.2 Given an injection of £20 million in
exports.Find the FINAL GDP increase.
448. What is the main policy to deal with eco-
nomic recession? A. £27.6 million
A. Promote economic stability B. £28.6 million

B. Promote economic inflation C. £28 million
C. Promote economic growth D. £26.5 million
D. Promote economic inequality
453. Which of the following best describes Di-
449. Which person demonstrated en- vision of labour?
trepreneurship?
A. Breaking down of work into smaller
A. Mateo worked hard every day at a gro- units
cery store, so his boss gave him a raise.
B. Doing variety if diversified work
B. Benjamin invested all of his money in
the stock of a very popular coffee com- C. Each worker creates the final product
pany. D. none of above
C. Maria wanted a new smartphone, so
she saved her paychecks until she could 454. What effects occurred as the result of the
afford it. Galveston Hurricane?
D. Kara learned to code and started a A. Built a sea wall to protect buildings
company designing websites for other from large waves.
businesses.
B. Influenced cities to rebuilt its govern-
450. A country investing in the health of their ment by having a city commission.
citizens. C. Major industries in Galveston moved
A. human capital inland to Houston.
B. capital goods D. All of the above

455. Which of the following is TRUE? 459. Water, fish, and trees are all examples
A. Economic growth can occur without of

economic development A. geography
B. Economic development can occur with- B. basin
out economic growth C. erosion
C. Economic growth always leads to eco- D. natural resources
nomic development
D. Economic growth and economic devel- 460. How is the economic growth of a country
opment do not relate to each other measured?
A. By comparing to other countries
456. What is the Transcontinental Railroad?
B. By analyzing natural and produced re-
A. A railroad system that connected the sources
entire United States.
C. By studying the types of cars and
B. A railroad that connected the east houses the citizens purchase.
coast to Alaska.
D. By comparing the GDP of different
C. A railroad that crossed the Atlantic years
Ocean
461. income that we don’t spend or not used
D. none of above
for consumption
457. What are natural resources? A. PI
B. DPI
C. NNP
D. savings
462. A system by which goods and services

are produced and distributed is
A. resources that are gone from nature
B. resources that are manufactured for
the environment
C. resources that are considered worth-
less
D. materials or substances that occur in
nature and can be used for economic gain.
458. Which country’s economy has the most

government control out of all the countries
in the world?
A. China A. economy
B. North Korea B. government
C. The United States C. education
D. Cuba D. agriculture

463. the knowledge and skills of the people in 467. The knowledge, skills, and relative
the workforce within a country health of a nation’s labor force/
A. investment A. Human Capital
B. GDP B. Capital Good
C. Literate
C. GDP per capita
D. Standard of living
D. human capital
468. A period of macroeconomic expansion or
NARAYAN CHANGDER
E. relationship
growth, followed by a period of contrac-
464. Which of the following is not part of tion, or decline.
an import substitution development strat- A. Business Cycle
egy? B. Circular Flow
A. Tax incentives to encourage FDI C. Equilibrium
B. Tariffs on imported manufactured D. GDP
goods
469. What do we use National Income for?
C. Subsidies to domestic manufacturing A. To predict the weather patterns
businesses
B. To determine the best vacation spots
D. Low-interest loans to domestic indus-
C. To measure the economic perfor-
tries
mance of a country and compare the stan-
Explanation:FDI is not part of import sub-
dard of living between different countries.
stitution. Import substitution relies on do-
mestic producers. D. To calculate the population growth
rate
465. What negative effect did gold and silver
470. Why did the baker switch from rolling the
mining have on the West?
bread by hand to rolling by using a ma-
A. Tent cities near the mines fostered chine(in regards to GDP)?
criminals as long-term residents.
B. Ghost towns were left behind after the
mines stopped producing.
C. Mining camps were sources of many
contagious diseases. A. the bread rolled by machine tastes bet-
D. Mass migration from the East Coast ter, so people will buy more and thus de-
led to social tension among merchants. crease GDP
B. the bread rolled by hand process is
466. Which government agency is responsible much faster, so less bread will be made
for creating plans for and coordinating eco- and thus decrease GDP
nomic development across all sectors? C. the bread rolled by machine process is
A. NEDA much faster, so more bread will be made
and thus increase GDP
B. DPWH
D. the bread rolled by hand process is
C. Department of Finance
much slower, so more bread will be sold
D. none of above and thus increase GDP

471. In Australia, what is the proportion of in- A. Continuous increaseContinuous in-

vestment (I) in national income? crease

A. 20% B. An increase in the production of goods
B. 10% and services in an economy.
C. 5% C. An increase that occurs in a certain

timeAn increase that occurs in a certain
D. 40% time
472. What is export led growth? D. Peningkatan dalam hal kinerja tenaga
kerja sehingga meningkatkan produktifi-
A. When countries close their economies
tas barang dan jasa (ekspor dan impor)An
to the international market
increase in labor performance to boost
B. When countries open up their productivity of goods and services (ex-
economies to the international market ports and imports)
C. When countries focus only on domes-
476. What educational level has the lowest
tic production
number of attendance in Colombia?
D. When countries reduce their export ac-
tivities
473. What does HDI look at?

A. A long and healthy life:Life expectancy
at birth, Education index:Mean years of
schooling and Expected years of school-
ing, A decent standard of living:GNI per
A. Primary school age
capita
B. Basic secondary education
B. Life expectancy from birth to death,
ability to access school, A decent stan- C. Middle school age
dard of living:GNI per capita D. Higher education
C. Education index:Mean years of school-
477. What is GDP per capita?
ing and Expected years of schooling, A de-
cent standard of living:GNI per capita A. the annual income of citizens within a
nation
D. Ability to access school, A decent stan-
dard of living:GNI per capita, Happiness B. the countries import and export costs
index. C. the amount of banks that open in a cer-
tain area
474. GDP per capita is found by dividing a
country’s GDP by it’s D. the amount of houses and building that
are constructed
A. population.
B. average birth rates. 478. What is one potential advantage of
achieving strong and sustainable economic
C. number of households. growth?
D. none of above A. Increased environmental degradation
475. Define “economic growth”. What is the B. Improved living standards for the pop-
meaning of Economic Growth? ulation

C. Higher levels of income inequality 484. How many parts is the General Assembly
divided into?
D. Short-term economic gains without
long-term consequences A. 2
B. 3
479. You don’t need formal education to de-
velop your human resources. C. 4
A. true D. 5
NARAYAN CHANGDER
B. false 485. Which of these examples would describe
growth due to technology?
480. Why might supply-side policies alone not
solve the problem of deficient aggregate A. Harvard College was founded in 1636
demand during a recession? and is still open to this day.
A. Because supply-side policies increase B. German inventor Johannes Gutenberg
demand invented the printing press
B. Because supply-side policies take time C. The U.S funded the building of the
to have an effect and do not directly stim- Panama Canal, completed in 1914.
ulate demand D. NAFTA was created to promote trade
C. Because supply-side policies immedi- among the North American countries
ately solve the problem of deficient aggre-
gate demand 486. Level 3A. Ecological Environment:The
growing awareness in the worldB. Politi-
D. None of the above cal and Legal Environment:Supply and De-
mand
481. An increase in income tax will cause what
change?
A. Increase in AD
B. Decrease in AD
C. Increased AS
D. Decrease in AS
482. A skill is an area of expertise or the abil- A. A is correct while B is incorrect

ity to carry out specific job functions. B. A is incorrect while B is correct
A. resource C. Both are correct
B. order D. Both are incorrect
C. skill
487. What are the main theories about the pro-
D. manager cess of economic growth?
483. A country investing in the health of their A. Classical Growth Theory

citizens B. Old Growth Theory
A. Human Capital C. Neoclassical Growth Theory
B. Capital Good D. New Growth Theory

488. What is the term for a good that is impos- 493. Supports strong tertiary, quaternary,
sible to prevent people from accessing? and quinary sectors.

A. Rival good A. Stage 1:Traditional Society
B. Non-rival good B. Stage 2:Pre-Condition for Take-Off
C. Excludable good C. Stage 3:Take-Off
D. Non-excludable good D. Stage 4:Drive to Maturity
E. Ample reserves E. Stage 5:High Mass Consumption
489. What is a concern related to tied aid in
494. True or False:Plessy v Ferguson upheld
developing countries?
segregation with the ruling that facilities
A. It promotes economic development could be “separate but equal.”
B. It reduces demand for skilled workers A. True
C. It encourages domestic production B. False
D. It leads to dependency on the donor
country 495. Thomas is a member of the House of Del-
egates. He wants to help make the state
490. Which South Africa president primarily laws. In which branch of the Virginia state
focus on economic growth? government does he work?
A. Jacob Zuma A. executive branch
B. Cyril Ramaphosa B. legislative branch
C. Thabo Mbeki-The Best Of Thabo Mbeki C. judicial branch
D. Nelson Mandela D. none of above
491. Economic growth can be seen by an out- 496. How do industrialized nations keep the
ward shift of literacy rate high?
A. The Production Possibility Curve
A. by offering training in other countries
B. The Gross Domestic Barrier
B. by not sharing economies
C. The Marginal Consumption Frontier
C. by offering better education
D. The Minimum Efficient Scale
D. none of the above
492. Discuss the limitations of using GDP as a
measure of economic growth. 497. Which statement about AD is most cor-
rect?
A. GDP accounts for all economic activi-
ties A. Aggregate demand is the total of
all types of spending in Australia repre-
B. GDP reflects the quality of life accu-
sented by C + I + G + X + M.
rately
B. C represents private household con-
C. GDP does not account for informal
sumption of, for example, take-away food,
economy, non-market transactions, in-
shelter, cars, holidays and clothes.
come distribution, quality of life, and en-
vironmental impact. C. I represents business spending, which
D. GDP accurately measures income dis- would rise if business confidence fell.
tribution D. If AD rose, GDP would fall.

498. A country’s literacy rate is the percent- C. She went with her cattle on the trail
age of adults who drive to the market.
A. can read & write D. She ate a lot of hamburgers.
B. material comfort
503. The Japanese economy has to make up
C. educated and skilled
for the country’s lack of:
D. pays a higher salary
A. Education
E. standard of living
NARAYAN CHANGDER
B. Population
499. Which of the following is not a determi-
nant of aggregate demand? C. Natural resources
A. Change in Consumer Spending D. Fish

B. Change in Political Parties
504. Use the information in the box below to
C. Change in Government Spending answer this question. In order to produce
D. Change in investment Spending a good or a service, four factors of produc-
tion are needed-natural resources (land)
500. What does GDP stand for? human resources (labor)capital resources
(buildings and machinery) entrepreneur-
ship (organization). A sixth-grade class
decides to open a popcorn stand. The
stand and the popcorn popper are exam-
ples of which factor of production?
A. natural resources
B. human resources
A. gross domestic product
C. capital resources
B. general domestic product
C. gross domestic percentage D. entrepreneurship
D. general domestic percentage 505. Which diagram best fits the following
501. The global unemployment rate in 2017 change:large cuts in government spending
was: on education and healthcare lowers level
of health and education in a population
A. 5.6 %
B. 7%
C. 10% A.
D. 6%
502. How did Lizzie WIlliams Johnson earn her

nickname, The Texas Cattle Queen?
A. She was very wealthy and hired many
workers to take her cattle to the market. B.
B. She was married to the King of the
Cows.

C. More employment opportunities

D. Technological advancement
C.

509. What typically happens to the standard
of living in a country with low literacy
rates?
A. The economy is booming
D.
B. The jobs are plentiful
C. People are wealthy
Explanation:This strange government D. There is a low standard of living
act would reduce the quality of your la-
bor force, which reduces your potential 510. Achieving a sustainable and inclusive eco-
growth in the future nomic growth is one of the government’s
macro objectives.
506. a rise in the quality or quantity of fac-
tor inputs will lead to long run economic A. True
growth B. False
511. Which population has the LOWEST human
B. No, I don’t understand this from the capital?
notes
not read the notes
D. none of above
507. What term best describes this image?

A. Egypt
B. Sudan
C. Nigeria
D. South Africa
512. Which of the following is NOT a dif-

ference between Middle Eastern countries
with large supplies of oil and those with-
A. over time out?
B. low wages A. Countries with a lot of oil tend to have
a higher standard of living.
C. capital goods
D. assembly line B. Countries with a lot of oil tend to have
higher per capita incomes.
508. Which of the following is not a conse- C. Countries with a lot of oil tend to have
quence of economic growth? fewer instances of famine.
A. Increased standard of living D. Countries with a lot of oil tend to have
B. Decreased national income fewer environmental issues.

513. What is the main subtopic of the article? 518. The higher the literacy rate
A. The main subtopic of the article is fash- A. The lower the standard of living
ion trends.
B. The higher the standard of living
B. The main subtopic of the article is cli-
mate change. C. The lower the GDP
C. The main subtopic of the article is his- D. The higher the unemployment level
torical events.
NARAYAN CHANGDER
D. The main subtopic of the article is cook- 519. A benefit of economic growth is that un-
ing recipes. employment will fall and incomes increase
514. What is the main measure of economic A. Yes, I understand this from the notes
growth used worldwide?
A. GDP per capita notes
B. Gross National Income (GNI)
C. Real GDP not read the notes
D. Green GDP
D. none of above
515. Which one of the following is NOT a
method of calculating real GDP? 520. Which type(s) of growth does this
A. income method AD/AS diagram represent?
B. savings method
C. expenditure method
D. none of above
516. Invisible Trade Balance:select all the

records that could be part of it
A. banking
B. insurance A. Actual growth
C. shipping B. Potential growth
D. cars
C. Sustained growth
E. none of the options
D. Sustainable growth
517. The 1944 agreement that set an inter-
nationally recognized value for currency E. Inclusive growth
based on the US dollar. It laid the founda-
tion for International financial transactions 521. What is the currency in India?
and business.
A. Dollars
A. Land reform
B. Yen
B. Federal system
C. Universal Declaration of Human rights C. Rupee
D. The Bretton Woods Agreement D. Euro

522. What does Real GDP measure? 527. Which of the following is NOT a cause of
economic growth?
A. GDP measured at their current market

values or prices A. Technological advancements
B. GDP measured assuming the prices B. Decrease in resource allocation
are constantly increasing C. Discovery of more natural resources
C. GDP measured assuming the prices D. Investment in capital and infrastruc-
are unchanged over time ture
D. GDP measured assuming the prices
528. What will directly result in an increase in
are constantly decreasing
China’s Gross National Product?
523. Many African American inventors were A. increased wages earned in a
unable to benefit from their discoveries Malaysian-owned factory in China
and innovation because of difficulties B. increased imports of goods and ser-
A. With state laws. vices
B. Getting patents. C. increased outflows of net property in-
come
C. Forming trade unions.
D. increased taxes on domestic expendi-
D. Fighting monopolies. ture
524. Check the three types of capital that cre- 529. Which is an example of a natural re-
ate economic growth. source?
A. Human Capital A. forests
B. Technology B. highways
C. Physical capital C. education
D. trading capital D. factories
525. Which two groups of people are repre- 530. Which of the following was an economic
sented in the circular flow model? impact from the growth of the railroad?
Select all that apply!
A. Buyers and Sellers
A. Decreased the cost of shipping.
B. Producers and Consumers
B. Provided businesses access to more
C. Government and Private Individuals places.
D. Households and Businesses C. Created jobs in construction and busi-
nesses connected to the railroad.
526. An economic exchange in which all sides
agree to participate because they expect D. none of above
to benefit. 531. According to paragraph 7, until the eigh-
A. International Trade teenth century, it was the principal func-
tion of which of the following to provide
B. Voluntary Trade
funds for the state?
C. Economy
A. A type of partnership based on English
D. Trade barrier law

B. A type of agreement negotiated in En- 536. The Cold War created a sense of friend-
glish ship in both countries.
C. An arrangement found only in England A. True
D. A new development introduced by the B. False
English
537. The percentage of the population that can
532. Which best describes standard of living? read and write is called
A. money & material comforts available A. Literacy rate
NARAYAN CHANGDER
to citizen within their country
B. Life expectancy
B. A nation watching for new comforts to
become available C. Death rate
C. A Union of workers demanding for im- D. Birth rate
proved rights
538. short run growth is known as actual
D. Trade Barriers limited material com- growth
forts from entering the nation
533. remaining after deducting taxes and B. No, I don’t understand this from the
other expenses. notes
A. productive C. No, I don’t understand this, as I have
B. net not read the notes
C. service D. none of above
D. none of above
539. True or False-Uranium is radioactive?
534. How does technology contribute to eco- A. True
nomic growth?
B. False
A. Technology only benefits large corpo-
rations and does not contribute to overall 540. can be measured by an increase in a
economic growth. country’s GDP
B. Technology contributes to economic A. Economic Growth
growth through increased productivity, ef- B. Economic Development
ficiency, innovation, job creation, and
global trade. 541. What are capital goods?
C. Technology leads to higher unemploy-
ment rates and lower economic growth.
D. Technology has no impact on economic
growth.
535. A country can increase its human capital
by investing in
A. education for its citizens
A. the value of a person’s skills and edu-
B. new machinery for technology cation, scientists, doctors, or workers
C. railroads and airports B. a person who takes a risk to start a
D. none of the above new business

C. goods used to make other goods, like B. Indonesia’s Golden Pathway toward
machines Sustainable Growth

D. gifts of the earth C. The Golden Era of Indonesia
542. Which of the following are likely conse- D. Indonesia’s Pathway to Success
quences of economic growth?
A. Fall in general price level 548. In an economy with a positive output gap
B. Rise in unemployment A. There is spare capacity
C. Rise in material standard of living
B. Actual output is less than potential out-
D. All of the above put
E. None of the above
C. There is cyclical unemployment
543. Which of the following is MOST likely to
D. Demand-pull inflationary pressure ex-
be true in a country with a high literacy
ists
rate?
A. a low standard of living 549. Which of the following is least likely to
B. a high standard of living be part of a market-based supply-side ap-
C. little investment in human capital proach to economic development?
D. too much investment in capital re- A. Increasing tariffs

sources
B. Encouraging FDI
544. True or False:The battle at Little Big Horn
C. Reducing corporation tax rates
was the Sioux’s greatest defeat.
A. True D. Reducing environmental regulations
Explanation:Trade barriers are not part of
B. False an export promotion strategy.
545. Net Social Welfare is:
550. Countries that have (a) natural resources
A. Quantitative
are able to produce (b) goods and services
B. Qualitative that are (c) than other countries who have
to import those goods and services.
546. Which of the following is a drawback of
economic growth? A. a many
A. Stable inflation B. b more
B. Environmental issues like pollution
and climate change C. c cheaper
C. Increased availability of goods and D. more expensive

services
E. few
D. None of the above
F. less tagsS2789894
547. What is the title of the article mentioned
in the text? 551. what is the employment and unemploy-
A. The Future of Indonesia’s Economy ment rate in chile?


mine whether it will result in positive OR
negative growth AND a shift in PPC OR
movement towards the PPC-“Large cuts
in government spending on education and
healthcare”
A. Positive
NARAYAN CHANGDER
B. Negative
A. employment 51.3%. C. Shift in PPC curve
B. unemployment 10.2%.
C. unemployment 17.2%.
D. employment 55.3%. 556. An example of a skilled worker is a:
552. Jonathan is joining the U.S. Navy in A. labourer

September. In which region of Virginia B. pilot
will he most likely be stationed?
A. Coastal Plain (Tidewater) C. tractor driver
B. Valley and Ridge D. Teacher

C. Blue Ridge Mountains
557. You are watching a speech by the Prime
D. Appalachian Plateau Minister of the United Kingdom on T.V.
553. The programs we watch on television, with your parents. She is explaining a
YouTube, Netflix and Tik Tok are NOT plan for improving the U.K. economy. In
ways we are can gain informal education. the speech, she says:“Our workers must
be prepared for the high-tech jobs of the
A. true 21st century. My plan will give incen-
B. false tives to companies who provide technol-
ogy education and training for their em-
554. The diagram shows:
ployees.” The Prime Minister’s plan is
based on which of the following conclu-
sions?
A. An investment in human capital will
increase the country’s Gross Domestic
Product.
B. Adjusting the exchange rate will in-
crease the profit the U.K. makes in inter-
A. Economic growth caused by a reduc- national trade.
tion in unemployment and increases in
productive efficiency C. An investment in capital goods will
increase the country’s Gross Domestic
B. Economic growth as an increase in pro-
Product.
duction possibilities caused by factors in-
cluding increases in the quantity and qual- D. An embargo on technology from other
ity of resources countries will help the U.K. economy.

558. Investments in human capital, such as A. Distribution of income becomes more

and professional training programs are a unequal.
great way for a country to improve its

B. Depletion of natural resources
GDP
C. Decreased inflation
A. highly-skilled workforce
D. Pollution and environmental damage
B. standard of living
C. different kinds 564. What causes a recession? (Select ALL
that apply)
D. different set of skills
A. Lower interest rates
E. education
B. Falling real wages
559. Without human resources, natural re- C. Lower bank lending
sources cannot be used and developed.
D. Inflation
A. true E. Depreciation in the exchange rate
B. false
565. the amount of people in a country that
560. A newspaper reported that a country’s can read and write
economy had grown by 3 % during the last A. Capital Goods
year.What must have increased in that
year? B. Literacy Rate
A. costs of production C. Standard of Living

D. Gross Domestic Product (GDP)
B. gross domestic product
C. unemployment 566. What is standard of living?
D. wage levels
561. Which level of education are you cur-

rently in?
A. first
B. second
C. third
A. the level of wealth (money) and mate-
D. fourth rial comfort (things) available to people in
a country
562. Uses limited technology.
B. the percent of people who can read
A. Stage 1:Traditional Society and write
567. Which of the following is most likely a
C. Stage 3:Take-Off characteristic of a developing country?
D. Stage 4:Drive to Maturity A. Low employment rate
E. Stage 5:High Mass Consumption B. High GDP
563. Which of the following is not a cost of C. High technology

economic growth? D. none of above

568. Countries are divided into two cat- economy, and it can promote economic
egories based on economic develop- growth by increasing government spend-
ment:developing or developed nations. ing or reducing taxes to boost aggregate
A. True demand.
B. False C. Fiscal policy is the use of government
regulations to control the supply of money
569. To reduce an inflationary gap, a central in the economy.
bank might:
D. Fiscal policy involves the management
NARAYAN CHANGDER
A. Inject more money into the economy of interest rates by the government to
B. Lower the reserve requirement for stimulate economic growth.
banks
C. Quantitative Tightening 573. Which policy is most effective in promot-
ing inclusive growth?
D. Encourage consumer borrowing
A. Implementing regressive tax systems
570. A cost to economic growth is a deficit in
the balance of payments B. Developing universal healthcare and
education
C. Privatizing all public services
notes D. Increasing tariffs on imports
574. Inflation is most likely to occur during
not read the notes
which phase of the business cycle
D. none of above
A. Expansion
571. How does economic growth impact soci-
B. Contraction
ety?
A. Economic growth leads to decreased 575. Major technological advancements leads
employment opportunities to rapid growth in the textile and food in-
B. Economic growth can lead to higher dustries.
standards of living, increased employ- A. Stage 1:Traditional Society
ment opportunities, and improved infras-
tructure and public services. B. Stage 2:Pre-Condition for Take-Off
C. Economic growth has no impact on so- C. Stage 3:Take-Off
ciety D. Stage 4:Drive to Maturity
D. Economic growth results in lower stan-
dards of living
572. Explain the concept of fiscal policy and its 576. Capital goods are the people use to
role in promoting economic growth. produce goods and services.
A. Fiscal policy is the process of pri- A. Raw materials
vatizing government-owned industries to B. Factories machines, & technology
boost economic growth.
C. Skills, knowledge, and experience
B. Fiscal policy is the use of government
spending and taxation to influence the D. none of the above

577. Which statement BEST describes the rela- B. HDI

tionship between a country’s investment C. GDP
in capital goods and human capital and its

GDP? D. Economic Growth
A. Investments in capital goods typically E. Productive Capacity
lead to a decrease in GDP
582. The level of wealth and material comfort
B. Investments in capital goods and hu- available to a people.
man capital typically lead to an increase
A. literate
in GDP
C. a decrease in GDP typically leads to in-
vestments in capital goods and a reduc- C. entrepreneur
tion in education D. literacy rate
D. none of above
583. Why were many Americans distrustful of
578. What are capital goods? unions during the Industrial Age?
A. The workers who made the goods and A. People believed unions were run by
services. foreign radicals and were a threat to
American culture.
B. The factories and machines used it
make goods B. They believed that unions were respon-
sible for high unemployment.
C. Money spent to train workers to use
new technology C. People felt that unions helped create
monopolies.
D. Money available for scholarships to
graduate schools D. none of above
579. Land, forests, minerals, water, etc. are 584. Which formula is the correct way to mea-
examples of: sure economic growth rate?
A. Human capital A. Original GDP / Change in GDP x 100
B. Entrepreneurship B. Original GDP-Change in GDP x 100
C. Natural resources C. Change in GDP / Original GDP x 100
D. Capital goods D. Change in GDP-Original GDP x 100
580. In the context of economic growth, what 585. Which of the following best describes the
does a ‘black swan event’ refer to? term “strong” in the context of strong and
A. Expected and predictable events. sustainable economic growth?
B. Unexpected and hard-to-predict A. Short-term economic growth at any

events. cost
C. Positive economic developments. B. High growth rates that are difficult to

maintain
D. Routine and common occurrences.
C. Steady economic growth that pro-
581. Which one of these is not a measure of motes stability and resilience
growth D. Economic growth that relies solely on
A. Net Social Welfare the exploitation of natural resources

586. How does an outward shift of the Pro- 591. Why, despite the fact that there was no
duction Possibility Curve (PPC) relate to major damage, did the Stono Rebellion be-
economic growth? come such a major concern for the white
A. It indicates a recession. population?
B. It represents potential economic A. African slaves outnumbered whites

growth. nearly 2 to 1, making the possibility of a
major slave rebellion a very real concern
C. It signifies actual economic growth.
B. The citizens of Charleston were not
NARAYAN CHANGDER
D. It has no relation to economic growth. concerned about the African slaves but
they were worried that the event might
587. Which policy might not promote economic
motivate local Native American tribes to
growth?
rebel
A. Decreasing interest rates C. One of the men killed during the Rebel-
B. Increasing taxes on all goods and ser- lion was Thomas Broughton, governor of
vices South Carolina
C. Investing in infrastructure D. Several of the prominent white citi-
D. Promoting technological research zens of Charleston had secretly helped the
slaves organize the Rebellion
588. As per Leibenstein’s theory of critical min-
592. In a boom
imum effort, every economy is influenced
by two forces A. Unemployment is likely to fall
A. Demand and supply B. Prices are likely to fall
B. Savings and investment C. Demand is likely to fall
C. Cost and Revenue D. Imports are likely to fall
D. Stimulants and shocks 593. What are some environmental conse-
quences of economic growth?
589. Which of the following are injections into
the circular flow of income? A. Increased biodiversity, improved air
quality, and enhanced ecosystem ser-
A. Household spending, wages and rent vices.
B. Government spending, investment and B. Decreased pollution, reforestation,
imports conservation of natural resources, and
C. Savings, capital and exports climate stability.
D. Investment, government spending and C. Increased pollution, deforestation, de-
exports pletion of natural resources, and climate
change.
590. What is the primary goal of expansion-
D. No environmental consequences, eco-
ary monetary policies?
nomic growth is beneficial for the environ-
A. Reduce inflation. ment.
B. Increase interest rates. 594. Which developing country is aging even
C. Boost consumer spending. faster than Thailand?
D. Promote economic growth. A. Vietnam

B. India B. Southeastern
C. Indonesia C. Northern

D. Philippines D. Eastern
595. What can affect economic growth if a 600. What is physical capital in economics?
country is at war? A. Tools in the mind or the stuff in peo-
A. All of the above ple’s heads
B. Limiting purchases B. Tools in the broadest sense like shov-
els and tractors
C. Decline in economy
C. Knowledge about how the world works
D. Increase in unemployment rates
D. The best technological knowledge
596. How does income inequality affect eco-
nomic growth? 601. The most determining economic factor in
economic development is
A. Income inequality only affects the
wealthy and not the overall economy.
B. Income inequality always leads to eco-
nomic growth.
C. Income inequality has no impact on
economic growth.
A. technology
D. Income inequality can have both pos-
itive and negative effects on economic B. modal
growth. C. sdm
597. What is an important factor in the D. sda
economies of Saudi Arabia and the UAE? 602. Comparing prices adjusted for inflation is
A. Water shows the
B. Oil A. nominal value
C. Metals B. real value
D. Climate C. deflated value
D. contraction
598. What is considered one cause of infla-
tion? 603. Which of the following is NOT a focus of
A. Demand and supply are in equilibrium. the Updated Philippine Development Plan
for 2017-2022?
B. Producers raise prices to meet in-
creased costs. A. building a high-trust society
C. Employment is increased. B. creating foundations for sustainable
development
D. The money supply decreases.
C. increasing economic equity
599. What part of Europe has high literacy D. practicing degrowth strategies to pro-
rates? tect the environment more than the econ-
A. Southern omy

604. Define potential growth

A. in PPC model, refer to growth that oc-
curs due to the reduction of unemploy-
ment or improvement in efficiency of re-
source use, resulting in movement from
inside PPC to point closer to PPC
B. in PPC model, refers to growth that oc-
NARAYAN CHANGDER
curs due to increase in quantity or qual-
ity of resources, resulting in shift to the
right of PPC curve, also referred to as
long-term growth
605. Which of the following about strategy of

balanced growth is right A. Literate people are better able to se-
cure skilled jobs.
A. Simultaneous investment in all sectors
B. Literacy helps to grow a company’s in-
B. All sectors are independent frastructure.
C. Both C. Literate people do not commit crimes
D. None against others.
D. Literacy prevents political division
606. A government achieves a high rate of eco- among voters.
nomic growth.How may this conflict with
other government aims?
609. This reflects material living standards
A. It may increase government income.
A. G.D.P.
B. It may increase incomes for the lower
paid. B. G.D.P. per product
C. It may increase the supply of exports. C. G.D.P. per capita

D. It may increase the volume of imports. D. Real G.D.P.
607. The level of private consumption spend- 610. What is one way to measure average la-
ing (C) and the rate of economic growth bor productivity
are likely to fall if there was a:
A. output per employed worker
A. rise in consumer confidence
B. the output of the best workers
B. fall in household savings
C. rise in household income C. the output of the median worker
D. rise in government taxation. D. calories in vs calories out, you can’t ex-

plain that mr lowe
608. How can maintaining a high literacy rate
positively affect a nation’s standard of liv- 611. How has Israel made up for its lack of
ing? natural resources?

A. literacy rate
B. GDP

C. The GDP divided by the number of peo-
ple in a country
D. none of above
614. Unemployment that rises during eco-

nomic downturns and falls when the econ-
omy improves.
A. Seasonal Unemployment
B. Structural Unemployment
C. Frictional Unemployment
D. Cyclical Unemployment
615. Which one was the topic?

A. Decent Work and Economic Growth
B. Sustainable Development Goals.
C. Zero Hunger
D. English
616. Which country is considered an important

station for trading ships?
A. China
A. by importing raw materials and keep- B. UAE

ing them in storage C. Singapore
B. by fishing and desalinating water and D. Saudi Arabia
then producing all other natural resources
617. What are natural resources (water, oil,
C. by importing raw materials and export- metals, minerals, plants, climate, etc.)
ing technology and finished goods like pol- produced by?
ished diamonds and software
A. Animals
D. by exporting oil and using the desert to
B. Machines
grow all of their food
C. Humans
612. It shows trends of how a nation’s growth
D. Nature
rates change over time.
A. Population 618. Continuous improvements in advanced
energy, transportation, and communica-
B. Demographic cycle
tion systems.
C. Economic growth A. Stage 1:Traditional Society
D. Business cycle B. Stage 2:Pre-Condition for Take-Off
613. GDP per capita C. Stage 3:Take-Off

D. Stage 4:Drive to Maturity C. Turkey

E. Stage 5:High Mass Consumption D. none of above
619. Which statement about Nation Z’s invest- 623. Which of the following is the benefit of
ment in capital could be best explained and economic growth?
supported by the chart above?
A. Higher income and decreased living
standards
NARAYAN CHANGDER
B. Higher income and improved living
standards
C. Stagnant income and unchanged living
standards
A. More money was spent to locate and
harvest natural resources near Nation Z’s D. Decreased income and worsened liv-
capital during this time. ing standards
B. Likely, more money was spent develop- 624. According to Rostow’s stages of eco-
ing machinery and technology from 2002 nomic growth model, what is the first
to 2004. stage of development?
C. Workers were producing efficiently un-
A. Preconditions for Takeoff
til 2002 and then they became less produc-
tive. B. Traditional Society
D. There was a decrease in capital invest- C. Takeoff
ment between 2001 and 2004.
D. Drive to Maturity
620. What are the characteristics of a boom in
the business cycle? 625. A labor force of 20 million people has
18.5 million people employed. Find the un-
A. Negative economic growth
employment rate.
B. Low inflation rates
A. 10%
C. Near full capacity or positive output
gaps B. 8.5%
D. Demand-deficient unemployment C. 7.5%

D. 6%
621. The UAE produced its own for cars.
A. Gasoline 626. An increase in the rate of economic
B. Electricity growth requires an increase in the of
the factors of production.
C. Money
A. mobility
D. none of above
B. net investment
622. Oil is an important resource found in
which country? C. per head
A. Israel D. non replaceable
B. Saudi Arabia E. leisure

627. Oliverland has a $1000 GDP and their A. Seasonal Unemployment

workers put in 250 hours of labor. Theav- B. Structural Unemployment
ille has a $2000 GDP and their workers

put in 400 hours of labor. Who is more C. Frictional Unemployment
productive? D. Cyclical Unemployment
A. Oliverland
632. According to Lewis’s model, the dual
B. Theaville economy grows only when
C. Both A. the modern sector increases its output
D. none of above share relative to the traditional sector
B. agricultural sector uses modern equip-
628. Explain how technological advancements
ment
can impact economic growth.
C. agricultural sector hires labor econom-
A. Technological advancements can im-
ically
pact economic growth by increasing pro-
ductivity, reducing costs, creating new in- D. modern manufacturing sector is labor-
dustries, and improving overall efficiency. intensive
B. Technological advancements can lead 633. If exports from New Zealand increased,
to economic decline what would most likely happen to real
C. Technological advancements can only gross domestic product and price level?
impact economic growth in developed Real GDP / Price Level
countries A. decrease/decrease
D. Technological advancements have no B. increase/increase
impact on economic growth
C. decrease/increase
629. In the late 1800s, the Populist movement
D. increase/no chanve
arose out of the concerns of
A. the wealthy. 634. Inflation leads to people’s real incomes
falling money incomes do not rise.
B. the middle class.
A. True
C. farm workers.
B. False
D. factory owners.
630. was a leader in the RR and shipping 635. According to the data, which country has
industries. most likely invested the most in capital
goods?
A. Rockefeller
B. Walker
C. Carnegie
D. Morgan
E. Vanderbilt
631. Type of unemployment that occurs when

workers skills do not match those needed
for the jobs available.

A. Brazil 641. What is the trend of unemployment in

B. Colombia this graph?
C. Cuba
D. Mexico
636. What does GDP stand for
A. Gross Domestic Product
NARAYAN CHANGDER
B. Gross Domestic Processes
C. Great Domestic Product
D. Get Domest Products
637. Most people in developing nations earn A. In the short term Underemployment is
their living by- increasing and unemployment is decreas-
A. farming. ing
B. working in offices and companies. B. In the short term Underemployment is
C. working in manufacturingindustries. increasing and unemployment is increas-
D. working in service industries. ing
638. A cost to economic growth is that finite C. In the short term Underemployment is
resources may be used up decreasing and unemployment is increas-
ing
D. In the short term Underemployment is
decreasing and unemployment is decreas-
notes
ing
not read the notes 642. Which of the following is NOT a factor of
D. none of above production?
639. Which of the following is not a compo- A. Land
nent of aggregate demand?
B. Labour
A. Investments
C. Capital
B. Savings
C. Consumption D. Goods and services
D. Government spending
643. Recession caused by demand shock will
640. The things that nations invest in to cause:(Select 2 options)
increase productivity and manufacture
A. AD to shift left
things more efficiently are
A. natural resources B. LRAS to shift left
B. capital goods C. a movement of a point on PPF towards
C. trade barriers a point inside
D. Gross Domestic Product D. inward shift of PPF

644. A cost to economic growth is income in- 649. What is the impact of having natural re-
equality sources on a country’s GDP?

A. Yes, I understand this from the notes A. If you have better machines, you
B. No, I don’t understand this from the will be more productive and make more
notes money
C. No, I don’t understand this, as I have B. the total amount of goods and services
not read the notes produced in a country in one year
C. more natural resources allows you to
D. none of above
make more goods. more goods equals
645. What are net exports? more profit, and more profit equals an in-
crease in GDP
A. The difference between the quantity of
exports and the quantity of imports. D. tools that make other goods
B. The quantity of total exports in an econ- 650. What are the 4 factors that lead to a
omy. country’s economic growth?
C. The value of total exports in an econ- A. nvestment in human capital, invest-
omy. ment in physical capital, land (natural re-
D. The difference between export rev- sources), entrepreneurship
enue and import expenditure. B. a powerful military, strong dictatorial
leadership, communist regime, little per-
646. If someone says that the country of China
sonal freedom
is worth over $12 trillion dollars, they are
talking about their C. good international relations, a demo-
cratic president, strict laws, freedom of
A. human capital press
B. GDP D. a monarchy, the World Bank, a parlia-
C. capital goods mentary democracy, personal freedom
D. GDP per capita 651. An economy is most likely to be in the
647. If we create real economic growth, boom phase of the economic cycle when
should we see price increases? there is a rise in
A. No, because the long-run and short- A. the household savings ratio
run curves both shift to the right. Prices B. the demand for imports
should minimally stay the same C. the budget (fiscal) deficit
B. Yes because the long-run curve shifts D. the level of house repossessions
to the right and that meets supply at a
higher price point 652. Why might Net Social Welfare be a better
measure of growth than real GDP?
648. S + T + M > I + G + X means that the
A. It includes inflation
national income will
B. It shows how incomes are distributed
A. Fall in the economy
B. Increase C. It includes economic and non eco-
C. Stay the same nomic factors
D. none of above D. It only includes non-economic factors

653. An increase in the labour force participa-

tion rate is most likely to
A. increase productivity.
B. increase productive capacity.
C. decrease government revenue.
D. increase government expenses.
NARAYAN CHANGDER
654. What are the rights of a trade union? A. high literacy rate and high standard of
A. Hold meetings with employees outside living
working hours B. low literacy rate and low standard of
living
B. Call a strike or stay-away
658. If Mrs. Sherman’s family find oil in her
C. Enter and recruit members during
back yard, how can she invest in capital
business trading hours
goods to help her make money off of her
D. Organize reasonable leave, including newfound oil?
possible paid leave, for their office bear- A. She can pay for her kids to be trained
ers in the oil refinery industry.
B. She can sell it to the highest investor
655. a product sent and sold to another coun- at a bank.
try.
C. She can buy machines that will allow
A. export her to take the oil out of the ground and
refine it.
B. net
D. She can pay to have it inspected by an
C. import agency.
D. none of above 659. Which is an example of investment in hu-
man capital?
656. GDP is A. trucks
A. the amount of goods and services pro- B. factories
duced
C. education
B. the amount of goods and services pro- D. highways
duced by a country over a year
660. The closer the HDI is to 0, the devel-
C. the value of goods and services pro- oped the country is.
duced by a country over a year
A. less
D. great domestic product
B. more
657. Countries with a low GDP Per Capita usu- 661. Your friend and you decide to open a
ally have a snow cone stand. The training you give

to the people you hire to run the stand are A. the value of an asset decreases over
examples of which factor of production? time

A. Capital Resources/Goods B. the value of an asset remains constant
over time
B. Entrepreneurship
C. the value of an asset is not affected by
C. Human Capital
time
D. Natural Resources D. the value of an asset increases over
time
662. Economic migration has to do with people
that choose to move to improve the stan- 665. The above quote by Israel’s chairman of
dard of living by gaining a better paid job Israel Innovation authority suggests that
A. True Israel should do which of the following?
B. False
663. Which diagram best fits the following

change:a violent conflict destroys a por-
tion of a country’s factories, machine, and A. Invest more heavily in human capital
road systems B. Increase spending on capital goods
C. Try to decrease economic growth
D. Intensify the annual military budget
A.
666. What did the Homestead Act do?
A. It limited immigration
B. It regulated businesses
C. It increased the tariff
B. D. It gave free land to those who settled
in the West
667. Use the map to answer the following

question. What industry is primarily found
in the Blue Ridge Mountains?
C.
A. recreation
B. technology
C. coal
D. shipbuilding
D.
668. Capital goods are the people use to
produce goods and services.
Explanation:This destruction of factors of A. Raw Materials
production reduces an economy’s capabil- B. Factories & Technology
ity of producing at the previous level.
C. Skills, knowledge, & experience
664. depreciation is when D. none of above

669. Best description of the artists views on 673. What does sustainable development
trusts. means?
A. sustained rise in real GDP
B. reducing inequality and unemployment
C. exploitation of natural resources
D. sustainable growth that doesn’t harm
NARAYAN CHANGDER
the environment
674. NO.2 Which of the following is a nec-

essary condition for sustainable develop-
ment?
A. Increase in the quality of life
B. Reduction in the level of pollution
A. Supports Trusts
C. conservation of stock of natural capital
B. Opposes Trusts
C. Indifferent D. All of these
D. none of above 675. What does point Y represent on the PPC?

670. Which of the following decreased the cost
of manufacturing products?
A. Moving Assembly Line
B. Philanthropy
C. Monopolies
D. none of above
671. A PPF diagram can illustrate short run

and long run economic growth A. Efficiency
B. Unattainable / impossible
notes C. Inefficency
C. No, I don’t understand this, as I have D. Nothing

not read the notes
676. Benefits of International Specialisation
D. none of above
include (select all that apply):
672. How do entrepreneurs help a country’s A. Efficiency gains
economy? Select two.
B. Economies of scale
A. Create jobs
B. Increase literacy rate C. Overspecialisation
C. Introduce new products D. High labour turnover

D. Reduce environmental impacts E. none of the options

677. Skilled workers to fill jobs within the

economy are considered to be

A. human capital
B. capital goods
A. London
D. productive resources
B. Paris
678. Taking over companies that are your com- C. Berlin
petition in order to try to have a monopoly
D. Capetown
is called integration.
A. vertical 683. Productivity describes the ability of indi-
viduals or a production system to:
B. horizontal
A. Produce a high quality of work in a
C. diagonal given period of time.
D. none of above B. Produce a number of goods or services
in a given period of time.
679. Which one is the correct formula to calcu-
late unemployment rate? 684. What term best describes this image
A. (Number of unemployed / Labor force)
x 100
B. (Labor force / Number of unemployed)
x 100
C. (Number of unemployed / Number of
employed) x 100
A. human captial
D. (Number of employed / Labor force) x
100 B. human geography
C. human relations
680. When individuals lose jobs due to a de-
cline in the economy (aggregate demand), D. humanity
often during an economic recession. 685. Settlement that developed at the inter-
A. Structural Unemployment section of railroad lines and cattle trails.
B. Cyclical Unemployment A. cowtown
C. Frictional Unemployment B. port
D. Seasonal Unemployment C. capital
D. bullburg
681. A country investing in newer technology.
686. Who sets the price for goods in Aus-
A. human capital
tralia?
B. capital goods
A. Buyers and sellers agree upon price.
682. European leaders met to discuss Africa at B. The governor-general sets prices for
the conference in 1885? most goods.

C. Parliament sets a price for all goods in 690. How much money do the businesses in
the country. Dharavi contribute to Mumbai’s economy
D. Prices for goods are set based on cus- per year?
toms and beliefs of the Aborigines. A. £100 million
687. Abe loves the outdoors and participates B. £200 million

in many types of recreation. What region C. £300 million
of Virginia is best known for its recreation
D. £350 million
NARAYAN CHANGDER
industry?
A. Coastal Plain (Tidewater) 691. The measurement of the annual income of
citizens in a country
B. Valley and Ridge
A. investment
C. Blue Ridge Mountains
B. GDP
D. Appalachian Plateau
C. GDP per capita
688. Natural Resources
D. human capital
A. the total dollar value of all goods and
E. relationship
services produced by a country in one
year 692. What was the goal of the Dawe’s Act?
B. the materials that come from nature, A. Encourage Native Americans to be-
such as land, forests, minerals, water, come farmers and accept white culture.
etc.
B. To provide Native Americans with pay-
C. a physical object that is sold to make ment for all the mistreatment they re-
money ceived.
D. the man-made materials that are C. To return all the gold that was stolen
needed to produce goods and services from them by the U.S. government.
689. What is the trend of GDP in this graph? D. none of above
693. What is the difference between Real GDP

and Nominal GDP?
A. Real GDP measures output at current
prices, while Nominal GDP measures out-
put at constant prices
B. Real GDP measures output at constant
prices, while Nominal GDP measures out-
put at current prices
A. Trend is increasing in the short term
C. There is no difference between Real
and falling in the long term
GDP and Nominal GDP
B. Trend is increasing in the short term
and increasingin the long term D. None of the above
C. There is not change over the long term 694. Which factor is NOT a cause of potential
D. Trend is falling in the short term and economic growth?
falling in the long term A. Discovery of natural resources.

B. Investment in new capital. 700. Excluding the agricultural sector, per-

C. Technical progress. cent of all workers fell into this employ-
ment category.

D. Recession.
A. 56%
695. Starts to improve farming techniques and
B. 51
shift more towards commercial agricul-
ture. C. a lot
A. Stage 1:Traditional Society D. 77!
B. Stage 2:Pre-Condition for Take-Off 701. If a country is experiencing a recession,
C. Stage 3:Take-Off which of these might be observed?
D. Stage 4:Drive to Maturity A. PPC shifting outward
E. Stage 5:High Mass Consumption B. Decrease in unemployment
C. Decrease in total demand
696. main/critical/fundamental issue
D. Increase in investment
A. clear evidence
B. economic recovery 702. True or False:Irish and Chinese immi-
grants mainly built the Transcontinental
C. a great deal of
RR.
D. key question
A. True
697. A, B, C, D? B. False
A. A
703. Which country specializes in fishing?
B. B
A. United Kingdom
C. C
B. Russia
D. D
C. Germany
698. Fiscal policy addressing an inflationary D. none of above
gap might involve:
A. Increasing government expenditure 704. Which area in Mumbai is home to over
5000 small-scale businesses and facto-
B. Cutting welfare programs ries?
C. Raising taxes A. Dharavi
D. Encouraging private investments B. Mumbai’s container port
699. Which of the following contributed MOST C. Mumbai’s waterfront
to the decrease in Buffalo in the West? D. Mumbai’s rural urban fringe
A. Rising demand for buffalo robes in
cities back east. 705. was a muckraker that exposed
the corruption of politicians like “Boss”
B. Poor soil quality in the buffalo-rich re- Tweed.
gion of Oklahoma.
A. Sinclair
C. The relocation of the Arapaho and
Lakota tribes to South Dakota. B. Wells
D. A series of broken treaties between C. Tarbell
the United States and Plains Indians. D. Nast

706. Skills, education, and experience of 710. When economists look at inflation, the fo-
workers-labor, cook, librarian, teachers, cus is on the
coach
A. changes in the price of a certain good
A. natural resources B. changes in the prices of all goods
B. capital goods C. changes in the prices of all services
C. human capital D. changes in the prices of all goods and
D. entrepreneurship services
NARAYAN CHANGDER
707. What is a country investing in if they 711. Which one IS NOT a natural resource?
spend money on solar energy to power A. cars
government offices?
B. oil
A. people/human capital
C. lumber
B. natural resources
D. gold and silver
C. infrastructure/capital
D. entrepreneurship 712. The HDI calculates the 4 indicators to give
a score between what?
708. Just doubling the amount of L under con- A. 0-100
stant returns to scale:
B. 0-1
A. we double the production of the prod-
C. 0-10
uct of intensity L.
D. 1-2
B. we more than double the production of
the product of intensity L. 713. the activity of creating a new business
C. we double the output of the product of A. entrepreneurship
intensity K.
B. chief executive officer
D. we leave the output of the intensity
product K unchanged. C. secretary of the tresury
D. the boss
709. Which of the following can BEST be in-
ferred from this map? 714. What is the definition of GDP?
A. The Northern Pacific Railroad helped A. The total market value of all final
establish many prosperous cities. goods and services provided within an
B. Denver and Kansas City benefited from economy.
the growing railroad system of the United B. The total output of a country at a given
States. time period
C. The Southern Pacific Railroad con- C. The total market value of all intermedi-
tributed to the growth of cities including ate goods and services provided within an
San Francisco and Los Angeles. economy by its factors of production in a
given period of time.
D. The connection of the Central Pacific
and Union Pacific Railroads led to the de- D. The total output of a country over a pe-
velopment of a major city. riod of 10 years

715. At which stage of the economic cycle 720. A place where business pay little or no
would you expect to see demand for goods tax.
and services begin to rise again?

A. Tax-Free Zone
A. Boom B. Business Bay
B. Slump C. Free Zone
C. Recovery D. Hypermarket
D. Recession 721. Which of these are things used to calcu-
late GDP?
716. Which will likely raise the GDP of a coun-
try? A. Consumer spending
A. picking trade partners B. investor spending

C. Government spending
B. tariffs and banking
D. Tax deductions
C. imports and exports
D. investing in education and training of 722. The term, “labor” means:
the workforce A. Work the people do to produce goods
and services.
717. Which is not a determining factor for eco-
B. The natural resources used to produce
nomic growth? Which option does not con-
goods or services.
tribute to economic growth?
C. Person who organizes the factors of
A. Land and other natural resourcesLand production to produce goods/services;
and other natural resources business owners.
B. The quality and quantity of population D. Goods not created for their own use,
and labors but to make other goods/services.
C. Export goodsExport goods
723. What is the primary consequence of a fall
D. Technological developmentTechnologi- in asset prices during a recession?
cal development A. Increased consumer confidence.
718. An innovation is B. Decline in investment.
A. a new idea that can be monetize C. Higher budget surplus.
B. an invention D. Rise in production.
724. What is a life expectancy?
719. The “Fire” Nation’s GDP in 2018 was
£2380 & 2019 was £2615. If we use
2018 as the base year, how much will the
Fire Nation’s economy grow?
A. 8%
B. 9%
A. is the average number of years a per-
C. 10%
son can expect to live at any given age
D. 11% B. is the average of how much everyone
E. 12% in the country makes

C. is the lack of both money and the 730. Why have the Israelis made a big invest-
basic necessities needed for life, includ- ment in human capital?
ing:food, water, shelter, healthcare
A. They need capital tools to extract the
D. the amount of babies that die before abundance of oil profits.
their first birthday per year
B. Investing in human capital will de-
725. What is the state in which a country’s suc- crease the standard of living an overall
cesses become the norm, or habit, accord- quality of life.
ing to Rostow’s model?
NARAYAN CHANGDER
C. They have to bring in workers (labor)
A. Traditional Society from other countries.
B. Preconditions for Takeoff
D. They need well trained workers be-
C. Drive to Maturity cause their economy is diversified with ad-
D. High Mass Consumption vanced technology.
726. Which of the following is NOT a possible

731. Future rates of economic growth are
outcome when AD increases?
likely to decline as a consequence of:
A. Higher general price level
A. Stronger productivity growth
B. Higher real national income
C. Higher unemployment B. An ageing population
D. Higher material standard of living C. An increased labour force participa-

tion rate
727. Edoardo tutors children in need and gets
paid in cash each week. Is this included in D. decreased incidence of health pan-
GDP? demiccoronavirus)
A. Yes-Consumer Spending
732. What does standard of living mean?
B. Yes-Investment
A. how to live where you are living
C. No-Underground Economy
D. No-Purely financial transaction B. different levels of living for different
people
728. At which stage of the economic cycle
would you expect consumers to have the C. standards of how everyone should live
highest levels of disposable income? in countries
A. Slump D. levels of wealth and material comfort

available in a country
B. Recovery
C. Recession 733. Which factor is being described in the fol-
D. Boom lowing list:oil, plants, water, gold?
729. GDP = Consumption by households + A. capital goods
Investment by producers + government
B. natural resources
spending + (imports-exports)
A. True C. human resources
B. False D. entrepreneur

734. What type of investment do the images B. Households feel pessimistic about fu-
reflect? ture employment prospects and fear that
they may soon become unemployed.

C. The rate of economic growth in the
United States and Japan strengthens,
combined with a lower exchange rate for
the A$.
A. capital goods
D. Interest rates fall following an an-
B. human capital nouncement by the RBA.
739. Economic growth can be measured as the
D. entrepreneurship growth rate in over time.
735. Which of the following is not a part of A. real GDP per capita
the National Income? B. real GDP
A. Undistributed profits C. price levels
B. Income from government expenditure D. CPI
C. The interest amount on the unproduc-
tive national debt 740. According to paragraph 2, one effect of
the desire to increase food production was
D. The payments made by a household to that
a firm for purchasing goods and services
A. Forests and wetlands were used for
736. What was the main effect of buying farming
stocks on margin? B. Land was cultivated in a different way
A. Increased government revenue
C. The rural economy was weakened
B. Led to economic recession
D. More farmers were needed
C. Stabilized the stock market
741. Give an example of a natural resource
D. Created quick wealth
used in the economy.
737. the percentage of people who are over A. oil
15 years old who have the ability to read
B. water
and write
C. coal
A. literacy
D. gold
B. literacy rate
C. standard of living 742. All of the following stimulate Economic
Growth except
D. Balkans
A. Highly skilled work force
738. Which one of the following would have
B. Advancements in technology
an effect on the rate of economic growth
that is different to that of the other three? C. A population highly dependent on wel-
A. The government announces a cut in in- fare
come tax. D. Land and other natural resources

743. How does Bangladesh’s wealth impact its B. Gross domestic product only deals
citizens? with the amount of investment in factories
A. It has no impact on its citizens and machinery.
B. It only affects the government officials C. The role of entrepreneurs is the only
factor affecting gross domestic product.
C. It can affect their standard of living,
access to education and healthcare, and D. There is no relationship between ed-
overall quality of life. ucation and training and gross domestic
product.
NARAYAN CHANGDER
D. It leads to increased crime rates
749. Which of the following are NOT benefits
744. John learns a skill
of economic growth? (Select ALL that ap-
A. Capital Goods ply)
B. Entrepreneur A. Increased consumption and living
C. Human Capital standards
D. Natural Resources B. More government spending due to low
tax levels
745. A, B, C, D?
C. Less spending on capital
A. A
D. Redistributes income from the poor to
B. B
the rich
C. C
E. Using more clean green energy
D. D sources
746. People that are willing to take risks and 750. Amiyah opens a hair shop
start new businesses or invent new items
help to stimulate their countries economies. A. Capital Goods
What factor of production does this repre- B. Entrepreneur
sent?
C. Human Capital
A. capital goods
B. human capital
C. natural resources 751. Gustavus Swift invented the
D. entrepreneurship A. refrigerated RR car
B. airplane
747. oil refinery is an industrial process where
crude oil is transformed into more useful C. telephone
products such as petroleum. D. light bulb and electricity power plant
A. True
752. Farm helpers are unemployed when the
B. False
cropping season is over.
748. What is the relationship between educa- A. frictional
tion and training in a country and the coun-
B. cyclical
try’s gross domestic product (GDP)?
A. Countries with a high level of educa- C. structural
tion and training have a higher GDP. D. seasonal

753. country has a high ratio of investment to 757. is the total value of all goods pro-
GDP and rapid economic growth. If the net duced by a country in one year.
capital inflow from abroad is zero, what

will be a necessary cost of such growth? A. Profit
A. an increase in taxation B. Investment

B. increased consumption of luxury C. Gross Domestic Product
goods by richer residents
C. increased imports of goods from D. Gross Profit
abroad
758. Granted 17 million acres of Federal land
D. the sacrifice of present consumption
to states use the money to build
by residents of the country
colleges-stressed agriculture and engineer-
754. At which stage of the economic cycle ing.
would you expect to see negative eco-
nomic growth? A. Treaty of Fort Laramie
A. Boom B. Sherman Anti-Trust Act

B. Recession C. Morrill Act
C. Slump
D. Homestead Act
D. Recovery
755. According to paragraph 6, merchants 759. How does sustainable economic growth
were able to avoid the risk of carrying contribute to future generations?
large amounts of gold and silver by
A. By depleting natural resources.
A. Bills of exchange
B. Exchangers who took loans B. By creating significant economic prob-
lems.
C. Banks
D. Business investment C. By maintaining a degraded natural en-
vironment.
756. Why should countries invest in develop-
ing capital goods? D. By avoiding significant economic prob-
lems.
760. What were the negative effects on cities

around the factories that sprung up during
Industrial Revolution?
A. The opening of the Erie Canal.
A. they shouldn’t, it is too expensive B. The negative environmental impact of
B. when countries invest in capital goods, steel mills and factories.
they are providing better facilities, re- C. The decline of steamboat transporta-
sources, and/or materials for the peo- tion.
ple who perform the labor, which creates
a more productive workforce leading to D. The development of the Bessemer Pro-
greater economic growth (higher GDP). cess.

761. Which two countries depend on oil as C. the seasonal nature of certain occupa-
their most important natural resource? tions.
D. long-term changes in the pattern of de-
mand for the products of particular indus-
tries.
765. URBAN societies typically mean what

kind of economy?
NARAYAN CHANGDER
A. industrial
A. Israel and Turkey B. agricultural
B. Israel and Iran 766. Brazil is the sixth largest country in the
C. Saudi Arabia and Turkey world
D. Iran and Saudi Arabia
762. What key factor affects a nation’s eco-

nomicgrowth the MOST?
A. the goods its trading partners special-
ize in
B. the length of time its leader has been
in office
C. the education and skill level of its work-
force A. False
D. the amount of choices available to its B. True
consumers
767. What is Gross Domestic Product (GDP)?
763. Which of the following best describes A. The average income per person
gross domestic product?
B. The total market value of all final
A. The growth in the number of goods and goods and services produced within an
services bought over a period of time economy
B. The value of good and services bought C. The rate of unemployment
over a period of time
C. The number of goods and services pro-
duced over a period of time 768. Select all the items that DO NOT deter-
D. The value of goods and services pro- mine a country’s standard of living and
duced over a period of time quality of life
A. Real GDP
764. Structural unemployment is most likely
to occur because of B. Life expectancy
A. labour being temporarily unemployed C. Diet and Nutrition

when moving between jobs. D. Freedom and Justice
B. fluctuations in the level of aggregate E. All of the above are used to determine
demand. standard of living and quality of life

769. What is economic growth? 773. Why do government experts track the
business cycle?
A. The increase in the inflation rate of a

country A. to provide a record of what has gone
wrong in the past
B. The increase in the population of a
country B. to try to predict what will happen to the
U.S. economy
C. The increase in the unemployment
rate of a country C. to help maintain competitive balance
D. An increase in the total value of goods between businesses
and services produced over time D. to give the government a competitive
advantage over businesses
770. An outward shift in the PPF depicts
774. What is a consequence of not achieving
strong and sustainable economic growth
on living standards?
A. Higher life expectancy
B. Improved environmental conditions
C. Environmental degradation
D. Lower inflation rates
A. Potential Economic Growth
B. Actual Economic Growth 775. What are negative effects of Growth
C. Economic Contraction A. Increase in resources, increased infla-

tion
D. A recession
B. Resource Depletion, Increased infla-
771. What is the example of growth miracles tion
mentioned in the text? C. Environmental damage, increases in
A. China, Korea, and Japan resources found
B. United States, Great Britain, and Aus- D. Increased equity, increased equality
tralia
776. Which of the following are challenges
C. India, Brazil, and Russia that Russia’s economy has faced since the
D. Germany, France, and Italy collapse of the Soviet Union? Select all
that apply.
772. What is the main drawback of long term
A. Untrained/Unskilled workforce
loans as a form of development aid?
B. Outdated technology
A. It leads to income equality
C. Unemployment is low
B. It reduces demand for skilled workers
D. Unemployment is high
C. It encourages domestic production
D. It increases the debt burden on the re- 777. What Factor of Economic Growth is being
cipient country described in the image?

782. Which of the following is a major goal of

short-run macroeconomic policy?
A. Shift the production possibilities curve
outward.
B. Move toward the production possibili-
A. Natural Resources ties curve.
C. Shift the aggregate supply curve to the
B. Entrepreneurship
NARAYAN CHANGDER
left.
C. Standard of Living
D. None of the choices are correct.
D. Capital Goods
783. Human capital includes the people use
778. Education, training, skills and health care to produce goods and services.
of the workers in a business or country.
A. Raw materials
A. capital goods
B. Factories machines, & technology
B. none of these
C. Skills, knowledge, and experience
C. human capital
D. none of above
D. natural resources
784. drove cattle from ranches to the rail-
779. What has happened to the income of the heads.
BRIC countries since 2001?
A. Cowboys
A. It has decreased
B. Explorers
B. It has remained the same
C. Railroad officials
C. It has increased rapidly D. Meat dealers
D. It has fluctuated
785. More people in an economy will normally
780. Governments aim to achieve sustainable result in
and inclusive growth. What does sustain- A. Lower GDP per Capita
able growth include?
B. Lower capital
A. Actual growth
C. Capital Increase
B. Broad-based growth
D. More land per person
C. Sustainable use of resources
D. Potential growth 786. In summary and in relation to the infor-
mation in Peru, did the pandemic directly
E. Full employment affect Peru’s GDP?
781. Virginia’s economy is greatly dependent
on
A. sheep
B. gravel
C. tourism
D. timber

A. False 791. What might a government decrease if it

wished to slow down the rate of growth
B. True
in an economy?

787. Thomas Edison invented the A. expenditure on defence
A. refrigerated RR car B. goods and services (value added) tax
B. telegraph C. interest rates
C. telephone D. the rate of income tax
D. light bulb and electricity power plant 792. Economic Development is more likely to
occur if the benefits of economic growth
788. Environmental economics is the field of are channeled into
economics which is concerned with the fi-
nancial and impact of the policies A. health and education programmes
on the economy B. Government spending on defense
A. environmentaleconomy C. taxation
B. economicenvironmental D. Government tax breaks for the
C. environmentaleconomic wealthy
D. economyenvironmental 793. Which of the following is a perceived ad-

vantage of import substitution industrial-
789. Economic development in Indonesia aims ization (ISI)?
to
A. ISI may protect jobs in the short run
B. ISI may lead to high rates of inflation
C. ISI may cause other countries to take
retaliatory protectionist measures
D. ISI may lead to inefficiency in domes-
tic industries
A. improve human resources (HR) 794. How far the aggregate demand shifts
to the right depends upon the marginal
B. making Indonesia a world trade center propensity to consume and thus the size
C. create a just and prosperous society of the multiplier effect
D. none of above A. Yes, I understand this from the notes

790. Natural resources are valuable sold notes
to other countries.
A. imports not read the notes
B. exports D. none of above
C. gems
795. What happened as a result of the Berlin
D. none of above Conference?

799. How can a country improve it’s economic

growth?
A. improve education
B. provide job training
A. European and African nations went to C. none of the above

war with each other. D. all of the above
B. The European leaders allowed the
NARAYAN CHANGDER
800. Those who risk their own money and re-
African leaders to be apart of the govern-
sources to create a new business or ser-
ing process of the colonies.
vice.
C. Imperialism in Africa ended.
A. Literacy Rate
D. Europeans divided Africa into colonies
B. Standard of living
without considering the cultural and eth-
nic differences of the African people. C. Entrepreneur
796. What is the impact of government poli- D. Private sector

cies on economic growth? 801. How did the reduction in taxes benefit
A. Government policies have no impact wealthy Americans?
on economic growth.
A. They paid higher taxes than before
B. Government policies always impede
B. They were exempt from paying taxes
economic growth.
C. They paid the same amount of taxes as
C. Government policies can either stimu-
before
late or impede economic growth depend-
ing on their nature and implementation. D. They paid lower taxes than before
D. Government policies always stimulate 802. The was a labor union that combined
economic growth. a lot of trade unions so that they had more
797. Full form of GDP is power.
A. General Domestic Product A. AFL
B. Gross Domestic Product B. NAACP

C. Knights of Labor
798. Equal distribution of income has an im-
pact on the emergence of social groups in D. none of above
terms of income.
803. What is one limitation of Rostow’s
stages of economic growth model?
A. It doesn’t consider geographic influ-
ences and challenges
B. It assumes all countries will become
mass consumers
C. It doesn’t take into account how coun-
A. True tries influence each other
B. False D. All of the above

804. What has been an important factor in eco- 809. The ability to read and write.
nomic growth since the Industrial Revolu- A. literate
tion?

A. Natural resources
C. entrepreneur
B. Entrepreneurship D. literacy rate
C. Human capital
810. Which of the following is the economic
D. Technological development consequences of high level of unemploy-
ment?
805. How did the Carolina colony become more
democratic? A. Increased consumer spending, higher
tax revenues, and decreased government
A. When Lords Proprietors allowed the spending on social welfare programs
colonists governed themselves.
B. Stagnant consumer spending, higher
B. When the King accepted the invitation tax revenues, and decreased government
to rule over the colony. spending on social welfare programs
C. When the King allowed the colonists to C. Decreased consumer spending, lower
vote for the governor. tax revenues, and increased government
D. When the Lords Proprietors decided to spending on social welfare programs
give the common people a voice in the gov- D. Increased consumer spending, lower
ernment tax revenues, and decreased government
spending on social welfare programs
806. Which of the following is an injection into
the circular flow of income? 811. The increase in the production of goods
and services over a specific period is know
A. Taxation
as
B. Savings
A. GDP
C. Exports B. Economic Growth
D. Imports C. GNP
807. How did the market for beef encourage D. Economic Development
ranchers to make cattle drives
812. What did Solow’s research in the 1950s
A. Beef was expensive in Texas but cheap conclude about the main driver of GDP per
elsewhere capita growth?
B. Beef was cheap in Texas but expensive A. Steadily increasing capital per worker
elsewhere B. Changes in total factor productivity
C. There was nowhere to buy beef in (TFP)
Texas C. Increased investment in education
D. None of the above D. Government policies
808. Coal combines with other metals to give E. Monetary policies

strength 813. Money is a type of capital goods.
A. True A. true
B. False B. false

814. Humans are needed to operate machines 819. Recession caused by supply shock will
and fix them. cause:(Select 2 options)
A. true A. AD to shift left
B. false B. LRAS to shift left
C. a movement of a point on PPF towards
815. According to the Circular Flow chart, a point inside
which of the following statements is true?
D. inward shift of PPF
NARAYAN CHANGDER
A. Government receives its revenue only
from the factor market 820. Which of these is not a new development
built around Cambridge?
B. Government receives its revenue only
from the product market A. Eddington
B. Queen’s Hills
C. Government receives its revenue from
transfer payments C. Clay Farm
D. Government receives its revenue from D. Trumpington Meadows
direct tax (households) and indirect tax 821. Which diagram best fits the following
(firms) change:a vaccine for contagious diseases
is invented
816. how to things are connected
A. investment
B. GDP A.
C. GDP per capita
D. human capital
E. relationship
817. Orville and Wilber Wright invented the B.
A. refrigerated RR car
B. airplane
C. telephone C.
D. light bulb and electricity power plant
818. What is the main concern related to for-

eign direct investment (FDI)?
A. Improved infrastructure of the econ- D.
omy
B. Increased tax revenue for the host
government Explanation:This focuses on improving the
health and well-being of an economy’s la-
C. Possible exploitation of workers bor force, which is an improvement in
D. Increased access to technology and the quality of a factor of production. That
marketing expertise shifts the curve outwards

822. A country with many natural resources D. the man-made materials that are
will most likely have a needed to produce goods and services

A. low standard of living 827. What region is best known for seafood,
B. less goods and services peanuts, shipbuilding, tourism, and mili-
tary bases?
C. high poverty rate
A. Coastal Plain (Tidewater)
D. high standard of living
B. Valley and Ridge
823. What is a concern related to export pro- C. Blue Ridge Mountains
motion strategy?
D. Appalachian Plateau
A. It promotes technology use
828. The total dollar value of all final goods
B. It reduces demand for skilled workers
and services produced within the country’s
C. It encourages domestic production border in a given year. This measure in-
D. It leads to income equality cludes inflation.
A. Gross National Product (GNP)
824. The Resource Management Act (1991) is
about making sure NZ: B. Gross Income Measure (GIM)
C. Nominal Gross Domestic Product
A. Makes efficient resources
(GDP)
B. Uses sustainable practices to protect
D. none of above
natural & physical resources
C. Uses as many natural & physical re- 829. Negative output gap puts downwards
sources as possible pressure on inflation
D. Finds new natural & physical re- A. Yes, I understand this from the notes
sources B. No, I don’t understand this from the
notes
825. Why did the ONU give this proposal?
A. Because they wanted to not read the notes
B. For freedom D. none of above
C. Because they want a planet with no 830. The part of the economy owned and op-
contamination erated by private citizens.
D. Sustained and inclusive economic A. Private Sector
growth can drive progress, create decent
B. Public Sector
jobs for all and improve living standards
C. Natural Resource
826. Capital Goods D. Capital Goods
A. the materials and labor used to create
831. Which of the following is a true represen-
goods and services
tation of aggregate demand?
B. includes the skills and knowledge of its
A. AD = C-I-G + X-M
people that support the economy
B. AD = C + I-G-X + M
C. the total dollar value of all goods and
services produced by a country in one C. AD = C + I + G-X-M
year D. AD = C + I + G + X-M

832. What are the costs of economic growth the level of education, so that the av-
for the government? erage person would have a four-year-
A. Increase in government spending on college bachelor’s degree, would increase
welfare payments output still further, but the marginal in-
crease would again be smaller. A simi-
B. Increase in consumer confidence lar lesson holds for physical capital. If
C. Decrease in government tax revenues the quantity of physical capital available
to the average worker increases, by, say,
D. Improvement in government budget
$5, 000 to $10, 000 (again, while holding
NARAYAN CHANGDER
833. The AD curve slopes downwards because all other inputs constant), it will increase
the level of output. An additional increase
A. At high prices less is consumed in an from $10, 000 to $15, 000 will increase
economy output further, but the marginal increase
B. At higher prices more is sold in an will be smaller.
economy
A. Aggregate Production
C. The AS slopes upwards
B. Capital Deepening
D. All of these reasons
C. Convergence
834. What basic amenities do people living in D. Productivity
Mumbai’s squatter settlements have ac-
cess to? 836. What is one conclusion you can draw
from the chart?
A. Water, electricity, and televisions
B. Water and electricity only
C. Electricity and televisions only
D. Water and televisions only
835. What does the following argument,

which is based on diminishing marginal re-
turns, favor the most?Even though deep- A. Mexico, Brazil, and Cuba grow the
ening human and physical capital will tend same crops.
to increase GDP per capita, the law of di-
minishing returns suggests that as an econ- B. Mexico and Brazil produce more agri-
omy continues to increase its human and cultural products than Cuba.
physical capital, the marginal gains to eco- C. Mexico, Brazil, and Cuba all have land
nomic growth will diminish. For exam- that can be used for farming.
ple, raising the average education level of
D. Mexico and Cuba rely on mineral re-
the population by two years from a tenth-
sources more than Brazil.
grade level to a high school diploma (while
holding all other inputs constant) would 837. What are the building blocks for sustain-
produce a certain increase in output. An ing high growth?
additional two-year increase, so that the
average person had a two-year college de- A. Income inequality, education, and job
gree, would increase output further, but opportunities
the marginal gain would be smaller. Yet B. Early childhood development and qual-
another additional two-year increase in ity education

C. Macroeconomic stability, human capi- 843. Paragraph 4 supports the idea that in-
tal, and infrastructure creased agricultural production was impor-
tant for the expansion of industry primar-

D. Trade unions and environmental sus-
tainability ily because it
A. Resulted in an improvement in the
838. What is the potential long-term impact of
health of the rural cottage workers used
recession on an economy’s Production Pos-
by manufacturers
sibility Curve (PPC)?
B. Provided new types of raw materials
A. Inward shift of the PPC.
for use by industry
B. Outward shift of the PPC.
C. Increased the number of available
C. No impact on the PPC. workers in rural areas
D. Temporary shift of the PPC. D. Helped repair some of the ravages of
839. Does the size of the country have any- the Thirty Years’ War
thing to do with their GDP? 844. How do literacy rates affect their stan-
A. yes dard of living?
B. no A. The higher the literacy rates the lower
C. I don’t know the standard of living.
D. I don’t care B. The higher the standard of living the
lower the literacy rate.
840. Refers to an increase in the general price
C. The higher the literacy rates the higher
level associated with an increase in the
the standard of living.
cost of production.
D. The lower the literacy rates the higher
A. Supply Inflation
B. Cost Push Inflation
845. Which if the following is a negative of
C. Imported Inflation
economic growth?
D. Demand Pull Inflation
A. More income for the government
841. Education, training, skills and health are through taxes.
examples of B. Companies investing in environmen-
A. capital goods tally friendly products.
B. human capital C. Depletion of natural resources.
C. natural resources D. Increased employment and income
D. profit levels.
842. Which of the following is NOT a factor of 846. An increase in which of the following is
economic growth? most likely to promote economic growth?
A. natural resources A. Consumer spending
B. human capital B. Investment tax credits
C. entrepreneurs C. Real interest rates
D. capital humans D. Natural rate of unemployment
E. capital goods E. Trade fails

847. How does a County Commissioner help 851. What is Not an example of Capital
govern a city? goods?
A. Adopts ordinances like laws for cities A. Tools
B. Ensures smooth running of daily oper- B. Food
ations C. Equipment
C. Tells what is in high demand for the D. Technology
market
NARAYAN CHANGDER
852. The following shift in the AD could be
D. Tells what the weather is going to be
caused by what?
like for the next year
848. What is a recession?

A. a period of negative economic growth,
where output falls for two consecutive
quarters (6 months)
B. a period of negative economic growth,
where output falls for two quarters (6
months) A. A decrease in consumer confidence
C. a period of negative economic growth, B. An increase in the price level
where output falls for four consecutive C. An increase in imports
quarters (12 months)
D. An increase in investment
D. a period of negative economic growth,
where output falls for two consecutive 853. What does urbanization mean?
years (24 months) A. The increase of agricultural busi-
nesses in rural areas
849. How do patents act as an incentive to
B. The system used to collect taxes from
technological innovation?
Texas residents
A. by protecting a patent holder’s right to
C. The movement of population and jobs
profit from his or her creativity
from rural farms to cities
B. by protecting the government’s right
D. The migration from cities back to farm-
to patent creative works
land
C. by protecting a business’s right to
profit from someone else’s creativity 854. What is the difference between Real GDP
and Nominal GDP?
D. by protecting unpatented creative
works A. Real GDP is used for international
trade, while Nominal GDP is used for do-
850. What is a problem with using GDP as a mestic trade.
measure of living standards? B. Real GDP includes government spend-
A. Exclusion of income inequality ing, while Nominal GDP does not include
government spending.
B. Exclusion of environmental costs
C. Real GDP is adjusted for inflation,
C. Exclusion of informal activity while Nominal GDP is not adjusted for in-
D. Exclusion of income earned abroad flation.

D. Real GDP is calculated quarterly, while 860. Type of unemployment that occurs as a
Nominal GDP is calculated annually. result of harvest schedules, or lack of ho-
tel bookings in winter.

855. What is GDP
A. gross domestic product
B. gross domestic progress
C. gross domestic protection
D. gross domestic profit
861. Why can be done to keep the economy
856. Alexander Graham Bell invented the stable and safe?
A. refrigerated RR car A. Keep prices very high
B. telegraph B. Keep prices from going too high
C. telephone C. Keep taxes very high
D. airplane D. Keep unemployment very low
E. Model T (assembly line car)
862. The measurement of economic growth is
857. Spends money on non-essential goods remove the effects of inflation.
(consumerism). A. True
A. Stage 1:Traditional Society B. False
863. What is Gross Domestic Product?
C. Stage 3:Take-Off
A. The total value of the current economic
D. Stage 4:Drive to Maturity market in one year
E. Stage 5:High Mass Consumption B. The total value of goods exported to an-
other country in one year
858. Based on what you know about liter-
acy rates, which country probably has the C. The total value of goods produced and
highest standard of living-South Africa, services provided in a county during one
Kenya or Nigeria? year
A. Nigeria D. The total value of goods and services

imported to anther country in one year
B. South Africa
C. Kenya 864. real GDP per capita means
D. none of above A. real GDP per household

B. real GDP per head
859. Impact of vertical integration on a busi-
ness. C. real GDP per worker
A. Reduces their costs D. GDP before inflation
B. Increases their costs 865. what is mixed economy

C. Increases their competition A. a free market
D. none of above B. the country’s money

C. market-base economics system C. 2.6

with.limited government involvement. D. 1.5
D. none of above
871. workers have some training in using
866. Which of the following is not part of the tools or machines.
circular flow of income in an economy? A. skilled
A. Production B. semi-skilled
B. Unemployment C. unskilled
NARAYAN CHANGDER
C. Income D. highly skilled
D. Expenditure 872. On a Production Possibility Curve (PPC),
how is economic growth illustrated?
867. Where is nearly one-half of the world’s
A. An inward shift of the PPC
gold reserve located?
B. A point inside the PPC
A. Nigeria
C. An outward shift of the PPC
B. Kenya
C. South Africa
873. A country with a (a) tends to have a
D. Sudan
higher standard of living.
868. Doubling L with trade in a small L- A. a higher GDP per capita
sufficient country: B. lower GDP per capita
A. reduces the welfare of representative
874. The Image reflects the amount of human
citizens.
and physical capital per worker increases
B. hampers the country’s terms of trade. as you move from left to right, from C1 to
C. reduces trade volume. C2 to C3. The diagram’s vertical axis mea-
sures per capita output. Considering the
D. reduces national consumption. lowest line in this diagram, labeled Tech-
869. The late 1800’s civil rights leader that nology 1. What relationship associated
believed in the “talented tenth” becoming with output does the line show when mea-
leaders through an intellectual academic sured along the aggregate production func-
pursuit at university was tion and the level of technology is held con-
stant?
A. Booker T. Washington
B. Ida B. Wells
C. W.E.B. DuBois
D. George Washington Carver
870. Despite their increasing presence in public

life, women continue to do times the
unpaid care and domestic work that men A. Capital Deepening
do. B. Capital Growth
A. 2.9 C. Convergence
B. 4.6 D. Labor Productivity

875. What does the vertical axis represent on

the aggregate demand curve?

A. Total Input
B. Total Output
C. Price Level
D. Both A & B
B. human capital
876. Entrepreneur C. capital goods
A. the total dollar value of all goods and D. financial resources
year 880. Overall, starting a new business in Israel
B. someone who takes risks to start a and Saudi Arabia is (easier/harder) than
new business the world average.
C. someone who makes things A. Easier
D. the percentage of adults who can read B. Harder

and write
881. What can happen to unemployment when
877. Which of the following is a key policy tool the economy slows down?
for inclusive growth? A. It rises because the demand for labor
A. Investing in human capital and physi- goes down.
cal infrastructure B. It falls because the demand for labor
B. Increasing income inequality goes up.
C. It rises because the cost of labor goes
C. Reducing access to education
up.
D. Limiting competition and trade
D. It rises because production speeds up.
878. Governments spend revenue on ser-
882. things that are made or grown and then
vices such as education.
sold.
A. tax
A. goods
B. sales
B. productive
C. capital C. service
D. import D. none of above
879. Mr. Nelson decides he will open up his 883. Most countries measure economic growth
very own chocolate factory. He already each quarter
has all the chocolate and natural resources
he needs to make the chocolate. Then A. fortnight
he decides to hire some student workers B. quarter
that were trained in the chocolate making
C. year
process. What type of resource are the
trained student chocolate workers? D. none of the above

884. the performance of a duty or work for C. Ignore entrepreneurship

another person. D. Avoid natural resources
A. import
889. What does productive capacity measure?
B. service
A. Measures an economies potential
C. goods rather than looking at what they actually
D. none of above produce.
B. Measures an economies actual ability
NARAYAN CHANGDER
885. Inflationary gaps often lead to:
to produce goods and services.
A. Price stability
C. Measure an economy’s potential
B. Decreased cost of living
D. none of above
C. Higher inflation rates
890. What is Not an example of a Natural Re-
D. Increased saving rates
source?
886. What is a key policy tool for inclusive A. land
growth?
B. computer
A. monetary policy
C. water
B. trade policy
D. sun
C. education policy
891. Which country has invested capital goods
D. fiscal policy
in the automotive industry?
887. The a country’s GDP, the better the A. Russia
country’s standard of living. B. Germany
C. United Kingdom
D. none of above
892. What is the role of natural resources in

economic growth?
A. Decreases economic growth
B. No impact on economic growth
C. Fluctuates economic growth
D. Increases economic growth
A. lower
B. greater 893. Increases in long-run growth are caused
by an increase in aggregate supply
C. smaller
D. answers 1 and 3 are correct
888. What can we do to increase economic notes
growth in our community? C. No, I don’t understand this, as I have
A. Decrease investment in capital goods not read the notes
B. Invest in human capital D. none of above

894. A material on or in the earth that has eco- 900. Division of labour reduces productivity
nomic value. A. True

A. Human Capital B. False
B. Capital Goods
901. Which of the following about strategy of
C. Public sector unbalanced growth is right
D. Natural resource
A. Deliberate imbalance in favor of some
895. “Gifts of Nature” sectors
A. Natural Resources B. Simultaneous investment in all sectors
B. Capital Goods C. Both
C. Physical Goods D. None
D. Human Capital 902. What is one reason why innovation can
have high returns?
896. Which one is NOT a factor when deter-
mining the HDI of a country? A. Non-rivalry of ideas
A. Education B. Competition among inventors
B. Health C. Lack of funding
C. Income D. Lack of interest
D. Miltary Size E. Artificial Intelligence
897. What type of transportation in Virginia 903. Why is it beneficial for a country to have
helped cities grow? an abundance of natural resources?
A. streetcars
B. railroads
C. roads
D. all of the above
898. Literacy is the ability to

A. do math
B. follow directions A. countries that have a lot of natural re-
C. read and write sources are able to use them to produce
goods and services cheaper than a coun-
D. none of above try that has to import them. Therefore,
899. The total value of goods and services pro- a country with a lot of natural resources
duced in a country in a year is called the usually has a greater GDP than a country
with little natural resources.
A. XYZ B. countries with a lot of natural re-

sources are usually taken over by other
B. GDP countries and don’t have to worry about
C. PGA paying for anything
D. ZXY C. they cannot become communist

D. there is no advantage since most nat- D. Neither saving nor investment

ural resources are worthless
909. the use of resources and money with
904. Civil War 2.Mexican-American War3. Re- aparticular country
construction 4.Texas Annexation Which of A. exports
the following is the correct chronological
order? B. imports
A. 1, 4, 3, 2 C. gross domestic product
NARAYAN CHANGDER
B. 4, 2, 1, 3 D. natural resources
C. 2, 4, 1, 3 E. economy
D. 1, 3, 2, 4 910. Human capital is all the skills, talents, ed-

ucation, and abilities that human workers
905. Economic growth can be seen by an out- possess.
ward shift of
A. False
A. The Production Possibility Frontier
B. True tagsS2789894
B. The Gross Domestic Barrier
C. The Marginal Consumption Frontier 911. Which one IS NOT an example of human
capital?
D. The Minimum Efficient Scale
A. skills
906. The PPC (Production Possibility Curve) B. voice
moves inward during a ?
C. education
A. Boom
D. training
B. Recession
C. Stable Economy 912. How does a rise in interest rates con-
tribute to a recession?
D. Expansion
A. It boosts consumer confidence.
907. What is the purpose of the European B. It reduces borrowing costs.
Union?
C. It increases the cost of borrowing and
A. to maintain the largest standing army reduces demand.
in the world as a deterrent
D. It leads to expansionary fiscal policies.
B. to enforce global peace treaties
through military intervention 913. The business cycle describes the fact that
C. to create a single, federal state cover- A. unemployment levels are constantly
ing the European continent changing
D. to promote peace, security, and justice B. an economy’s level of output fluctu-
through cooperation ates between times of recession and ex-
pansion.
908. Sustainable economic growth depends
upon C. inflation rates are constantly chang-
ing.
A. Investment, not saving
D. politicians usually pass laws that
B. Saving, not investment cause the economy to react in unpre-
C. Both saving and investment dictable ways.

914. Which of the following explains the term 918. 35 year old project manager who was let
economic growth go because his employer went bankrupt.
He’s applied for several similar jobs but

A. Increase in per capita production
hasn’t heard back as of yet.
B. Increase in per capita real income
A. Employed
C. Structural change in the economy B. Unemployed
D. All of the above C. Not in the Labor Force
915. If a mass immigration occurs, the produc- D. Not Applicable / Not Counted
tion possibilities curve can shift 919. What is the primary purpose of calculat-
A. No shift ing GDP per capita?
B. To the left A. To measure inflation.
B. To determine potential economic
C. To the right
growth.
D. Outward on one axis only
C. To assess the average output per per-
son in an economy.
916. Number 7. on the picture represents
which sustainable goal? D. To estimate government spending.
920. Which of the following was a REQUIRE-

MENT to be eligible to participate in the
Homestead Act?
A. Head of a household
B. Immigrant
C. White
D. Family history as a farmer
921. How can maintaining a high literacy rate

positively affect a nation’s standard of liv-
A. Quality Education
ing?
B. Gender Equality A. Literate people do not commit crimes
C. Clean Water and Sanitation against others
D. Affordable and Clean Energy B. Literate people are better able to se-
cure skilled jobs.
917. When a point lies inside of the PPC it can C. Literacy prevents political division
be said that amongst voters.
A. Resources are under employed D. Literate people do not Literacy helps
members of different religions coexist.
B. Resources are fully utilize
C. Production is beyond the resource po- 922. one advantage of rapid economic growth
tential is
D. Opportunity cost of production is con- A. pollution levels rising

stant B. rapidly rising property prices

C. population migration and shanty 928. What happens to a country’s Standard of

towns Living when the GDP increases?
D. increased tax revenues for Govern- A. The Standard of Living Lowers
ment spending B. The Standard of Living Rises
923. What does the HDI measure? 929. capital goods

A. how much money the rich 10% of the A. tools used in the production of goods
population have and services
NARAYAN CHANGDER
B. living standards in terms of health, ed- B. something that comes from Earth or
ucation, life expectancy nature that is useful to humans
C. the weapons production of an econ- C. Education, training, skills and health

omy care of the workers in a business or coun-
try.
D. the GDP per capita
D. none of above
924. Which one is a constraints to economic 930. A scientist who studies the earth’s struc-
growth in South Africa? ture is called a
A. Reduce Poverty A. Earthologist
B. More successful business B. Phlebotomist
C. Reduce government expenditure C. Meteorologist
D. Lack of Managerial skills D. Geologist
925. Which is not an example of education? 931. True or False:Usually the higher a coun-
tries Literacy Rate the higher their Stan-
A. A child using a computer dard of Living.
B. A person reading a book A. True
C. A person reading a newspaper B. False
D. A person attending a online class 932. What is the advantage of having a bulge
in a country’s working-age population?
926. Increases in real GDP always result in in-
A. Higher economic growth
creases in living standards
B. Decreased productivity gains
A. True
C. Increased dependency ratio
B. False
D. Lower savings and investment
927. What country in Europe has a high liter-
933. the percentage of adults who can read
acy late, but a low standard of living?
and write
A. France A. literacy rate
B. Poland B. numbers graph
C. Italy C. STAR reading
D. Russia D. reading chart

934. Why is real GDP a poor indicator of eco- 939. Machinery is an example of
nomic growth?
A. a natural resource

A. Real GDP is a short run measure, and
economic growth is a long run potential. B. an intangible asset
B. Real GDP is a monetary measure that C. physical capital
does not take other factors into account.
D. human capital
C. Real GDP is changed quickly by tax
policies, which do not reflect economic E. a market
growth.
940. According to the literacy rate data, which
D. Real GDP is directly related to short- nation most likely has the lowest standard
term employment and not economic of living?
growth.
935. Which economic term BEST describes

sending goods to another country and get-
ting goods from another country?
A. exporting and importing
B. buying and selling
C. supply and demand
D. production and consumption
936. In which sector does Russia invest?

A. Cuba
A. Automotive
B. Brazil
B. Machinery
C. Energy C. Mexico
D. Telecommunications D. Nicaragua
937. Economists of a country’s economy by 941. What is the correct correlation (relation-
its gross domestic product (GDP) ship) between entrepreneurs and GDP?
A. measure the health
A. The more entrepreneurs a country has
B. goods & services produced the higher the GDP.
C. others do not
B. The more entrepreneurs a country has
D. per person the lower the GDP.
E. weaker economies
942. What is the impact of oil production on
938. What is productivity? the economy of Middle Eastern countries?
A. working on products A. It has no impact
B. goods that are produced
B. It decreases the economy
C. amount of goods or services workers
can produce in a period of time C. It increases the economy
D. none of above D. It fluctuates the economy

943. The Knights of Labor disagreed with the 948. What is the purpose of the OECD Guide-
violent actions of the anarchists during lines for Multinational Enterprises?
what event? A. To promote environmental damage
A. the Haymarket Riot B. To encourage local capacity building
B. the Pullman Strike
C. To increase trade diversion
C. the American Federation of Labor
D. To reduce access to research and de-
D. the International Ladies’ Garment velopment
NARAYAN CHANGDER
Workers’ Union
949. What aspect of an economy usually in-
944. Native American boarding schools creases when the Literacy Rate of the
stamped out their culture by country increases?
A. cutting their hair
B. giving them English names
C. forcing them to speak another tribal
language
D. forcing them to practice Christianity
945. Increased financial rewards would be
included in which measure of economic
growth? A. Ecotourism
A. Real Income/GDP B. Standard of Living
B. Productive capacity C. Autocracy
C. Net social welfare D. Natural Resources
D. none of above
950. Economic growth often results in:
946. Which of the following represents an in- A. a fall in the quality of air, the extinc-
vestment in human capital? tion of native plants and animals, and the
A. creating a robot destruction of healthy rivers and oceans.
B. paving roads B. greater consumer choice, better
C. purchasing new Chromebooks health and longer life expectancy.
D. learning to read and write C. the growth of cities and of urban prob-
lems such as traffic congestion and waste
947. A closed economy has both a private disposal.
sector and a public sector.Gross Domes-
D. All of the above.
tic Product (GDP) consists of total con-
sumer expenditure plus gross investment 951. What is Literacy Rate?
plus net exports plus
A. The number of people in a county over
A. the value of exports. the age of 18 who attended college
B. the value savings. B. The number of people in a county over
C. total government expenditure. the age of 15 who can read and write
D. total government expenditure minus C. The number of people in a country over
total taxation. the age of 10 who can read and write

D. The number of people in a country over D. Determinants-potential growth in-

the age of 20 who can read and write volves an increase in AD, whilst actual
growth is focused on AS

952. Natural Resource
E. Shifts-actual growth results in in-
A. Ability to read and write crease in AD or SRAS or movement to-
B. Material on the Earth that has eco- wards PPC, whilst potential growth shifts
nomic value LRAS or shifts of the PPC curve
953. Entrepreneurs benefit society by 957. The helps people to live comfortably.
A. lowering the standard of living A. Money
B. making billions of dollars in revenue B. Buildings
C. polluting the environment C. Infrastructure
D. providing jobs for workers D. Mall
954. What is a potential drawback of technical 958. What is the impact of lacking natural re-
progress in terms of employment? sources on a country’s GDP?
A. Decreased productivity. A. You would have to import the natural
resources which could be expensive so
B. Rise in unemployment.
GDP would decrease
C. Lower GDP.
B. You would have to export the natural
D. Reduced inflation. resources which could be expensive so
GDP would increase
955. Some countries have a high GDP, while
C. If you invest money, you will make
more money and then GDP would increase
A. productive resources
B. goods & services produced D. none of above
C. others do not
959. The Theory of Big Push is based on the
D. per person
idea of
E. weaker economies
A. External Economies of Scale
956. What is the difference between actual B. Small Amount of Investment
and potential growth?
C. Internal Economies of Scale
A. Time-actual occurs in short whilst po-
D. Unbalanced Growth
tential usually requires longer periods of
time 960. What are your key suggestions for
B. Factors of Production-actual growth achieving faster growth?
involves using the same FOP more effi- A. Stimulate saving
ciently or productively, whilst potential
growth is due to an increase in quantity B. Stimulate research and development
or quality of FOP C. Provide international aid to developing
C. GDP-actual growth increases GDP nations
whilst potential only affects GDP/capital D. Abolish international trade

961. An outward shift in the PPC corresponds A. Child labor

to of the long-run aggregate supply
B. Work here safety and hygiene stan-
curve.
dards are not met.
A. a leftward shift
C. All of the above are correct.
B. a rightward shift
D. Good salaries.
C. constant value
D. an indeterminate shift 966. Limited socio-economic mobility, growth.
NARAYAN CHANGDER
Explanation: No climbing of socio-economic classes.
962. How was Barbados important to the suc- A. Stage 1:Traditional Society
cess of the early Carolina colony? B. Stage 2:Pre-Condition for Take-Off
A. Settlers introduced the slave labor sys-
C. Stage 3:Take-Off
tem to Carolina from Barbados.
B. Planters from Barbados introduced D. Stage 4:Drive to Maturity
rice to the Carolina colony. E. Stage 5:High Mass Consumption
C. Carolinians established a successful
trading system with the people from Bar- 967. What causes cost push inflation
bados. A. An increase in demand for goods and
D. Barbados served as a market for man- services
ufactured goods from Carolina. B. An increase in supply
963. What does human capital refer to? C. A rise in production costs passed on to
A. Technological development consumers
B. Entrepreneurship D. A fall in the price of imports
C. Skills and knowledge of a population
968. was a muckraker that exposed the
D. Physical capital corruption of the Standard Oil monopoly.
964. What is the main objective of import sub- A. Sinclair
stitution strategy?
B. Wells
A. To reduce domestic production
C. Tarbell
B. To produce more domestically
D. Nast
C. To increase imports
D. To promote international trade 969. A cost to economic growth is demand pull
inflation
965. What is not decent work?
notes
not read the notes
D. none of above

970. If the point where an economy is produc- 975. How did the U.S. government pay for the
ing lies inside the PPF curve, this means construction of the Transcontinental Rail-
that the economy’s production is road?

A. Over efficient/heating A. Government owned land
B. Not efficient B. Cash
C. Impossible C. Treasury Bonds
D. None of the above D. none of above
971. What would be the result of the actions 976. The (a) goods and services are produced
in the sentence below? A country builds in a country, the higher its (b) of living.
schools and universities and invest in other A. a more
education programs for its population to
B. b standard
attend.
C. more
A. The population will buy more capital
goods D. cost
B. The population will have a high literacy E. natural
rate
977. What must happen before high quality
C. The country’s workforce will decrease and high paying jobs can exist?
A. The population must be illiterate
D. none of above
B. The population must be literate
972. Production is C. The country must have little resources
A. An output D. Other countries must train citizens
B. An input 978. Manufacturing system where workers
stay in one place as products pass along
973. Why is investment in education impor-
a track.
tant for a country?
A. Moving Assembly Line
A. It improves the skills of workers
B. Mass Production System
B. It serves as a pathway to economic de-
velopment. C. Morse Code
C. It modifies behaviour and makes peo- D. Patent Row

ple more empathetic and sympathetic 979. The following information is taken from
D. All of the choices are correct. the national accounts of Zambibia:C =
R200 millionI = R50 millionG = R150 mil-
974. Calculate GDP per capita if GDP is £200 lionX = R200 millionM = R180 million
billion and the population is 40 million. Gross Domestic Expenditure is
A. £1, 000 A. R400 million
B. £2, 000 B. R420 million
C. £5, 000 C. R600 million
D. £10, 000 D. R380 million

980. When workers are represented by their

union during negotiations. B.
A. Collective Bargaining
B. Strike C. Things you use to do work or make
C. Vertical Integration money.
D. none of above
D.
NARAYAN CHANGDER
981. which of the following is NOT included
when calculating GDP for the United
985. How is high GDP per capita linked to qual-
States
ity of life?
A. Cars manufactured in Japan, but sold
A. High GDP per capita makes everyone
in the United States
richer.
B. Cars manufactured in the United
States, but sold in Japan B. High GDP per capita means inflation is
low and the cost of goods is lower.
C. Cars manufactured in Michigan, but
sold in Minnesota C. High GDP per capita usually indicates
better nutrition, housing, education, and
D. Cars manufactured in Michigan, but job opportunities.
sold to the government
D. High GDP per capita does not affect
982. Is that what you earn before taxes and quality of life because money can’t buy
other expenses, or is that your salary? happiness.
A. net
986. What is a negative output gap?
B. productive
A. When the actual level of output is
C. inflation
equal to the potential level of output
D. none of above
B. When the actual level of output is less
983. How do capital goods influence economic than the potential level of output
growth? C. When the actual level of output is less
A. Countries that invest in capital goods, than the previous year’s output
produce less goods than countries that do D. When the actual level of output is
not greater than the potential level of output
B. The more literate a person is, the less
work they can do 987. When a county invests in education for
it’s citizens, what is it increasing?
C. Countries that invest in capital goods,
produce more goods than countries that A. Entrepreneurship
do not
B. Human capital
D. none of above
C. Capital goods
984. Which of the following BEST describes D. Natural resources
physical capital?
A. items that you can touch. 988. To overcome unemployment

B. underemployment
C. size of family

D. lack of education
993. What is Standard of Living?

A. The degree of wealth and material
comfort available to a person or commu-
A. need high savings nity
B. need high consumption B. The degree of wealth a person has in
C. need investment the bank
D. need government effort C. The degree of wealth a person has in
the stock market
989. Methods of measuring GDP include:
D. The degree of wealth a person gets
A. Gross National Product (GNP) and Con-
that is passed down from generation to
sumer Price Index (CPI).
generation
B. Inflation rate and unemployment rate.
994. What are two reasons entrepreneurial
C. Production, income, and expenditure
activity in Europe trails that in US, Latin
approaches.
America, and Australia?
D. Fiscal policy and monetary policy.
A. Low taxes
990. The value of spending on Australian ex- B. High taxes
ports (X) is likely to rise if:
C. Low regulations
A. there was a recession overseas
D. High regulations
B. they became cheaper or more compet-
itive for overseas buyers 995. Which combination of factors is most
C. the exchange rate for the A$ rose or likely to result in economic growth?
became dearer against overseas curren- A. an increase in management productiv-
cies ity together with a reduction in the hours
D. there was a drought or floods in Aus- worked per employee
tralia that destroyed our crops. B. increased educational enrollment to-
gether with an increase in business reg-
991. Which measure of national income ac-
ulation
counts for income earned by domestic
workers abroad? C. the discovery of a new raw material de-
posit together with significant emigration
A. GDP per capita
of labour
B. Gross National Income (GNI)
D. the invention of a technology together
C. Real GDP with the investment to use it in the econ-
D. Green GDP omy
992. Which of the following is among the root 996. Investment in human capital and capital
causes of poverty in the United States? goods leads to:
A. disabilities A. An increase in natural resources

B. A decrease in GDP B. improve access to natural resources

C. A decrease in natural resources C. encourage entrepreneurship
D. In increase in GDP D. reduce the cost of capital investments
997. What is the main goal of Indonesia by 1002. Climate change impacts tend to be re-
2045? gressive, falling more heavily on the poor
A. Attaining Economic Stability than the rich
NARAYAN CHANGDER
B. Becoming a Global Superpower A. TRUE
C. Realizing Golden Indonesia B. FALSE
D. Achieving Sustainable Development
1003. Why did the Populist party want unlim-
998. Identify the reason for a rapid economic ited coinage of silver?
growth from the following.
A. Political Stability
B. Steady growth in primary sector
C. Improving the quality of land
D. Investment in new capital and infras-
tructure
999. What was a result of railroads being built

in Texas? A. To increase the amount of money in cir-
culation and raise farm prices
A. The population of Texas grew.
B. Travel became faster and easier. B. To reduce economic inflation
C. Texas was now connected to other C. To raise campaign contribution limits

states. D. To decrease the bargaining power of
D. All of the above labor unions
1000. What are Natural Resources? 1004. Materials that come from the Earth
A. LandWaterSunPlantsAir (land).
B. BrickStoneAluminum Rubber A. Human Capital

C. GlassPlasticCardboardBleach B. Capital Goods
D. Marble GraniteAsphalt Tin C. Natural Resources
1001. A country wants to increase its gross D. Gross Domestic Product

domestic product (GDP). The government
votes to lower corporate taxes. It also 1005. What is a common effect of a fall in real
makes it easier to start businesses by re- wages during a recession?
forming regulations. To help business own- A. Increased consumer spending.
ers succeed, the government also provides
B. Rise in demand.
training programs on how to run a busi-
ness. What is this country trying to do? C. Decrease in income and demand.
A. eliminate barriers to trade D. Expansionary fiscal policies.

1006. What Factor of Economic Growth is be- C. Lowering corporation tax

ing described in the image? D. A rise in investment

1011. Michelle is opening a new restaurant
A. Capital Goods
B. Entrepreneur
C. Human Capital
1012. Which of the following does the dimen-

A. Capital Goods sion of expanding economic opportunities
B. Entrepreneurship and increasing access to economic opportu-
nities contribute to?
A. Pagbabago (enhancing the social fab-
D. Gross Domestic Product
ric)
1007. Economic growth can be defined as B. Malasakit (reducing inequality)
A. an increase in a country’s exports. C. Enhancing growth potential
B. an increase in a country’s population. D. none of above
C. an increase in the productive capacity
of an economy. 1013. Which South African country boosts
nearly 1/2 of the world’s gold reserves?
D. a reduction in inflation.
A. Nigeria
1008. What kind of policies affect growth? B. Botswana
A. Government policies that invest in in- C. South Africa
frastructure and technology.
D. Senegal
B. Wealth transfers
C. Universal Basic Income 1014. Would the following be included or not
included in GDP? The purchase of a used
D. none of above
tractor by a farmer.
1009. Apa rumus pendapatan per A. Included
kapita?What is the formula of per capita
B. Not included
income?
A. GNP:total population 1015. Apa judul buku yang memuat teori per-
tumbuhan ekonomi Walt Whitman Ros-
B. GDP-GDPt-1:GDPt-1 x100%
tow?What is the title of Walt Whitman
C. IPC-IPCt-1:IPCt-1 x 100 Rostow’s book that contains economic
D. GDP+GNP growth theory?
A. The stages of economic
1010. Which of the following is not a supply
side policy to encourage economic growth? B. The stages of economic growth
A. Subsidies on research & development C. The economic growth
B. Privatization and deregulation D. The economic income growth

1016. What was opened in 2011, at a cost of C. Limited Natural Resources

£181million?
D. High Tax Rates
A. Hills Road cycle lanes
B. The Bridge of Sighs 1021. A quota is a physical limit on the quan-
C. The Guided Busway tity of a good that is allowed into a coun-
try.
D. Improved A14
A. True
1017. What is the final stage in Rostow’s
NARAYAN CHANGDER
stages of economic growth model? B. False
A. Traditional Society
1022. Human Development Index is used to
B. Preconditions for Takeoff
measure Human Development in any coun-
C. Takeoff try. Which of the following is not a dimen-
D. High Mass Consumption sion used?
1018. Economic growth is A. Lead a long and healthy life

A. A increase in the amount of goods and B. Knowledge
services produced per head of the popula-
tion over a period of time. C. Happiness
B. An amount of something left over D. Decent standard of living

when requirements have been met; an ex-
cess of production or supply. 1023. What is the main goal of trade liberali-
C. A percentage charged on the total sation?
amount you borrow or save A. To promote protectionism
D. An increase in the amount of goods
B. To encourage FDI flows
and services produced by a business over
a period of time. C. To increase import tariffs
1019. How does sustainable economic growth D. To reduce government intervention
differ from rapid economic growth?
A. Sustainable growth has a higher infla- 1024. Which sector normally grows a nation’s
tion rate. GDP and why?
B. Rapid growth is always sustainable. A. The private sector grows the GDP be-
C. Sustainable growth considers long- cause it is operated by entrepreneurs who
term consequences. start businesses.
D. Rapid growth is more environmentally B. The public sector grows the GDP be-
friendly. cause it is operated by entrepreneurs who
start businesses.
1020. What is one of the unique fundamentals
of Indonesia’s economy mentioned in the C. The private sector grows the GDP be-
article? cause it is operated by the government
A. Rising Domestic Income and Wealth who start businesses.
B. Small Population Size D. none of above

1025. King Leopold represented which Euro- 1029. Sustainable Economic growth is
pean power? A. A large GDP growth and not huge price

change
B. A small GDP growth and not huge price
change
C. A large GDP growth and a huge price
change
D. A small GDP growth and a huge price
A. Spain change
B. Belgium 1030. the level of disposable income deter-
C. Austria mines the level of
D. Romania A. consumption expenditure
B. private expenditure
1026. are people who want work, but do
not have any special skills. C. government expenditure
D. net export
A. skilled
B. semi-skilled 1031. An example of natural resource is
C. unskilled A. school
D. highly skilled B. oil
C. both
1027. How does the Judge of Probate Court
help govern a city? D. none of above
A. Supervises County elections 1032. What is the trend of Balance of goods

and services ( Exports and Imports) in this
B. Oversees legal paperwork for mar-
graph?
riages, wills, or licences
C. All of the Above
D. Makes the decision of who gets put on
probation.
1028. Which combination of factors is most

likely to result in more rapid economic
growth?
A. increases in employment and in the
balance of payments deficit
B. increases in the level of investment A. Balance of Goods and Services is posi-
and in the size of the working population tive. Exports are larger than imports.
C. more equal distribution of wealth and B. Balance of Goods and Services is posi-
a higher level of unemployment benefits tive. Imports are larger than Exports.
D. more rapid inflation and an increase in C. Balance of Goods and Services is neg-
the national debt ative. Exports are larger than imports.

D. Balance of Goods and Services is neg- D. leaves the shape of the KPD un-
ative. Imports are larger than Exports. changed.
1033. Which of the following is commonly de- 1038. With economic growth, the proportion
fined as a ratio between the output vol- of labour-force engaged in agriculture
ume and the volume of inputs? A. Increases
A. Aggregate Production B. Decreases
B. Capital Deepening C. Remains unaffected
NARAYAN CHANGDER
C. Economic Output D. Changes in an uncertain manner
D. Productivity
1039. The first labor union was the
1034. If a country experienced a substantial A. AFL
loss of property due to a natural disaster,
what would the impact be on the PPC? B. NAACP
A. An upwards shift along the PPC C. Knights of Labor
B. A downwards shift along the PPC D. none of above
C. An inwards shift of the PPC 1040. If Canada wanted increase the value of
its “human capital, “ which of these would
D. An outwards shift of the PPC
be the BEST course of action?
1035. What can be the result of sudden in- A. increase funding to public schools
crease in interest rates?
B. build more factories
A. Boom phase
C. increase the amount of oil exports
B. Slowdown phase
D. reach a trade agreement with the
C. Recession phase United States
D. Trough phase
1041. How do changes in technology primarily
1036. What is the most important factor for affect economic growth?
economic growth according to the text? A. By reducing total production
A. Property rights B. By decreasing the quality of factors of
B. Honest government production
C. Political stability C. By enabling more efficient production
processes
D. Competitive and open markets
D. By reducing the demand for goods and
1037. Doubling the amount of L and K under services
constant returns to scale does all of the
following except: 1042. Someone who takes risks to start a new
business:
A. doubles the production of the product
of intensity L. A. Natural resources
B. doubles the output of the product of in- B. Human capital

tensity K. C. Entrepreneurship
C. leaves output unchanged. D. Capital goods

1043. What does Gross Domestic Product- 1047. What is one reason that a population
mean? ages?

A. The total value of all goods and ser- A. There is a rise in life expectancy.
vices a country imports. B. There is a rise in the birth rate.
B. The total value of all goods and ser- C. There is a drop in life expectancy.
vices a country exports. D. There is a rise in health care.
C. The total value of all goods and ser-
vices produced within a country in one 1048. What was the cowboys’ job?
year. A. Their job was to entertain people as
they traveled west watching rodeos.
D. The net loss in profits within a country
due to imports. B. Their job was to steal cattle before it
made it to market.
1044. How does improved technology allow C. Their job was to keep the herd to-
the economy to operate more efficiently? gether, protect the herd, and keep it mov-
A. It enables people to work fewer hours. ing.
B. It ensures that all of the nation’s re- D. none of above
sources will be used. 1049. Suppose Congress passed a bill fund-
C. It ensures that all of the nation’s working research into alternative sources of en-
ers are employed. ergy. What best describes this govern-
D. It helps to make better use of the na- ment action?
tion’s limited resources. A. seeking gains in knowledge about the
national economy
1045. In what way did white settlers misinter- B. monitoring and regulating banks and
pret the Ghost Dance? other financial institutions
A. They believed it was a preparation for C. promoting innovation and invention to
war. help maintain technological advantage
B. They believed the Native Americans D. seeking to prevent sudden, drastic
were finally adapting to white culture. shifts in prices
C. They believed it was part of a buffalo 1050. Investing in Health
hunt.
A. Human Capital
D. They saw it as a way to honor the white
settlers who brought the Iron Horse. B. Capital Goods
1051. Which of the following acts of Congress
1046. What best refers to a pattern in which contributed to an increase in settlement
economies with low per capita incomes in the West by granting free land to indi-
grow faster than economies with high per viduals after they had lived on it for five
capita incomes? years?
A. Aggregate Production A. the Homestead Act
B. Capital Deepening B. the Morrill Land Grant Act
C. Convergence C. the Indian Removal Act
D. Productivity D. the Dawes Act

1052. What is human capital? despite net investment remaining un-

changed?
A. Capital consumption exceeds net in-
vestment.
B. Net investment exceeds gross invest-
ment.
C. The new capital equipment embodies
more advanced technology
NARAYAN CHANGDER
D. The new capital equipment is longer
A. workers and their skills, talents, and lasting than the capital equipment it re-
education places.
B. factories, machines, and technology 1057. which of the following is occurring here?
C. raw materials from the Earth
D. people who start their own businesses
1053. GDP minus indirect taxes + subsidies is
A. GDP
B. GNI/GNP
C. NNI
A. Economy is working at full capacity
D. GVA
B. positive output gap
1054. the spent money or a resource for some C. negative output gap
benefit in the future D. Economy is working past potential
A. investment GDP
B. GDP 1058. What are capital goods?
C. GDP per capita A. goods that are produced in the capital
D. human capital B. goods that are produced without natu-
E. relationship ral resources
C. goods that are produced by the govern-
1055. Turkey invests 3 percent of its GDP into ment
education for its citizens-which productive
D. the factories, machinery, and technol-
resource is this an example of?
ogy used to produce goods and services
A. Standard of Living
1059. Public policies that impact productivity
B. Capital goods and labor force participation affect ?
C. Human capital A. real GDP per capita
D. Entrepreneurship B. economic growth
1056. Why may an economy experience an C. medium chain triglycerides
increase in potential economic growth D. blood moon total lunar eclipse

1060. Vertical integration is when a company 1064. What best refers to a process whereby
buys out the Resources (raw materials, an economy as a whole turns economic in-
fields, forests, and farms), Manufacturing puts such as human capital, physical capi-

(production and processing), and Distribu- tal, and technology into output measured
tion (shipping, transportation, delivery to as GDP per capita?
customers).
A. True
B. False
C. Convergence
1061. Explain the concept of GDP and its sig- D. Productivity
nificance in measuring economic growth.
A. GDP measures the total value of all 1065. Who takes on the financial risk in start-
goods and services produced within a ing a new business in a market economy?
country’s borders and is insignificant in A. Consumers
measuring economic growth.
B. Government planners
B. GDP measures the total value of all
goods and services produced within a C. Individual business people
country’s borders and is significant in D. Combination of planners and investors
measuring economic growth.
C. GDP measures the total value of all 1066. What is one of the policy tools for pro-
goods and services produced outside a moting inclusive economic growth?
country’s borders and is insignificant in A. Improved access to high-quality edu-
measuring economic growth. cation
D. GDP measures the total value of all B. Reducing the national minimum wage
goods and services consumed within a
C. Limiting trade union power
country’s borders and is significant in
measuring economic growth. D. Exploiting vulnerable groups
1062. What is the impact of human capital on 1067. When the herd begins to run and can’t
economic growth? be controlled, it is called a
A. Decreases economic growth A. avalanche
B. No impact on economic growth B. ground quake
C. Fluctuates economic growth
C. torpedo
D. Increases economic growth
D. stampede
1063. If consumer spending is $10, exports
are $5, government spending is $6, invest- 1068. Which term refers to the tools, ma-
ment spending is $3, and imports are $1, chines, and factories used in the production
what is GDP? of goods and services?
A. $23 A. Natural resources

B. $24 B. Human resources
C. $15 C. Capital resources
D. $20 D. Entrepreneurship

1069. What did the term ‘protective tariffs’ 1074. Which policy is most likely to promote
refer to in the economic context? inclusive economic growth?
A. Taxes on all goods to fund government A. Reducing corporate taxes
programs B. Progressive Taxation
B. Taxes on exported goods to promote in- C. Increasing military spending
ternational trade
D. Cutting public healthcare funding
C. Taxes on imported goods to protect do-
NARAYAN CHANGDER
mestic industries 1075. Health care made available to all citi-
D. Taxes on income to redistribute wealth zens of a country through government reg-
ulations of the medical industry and subsi-
1070. If economic growth increases, living dies.
standards may still fall if: A. Socialized medicine
A. Real GDP growth is negative B. Democratic socialism
B. There is a decline in access to helth C. Welfare state
and education services
D. Land reform
C. There is a decline congestion levels on
roads 1076. The alternative combinations of final
D. There is a decline in work related goods and services that could be produced
stress levels in a given time period with all available
resources and technology are known as
1071. What best refers to putting advances in A. Production possibilities.
knowledge to use in a new product or ser-
vice? B. Consumption possibilities.
A. Innovation C. Real GDP.
B. Invention D. Nominal GDP.
C. Labor Productivity 1077. Carries out local or regional trading

D. Production Function only.
1072. Non-material living standards refer to:
A. The quality aspects of a consumer’s
life C. Stage 3:Take-Off
B. The access consumers have to goods D. Stage 4:Drive to Maturity

and services E. Stage 5:High Mass Consumption
C. The ability of Australian businesses to 1078. If nominal GDP is $300 and real GDP is
supply quality clothing to the marketplace $150, what is the GDP price index (defla-
D. All of the above tor)?
1073. A country’s economy has natural ups A. It is uncertain.

and downs in its business cycle. B. 160
A. True C. 100
B. False D. 200

1079. Able to read and write in one’s native 1084. What is the main factor that influences
language. the literacy rate in a country?

A. Literacy Rate A. Quality of education
B. Literate B. Availability of natural resources
C. Public sector C. Level of entrepreneurship
D. Natural Resource D. Amount of capital goods
1085. Chalk and gypsum deposits found in the

1080. What is the purpose of property rights?
United Kingdom are sources of what type
A. To protect investments of resource?
B. To enforce contracts A. human capital
C. To create competitive and open mar- B. entrepreneurship
kets C. a capital resource
D. To bring ideas, people, and capital to- D. a natural resource
gether
1086. Haiti invests in the expansion of its
1081. Which of the following is NOT an effect ports.
railroads had on Texas.
A. human capital
A. Provided jobs to many people.
B. physical capital
B. Created a faster method of transporta-
tion. 1087. A sustained general increase in prices
across an economy.
C. Gave American Indians more opportu-
nities for land ownership. A. Disinflation
B. Consumer Price Index
D. Transported cattle and other goods
across the country. C. Deflation
D. Inflation
1082. The way in which goods and services
are made, sold, and used in a country 1088. A benefit of economic growth is that
A. Economic Contiuumn there will be a rise in the standards of liv-
ing
B. Economy
C. Economic Growth
D. Mixed Economy notes
1083. When the military temporarily takes C. No, I don’t understand this, as I have
control of the country; usually due to a cri- not read the notes
sis or emergency D. none of above
A. Dissidents 1089. Country X has a high gross domestic
B. Destalinization product. Country Y has a much lower
gross domestic product than Country X.
C. Reformist socialism
Which of the following statements is
D. Martial law MOST LIKELY correct?

A. Citizens in Country Y have a higher A. entrepreneur

standard of living. B. human capital
B. There is less environmental pollution C. GDP per capita
in Country X.
D. none of these
C. Citizens in Country Y have less access
to education. 1094. Political party that wanted to increase
the amount of money in circulation by us-
D. There is a higher level of unemploy-
ing silver to back U.S. currency.
NARAYAN CHANGDER
ment in Country X.
A. Populist Party
1090. Which of the following is NOT a cause
B. Republican Party
of economic growth?
C. Democratic Party
A. Increase consumer confidence.
D. Whig Party
B. Falling incomes.
C. Rising employment. 1095. Gifts of nature are called
D. Increased demand for goods and ser- A. entrepreneur

vices. B. natural resources
C. capital goods
1091. What does “decent work” mean?
D. human capital
A. Opportunities for everyone to get work
that is productive and delivers a fair in- 1096. The GNP of “Wonderland” in 2020 is
come. $2, 380, 250. If in 2020, Wonderland cit-
B. Security in the workplace and social izens are 65, 536 residents, what is the
protection for families GNP per Capita of “Wonderland”?
C. Better prospects for personal develop- A. $32.32 / per capita
ment and social integration. B. $33.62 / per capita
D. All of them C. $36.32 / per capita
1092. Lemons in Tucuman province that are D. $32.63 / per capita

mainly exported to USA are an example E. $36.23 / per capita
of:
1097. An outward shift in the PPC is analo-
A. International Specialisation gous to a shift of the long-run aggre-
B. Regional Specialisation gate supply curve.
C. Both options A. leftward
D. None of the options B. rightward
C. vertical
1093. A person who brings together natural,
human and capital resources to produce D. indeterminate
goods or services; a person who has cre- 1098. What is the main challenge of appropri-
ative, innovative ideas about new goods ating the value of innovation?
or services that people might want, or bet-
ter ways to produce existing goods or ser- A. Non-rivalry
vices. B. Non-excludability

C. Lack of funding 1103. The RBA believes that by keeping infla-

D. Lack of interest tion low and steady it can assist with:

E. Lack of passion A. the achievement of low prices over the
medium to long term.
1099. What was the goal of the Progressive B. the achievement of slow and steady
Movement economic growth over the medium to long
A. to get better wages and working con- term.
ditions for workers
C. the achievement of full unemployment
B. to make sure the government pro- and slow and steady economic growth
gresses along over the medium to long term.
C. to make things better for company D. the achievement of full employment
owners and rich people and high economic growth over the
D. none of above medium to long term.
1100. Investing in New Machinery 1104. Japan specializes in making cars, and
China specializes in producing computers.
A. Human Capital
Which capital good should each country in-
B. Capital Goods vest in?
1101. Railroads facilitated the growth of A. Japan-car assembly machinesChina-

small towns, allowing transportation of digital monitor makers for computers
goods across Virginia. Select TWO cities B. Japan-petroleum melting factories
that grew and became railroad centers. China-digital monitor makers for comput-
A. Jamestown ers
B. Richmond C. Japan-car assembly machinesChina-
tools for digging for coal
C. Roanoke
D. none of above
D. Harrisonburg
1102. What do you earn from a business? 1105. He moved the capital to Austin and was
known as the Father of Education.
A. Anson Jones
B. Sam Houston
C. Mirabeau Lamar
D. Stephen F. Austin
1106. What is a limitation of using GDP per

capita as a measure of economic growth?
A. Wages A. Exclusion of income earned abroad
B. Income B. Exclusion of informal activity
C. Savings C. Exclusion of environmental costs
D. Investment D. Exclusion of income inequality

1107. Level 1Which of the following is most C. no effect

likely to be a benefit of business growth? D. none of above
1112. Iron, minerals, coal and plants are ex-
amples of which productive resource?
B. labor
C. entrepreneurship
NARAYAN CHANGDER
A. Increased costs D. capital
B. Increased sales 1113. What is Standard of Living?
C. Increased competition A. The percentage of people who can
D. Increased chance of failure read and write
1108. Which of the following is not likely to B. How well-off people are measured by
increase aggregate demand for goods and the goods, services, and luxuries avail-
services? able
A. An increase in exports C. The total value of goods and services

produced in a country in a year
B. An increase in government expendi-
D. none of above
ture
C. An increase in imports 1114. The quaternary sector is a huge export
for the uk, what does it consist of?
D. A decrease in savings
A. information and communication tech-
1109. What economic measurement helps to nologies
monitor the business cycle?
B. mining and farming
A. gross domestic policies C. teaching or libraries
B. guaranteed domestic product D. nursing and programming
C. guaranteed domestic policies
1115. It refers to any educational activity
D. gross domestic product which is not structured and takes place out-
1110. Who takes on the financial risk in start- side the formal system.
ing a new business in a market economy? A. Formal Education
A. consumers B. Informal Education
B. government planners C. Special Education
C. individual business people D. none of above
D. combination of government planners 1116. Which indicator is most relevant to mea-
and individual investors suring sustainable economic growth?
1111. New inventions made communication A. Short-term stock market performance
and transportation B. GDP per capita growth
A. faster C. Carbon footprint reduction
B. slower D. Corporate profit margins

1117. Which of the following represents hu- B. measurement of of all the natural re-
man resources in the context of eco- sources within a country
nomics?

C. measurement of the annual income of
A. Money and investments citizens in a specific country
B. Land and buildings D. How much the president of every coun-
try makes
C. Labor and skills
D. Oil and minerals 1123. The continent of Africa has a lot of nat-
ural resources such as diamonds.
1118. Among the following 5 countries, which A. True
country has the highest quality of life in-
B. False
dex?
A. Japan 1124. What will be most likely to decrease a
country’s national output in the short run
B. People Republic of China but to increase its potential for long-run
C. United States growth?
D. Sweden A. a decrease in the level of import tariffs
E. Luxembourg B. a decrease in the rate of immigration
C. an increase in female participation in
1119. What is the value that each employed the labour force
person creates per unit of his or her input?
D. an increase in the money supply
A. Human Capital
1125. Some examples of include factories,
B. Labor productivity
machinery, technology, buildings, tools,
C. Physical Capital etc.
D. Technological Change A. Capital goods
B. Human capital
1120. Discuss two causes of economic barri-
ers. C. Natural Resources
A. Decrease in population growth D. Gross Domestic Goods
B. 1. Lack of access to capital 2. Govern- 1126. A high literacy rate helps make standard
ment regulations and policies of living
C. Low unemployment rate A. increase
D. High demand for goods and services B. decrease
1121. Doesn’t always provide the basic needs 1127. At which stage of the economic cycle
to everyone in a society (the weak, sick, would you most likely expect to see an
disabled, or elderly). increase in the number of firms shutting
down?
A. Disadvantage of Traditional Economy
A. Boom
B. Disadvantage of Market Economy
B. Recession
1122. What is GDP per capita? C. Recovery
A. measurement of capitals a country has D. Slump

1128. A, B, C, D? 1133. What was Warren Harding’s economic

policy known as?
A. A
A. Return to Normalcy
B. B
B. New Deal
C. C
C. Great Society
D. D
D. Square Deal
1129. One potential negative consequence of
NARAYAN CHANGDER
rapid economic growth is ? 1134. Which of the following is not correctly
matched
A. Lower inflation
A. Big-push strategy:Paul N. Rosenstein-
B. Reduced income inequality
Rodan
C. Environmental degradation
B. Balanced growth theory:R. Nurkse
D. Decreased technological innovation
C. Development with unlimited supplies
1130. Why were most people opposed to of labour:A-0. Hirschman
trusts and monopolies? D. Critical minimum strategy:Prof. Har-
A. Limit competitoin=higher prices vey Leibenstein
B. Too easy to invest 1135. Phases of the economic cycle:boom,

C. Too much competition peak, recession trough and recovery
D. none of above A. Yes, I understand this from the notes

1131. Congress reduces the requirements notes
needed to begin receiving unemployment
benefits. Will economic growth occur?
not read the notes
Which growth factor contributed is the
cause? (If none, only select one answer) D. none of above
1136. GDP stands for
B. Growth will not occur
A. Gross Domestic Price
C. Technology
D. Human Capital
C. Given Domestic Price
E. Economic Environment
D. Given Domestic Product
1132. how two or more things are connected
1137. What was one of the main goals of War-
A. sector ren Harding’s economic policy?
B. obsolete A. Increasing government regulation
C. GDP per capita B. Reducing taxes
D. capital C. Implementing price controls
E. relationship D. Nationalizing industries

1138. What are capital goods? B. comfortable lifestyle

C. secure future

D. all of the above are included.
1142. How can we fix the problem?
A. Giving money to the people
B. Investing in companies
C. Investing in education
A. workers and their skills, talents, and D. Giving jobs to people
education
1143. Entrepreneur
B. factories, machines, and technology
A. The level of wealth and material com-
C. raw materials from the Earth fort available to a people.
D. people who start their own businesses B. Those who risk their own money and
1139. Discuss the impact of globalization on in- resources to create a new businesses or
dustrial and economic growth. service.
A. Globalization has led to increased 1144. What is the economic growth rate in
trade, investment, and technological ad- year 2?
vancements, which have contributed to in-
dustrial and economic growth.
B. Globalization has led to decreased
trade and investment, which have hin-
dered industrial and economic growth. A. 5%
C. Globalization has had no impact on in- B. 10%
dustrial and economic growth. C. 11%
D. Globalization has led to increased D. 20%
trade and investment, but has not con-
tributed to technological advancements or 1145. Where are factors of production (land,
industrial and economic growth. labor, etc) exchanged in the circular flow
model?
1140. the part of the economy owned and op-
erated by private citizens A. Factor Market
B. Product Market
A. private sector
C. Firms
B. entrepreneur
D. Individuals
C. profit
D. public sector 1146. S + T + M < I + G + X means that the
national income will
1141. The Philippine Development Plan aims A. Stay the same
towards the goals of improving Filipino
lives by improving all of these dimensions B. Increase
EXCEPT: C. Decrease
A. strongly-bonded relationships D. none of above

1147. Capital accumulation will occur if 1152. What are capital goods?
A. Goods that are produced in Wellington
NARAYAN CHANGDER
A. some income is saved
B. Factories, machinery, and technology
B. there is a portion of income that is set
used to produce goods and services
aside and invested
C. all income is consumed C. Goods that are produced without natu-
ral resources
D. none of above
D. Goods that are produced by the gov-
1148. A high GDP per capita necessarily indi- ernment
cates ?
A. An equal distribution of income 1153. Jack buys a tractor for his farm
B. A high standard of living A. Capital Goods
C. A large population size B. Entrepreneur
D. High national debt C. Human Capital
1149. To increase literacy rate, a country D. Natural Resources
MUST invest in
1154. What are the two characteristics of En-
A. Capital Goods
trepreneurship?
B. Productive Resources
A. InnovativeTake Risk
C. Human Capital
B. ScaredAlone
D. Physical Capital
C. HappyCheerful
1150. About 1/2 half of the world’s diamonds
are found here: D. Brave Noble
A. Middle East 1155. Which region of Europe has countries
B. USA with higher GDP per capita?
C. Europe A. Eastern Europe
D. Africa B. Western Europe
1151. Which country is likely to become aged C. Southern Europe
by 2028 with an average income a third
D. Northern Europe
lower than Thailand’s?
A. Japan 1156. Full employment means everyone is em-
B. South Korea ployed and there is zero unemployment.
C. Thailand A. True
D. Sri Lanka B. False

1157. What best refers to the area of a coun- C. Traditional Economy

try, usually with access to a port where, D. Command Economy
among other benefits, the government

does not tax trade? 1162. How does investment in infrastructure
A. Fair Trade Zone contribute to economic growth?
B. North American Free Trade Agreement A. Investment in infrastructure con-

tributes to economic growth by creating
C. Special Economic Zone jobs, improving productivity, and attract-
D. World Trade Organization ing private investment.
B. Investment in infrastructure has no im-
1158. Which of the following is NOT a positive
pact on economic growth.
impact on society of economic growth?
C. Investment in infrastructure leads
A. Improved public services
to higher taxes and reduces economic
B. Improved living standards growth.
C. Increased prices (inflation) D. Investment in infrastructure only ben-
D. Increased employment efits a few individuals and does not con-
tribute to overall economic growth.
1159. When it was originally settled, South
Carolina was a “Proprietary Colony.” 1163. What is a positive output gap?
What did this mean? A. When the actual level of output is
A. The colony was owned and ruled by a greater than the potential level of output
group of Lords Proprietors B. When the actual level of output is less
B. Only citizens from a “proper” family than the potential level of output
were allowed to join the new settlements C. When the actual level of output is
C. The colony was the top priority of Eng- greater than the previous year’s output
land D. When the actual level of output is
D. Settlers received a certain amount of equal to the potential level of output
property upon arriving to the new area 1164. Nominal GDP is when
1160. Investment in education and job training A. GDP has been not adjusted to the ef-
are investments in fects of inflation
A. natural resources B. GDP has been adjusted to the effects
of inflation
B. capital goods
C. human capital 1165. Ecotown has a RGDP of $100 million,
with their workers putting in 5 million
D. none of above
hours. Their labor productivity is (a) Oliv-
1161. An economy where economic decisions erland has a RGDP of $20 billion, with
are made by individuals, and individuals their workers putting in 2 billion hours.
and businesses own most of the busi- Their labor productivity is (b) Remitopia
nesses and farms has a RGDP of $250 million, with their
workers putting in 50 million hours. Their
A. Mixed Economy labor productivity is (c) Theaville has a
B. Market Economy RGDP of $60 billion, with their workers

putting in 2 billion hours. Their labor pro- 1169. Teddy Roosevelt was a because he
ductivity is (d) believed in helping the common man by
preserving nature, busting trusts, support-
A. a $20 per hour/per person
ing unions, etc.
B. b $10 per hour/per person
A. Republican
C. c $5 per hour/per person
B. Democratic
D. d $30 per hour/per person
C. Progressive
NARAYAN CHANGDER
1166. How can economic growth be mea-
sured? D. none of above
A. Consumer price index, stock market in- 1170. As a verb, to gain financially; as a noun,
dex, exchange rate the economic gains of a business
B. Inflation rate, unemployment rate, in- A. Public Sector
terest rate
B. Profit
C. Population growth rate, poverty rate,
income inequality C. Private Sector
D. GDP, GNP, Real GDP growth rate D. Entrepreneur
1167. The level of wealth and material com- 1171. Economic growth can be best described
fort available to a people. as:
A. Standard of living
A. an increase in Real GDP per capita
B. Literacy Rate over time
C. Literate B. a decrease in GDP
D. Entrepreneur C. a double digit increase in the price
level
1168. What is the trend of retail spending in
this graph? D. no frictional unemployment

change:an increase in the quantity of capi-
tal goods
A.
A. Values are up and volumes are down

B. Values are up and volumes are up
C. Values are down and volumes are B.
down
D. Values are down and volumes are up


notes
C.

not read the notes
D. none of above
1177. National income is equivalent to GDP

D. A. True
B. False
Explanation:This one is pretty straightfor- 1178. What is/are the reason(s) for a fall in
ward. When you have more capital goods, real GDP in an economy? (Multiple An-
you increase your potential growth. Al- swers)
though, some firms might benefit from
A. Fall in Aggregate Demand
more capital goods than others.
B. Increase in cost of factors of produc-
1173. Which of the following were typical to tion
the experience of being a cowhand? Select C. Expectation of future price levels to fall
all that apply!
D. Poorer economic outlook lowering con-
A. Extreme weather fidence
B. Long hours E. Increased in government expenditure
C. Danger from cattle thieves
1179. What are some factors that can affect
D. Possibility of injury economic growth?
A. government policies, technological ad-
1174. Economic Growth can bring improved
vancements, infrastructure development,
standards of living
education and skill levels of the workforce,
A. true natural resources, political stability, and
B. false global economic conditions
B. population growth, inflation, exchange
1175. Why decent work is important for peo- rates
ple?
C. sports events, social media trends,
A. Because it allows the satisfaction of celebrity endorsements
economic needs.
D. weather conditions, cultural practices,
B. Because it contributes to the develop- fashion trends
ment of the country.
1180. What term COULD this graph be repre-
C. All answers are correct. senting?
D. Because it transform society for the
better.
1176. short run economic growth is measured

by the percentage change in real GDP

A. literal recovery 1186. Native Americans were moved to so

B. literal conjunction that the land could be settled by American
farmers.
C. literacy rate
A. reservations
D. literal towing B. urban cities
1181. Nations that invest in the health, educa- C. useless land no one wanted
tion, & training of their people will have D. factories
a more valuable workforce that produces
NARAYAN CHANGDER
E. another country
more goods & services.
A. True 1187. The first English permanent colony in
South Carolina was Charles Town. Which
B. False statement is true about other areas in the
New World?
1182. What is one way a government can in-
vest in human capital? A. The Spanish had many other colonies
in the New England region including St.
A. by creating tax breaks for industrial Augustine
equipment
B. The French and Spanish had colonies
B. by providing no-interest loans for throughout the New World including
higher education colonies in the New England, Middle, and
C. by creating a low corporate tax rate Southern regions.
D. by providing unemployment insurance C. The English had several colonies al-
ready established in other colonies, in-
1183. The Human Development Index (HDI) cluding Jamestown, the first permanent
has 3 important criteria, which of these is English colony in the South.
NOT included? D. The Carolina colony was the only
A. Life expectancy colony settled by the English because Eng-
land was involved in a war.
B. Education
C. Real GDP/Income 1188. Barter, trade and emergency of money
A. This was a first form of trade
D. Pollution
B. There was no formal means of pay-
1184. Economic growth is the increase in: ment and people started to barter with
A. Employment each other
B. GDP per Capita C. The first means of payment developed

was bronze
C. Taxes
D. Because of the problems with barter-
D. Interest Rates ing a primitive form of payment was de-
E. None is correct veloped
1189. Which of the following will happen if
1185. A country investing in updating out-
a country’s government reduces business
dated factories
taxes?
A. Human Capital A. The short-run Phillips curve will shift to
B. Capital Goods the right.

B. The short-run aggregate supply curve C. human capital

will shift to the right. D. capital goods

C. The long-run aggregate supply curve
will shift to the left. 1194. What are the 4 factors that lead to a
country’s economic growth?
D. The aggregate demand curve will shift
to the left.
E. The demand curve for loanable funds
will shift to the left.
1190. Which one of the following is most likely

to occur in the boom phase of an economic
cycle? A. investment in human capital, invest-
A. Rising national income, falling unem- ment in capital goods, natural resources,
ployment and a negative output gap entrepreneurship
B. Rising imports, rising profits and a pos- B. good international relations, a demo-
itive output gap cratic president, strict laws, freedom of
press
C. Rising consumption and investment ex-
penditure and a negative output gap C. a powerful military, strong dictatorial
leadership, communist regime, little per-
D. Excess demand, falling employment
sonal freedom
and a positive output gap
D. a monarchy, the World Bank, a parlia-
1191. How do entrepreneurs help a country’s mentary democracy, personal freedom
economy?
1195. What is likely to be the effect of a fall
A. Start new businesses, create jobs, in-
in oil prices on the global economy?
troduce to products, etc.
A. a decrease in the rate of economic
B. Government corruption
growth
C. Providing electricity and improving
B. a decrease in unemployment
roads
C. a strengthening of cost-push inflation
D. Exporting oil, minerals, etc.
D. a weakening of demand-pull inflation
1192. Which of the following system led to
the establishment of large plantations, by 1196. How do factors of growth impact the
granting large tracts of land to settlers? GDP of a country?
A. Headright system
B. Indentured slave system
C. Social class system
D. Slave system
1193. The value that a worker brings to the

marketplace (his/her job) is called
A. Themorea country invests in the fac-
A. entrepreneur tors of growth, the more the GDP will
B. natural resources grow.

B. Themore a country invests in GDP, the 1201. An is someone who takes risks to
more the factors of growth will grow. start a new businesses.
C. Themore a country invests in the fac- A. investor
tors of growth, the less theGDP will grow. B. entrepreneur
D. Themore a country invests in GDP, the C. resource
less the factors of growth will grow.
D. capital
1197. What are natural resources?
NARAYAN CHANGDER
1202. A range between the different economic
A. Natural resources are the materials systems
that come from nature, such as land,
forests, minerals, water, etc. A. Economic Continuum
B. Things that humans create B. Economy
C. Thins produced quickly and easily C. Economic Growth
D. Things produced by factories using nat- D. Mixed Economy
ural means.
1203. A business that is owned at least par-
1198. An increase in productivity is likely to tially by investors.
A. worsen Australia’s international com- A. Corporation
petitiveness and increase inflation. B. Capital
B. worsen Australia’s international com- C. Stock
petitiveness and decrease inflation.
D. none of above
C. improve Australia’s international com-
petitiveness and increase inflation. 1204. What is the most accurate indicator of a
nation’s economic development?
D. improve Australia’s international com-
petitiveness and decrease inflation. A. per capita income
B. GDP
1199. Type of unemployment that occurs as a
result of harvest schedules, or when indus- C. GNP
tries make seasonal shifts in their produc- D. HDI
tion schedules.
1205. The total dollar value of the goods and
services produced in one year.
A. literacy rate
1200. The use of government spending and D. human capital
revenue collection to influence the econ-
omy. 1206. refers to a decrease in price level.
A. Monetary Policy A. Hyperinflation
B. Fiscal Policy B. Disinflation
C. Congressional Policy C. Deflation
D. Executive Policy D. Stagflation

1207. The total value of all the goods and ser- C. Direct and positive
vices produced in a country in one year is D. Complex and can vary
?

A. GAP 1212. Why would a government invest in hu-
man capital?
B. GSP
C. GDP A. to improve the skills of the labor force
D. GOP B. to reduce competition between busi-

nesses
1208. What sectors does the UK mainly ex- C. to improve the technology used by
port businesses
A. Tertiary and Primary
D. to reduce prices of goods demanded
B. Quaternary and Secondary by consumers
C. Primary and Secondary
1213. Refer to Figure 1.1 A movement from X
D. Quaternary and Tertiary to Y
1209. Which statement best describes the re-
lationship between a country’s investment
in capital goods and its gross domestic
product (GDP)?
A. Investments in capital goods typically
lead to a decrease in GDP
B. A decrease in GDP typically leads to in-
A. could be due to a change in consumers’
vestments in capital goods.
tastes and preferences.
C. Investments in capital goods typically
B. could occur because of an influx of im-
lead to an increase in GDP
migrant labor.
D. none of above
C. is the result of advancements in
1210. How can capital goods help an econ- food production technology only, with no
omy? change in the technology for plastic pro-
duction.
A. Capital investments provide workers
with the best and newest tools that they D. is the result of advancements in plas-
use to develop new products. tic production technology only, with no
B. capital investment provides better ed- change in food production technology.
ucation
1214. Should developed countries help poor,
C. Capital investment does not help third world nations without expecting
economies. debt repayment?
D. none of above A. Yes, it is their moral responsibility
1211. What is the relationship between glob- B. No, it will lead to aid weariness
alization and economic growth? C. No, it will promote dependency on aid
A. Indirect and negative D. Yes, only if it benefits their political in-
B. No relationship at all terests

1215. The word “meager” in the passage is A. The Net National Income is the total of
closest in meaning to Gross National Product and Depreciation
A. Traditional B. The Net National Income is the differ-
B. Primary ence between Gross National Product and
Depreciation
C. Very low
C. The Net National Income is the dif-
D. Very necessary
ference between Gross Domestic Product
NARAYAN CHANGDER
1216. Who among the following would be con- and Depreciation
sidered as unemployed? D. The Net National Income is the differ-
A. A college student of legal age to work ence between Net Domestic Product and
but who is still in school full time. Depreciation
B. An entrepreneur in the process of
1221. What are some challenges faced by
starting a new business.
Bangladesh in becoming the richest coun-
C. A secretary who was laid-off from try?
work & is looking at job ads
A. Low population, advanced infrastruc-
D. A housewife taking care of three chil- ture, minimal corruption
dren.
B. Corruption, political instability,
1217. What is the trade cycle also known as? poverty, infrastructure development, and
environmental issues
A. The business cycle
B. The recession cycle C. Abundance of natural resources, effec-
tive environmental policies, low poverty
C. The economic cycle rate
D. The growth cycle D. High literacy rate, strong economy,
1218. Which country in SE Asia has the highest stable government
literacy rate?
1222. is a necessary but not sufficient con-
A. Japan dition of economic development.
B. India A. Economic Growth
C. China
B. Economic Development
D. North Korea
1223. Which goal was included in the presen-
1219. Which of the following will likely raise tation?
the GDP of a country?
A. Protect labour rights and promote safe
A. picking trade partners
and secure working environments for all
B. tariffs and banking workers, including migrant workers, in
C. imports and exports particular women migrants, and those in
precarious employment
D. investing in new technology
B. By 2020, substantially reduce the pro-
1220. Which of the following is true for Net portion of youth not in employment, edu-
National Income? cation or training

C. Achieve higher levels of economic pro- C. Stage 3:Take-Off

ductivity through diversification, techno-
logical upgrading and innovation, includ-

ing through a focus on high-value added E. Stage 5:High Mass Consumption
and labour-intensive sectors
D. Strengthen the capacity of domestic fi- 1227. What was the impact of increased pro-
nancial institutions to encourage and ex- duction efficiencies on consumer demand?
pand access to banking, insurance and fi- A. Decreased consumer demand
nancial services for all
B. Had no effect on consumer demand
1224. Why did settlers of the Backcountry
feel the government was treating them un- C. Increased consumer demand
fairly? D. Shifted consumer demand to foreign
A. They were being taxed three times markets
more than the people of the Lowcountry
1228. Actual economic growth can be repre-
B. They had less representation in the As-
sented by:
sembly than the Lowcountry even though
they had a larger population A. Outward shift of PPF
C. Their farms were being destroyed and B. Inward shift of PPF
burned by representatives of the assem-
bly C. Movement of a point inside towards a
point on PPF
D. They were forbidden from traveling
D. Movement of a point on PPF towards a
1225. Human Development Index is point inside
1229. Which of following statement is true

about the Economic Growth
A. It refers to increase in Gross Domestic
Product (GDP)
B. It refers to the long and sustained rise
in real Gross Domestic Product (GDP)
A. the average number of years a person
is expected to live. C. It is characterized by fall in unemploy-
ment rate
B. a tool for ranking countries based on
their level of economic development. D. Rise in GDP on monetary term
C. how much humans develop over time.
1230. research / observation / investigation
D. none of above means
1226. Begins to participate in international A. study
trade, such as the exporting of agriculture
and raw materials. B. evidence
A. Stage 1:Traditional Society C. accompany

B. Stage 2:Pre-Condition for Take-Off D. security

1231. Choose the correct option 1236. Which of the following represents the
term for “a product of the earth that peo-
ple use to meet their needs”
A. capital goods
B. natural resource
C. human capital
D. entrepreneurship
NARAYAN CHANGDER
A. Human Capital 1237. What is China’s current unemployment
rate?
B. Capital Goods
A. 3.5%
B. 4.9%
D. Entrepreneurship
C. 5.4%
1232. What is the best way to measure eco- D. 2.1%
nomic growth?
1238. Which of the following would be an in-
A. Gross national product
vestment in Capital Goods for your movie
B. Inflation theater?
C. monetary policy
1233. Cold War is when Russia and United

States help one another because they
were both powerful countries.
A. True A. corn growing in the field to be sold at
B. False the movie theater
B. buying new popcorn machines for your
1234. Potential economic growth is caused by movie theater
an increase in consumption and net ex-
ports. C. training your employees how to oper-
ate the new popcorn machines
A. True
D. Icees sold at the movie theater conces-
B. False sion stand
1235. Which one is the correct formula to cal- 1239. A decrease in total demand can result in
culate labor force participation rate? ?
A. (Labor Force / Total Population) x 100 A. Movement from outside the PPC to in-
B. (Employed Population / Labor Force) x side
100 B. Movement from inside the PPC to the
C. (Unemployment Rate / Labor Force) x right
100 C. Movement from the right of PPC to the
D. (Labor Force / Working Age Popula- left
tion) x 100 D. No movement on the PPC

1240. Which of the following factors has con- A. changes in general price level in the
tributed the MOST to raising average labor economy
productivity historically?

B. changes in rate of unemployment in
A. human capital the economy
B. physical capital C. changes in level of output of goods and
C. the political environment services in the economy
D. technology D. changes in imports and exports of

goods and services between economies
E. social capital
1245. What is the target for economic growth
1241. What was a popular method of stock
A. 2% + or-1%
market investment in the 1920s?
B. As close to 2% as possible
A. Index funds
C. As close to 2.5% as possible
B. Real estate investment
D. As close to 1.5% as possible
C. Short selling
D. Buying on margin 1246. Level 3A. Entrepreneurial heart frame
allows the entrepreneur to see things in
1242. What is the core-periphery model a part a very positive and optimistic light amid
of? a crisis.B. Entrepreneurial gut game is the
A. Rostow’s stages of economic growth total involvement of the entrepreneur in
model the exciting game of business, demanding
the keenest of intuitive abilities and the
B. World system theory strongest intestinal fortitude.
C. Walt W. Rostow’s research A. A is correct while B is incorrect
D. None of the above B. A is incorrect while B is correct
1243. What does the income approach of mea- C. Both are correct
suring GDP include? D. Both are incorrect
A. Employee compensation, business
profits, interest, appreciation, net indirect 1247. What is this logo?
taxes
B. Employee compensation, business
profits, interest, depreciation, net direct
taxes
C. Employee compensation, business
profits, interest, depreciation, net indirect
taxes
D. Employee compensation, business
losses, interest, depreciation, net indirect
taxes A. A thing in the presentation
1244. When economists talk about economic B. The logo of the sustainable develop-
growth, the focus is on the ment goal number 3

C. The logo of the sustainable develop-

ment goal number 8
D. The logo of a mall
1248. Which one of these is a consequence of A. Nations that produce oil often have
a recession? very weak economies.
A. Increase in inflation B. Increased oil production often leads to
B. Increase in employment economic growth.
NARAYAN CHANGDER
C. Decrease in income C. Oil’s economic benefits are distributed
equally throughout Southwest Asia.
D. Increase in Aggregate Supply
D. Oil production has little effect on the
1249. What are some of the policies that gov- economies of Southwest Asian nations.
ernments can implement to promote eco-
nomic growth? 1253. the ability to read and write
A. Literacy rate
A. Cutting funding for education and in-
frastructure B. standard of living
B. Reducing taxes, investing in infrastruc- C. literate
ture, promoting innovation, and providing D. None of the above
education and training
1254. According to the normal relationship,
C. Increasing taxes and regulations if Nation “X” decided to invest several
D. Limiting access to innovation and tech- billion dollars in education and training,
nology which statement below best explains how
its GDP would likely be affected?
1250. A person who takes the risk and starts
A. It would depend on other factors
up a company is known as a
B. It would not change
A. human capitalist
C. It would decrease
B. capital goods
D. A It would increase
C. entrepreneur
1255. Andrew goes to college to learn den-
D. natural resource
tistry.
1251. What Native American food source was A. Capital Goods
devastated by settlers over population B. Entrepreneur
and over hunting them?
C. Human Capital
A. fish
B. buffalo
1256. What is the impact of government poli-
C. deer
cies on economic growth?
D. hogs
A. Government policies always have a
1252. Based on the table, what conclusion can positive impact on economic growth.
reasonably be drawn about oil production B. Government policies can have both
and the economies of Southwest Asian na- positive and negative impacts on eco-
tions? nomic growth.

C. Government policies have no impact 1262. Which of the following is NOT a macroe-
on economic growth. conomic objective?

D. Government policies always have a A. Economic Growth
negative impact on economic growth. B. Stable Employment
1257. Which of the following PULLed settlers C. Stable Inflation
West? D. Stable Balance of Payments
A. gold and silver 1263. Which of the following is a problem in
B. free land (Homestead Act, 1862) the business cycle?
C. less crowding A. Value of country’s currency
D. ghost towns B. high exports
E. easier access with railroads C. high employment
D. Trade externalities
1258. Real GDP is
A. the opposite of unreal GDP 1264. Who were the “Bosses of the Senate”
that are being referred to in this cartoon?
B. GDP adjusted for price changes
A. Members of the Supreme Court
1259. More income generating in the country B. Voters
is an aspect of Economic
C. Wealthy industrialists
A. Growth
D. Elected congressmen
B. Development
1265. According to the article, what measures
1260. A country can increase it’s capital goods can develop countries take to prepare for
by investing in what? an aging population? (Select ALL that ap-
A. New machinery, technology, factories, ply.)
etc. A. Reform pension system and raise re-
B. Land, forests, minerals, etc. tirement age
C. Doctors, teachers, nurses, etc. B. Increase female participation in the
labour force
D. Clothes, shoes, makeup, etc.
C. Nurture financial markets and provide
1261. What are the main factors that can af- long-term saving options
fect economic growth? D. All of the above
A. Factors such as fashion trends, social
media, and fast food
ship) between entrepreneurs and GDP?
B. Factors such as weather, sports, and A. When a country invests in human cap-
entertainment ital it has the ability to foster more en-
C. Factors such as investment, techno- trepreneurs, the moreentrepreneurs a
logical progress, education, natural re- country has the higher the GDP.
sources, and government policies can af- B. When a country invests in human cap-
fect economic growth. ital it has the ability to foster more en-
D. Factors such as music, art, and litera- trepreneurs, the moreentrepreneurs a
ture country has the lower the GDP.

1267. The opportunity cost of increasing pro- B.

duction from 7 to 9 trucks is C.
D.
1271. The percent of a nation’s population

over the age of 15 who are able to read
and write.
A. literate
NARAYAN CHANGDER
C. entrepreneur
D. literacy rate
A. Scarcity
B. 2 boats 1272. A government could help create eco-
nomic growth by doing the following:
C. 2 trucks
A. Decreasing the money supply
D. 3 boats
B. Decreasing interest rates
1268. Economic growth is defined as? C. Decreasing government spending
A. The decrease in productive capacity of D. Increasing tax rates
an economy
B. The increase of the prices of good 1273. The graphs show how consumer prices
within an economy and real GDP changed in a country be-
tween 1995 and 2005. Which conclusion
C. The inverse relationship between may be drawn from the graphs?
money and productive capacity
D. The increase in productive capacity of
an economy
1269. What term best describes this image?
A. standard of living
B. out of work A. Living standards remained roughly
constant between 1995 and 2005.
C. poor
B. The level of GDP was lower in 2005
D. homeless than in 2000.
1270. Based on your knowledge of African C. The country experienced continuous
economies, which countries correctly com- economic growth between 1995 and 2005.
plete the table? D. The price level fell between 2000 and
A. 2003.

1274. The (a) capital goods a country has, then 1279. Prohibiting the export of NICKEL mining
the (b) goods and services they are able to materials is one of the efforts of President
produce. Jokowi’s government to

A. a more A. Stop all efforts to export raw materi-
B. b more als.
C. less tagsS2789894 B. Improving community welfare and en-

couraging economic development
D. none of above
C. Maintaining Indonesia’s position as
1275. The act of assuming the risk of organiz- the largest nickel producer
ing productive resources to produce goods D. Strengthening the Indonesian econ-
and services. omy in the oil and gas sector.
A. business
1280. All of the economic inputs that are re-
B. critical thinking quired to produce goods and services are
C. entrepreneurship called:
D. risk management A. Factors of production
B. Supply
1276. The following list is describing which
factor of production:education, health, and C. Demand
showing up ready to work? D. Capital goods
A. entrepreneur
1281. What can a bank provide for an En-
B. human capital trepreneur.
C. natural resources A. oil
D. capital goods B. gold
1277. Money can be saved where? C. diamonds
A. Banks:savings account, fixed deposits, D. loan
unit trusts, etc.
1282. Human beings can solve problems that
B. Insurance companies:saving policies, machines cannot.
unit trusts, etc.
A. true
C. Loan sharks:medium or short term
B. false
savings
D. Stokvel:community based saving 1283. Short run aggregate supply increases
schemes also create short run economic growth. For
example, a fall in the price of oil reduces
1278. What is a key policy tool for inclusive production costs
growth? A. Yes, I understand this from the notes
A. Building strong and effective institu- B. No, I don’t understand this from the
tions notes
B. Reducing access to education C. No, I don’t understand this, as I have
C. Limiting competition and trade not read the notes
D. Ignoring environmental sustainability D. none of above

1284. A country investing in new machinery 1288. Often referred to as Physical Capital,
A. Human Capital what best includes the plant and equip-
ment that firms use as well as things like
B. Capital Good roads?
1285. what is the main product exported in A. Capital Deepening
chile? B. Human Output
C. Infrastructure
NARAYAN CHANGDER
D. Technology
1289. NO. 1 Sustainable Development is that

development which satisfies the need of:
A. copper
B. coffee
C. Oil
D. Meat
1286. Which of the following is a leakage from

A. Present generation only
the circular flow diagram?
B. future generation only
C. both (a) (b)
D. none of these
1290. Which group of countries was expected

to experience strong economic growth
along with the BRIC countries?
A. BRIC-MIT
A. Saving, Imports, un-spent tax revenue
B. N11
B. Consumption, Exports, Government
C. G7
Stimulus
D. OPEC
C. Loans, Interest on Loans, Investment
D. Imports, Exports, Money Spent on GS 1291. What are the key indicators of industrial
and economic growth in a country?
1287. Which of the following is not a leakage
from the circular flow of income? A. Stock market performance, consumer
spending, and government debt
A. Savings
B. Agricultural production, population
B. Investment growth, and education levels
C. Taxes C. GDP growth, industrial production, em-
D. Imports ployment rates, and investment levels

D. Unemployment rates, inflation, and

trade deficit

1292. A business method that focuses on buy-
ing businesses involved in every step of
the production process for a final product.
A. Horizontal Integration
B. Philanthropy
A. producers
C. Vertical Integration
B. consumers
D. none of above
C. banker
1293. What are the three economic questions?
D. traders
A. What to produce? How to produce?
For whom to produce? 1297. What is primarily responsible for shift-
ing the economy’s PPC to the right?
B. Who to produce? Why you produce?
Like to produce? A. Decrease in resources
C. Why to produce? Tell who to produce? B. Economic decline
Things to produce? C. Economic growth
D. none of above D. Stagnation in technology
1294. Which country in Africa produces the 1298. Choose an example of human capital
most oil? (you must pick 2 answers)
A. Kenya
B. South Africa A.
C. Nigeria
D. Ghana B.
1295. There are many way to MEASURE PRO-

DUCTIVITY:
C.
A. Based on how many people are at
work.
B. Based on the number of hours it takes D.
to produce a good/service.
C. Based on the amount of income gen-
erated by an employee divided by his/her 1299. Economic Growth and Economic Develop-
salary. ment are the same thing
D. Based on how many machines are op- A. not always

erating. B. never
1296. The people who buy goods and services C. sometimes

are called D. always

1300. What is the term for the ability to cap- 1304. What are the FOUR (4) factors of eco-
ture some share of the social value of an nomic growth?
innovation?
A. human capital
A. Appropriability
B. capital goods
B. Excludability
C. Rivalry
D. entrepreneurship
D. Invention
NARAYAN CHANGDER
E. Excitability E. gross domestic product
1301. What is the importance of early child- 1305. Measures how well off a people are in
hood development in promoting inclusive a country.
growth?
A. Literacy Rate
A. Early childhood development has no
B. physical capital
impact on inclusive growth.
B. Inclusive growth can be achieved with- C. Standard of Living
out early childhood development. D. Gross Domestic Capital
C. Early childhood development only af-
fects physical development, not cognitive 1306. What is another name for oil?
or socio-emotional development. A. Black Gold
D. Early childhood development is impor- B. California Coffee
tant in promoting inclusive growth be-
cause it lays the foundation for a child’s C. Petroleum Power
physical, cognitive, and socio-emotional D. Texas Toast
development.
1302. When workers have the best tools, they 1307. Implies an increase in the capacity of the
can: economy to produce more goods and ser-
vices.
A. be more productive
A. Economic development
B. help the countyr’s economy
B. Economic activity
C. both
D. none of above C. Economic prosperity
D. Economic growth
1303. In Country A, the government has of-
fered incentives to companies that invest
1308. Investment in human capital is impor-
in continuing education and training for
tant because
their employees. What factor of eco-
nomic growth is the country working to A. there will be fewer capital goods and
improve? natural resources available
A. capital goods B. countries will lower their standard of
B. human capital living
C. natural resources C. companies will earn more subsidies
D. entrepreneurship D. workers are more productive

1309. Why is using real GDP as a measure of 1314. Productive potential of a country can be
economic growth important? increased by raising the quantity or quality
of the factors of production

A. It helps to account for changes in pop-
ulation size A. Yes, I understand this from the notes
B. It adjusts for inflation, providing a B. No, I don’t understand this from the
more accurate measure of growth notes
C. It accounts for environmental impacts
not read the notes
of economic growth
D. none of above
D. It reflects the distribution of wealth in
a society 1315. In a boom
A. Unemployment is likely to fall
1310. What allows the production of more
goods and services in less time, leading to B. Prices are likely to fall
greater economic growth? C. Demand is likely to fall
A. Advanced facilities D. Imports are likely to fall
B. Skilled workforce 1316. At which stage of the economic cycle
would you expect to see consumer spend-
C. Human capital
ing start to increase once again?
D. Physical capital
A. Boom
1311. Which country among the BRIC coun- B. Slump
tries has shown the least stable economic C. Recovery
growth?
D. Recession
A. Brazil
B. Russia change:firms improve on how they manu-
C. India facture and lower their costs of production
D. China
1312. Credited with the severe pollution of A.

waterways and atmosphere in many mid-
western cities.
A. Steel manufacturing
B. The automobile
B.
C. The Transcontinental Railroad
D. Vertical Integration
1313. Economic growth may provide

A. jobs, income and better standards of C.
living
B. happiness and free time for all

D. The head of the school systems in Syd-

ney, Australia.
D.
1321. What is considered a normal unemploy-
ment rate?
Explanation:In this case, firms are using A. 0 to 2 percent
their existing factors of production in a B. 4 to 6 percent
more efficient manner C. 8 to 10 percent
NARAYAN CHANGDER
1318. Which one of the following types of un- D. 10 to 12 percent
employment is best defined as ‘unemploy-
1322. Investment in capital goods typically
ment for short lengths of time between
leads to an
jobs’?
A. increase in GDP
A. Frictional
B. stronger its economy
B. Seasonal
C. technology
C. Cyclical
D. Structural
E. boosts a country’s exports
1319. The only government policy with an im-
1323. How do literacy rates affect their stan-
mediate effect on the AD curve is
dard of living?
A. changing income tax rates. A. The higher the literacy rates the lower
B. changing business tax rates. the standard of living.
C. changing government spending. B. The higher the standard of living the
D. changing government transfer pay- lower the literacy rates.
ments. C. The higher the literacy rates the higher
E. changing the supply of money.
D. none of above
1320. What is an entreprenuer?
1324. Raw materials from nature-land, time,
trees, grass, sunlight, minerals, car, bus,
water/pond, cotton
B. capital goods
C. human capital
D. entrepreneurship
1325. The (a) a country’s GDP, the (b) the
A. The head of the government in Aus-
standard of living is for the people of that
tralia
country.
B. A person who risks their own money,
A. a higher
time, and effort to create a new busi-
ness/jobs. B. b better
C. A person who works at an automobile C. lower
factory in Canberra D. worse tagsS2789894

1326. Based on the following statement, de- 1331. What social trend caused the demand
termine whether it will result in positive for beef to rise immediately following the
OR negative growth AND a shift in PPC OR Civil War?

movement towards the PPC-“An improve- A. Mexican immigrants popularized cattle
ment in levels of health of the population” herding.
A. Positive
B. New methods of refrigeration made
B. Negative preparing beef easier.
C. Shift in PPC curve C. Cities in the East and West began in-
D. Movement towards PPC curve creasing in population.
D. Many former soldiers were cattle
1327. If nominal GDP is $100 in 2019 and
herders.
nominal GDP is $200 in 2020, how much
did the economy grow by? 1332. measure of the proportion of adult pop-
A. It is uncertain ulation (15 years and up) which can read
B. $100 and write a simple statement
C. -$100 A. Education level
D. none of above B. Literacy rate
1328. Between 2014 and 2015 the Pol- 1333. During the 1800s the U.S. experienced
ish economy expanded at a rate of a dramatic increase in the production of
3.3%.What necessarily follows from this manufactured goods because of
statement? A. the amount of European investment in
A. There was increased demand which U.S. industry
caused inflation. B. an increase in the number of skilled
B. The cost of living rose by 3.3% workers who had a public education
C. There was positive economic growth C. the invention of interchangeable parts
and the development of other mass-
D. The output of the industrial sector rose
production techniques
by 3.3%
D. an increase in the amount of imported
1329. A nation with a high GDP typically does raw materials available for production
not invest in capital, while a nation with a
low GDP doesinvest in human capital. 1334. Why is political stability important for
A. True economic growth?
B. False A. To protect investments
B. To enforce contracts
1330. Steve Jobs created the technology com-
pany Apple, Inc. Which is an example of C. To create competitive and open mar-
which economic growth aspect? kets
A. Tariff D. To give investors confidence to invest
B. Specialization 1335. The total value of all final goods and ser-
C. Entrepreneurship vice produced by a country’s citizens
D. Capital Goods A. GDP

B. GNP D. The net loss in profits within a country

C. GNI due to imports.
D. Real GDP 1340. GDP Per Capita

1336. makes all other resources useful and A. (per person) the total amount of money
puts them to productive use. made by a country, divided by its number
A. Land of citizens
B. the system of how money is made and
NARAYAN CHANGDER
B. Money
used within a particular country or region
C. Technology
D. Human Resource C. a good means to send it to another
country to be sold
1337. Which is an example of a natural re- D. to bring in a good from another country
source? to sell
A. Oil
B. Education 1341. Can a human be considered physical cap-
ital?
C. Factories
A. Yes
D. none of above
B. No
1338. How did slavery impact the economy of
South Carolina? 1342. An outward shift in the PPF depicts
A. It caused the colony to struggle for
years. d. It caused quick fortunes and ter-
rible losses.
B. It made the colony very prosperous.
C. It made the colony go broke.
D. It made the colony more open-minded
1339. What does Gross Domestic Product-

mean? A. Economic Growth
C. Economic Decline
D. A recession
1343. The primary sector begins to shrink and

the secondary sectors begins to grow.
A. The total value of all goods and ser-
vices a country imports. A. Stage 1:Traditional Society
B. The total value of all goods and ser- B. Stage 2:Pre-Condition for Take-Off
vices a country exports.
C. Stage 3:Take-Off
C. The total value of all goods and ser-
vices produced within a country in one
year. E. Stage 5:High Mass Consumption

1344. Name one factor that can hinder eco- 1349. An increase in which of the following
nomic growth. would cause a decrease in aggregate de-
mand?

A. political instability
B. technological advancements A. Exports
C. high taxes B. Imports
D. lack of natural resources C. Government Spending
1345. If productivity rises, the following hap- D. Investment
pens:
1350. What is the focus of export-led growth
A. Everyone is successful and happy.
strategy?
B. More goods and services are pro-
duced. A. Increasing imports
C. More jobs are created, therefore more B. Increasing foreign aid

money earned. C. Increasing government spending
D. Factories are busier.
D. Increasing exports
1346. Governments often encourage increased
competition to lower price 1351. Which country specializes in natural
gas?
A. True
A. United Kingdom
B. false
B. Russia
1347. Investing in human capital will raise a
countries C. Germany
A. oil sales D. none of above
B. exports
1352. The level of material comfort at which
C. GDP people in a country live including ac-
D. ABC cess to quality shelter, food, water, and
other essential goods and services.
1348. What is an entrepreneur?
A. Welfare state
B. Standard of living
C. Democratic socialism
D. Nationalization
1353. What is the purpose of investing in cap-

A. the value of a person’s skills and edu- ital goods?
cation, scientists, doctors, or workers
A. to increase barriers to trade
B. a person who takes a risk to start a
new business B. to improve workers’ skills
C. goods used to make other goods C. to limit market competition
D. gifts of the earth D. to improve productive efficiency

1354. Which one of the following is most likely 1359. What is the main barrier to export di-
to result in a demand-side shock to the UK versification strategy?
economy? A large rise in A. High levels of inflation
A. World commodity prices B. Lack of skilled workforce
B. UK wages due to a wave of strikes C. Tariff escalation
C. UK interest rates D. Low demand for manufactured prod-
D. The price of imported semi- ucts
NARAYAN CHANGDER
manufactured goods
1360. I RailroadsII Silver miningIII Cotton
1355. Concerning the five-sector circular flow farmingIV Cattle ranchingV Computer tech-
model of the Australian economy, which nologyVI Oil drillingVII ManufacturingVIII
statement about the value of aggregate Education Which industries listed above im-
demand and GDP is true? The values of proved the economy of TX after the Civil
aggregate demand or GDP equal: War?
A. the total value of S + T + M A. I, II, VI
B. the total value of C + I + G + X-M B. III, IV, VI
C. the total value of C + I + G + X. C. 3, 6, 7
D. None of the above totals is correct. D. And, B, VI
1356. If the consumer price index (CPI) for 1361. A country can increase its capital goods
year 2013 is equal to 180 and for year by investing in what?
2014 is equal to 198, calculate the infla-
A. New machinery, technology, factories,
tion rate level in year 2014.
etc.
A. 10%
B. Stocks
B. 18%
C. Annuities
C. 80%
D. Environmental regulations
D. 98%
1362. Forcing native children to attend board-
1357. If a natural disaster strikes, the producing schools were an attempt to stamp out
tion possibilities curve can shift their
A. No shift A. history
B. To the left B. youth
C. To the right C. farming skills
D. Outward on one axis only D. culture
1358. What was a key factor in the economic 1363. Which Best describes income?
growth and prosperity of the 1920s?
A. Money borrowed from a credit union.
A. Rapid population growth
B. Credit offered on the basis of a per-
B. Increased production efficiencies son’s salary
C. Decreased production efficiencies C. Money you earn working or get from
D. Expansion of government bureaucracy investing

D. Taxes paid to the government based on 1369. True or False? Entrepreneurs create jobs
annual salary for the population.

A. True
1364. A government could improve and
training as part of supply-side policies. B. False
A. health 1370. The Economy depends on the people be-
B. education cause they are the ones who spend most
of the
C. police
A. profits
D. army
B. taxes
1365. Small portion of ownership in a com- C. money
pany purchased by an investor.
D. time
A. Stock
1371. The capital-output ratio in a country dur-
B. Dividend ing the different phases of growth
C. Capital A. Remains unchanged
D. none of above B. Fluctuates widely
1366. Syria has not built new factories or used C. Changes within narrow limits
new technology in many years. What is D. Shows a secular declining trend
the country NOT investing in?
1372. Which country does not provide enough
A. Capital Goods money for education?
B. Human capital A. South Africa
C. Natural resources B. Niger
D. Entrepreneurship C. Nigeria
1367. What do you call a person who takes D. Botswana

risks by starting a new business?
1373. Which of the following changes is most
A. An international trader likely to shift the AD curve to the right?
B. An economist A. A decrease in government spending
C. An entrepreneur B. A rise in interest rates
D. A dictator C. A depreciation of the exchange rate
D. A period of consumer price deflation.
1368. Which of the following were at the bat-
tle of Little Big Horn? 1374. on the other hand comprises of im-
A. Custer provement in the quality of life with the
increase in the real output. Economic mea-
B. Sitting Bull sures include HDI, IHDI, CPI, GDP-PC, etc.
C. Crazy Horse A. Economic Growth
D. Chief Joseph B. Economic Development

1375. The knowledge and skills possessed by B. It encourages people to take risks, in
people that places value on them in the job doing so create more efficient materials,
market is products, and technologies
A. human capital C. The more entrepreneurs a country has,
B. capital goods the higher the country’s GDP
C. GDP D. All the above answers are correct
D. trade
NARAYAN CHANGDER
1380. What factors can cause economic
1376. A recession is growth?
A. a reduction in real GDP over two suc-
A. Decrease in investment
cessive quarters
B. a reduction in real GDP over a whole B. Decrease in the labour force
year C. Improved technology
C. a reduction in nominal GDP over two
D. Decrease in education quality
successive quarters
D. a reduction in nominal GDP over a 1381. What did increased production efficien-
whole year cies lead to in the 1920s?
1377. Economic growth is measured by A. Economic growth and prosperity
A. Changes in GDP from one period to an-
B. Economic stagnation
other
B. GDP C. Rising unemployment rates
C. GDP from one period to another D. Decreased consumer spending
D. none of above
1382. One of the key aims of the Australian
1378. was a leader in the steel industry. government is to ensure that as the popu-
A. Rockefeller lation expands, sufficient goods and ser-
vices are available to satisfy needs and
B. Walker
wants and new jobs are created for those
C. Carnegie who enter the workforce.
D. Morgan A. True
E. Vanderbilt
B. False
1379. How does entrepreneurship influence
economic growth? 1383. What is the ultimate effect of capital
deepening?
A. Increased wages from demand for
workers
B. Increased Demand for machines
C. Increased factors of production
A. It creates jobs and reduces unemploy-
ment D. Stable GDP per capita

1384. How do we measure economic growth 1388. This reflects the value of goods and ser-
and development? vices produced in a year in a nation by an
average person.

A. Measuring economic growth based on
the number of tourists visiting a country A. G.D.P.
B. Using indicators such as GDP, GNI, B. G.D.P. per capita
HDI, and other economic and social indi- C. G.D.P. per person
cators.
D. G.D.P. per product
C. By counting the number of new busi-
nesses opened in a year 1389. Which economic policies were imple-
D. Using indicators such as happiness in- mented during the 1920s?
dex and unemployment rate A. Raising protective tariffs and reducing
taxes
1385. What is needed for economic growth to
B. Increasing government regulations
happen?
and taxes
A. Entrepreneurship
C. Implementing socialist economic poli-
B. Good planning cies
C. Capital D. Promoting international trade agree-
ments
D. Skilled labour
E. Resources 1390. Which of the following policies is a
supply-sided policy and can be used for
1386. The more people are (a), and the more economic growth
they (b) their skills and talents, the more
A. Increased government spending
(c) they become.
B. Increased education and training for
A. a educated
workers
B. b develop C. Increased exports
C. c creative D. Decreased rates of interest
D. productive Explanation:Increase in the quality and
quantity of FOP will increase LRAS (supply
E. skilled
side).
1387. What role did railroads have in Texas? 1391. If GDP is £300 billion and the popula-
A. Railroads brought a small population tion is 30 million. What is GDP per capita?
to Texas A. £270 billion
B. The railroads made it hard to transport B. £100, 000
goods to other places.
C. £10, 000
C. The railroads helped boost Texas econ-
omy by transporting goods to different D. £1, 000
places in the country.
1392. Marta graduated from the School of
D. The railroads were made to transport Culinary Arts in New York City. Marta
people only. wants to return to Cuba and open a bakery

in her home town. Marta’s brother, Fed- 1396. The Governor veto’s a bill by the State
erico, has started two new businesses in Legislature. The State Legislature can
Cuba. He tells Marta that she should think override a veto by the Governor. Which
hard about the business before she invests principle does this cover?
and risks her money in a bakery.What A. Popular sovereignty
would Marta be MOST concerned with as
an entrepreneur? B. Republicanism
A. Is she a really good baker? C. Checks and Balances
NARAYAN CHANGDER
B. What type of baked goods would D. Federalism
Cubans like?
1397. During World War II, many state’s citi-
C. Will the bakery make a profit in her zens, white and African Americans joined
home town? the military.
D. Will she have access to quality baking A. True
ingredients?
B. False
1398. What is the relationship between educa-
tion and economic development?
A. Education is unrelated to economic de-
velopment.
B. Education hinders economic develop-
ment.
C. Education promotes economic devel-
opment.
A. the people who perform labor (work)
D. Education has no impact on economic
B. the building where most people work
development.
in a country or state
1399. AD curve shift to right to show potential
1394. How do economists measure the health
economic growth
of a country’s economy?
A. True
A. Gross Domestic product (GDP)
B. stocks B. False
C. standard of living 1400. High consumer expenditure happens in

D. education available? a
A. Boom
1395. What is a recession?
B. Trough
A. A phase where there is negative eco-
nomic growth C. Recovery
B. A phase where there is rapid economic D. Recession
growth
1401. Purchasing power parity (PPP) com-
C. A phase where there is constant eco- pares economic growth and standards of
nomic growth living in different countries with a common
D. None of the above currency/basket of goods approach.

A. True 1407. What is capital?

B. False A. a. Knowledge of another country

B. b. Skills of the military in another coun-
1402. GI Bill benefits were used by veterans
try
to pursue an education.
C. A committee that regulates and main-
A. True
tains basic
B. False
D. Factories, machinery, and technology.
1403. True or False-a radioactive element is 1408. The production possibilities curve is an
safe for human beings to handle. illustration of what?
A. True A. Opportunity costs and trade-offs
B. False B. Only opportunity costs
1404. Tariffs was one cause of the Civil War. C. Only trade-offs
Why did the Southern states not like these D. none of the above
taxes?
1409. What does the line on the PPF show?
A. they were fine with them
B. because they would cause a decrease
in supplies in the South
C. because it would cause an increase in
population
D. because it would increase the price of
goods brought into the South
1405. Which of the following BEST explains

the need for a monetary exchange system A. Real GDP
to in Southwest Asia?
B. Net social welfare
A. Most nations in the region do not en-
gage in international trade. C. Productive Capacity
D. Nominal GDP
B. Each nation in the region specializes in
a different industry. 1410. A country investing in skills
C. Most nations in the region rely on nat- A. Human Capital
ural resources.
B. Capital Goods
D. Each nation in the region uses its own
form currency. 1411. Which method of measuring GDP in-
volves adding up the amount of spending
1406. An increase in worker productivity? by purchasers of final goods?
A. Increase in AD A. Expenditure method
B. Decrease in AD B. Output method
C. Increased AS C. AD method
D. Decrease in AS D. Income method

1412. What factors lead to potential growth? B. lower income received by households
in the economy
C. lower tax revenues for government
spending
D. all of the above
1416. More efficient production methods
would be included in which measure of
NARAYAN CHANGDER
economic growth?
A. Technological change
A. Real Income/GDP
B. Improvement in efficiency/ Institu-
tional changes
C. Lower unemployment
D. none of above
D. Unused machinery being used produc-
tively 1417. Which of the following is a withdrawal
from the circular flow of income?
E. Increases in quantity/improvements
in quality of FOP A. Exports
B. Savings
1413. Which of the following is an advantage
C. Investment
of division of labour?
D. Government Spending
A. Less job satisfaction
B. Delays in work 1418. The factories, machinery, technology,
etc. that are necessary to sustain a ser-
C. Increased speed of work vice or industry
D. none of above A. Human Capital
1414. Which of these examples would de- B. Natural Resource

scribe growth due to a better economic en- C. Capital Goods
vironment? D. Literate
A. Harvard College was founded in 1636 1419. Quality education in the country is an
and is still open to this day. aspect of Economic
B. German inventor Johannes Gutenberg A. Growth
invented the printing press
B. Development
C. The U.S funded the building of the
Panama Canal, completed in 1914. 1420. Indonesia having the largest GDP in
Southeast Asia means that it has the high-
D. NAFTA was created to promote trade est standard of living among countries.
among the North American countries
A. TRUE
1415. Economic growth is important because B. FALSE
with positive economic growth we can ex-
pect 1421. Economic Development is
A. lower unemployment rates as more A. Quantitative
workers are needed in production B. Qualitative

1422. The colonists believed all were advan-

tages to a Royal government EXCEPT:

A. The King is impartial, which makes him
a fair ruler
B. The English military can offer protec-
tion for the settlers
C. England can tax the colonists as it sees
fit
A. Land
D. England is the most powerful Empire B. Labour
on Earth
C. Capital
1423. Money exchanged between an individ- D. Entrepreneur
ual and a store for a good or service. 1427. To promote and sustainable eco-
A. Revenue nomic growth, and decent for all.
A. work, economic, oportunities
B. Wages
B. inclusive, employment, work
C. Rent
C. growth, economic, percent
D. Donation D. inclusive, work, decent
1424. What is the main goal of structural 1428. GDP per capita
adjustment programs in developing coun- A. per capita GDP
tries? B. per capita GDP
A. To increase government intervention C. per capita GDP
B. To promote import substitution D. per capita
C. To reduce foreign aid 1429. What is the goal of inclusive growth

policies?
D. To promote economic liberalization
A. To ensure economic advancements
benefit everyone
1425. What are problems of a recession? (Se-
lect ALL the apply) B. To increase income inequality
C. To promote economic stability
A. Employment
D. To create a more balanced society
B. Lower wages
1430. Why would the “services” sector of the
C. Falls in tax revenue economy likely be doing poorly right now?
D. Lower spending on benefits A. The virus has people staying home
B. People are eating out more
E. Budget surplus
C. People would rather go out shopping
1426. Which factor of production would you than buy online
consider a lawn mower? D. none of above

1431. People who provide the money to start 1437. are the man-made materials that
and operate a business are called what? are needed to produce goods and services
A. Leaders A. Capital goods
B. Entrepreneurs B. Human capital
C. Politicians C. Natural Resources
D. Presidents D. Gross Domestic Goods
1432. At the end of the 1990s and start of the
NARAYAN CHANGDER
1438. What is the World Bank’s view on inclu-
2000s, Ireland experience a BOOM-what sive growth?
is this boom referred to as?
A. It promotes equitable distribution of
A. The Celtic Lion benefits
B. The Celtic Boom
B. It supports income inequality
C. The Celtic Tiger
C. It focuses on reducing access to edu-
D. The Big Irish Boom cation
1433. The growth of towns and cities D. It benefits individuals but not nations
A. Towns never developed along the 1439. What are tangible objects that satisfy
rivers and main trading routes economic wants and needs?
B. Towns and cities grew and became
centers for trading and manufacturing
C. The use of money contributes towards
an expansion in economic growth
D. Governments were introduced and
started to dominate the cities and towns
1434. Economic Growth can reduce tax rev-
enues for the government A. Services
A. true B. Labor
B. false C. Invest
D. Goods
1435. What is the ratio of people without a
job in the world? 1440. Method cowboys used to move large
A. 400 million people herds of cattle north from ranches in Texas
B. 1 of 6 people towns along Rail Road in late 1800’s. is
C. 14 per cent
D. Just a bunch
1436. What is meant by economic growth?
A. A decrease in the budget deficit
B. An increase in population
C. An increase in budget surplus
D. An increase in real GDP

A. food drive A. Fall in price of factors of production

B. penny drive B. Increases in subsidies

C. cattle drive C. Positive supply shock
D. dogsled races D. Increase in government expenditure
E. Increased investment
1441. What is the total value of all the goods
andservices produced in that country in 1445. What is one factor that influences the
oneyear? speed of progression in Rostow’s stages
A. Economy of economic growth model?
B. GDP A. Natural resource availability
C. Economic Growth B. Productivity

C. Political and social decision-making
D. Traditional Economy
D. All of the above
1442. was a muckraker that exposed the
horrors of the meat packing industry. 1446. A recession is how many consecutive pe-
riods of negative growth?
A. Sinclair
B. Wells
C. Tarbell
D. Nast
1443. Rostow’s economic stages are

A. the preconditions for takeoff, the take-
off, the drive to maturity, and the age of
creative destruction A. 5
B. the traditional society, the precondi- B. 3
tions for takeoff, the takeoff, the drive to
C. 1
maturity, and the age of high mass con-
sumption D. 2
C. the preconditions for consumption, the E. 4
replication, the drive to maturity, and the 1447. If a country does not invest in its hu-
age of high mass consumption man capital, how can it affect the coun-
D. the learning curve, the age of high try’s gross domestic product (GDP)?
mass consumption, post-takeoff, and the
drive to maturity
1444. What may causes an increase in SRAS?
A. Investment in human capital has little

effect on the GDP.

B. Most workers want to keep their jobs C. Oil

and do not care about the GDP.
D. Water
C. GDP is only affected if workers pay for
the investment out of their own pocket. 1453. What makes entrepreneurship difficult
D. GDP may go down because poorly in Kenya & Nigeria?
trained workers will not be able to do their
A. Government corruption
jobs well.
B. Disease
NARAYAN CHANGDER
1448. Which of the following is NOT a nat-
ural resource that can influence economic C. Human capital
growth?
D. Lack of water
A. Human capital
B. Land 1454. Cattle ranching is important for Brazil’s
economy. However, large herds of cat-
C. Labor
tle need lots of space to graze. Which
D. Technology of the following industries would MOST
LIKELY suffer if cattle ranching expanded
1449. Which region of Europe has countries
in Brazil?
with a lower standard of living?
A. Eastern Europe A. agriculture
B. Western Europe B. lumber

C. Southern Europe C. manufacturing
D. Northern Europe D. mining
1450. A nation with a high GDP typically does
not invest in human capital, while a nation 1455. economic growth is defined as
with a low GDP does invest in human cap- A. actual increase in real GNP over time
ital.
B. actual increase in nominal GDP over
A. TRUE
time
B. FALSE
C. actual increase in real GDP over time
1451. The term “factors of production”
D. actual increase in nominal GNP over
means:
time
A. things or skills needed to produce
goods or services 1456. A country’s Literacy rate impacts Hu-
B. how we spend our money man Capital. At what age does your per-
sonal literacy rate start to get counted into
C. the resources of the government
the country’s literacy rate?
D. how society creates jobs
A. 18
1452. What is an important factor that can af-
fect economic growth? B. 17
A. Climate C. 16
B. Metals D. 15

1457. What is an output gap? 1461. According to the data, which country
A. The difference between the actual has most likely invested the most in hu-
man capital?

level of output and the maximum level of
output
B. The difference between the potential
level of output and the previous year’s out-
put
C. The difference between the actual
level of output and the previous year’s out-
put
D. The difference between the actual
level of output and the potential level of
output A. Brazil
1458. What might cause a decline in economic B. Colombia

output? C. Cuba
A. a decrease in income tax D. Mexico
B. a decrease in sales tax
1462. A knitting factory worker who loses her
C. an increase in company investment job when the factory is sold and converted
D. an increase in unemployment to a high-tech computer lab is an example
of
1459. What is a boomtown?
A. frictional unemployment.
A. City that quickly grew around a mining
B. structural unemployment.
site.
B. Cities known for violent protests in C. cyclical unemployment.
support of civil rights for African Ameri- D. seasonal unemployment.
cans.
1463. What are the two phases in a business
C. Code name for military bases near vol-
cycle?
canoes.
A. Peak and trough
D. none of above
B. Peak and recession
1460. What are the effects of Human Develop-
ment Index? C. Expansion and recession
A. It measures the average achieve- D. Expansion and trough

ments in technology and innovation.
1464. Man-made materials-factories, ma-
B. It measures the average achieve- chines, technology, door, desk, trophies,
ments in health, education, and standard scoreboard, trashcan, bleachers
of living.
C. It measures the average achieve-
B. capital goods
ments in sports and entertainment.
D. It measures the average achieve- C. human capital
ments in agriculture and farming. D. entrepreneurship

1465. If a country votes to raise tariffs on B. A rapid rate of economic growth

steel, what is most likely their goal?
C. A slow rate of economic growth
A. to lower the cost of making steel
B. to raise demand for steel in Europe
1469. What did Jim Hogg do with the
C. to protect its domestic steel industry
monopoly of the Railroads?
D. to increase trade with the United
States A. He broke the monopolies of the rail-
NARAYAN CHANGDER
roads and established the Texas Railroad
1466. Among the following determinants of Commission.
growth, which one is a non-economic fac- B. He expanded the monopolies of the
tor railroads.
1470. One challenge faced by many immi-
B. Population growth grants was
C. Favourable legislation
D. Capital accumulation
1467. Choose an example of capital (physical)

(you must pick 2 answers)
A.
A. Over-Crowded living
B. B. finding a good paying job

C. being separated from family
D. none of above
C. 1471. Workers are seeking employment

but cannot find employment because of
widespread low economic activity. Which
type of unemployment are these workers
experiencing?
A. Cyclical
D. B. Structural
C. Frictional
D. Voluntary
1472. Economic Growth can reduce unemploy-

1468. What is sustainable economic growth?
ment rates
A. A growth rate that can be main-
A. true
tained without causing significant eco-
nomic problems for future generations B. false

1473. What is a potential consequence of eco- C. Provide incentives to invest

nomic growth in terms of income distribu- D. Provide incentives to save
tion?

A. Widening income inequalities. 1478. Many factories in Russia cannot effi-
ciently produce goods because they have
B. Decreased poverty. old, outdated machinery. Based on this in-
C. Stable income distribution. formation, what would MOST improve the
D. Reduced government spending. Russian industrial sector?
A. increased barriers to trade
1474. Potential economic growth can be repre-
sented by: B. investment in capital goods
A. Outward shift of PPF C. investment in human capital

D. increased government regulation
B. Inward shift of PPF
C. Movement of a point inside towards a 1479. Why did railroad companies hire Chi-
point on PPF nese and Irish immigrants to construct the
Transcontinental Railroad?
D. Movement of a point on PPF towards a
point inside A. They would work for low wages.
B. They had adapted to the harsh climate
1475. Why would the Saudi oil industry need
they would be working in.
a large investment in human capital?
C. They were especially skilled in explo-
A. the technology is in the oil industry is
sive devices.
very complicated
D. none of above
B. the Saudis have found it hard to make
a profit in the oil industry 1480. Which is the best description of literacy
C. Most people working in the Saudi oil rate?
industry have little or no real training A. The ability to tell stories
D. They hop to have machines take over B. The ability to speak multiple languages
most of the jobs done by workers now
C. The ability to draw
1476. Surplus production, trade and transport D. The amount inside a country who have
development the ability to read and write
A. Trade developed between communi- 1481. The total value of Australia’s output
ties and even between countries (goods and services) over a period of time
B. These surpluses never led to trade is Australia’s GDP
C. Roads, animals, cart and horses were A. True
first used as a means of transport B. False
D. Land and water transport were devel-
oped and it promoted trade 1482. What might a government increase if it
wished to raise the growth rate of an econ-
1477. To boost economic growth the govern- omy?
ment is most likely to A. expenditure on road building
A. Increase interest rates B. goods and services tax (value added
B. Increase taxation rates tax)

C. the rate of income tax

D. the rate of interest
1483. A country wants to increase its gross

domestic product (GDP). The government
votes to lower corporate taxes. It also
makes it easier to start businesses by re- A. Cities grew with railroad expansion
forming regulations. To help business own-
B. American Indians removed to reserva-
NARAYAN CHANGDER
ers succeed, the government also provides
tions
training programs on how to run a busi-
ness. What is this country trying to do? C. Cotton became the number one indus-
try in Texas
A. eliminate barriers to trade
D. Population in Texas dropped to the
B. improve access to natural resources loud noise of the train
C. encourage entrepreneurship
1488. Discouraged workers in the economy im-
D. reduce the cost of capital investments plies that the measurement of unemploy-
ment
1484. GDP stands for
A. understates the true unemployment
A. Grand Domestic Produce rate
B. Gross Domestic Produce B. overstates the true unemployment
C. Gross Domestic Product rate
D. Grand Domain Product C. correctly measures the true unemploy-
ment rate
1485. In a command economic system the , D. doubles the unemployment rate
makes all economic decisions.
A. Government 1489. In a recession, GDP
B. Legislature A. Grows negatively

B. Grows slowly
C. People
C. Grows by 0%
D. Businesses
D. Grows rapidly
1486. Which is part of a country’s human cap-
ital? 1490. In 1979 in the UK the marginal rate of
income tax imposed on the highest earn-
A. Skills and knowledge workers have ers was 83% which increased to 98% if
B. Taxes collected from a country’s work- income was received from interest or divi-
ers dends. By 1989 the highest marginal rate
was reduced to 40%. Despite this reduc-
C. Money paid to workers for producing
tion, the tax revenue raised from the high-
goods
est earners increased substantially. Which
D. The amount of goods sold in foreign theoretical concept illustrates this relation-
trade in a year. ship between tax rates and tax revenue?
1487. What helped cities boom in the late A. Laffer curve

1800s? B. Lorenz curve

C. Marshall condition D. Development is more likely to be sus-

D. Keynesian AD/AS curve tainable
Explanation:Interventionist policies are

1491. The people who grow or create goods more likely to protect the environment
are called and increase equality.
1494. money or time put into something with

the goal of earning a futurebenefit
A. investment
B. professional development
C. professional learning units
D. staff meeting
A. producers 1495. What is one reason why inventors may

choose not to invest in R&D projects with
B. consumers good average returns?
C. banker
A. The inherent risk of invention
D. traders
B. Lack of funding
1492. What are capital goods? C. Lack of knowledge
D. Lack of interest
E. The pessimism of the future
1496. The forces of supply and demand oper-

ate in the labor market as well as in the
market for goods and services.
A. goods that are produced in the capital
A. The Demand for Labor
B. the factories, machinery, and technol-
B. The Real Wage Rate
C. Labor Market Equilibrium
C. goods that are produced without natu-
ral resources D. The Supply of Labor
D. goods that are produced by the govern-
1497. How do corporations benefit from hav-
ment
ing investors?
1493. Which of the following is most likely to A. Corporations use investor money to im-
be an advantage of interventionist supply- prove the company.
side policies to increase economic develop-
B. Corporations assume less risk.
ment?
C. They can have more control of a board
A. Additional regulations on businesses
of directors.
B. Political influence of government
D. none of above
C. Cost of spending on improving educa-
tion 1498. The Suez Canal opened in in 1869?

B. Rapidly depleting natural resources

for immediate economic gains
C. Ensuring steady, long-term economic
development without compromising fu-
ture generations’ needs
A. Egypt D. Focusing solely on increasing Gross
Domestic Product (GDP) without consider-
B. Ethiopia
ing other factors
NARAYAN CHANGDER
C. Zimbabwe
D. Morocco 1503. Which of the following best defines an
economy at equilibrium?
1499. Between 2010 and 2018, Romania has A. Leakages are equal to injections
seen a rise in its labour productivity of
46%. Other factors remaining equal, a B. Aggregate demand is equal to aggre-
rise in labour productivity is likely to cause gate supply
A. an increase in AS and will benefit C. National income and national output
firms. would be equal
B. a fall in employment of labour leading D. All of the above
to lower wage rate pressures
1504. What happens to your money in the
C. an outward shift of aggregate demand
bank?
leading to higher prices for consumers
D. a fall in business profits and invest- A. Stays in the bank
ment leading to a fall in internationalcom- B. Bank loans it out
petitiveness
C. Bank Invests it
1500. Why was the production of oil in 1859 D. Bank owner uses it as is own money
important and what was its most signifi-
cant use? 1505. All of the following make up the human
A. Tractors development index EXCEPT
B. Automobiles A. life expectancy
C. to make different kinds of medicine B. per capita income
D. lawn mowers C. education level and literacy rate
1501. What does a recession PPC illustrate? D. gender equality
A. An increase in production. 1506. During the pandemic, Government
B. A decrease in unemployment. closes schools for the month of March,
C. A fall in output and income. will cause
D. A rise in consumer spending. A. GDP decreases

B. GDP increases
1502. What does the goal of strong and sus-
tainable economic growth entail? C. No change
A. Achieving a high inflation rate D. none of above

1507. What is likely to be a disadvantage of 1511. Money is a capital good, but NOT a
economic growth? medium of exchange!

A. Government tax revenue falls. A. True
B. Resources are used up. B. False
C. The level of unemployment rises.
1512. The Gross Domestic Product (GDP) of
D. The standard of living of the population Hong Kong rose more slowly than the rest
falls. of South East Asia between 1997 and
1508. What does human capital mean? 2002.What is the most likely reason?
A. a fall in competitiveness in Hong Kong
B. a fall in production costs in Hong Kong
C. an economic recession throughout
South East Asia
D. a rise in productivity in Hong Kong
1513. In which year was Akbar died?

A. the place where the most people live A. 1400
within a country
B. 1790
B. the place where the most work is per-
formed within a country C. 1605
C. the education, training, healthcare D. 1924
and skills for workers
1514. “As Leeserville stands at the brink of
D. the building where most people work a new millennium, entrepreneurship has
in a country or state been recognized as an important part of
1509. If exports from New Zealand increased, economic advancement. Foreign business-
what would most likely happen to Real men have created a new pool of capital re-
Output GDP and price level? Real GDP / sources for Leeserville’s talent that previ-
Price Level ously had few monetary options beyond
their family and friends.”-Debbie Jenkins,
A. decrease/decrease Author According to the passage above,
B. increase/increase which statement below describes the role
C. decrease/increase of entrepreneurship in Leeserville in the fu-
ture?
D. increase/no change
A. use the new capital resources to de-
1510. What is human capital? velop new products and ideas
A. Tools in the mind or the stuff in peo- B. reduce the need for money in the econ-
ple’s heads omy of Leeserville
B. Tools in the broadest sense like shov- C. increase the reliance on family and
els and tractors friends
C. Knowledge about how the world works D. slow the production of capital re-
D. The best technological knowledge sources

1515. Which of the following is NOT a factor 1520. Which city has an altered view of GDP
that economists consider when measuring per capita?
economic growth? A. Paris
A. Population growth
B. Atlanta
B. Inflation
C. Berlin
C. Changes in government policies
D. Moscow
D. Technological advancements
NARAYAN CHANGDER
1521. What is the main reason for Mumbai’s
1516. Cambridge North Station was opened in
economic growth?
2017 to improve access to where?
A. Cambridge Station A. Its location on the west coast of India
B. Addenbrookes B. Its deep-water harbour

C. Cambridge United FC C. Its tropical monsoon climate
D. The Science Park D. Its extensive rail network
1517. When is an economy in a recession? 1522. A measure of wealth, basic needs and
A. When there are 2 consecutive period material comfort a person has access to
of positive growth A. Quality of Life
B. When an economy’s revenue exceeds B. Economic Growth
its expenditure
C. When there are 2 consecutive periods
of negative growth D. Economic Development
D. When there are 2 consecutive periods 1523. An example of a semi-skilled worker is:
of negative capital investment
A. Doctor
1518. What does “full employment” mean? B. electrician
A. There is no seasonal unemployment.
C. nail technician
B. Every person who wants to work has a
D. garbage collector
job.
C. There is no structural unemployment. 1524. An economy where the government
D. Those who want to work have full-time makes the basic economic decisions
jobs. A. Mixed Economy
1519. Based on the following statement, de- B. Market Economy
termine whether it will result in positive C. Traditional Economy
OR negative growth AND a shift in PPC
OR movement towards the PPC-“An im- D. Command Economy
provement in efficiency in production”
1525. infrastructure is the basic physical and
A. Positive organizational structures and facilities
B. Negative such as building.
C. Shift in PPC curve A. True
D. Movement towards PPC curve B. False

1526. GDP at market prices that is not ad- C. W.E.B. DuBois

justed for inflation is called D. George Washington Carver

A. Real GDP
1530. The federal government can pursue eco-
B. Potential GDP nomic policies such as spending or taxation
C. Nominal GDP to stimulate an economy that is contract-
ing or to cool one that is expanding too
D. none of above
rapidly. When the government acts to in-
1527. is the process of increasing produc- fluence the economy in these ways, what
tion capacity. is its goal?
A. to maintain consumers’ freedom of
choice
B. to support self-regulation in the mar-
ketplace
C. to encourage economic citizenship
D. to promote stability in the business cy-
cle
1531. Natural rate of unemployment includes

structural unemployment and
A. economic development
A. Cyclical unemployment
B. economic growth
B. Frictional unemployment
C. National development
1532. Supply Side Policy is
D. development strategy
A. designed to increase aggregate supply
1528. Literacy rates in Cuba are among the and hence increase productive potential
highest in the world, but standard of liv-
B. implement an expansionary fiscal pol-
ing is very poor. Why?
icy.
A. Cuba’s democratic government gave
C. reducing taxes to spend more on
too much power to the people and not
goods and services.
enough governmentregulation.
D. none of above
B. Cuba’s communist government gave
too much power to the people and not 1533. Governments need to always keep
enough governmentregulation. moving in order to ensure economic
C. Cuba’s communist government mis- growth
managed much of their money resulting in A. country
poverty for its citizens.
B. economy
D. none of above
C. business
1529. Which two of the following were co- D. population
founders of the NAACP?
1534. Is changing the way something was pre-
A. Booker T. Washington viously done so that it works better a sign
B. Ida B. Wells of entrepreneurship?

A. Yes D. Get away from the Native Indians

B. No
1539. What is one benefit of economic
1535. A benefit of economic growth is that growth?
firms will earn greater profits which they
A. Decrease in employment opportunities
can reinvest in improve technology and hir-
ing more employees B. Lower living standards
A. Yes, I understand this from the notes C. Increase in availability of goods and
NARAYAN CHANGDER
B. No, I don’t understand this from the services
notes D. None of the above
not read the notes 1540. What a country invests in education for
D. none of above its citizens, what is it increasing?
A. Human Capital
1536. One of the main causes of economic
growth is changes in ? B. Capital Goods
A. Consumer preferences C. Natural Resources
B. Weather patterns D. Technology
C. Investment
D. Currency values 1541. When you spend money at the store,
you’re contributing to your town’s
1537. How does technological innovation im-
A. inflation
pact economic growth?
A. Technological innovation has no impact B. import
on economic growth. C. economy
B. Technological innovation leads to a de- D. none of above
crease in productivity and economic devel-
opment. 1542. Economic growth can be seen by an out-
C. Technological innovation only benefits ward shift of
a few industries and does not create new
A. The Production Possibility Frontier
jobs.
D. Technological innovation impacts eco- B. The Gross Domestic Barrier
nomic growth by increasing productivity, C. The Marginal Consumption Frontier
creating new industries and jobs, improv-
ing efficiency, and driving overall eco- D. The Minimum Efficient Scale
nomic development.
1543. During a recession (select all that ap-
1538. Why did people leave their farms to ply):
move to cities?
A. Consumption increases
A. Arid farming conditions
B. Investment decreases
B. Floods ruining the crops
C. Unemployment increases
C. Jobs and an opportunity to increase
their income D. Unemployment decreases

1544. Building a machine that helps put auto- 1548. This type of marxist socialism doesn’t
mobiles together faster seek a violent uprising of the working
class, but rather tries achieve change grad-

A. Capital Goods
ually through an existing democratic sys-
B. Entrepreneur tem.
C. Human Capital A. Welfare state
D. Natural Resources B. Reformist socialism
1545. What are some factors contributing to C. Rationalization
Bangladesh’s wealth? D. Federal system
A. Tourism, technology, and construction
1549. We gain formal education from the fam-
B. Agriculture, mining, and fishing
ily.
C. Manufacturing, education, and health-
A. true
care
B. false
D. Garment industry, remittances, and
service sector
1550. what is a budget deficit?
1546. Why do most countries invest in Human A. When the governments revenue ex-
Capital? ceeds it expenditure
B. When the government forgets to col-
lect taxes
C. When the governments expenditure
exceeds its revenue
D. When the governments imports ex-
ceeds its exports
A. To make their workforce less produc-
tive in the future 1551. Which of these factors does not pro-
B. You have to buy new technology to mote economic growth?
make GDP go down A. Increased consumer confidence
C. You need capital goods to get natural B. Technological stagnation
resources
C. Increased investment
D. The more educated the workforce, the
more productive they tend to be D. Quality of the factors of production
1547. Friend of Sam Houston and was killed 1552. What is the main reason for the high
at the Battle of Neches. population growth in Mumbai?
A. Mirabeau. B. Lamar A. Low death rate
B. William Goyens B. High birth rate
C. Chief Kicking Bird C. Migration from rural areas
D. Chief Philip Bowles D. Improved healthcare facilities

1553. Level 3A. Social and Cultural Envi- D. none of above

ronment:Demographics and cultural di-
mensions that govern the relevant en- 1556. Which are the drivers of Economic
trepreneurial behaviorB. Political and Le- Growth? You can select more than one op-
gal Environment:It governs business prac- tions
tices as well as the permits, approvals, A. Land
and licenses necessary to operate the busi-
ness B. Poverty
NARAYAN CHANGDER
A. A is correct while B is incorrect C. Labour
B. A is incorrect while B is correct D. Technological Advancement
C. Both are correct E. Discovery of New Resources
D. Both are incorrect
1557. Innovation, improving capital stock,
1554. What are capital goods? raising agricultural output by using genet-
ically modified crops, increasing spending
on education and training to improve hu-
man capital, and increasing the population
size to increase the workforce can all shift
long run aggregate supply to the right
notes
A. The workers who make the goods and not read the notes
services. D. none of above
B. The factories and machines used to
make goods. 1558. Investments in social infrastructure
(schools, hospitals, etc.)
C. The money spent to train workers to
use new technology. A. Stage 1:Traditional Society
D. The goods and services that are pro- B. Stage 2:Pre-Condition for Take-Off
duced for a country’s economy. C. Stage 3:Take-Off
1555. Will we likely ever see prices stay D. Stage 4:Drive to Maturity
the same if we promote true economic
growth?
A. It’s not likely that demand will in- 1559. If AD shifts to the left, what happens to
crease by exactly the same amount as the real wages (wages adjusted for inflation)
LRAS increases however it is likely. in the short run?
B. Demand always increases at the same A. Real wages will increase
rate as technology increases
B. Real wages will decrease
C. Our insatiable appetite for more
causes prices to go up faster than sup- C. Real wages will be unaffected
ply ever grows. D. none of above

1560. A negative output gap is also known as B. 2 boats

a recessionary gap C. 2 trucks

A. Yes, I understand this from the notes D. 3 trucks
notes 1565. How might a government stimulate eco-
nomic growth if the quality of human cap-
C. No, I don’t understand this, as I have ital is poor?
not read the notes
A. Increase taxes
D. none of above
B. Invest in education and vocational
1561. What is the literacy rate of Iran? training
A. 97.1% C. Reduce government spending
B. 50% D. None of the above
C. 85.0% 1566. What does an increase in real GDP over
D. 87.2% time indicate?
1562. The percent of a nation’s population A. Economic decline
over the age of 15 who are able to read B. Economic stagnation
and write. C. Economic growth
A. Literate D. None of the above
B. Private sector
1567. Aggregate employment and aggregate
C. Public sector output are related because firms need
D. Literacy Rate to employ more workers in order to pro-
duce more output, holding other factors
1563. In a recession, GDP constant. This is captured by the
A. Shrinks A. directly, aggregate production func-
B. Grows slowly tion
C. Grows by 0% B. indirectly, phillips curve
D. Grows rapidly 1568. Your friend and you decide to open a
1564. The opportunity cost of increasing pro- snow cone stand. The stand and the snow
duction from 4 to 7 boats is cone machine are examples of which factor
of production?
B. Capital Resources/Goods
C. Entrepreneurship
D. Human Capital
1569. Economic growth always improve one’s

living standard.
A. True
A. 1 boat B. False

1570. The total value of the final goods and 1573. How can changes in technology or con-
services produced within a country in one sumer demand affect the unemployment
year. rate?
A. GDP per capita A. by making it difficult for people to buy
what they want
B. GDP
B. by changing the number or kinds of
C. capital goods jobs available
D. none of these
NARAYAN CHANGDER
C. by creating a demand for things that
are not available
D. by making it possible for some people
change:the widespread use of new technol-
to work fewer hours
ogy
1574. Why is Economic Growth important to
countries?
A. A. A country is better off if it can use it’s
own resources to supply the needs of it’s
people
B. A country can buy expensive imports
C. A country can export around the world
B. D. A country can get out of debt
1575. Texas Revolution Texas Gains Inde-

pendence ? Which event best fits?
A. Texans fight in the Battle of Gonzales
B. Texas is annexed by the US
C.
C. US gain their independence from Eng-
land
D. Mexico gains independence from
Spain
D. 1576. Economic growth involves
A. structural changes
Explanation:Technological improvements B. increases in per capita income
tend to increase production possibilities C. increases in per capita production
D. all of the above
1572. In order of the GDP which country is the
lowest 1577. When economic growth is taking place,
A. Cuba more and more oil and other valuable min-
erals are being used up. this worries some
B. Haiti people because these resources are
C. Brazil A. Net investment
D. Mexico B. Leisure

C. Non replaceable C. investment financed by high rates of

D. mobility domestic savings
D. technological innovations in produc-

E. Per head
tive processes
1578. the continual increase in average prices 1583. Public finance concentrates on how:
A. per capita A. Resources are dislocated
B. inflation B. Income is distributed
C. import C. To destabilize the economy
D. none of above D. To raise income evenly
1579. Which of the following policies is a 1584. Which of the following can be an exter-
supply-side policy and can be used for eco- nal pressure resulting from not achieving
nomic growth strong and sustainable economic growth?
A. Increased government spending A. Reduced government spending

B. Increased investment in renewable en-
B. Increased education and training for
ergy
workers
C. Reduction in international competitive-
C. Increased money supply ness
D. Decreased rates of interest D. Lower demand for consumer goods
1580. Entrepreneurship encourages people to 1585. What are resources that occur naturally
take risks, and in doing so, they’ve cre- in the environment and are used to pro-
ated better healthcare, education, & wel- duce goods and services called?
fare programs. A. Capital resources
A. I agree B. Human resources
B. I disagree C. Natural resources
1581. In the long run, the aggregate supply D. Entrepreneurship
curve at full employment is: 1586. What is the purpose of national income
A. Horizontal statistics for a government?
B. Perfectly Elastic A. To evaluate economic performance
C. Perfectly Inelastic B. To forecast expected growth
C. To compare the performance of an
D. Downward sloping
economy with others
1582. Which cause of economic growth would D. To measure living standards
involve the least cost for present and fu-
ture generations of a country’s popula- 1587. Productivity is determined by the level
tion? of?
A. physical capital
A. increased exploitation of a country’s
mineral resources B. technology
B. investment financed by borrowing C. human capital per worker
from abroad D. breaks you take

1588. What did Warren Harding’s economic C. the price of oil

policy aim to return to?
D. how much time we spend on social me-
A. Pro-business, laissez-faire policies dia
B. Socialist economic system
1594. Human capital is
C. Communist economic system
A. The knowledge and skills possessed by
D. Mixed economy
the labor force.
1589. How did supporters of segregation limit
NARAYAN CHANGDER
B. Able to increase only if the labor force
the rights of African Americans? grows.
A. created Jim Crow laws and black
C. Insignificant in productivity advances.
codes
B. passed the 14th Amendment D. The ratio of labor to capital.
C. developed he Freedmen’s Bureau 1595. Which of the following factors can con-
D. gave suffrage to African-American tribute to environmental degradation as a
men result of unsustainable economic growth?
1590. Materials and labor used to create A. A focus on renewable energy sources
goods and services. B. Overexploitation of natural resources
A. human capital C. High investment in public transporta-
B. entrepreneurship tion systems
C. production D. Strict environmental regulations
D. productive resources
1596. Refugees are people that are forced
1591. outdoor recreation to leave their country in order to escape
A. outdoor recreation wars, persecution, or natural disaster?
B. farming policy A. True
C. economic growth B. False
D. climate emergencies
1597. Human resources are people and their
1592. the countries that are located in south- various skills, talents and abilities.
eastern Europe along the Balkan Peninsula
A. True
A. literacy
B. False
B. literacy rate
C. standard of living 1598. Tungsten can carry electricity
D. Balkans A. True
1593. The aggregate production function B. False

shows that output per capita is positively
related to both? 1599. A country investing in education.
A. physical capital A. human capital
B. human capital B. capital goods

1600. What are freedom of religion, press and 1605. Military bases were opened and ex-
trial by jury known as? panded at Fort Jackson, Greenville,
Charleston, and Myrtle Beach.

A. Rules/Laws
A. True
B. Rights of Citizens
B. False
C. Civic Responsibilities
1606. How much have house prices increased
D. Checks and Balances
since 2009?
1601. Which productive resource can be a A. 205%
source of income when exported? B. 85%
A. Human Capital C. 15%
B. Natural Resources D. 65%
C. Human Resources 1607. What can inefficient and unnecessary
D. Natural Wonders regulations do?
A. Create monopolies
1602. Which one of the following is NOT a
B. Impede voluntary cooperation
method of calculating real GDP?
C. Enforce contracts
A. income method
D. Borrow and lend money
B. savings method
1608. The United States GDP is about $58,
C. expenditure method
000, while the GDP of most African coun-
D. output method tries is less than $5, 000. What can you
infer about the standard of living in most
1603. The number of years it takes for GDP to African countries compared with the U.S.?
double is found by A. The standard of living is lower in the
A. Dividing 72 by the growth rate. U.S.
B. Multiplying 72 by per capita GDP. B. The standard of living is lower in most
African countries.
C. Multiplying 72 by the growth rate.
C. The GDP has no effect on the standard
D. Dividing the growth rate by 72. of living.
1604. “Population growth will reduce eco- D. none of above

nomic growth to a lower level because of 1609. What does physical capital refer to?
the Law of diminishing returns.” is the
definition of economic growth by A. Human skills
B. Natural resources
A. Adam Smith
C. Technological inventions
B. Daniel Ricciardo
D. Man-made means of production
C. David Ricardo
1610. India’s economy grew up by approxi-
D. Bryan Adams
mately 7% in 2016. What must have in-
E. Rod Stewart creased in India in 2016?

A. Gross Domestic Product 1615. Human capital is

B. Labour Productivity A. Tools and equipment people use
C. The government’s budget deficit B. The people who work
D. Rate of Inflation C. Tools and people
D. Things used to build stuff
1611. How is gross domestic product used to
monitor the business cycle? 1616. How is economic growth measured in a
NARAYAN CHANGDER
country?
A. GDP indicates whether a business is
expanding or contracting. A. Stock market performance
B. GDP indicates whether a city’s econ- B. Inflation rate
omy is expanding or contracting. C. Gross Domestic Product (GDP) growth
C. GDP indicates whether the nation’s D. Unemployment rate
economy is expanding or contracting.
1617. Which of the following is a benefit of
D. GDP indicates whether the world’s
economic growth?
economy is expanding or contracting.
A. Increased inequality
1612. The goods used in the production pro- B. Depletion of natural resources
cess such as factories, machinery and
equipment C. Higher prices (inflation)
A. Land D. Improved living standards
B. Labor 1618. California admitted to the US as a free

stateTexas gave up disputed land to US
C. Resources
in return for 10 millionFugitive Slave Act
D. Capital(physical) passed The events above were part of the
A. Compromise of 1850
1613. How does Government increase/secure
technology? B. Treaty of Guadalupe-Hidalgo
A. Builds own research group C. Kansas-Nebraska Act
B. Stop and control research D. US-Mexican War
C. Gives money to schools for research 1619. How does investment in capital goods
D. Giving Patents and Copyrights by companies help a country increase its
GDP?
1614. Which of the following is NOT a way in A. The GDP of a country goes down when
which education can contribute to economic companies make more money
growth?
B. Companies that invest in capital goods
A. Increased job opportunities are able to provide a better place for their
workers to work
B. Reduced income inequality
C. Highly trained workers help the com-
C. Improved productivity and innovation
pany be more profitable by finding ways
D. All of the above to help the company work better.

D. When a company invests in capital, it 1624. National Income can also be measured
can produce more goods at a better price by adding up the total amount of outputs
and increase the profit that it makes. produced in an economy

A. True
1620. The British were extremely strict on
the trade relations of South Carolina with B. False
other colonies.
1625. Why does capital deepening work with
A. True human capital?
B. False A. Capital deepening means there is
more money to hire workers
1621. What best refers to the machines, equip-
ment, and buildings that one uses to pro- B. Capital deepening increases people’s
duce the product? savings rate
C. Greater skill increases workers’ out-
A. Human Capital
put.
B. Labor Productivity
D. Human capital increases GDP
C. Physical Capital
1626. How does innovation affect economic
D. Technological Change growth?
1622. GDP per capita A. Innovation has no impact on economic
growth.
A. divides the country’s GDP by the num-
ber of literate citizens B. Innovation leads to higher unemploy-
ment rates and lower living standards.
B. divides the country’s GDP by the total
number of voters C. Innovation only benefits a small group
of individuals and does not contribute to
C. divides the country’s GDP by its total overall economic growth.
tax payers
D. Innovation affects economic growth by
D. divides the country’s GDP by its total driving productivity, creating new indus-
population tries and jobs, and improving living stan-
dards.
1627. What are the factors of production?
B. Human Capital
C. Capital Goods
D. Entrepreneurship
E. All of the above
A. workers and their skills, talents, and 1628. Each individual person
education A. per capita
B. factories, machines, and technology B. production
C. raw materials from the Earth C. investment
D. people who start their own businesses D. standard of living

1629. factories, machinery, and technology 1634. High unemployment is of a concern to

A. sector the government because (Multiple an-
swers)
B. obsolete
A. there is high wastage of resources in
C. GDP per capita the economy as available resources are
D. capital not fully utilised
E. relationship B. it weakens consumer and business
confidence, and consumption and invest-
NARAYAN CHANGDER
1630. What does infrastructure mean? ment might fall, resulting in negative eco-
A. education and skills nomic growth
B. natural resources C. it causes the general price level to
C. bridges, factories and roads rise and this erodes consumer purchasing
power
D. do have an unequal distribution
D. it negatively affects budget balance as
1631. What present day states were added by the government receives lower tax rev-
the Treaty of Guadalupe-Hidalgo? enues and spends more on unemployment
A. Arizona, California, New Mexico, benefits
Nevada E. firms will have difficulty making plan-
B. North Carolina, South Carolina, Geor- ning decisions due to the uncertainty in
gia, Alabama the level of prices of raw materials, labour
costs and goods
C. Maine, New York, Massachusetts,
Michigan 1635. Level 2produce products and services
D. Texas, Oklahoma, Colorado, North desired by customers
Dakota
1632. Which amendment gave women the

right to vote?
A. 17th amendment
B. 18th amendment
C. 19th amendment
D. 20th amendment A. Integrity and Responsibility
B. Customer Focused
1633. Short-run growth is aggregate demand
shifting to the right. However, it can be C. Innovative
aggregate supply shifting to the right if a D. Niche Market
new equilibrium is created
A. Yes, I understand this from the notes 1636. Which answer choice below describes a
KEY difference between “capital goods”
B. No, I don’t understand this from the and “human capital”?
notes
A. Human capital is the amount of money
C. No, I don’t understand this, as I have made by a human or population at their
not read the notes job; capital goods are humans that work
D. none of above at a job

B. Human capital is the level of training 1641. How has the Internet helped to improve
a human or population has in their work the economies of many Latin American na-
field ; capital goods are the machines tions?

and tools used by the population to create
A. by creating free markets
goods
C. Human capital is the amount of people B. by increasing local manufacturing
over 15 that can read and write; capital C. by expanding domestic agriculture
goods are people that invest money into a
business D. by improving local entrepreneurship
D. none of above
1642. Two problems entrepreneurs face in-
1637. Which of the following is not included in clude:
the calculation of Australia’s Gross Domes- A. lack of food and water
tic Product [GDP]?
A. A consumer purchasing a new TV set. B. touching radioactive elements
B. A firm purchasing a new piece of equip- C. lack of education and funding

ment D. none of above
C. The amount paid by the government go
build a new hospital. 1643. The higher a country’s GDP, the better
D. Backyard production of vegetables standard of living for the people within the
country.
1638. How much land did the Homestead Act
give those that moved out to the Great A. I agree
Plains? B. I disagree
A. 270 acres
1644. Chief of the last Comanche band to re-
B. 160 acres
sist the U.S. Army in Texas, then later
C. 25 acres would lead the American Indian people to
D. 175 acres conform to reservation life
1639. You can only acquire education in a A. James Hogg

school. B. Quanah Parker
A. true
C. Jesse Chisholm
B. false
D. Charles Goodnight
1640. Illustrate a negative output gap and pos-
itive output gap on a production possibility 1645. The four main categories of are natu-
frontier ral resources, human capital, capital goods,
A. Yes, I understand this from the notes and entrepreneurship.
B. No, I don’t understand this from the A. productive resources
notes
B. gross domestic resources
not read the notes C. capital resources
D. none of above D. natural resources

1646. What is a possible consequence of eco- 1651. Explain the concept of industrialization.
nomic growth that is too low? A. The process of transforming an econ-
A. Low inflation rates omy based on fishing and mining into one
based on large-scale industry
B. Environmental sustainability
B. The process of transforming an econ-
C. High unemployment rates
omy based on agriculture and handicrafts
D. Increased investment in infrastruc- into one based on large-scale industry,
ture mechanized manufacturing, and the fac-
NARAYAN CHANGDER
tory system.
1647. The voluntary exchange of goods and
services without any government inter- C. The process of transforming an econ-
vention. omy based on technology and innovation
into one based on large-scale industry
A. Market Economy
D. The process of transforming an econ-
B. Traditional Economy omy based on agriculture and tourism into
1648. Mr. Waltz decides he wants to take one based on large-scale industry
a risk and open up a Jello Shop. He in- 1652. Brazil sends university students abroad
vests his own capital, human capital, capi- to study in other countries.
tal goods, and natural resources to start a
A. human capital
business. What is this an example of?
B. physical capital
B. human capital 1653. Economic Growth does not allow compa-
nies to hire more employees
C. a capital good
A. True
D. entrepreneurship
B. False
1649. The ideas and emotional drive a person
1654. Who was the first African American
has to produce something that other peo-
woman to become a bank president?
ple will want to buy describes which factor
of production? A. Maggie Walker
A. Capital B. Barbara Johns
B. Labour C. Stephanie Turner

D. Maria Brown
C. Entrepreneurship
D. Land 1655. The table gives information on the rate
of economic growth in a country from
1650. Occurs when certain countries concen- 2001 to 2004. What is likely to have
trate on the production of certain goods or fallen in this period?
services due to cost advantages:
A. International specialisation
B. Monetary Policy
C. Efficiency gains
D. Balance of payments
E. Regional specialisation

A. Gross Domestic Product B. Great biodiversity of resources

B. imports C. Economy based on natural resources

C. prices D. All of the above
D. unemployment
1660. Which one of these is NOT a reason for
1656. The main objectives of government the inaccurate reporting of is National In-
macroeconomic policy come data?
A. Yes, I understand this from the notes A. government employees make mis-
B. No, I don’t understand this from the takes.
notes B. People try to avoid paying taxes.
C. the hidden economy is not included.
not read the notes
D. none of above D. deflation means we can’t count NI.
1657. What did the term ‘Return to Normalcy’ 1661. Resources are needed by humans to
mean in the economic context? process natural resources and improve sci-
ence and technology.
A. Transitioning to a communist eco-
nomic system
B. Transitioning to a socialist economic
system
C. Implementing radical economic re-
forms
D. Returning to pre-World War I eco-
nomic conditions
1658. Value of all goods and services produced A. alam

in a year. B. man
A. Standard of Living
C. land
B. Human Capital
D. modal
C. Capital Goods
D. Gross Domestic Product 1662. The German government has provided
education and job training to people. How
1659. What general characteristics were men- did the German government try to improve
tioned for Peru? its economy?
A. It made investments in human capital.
B. It took advantage of its natural re-
sources.
C. It reduced barriers to starting new
businesses.
D. It helped companies invest in capital
A. Population close to thirty-three million resources.

1663. Which choice below is an example of a 1668. Inclusive economic growth primarily
capital good? aims to:
A. Keys A. Increase the wealth of the richest citi-
B. bulldozer zens
C. Loaf of bread B. Benefit a select few industries
D. none of above C. Improve the living standards of the en-

tire population
NARAYAN CHANGDER
1664. An example of investing in capital goods D. Focus solely on urban development
is
A. improve the literacy rate of a country 1669. What is given up if the savings rate is
high?
B. update technology
A. future consumption
C. provide training for workers
B. current consumption
D. none of above
C. income
1665. is focused on the accumulation of D. interest
material resources. It is an increase in real
output of the country. Economic measures 1670. What can be an impact of a rising liter-
include GDP which is the measure of to- acy rate within a nation?
tal goods and services produced in an econ- A. Fewer government positions needed.
omy within a given time
B. An improved quality of life with better
A. Economic Growth jobs.
B. Economic Development C. A decrease in the quality of life.
1666. An inward shift of a nation’s production D. A decrease in the nation’s economy.
possibilities frontier can occur due to
1671. Why should countries invest in develop-
A. a reduction in unemployment. ing human capital?
B. a natural disaster like a hurricane or
bad earthquake.
C. a change in the amounts of one good
desired.
D. an increase in the labor force.
1667. Which factors most contribute to Brazil A. because the more people you have
and Mexico having high GDPs? (Choose 2) working in one area like a capital the more
A. They are unsure how to protect their productive it will be
natural resources. B. it leads to a lower GDP
B. They have natural resources to fuel C. it leads to lower literacy rate
their industries.
D. investment in the education and skills
C. They have invested in new technology training of people creates a smarter and
and educated their people. more productive workforce, which relates
D. none of above to a higher GDP.

1672. Which statement most accurately de- 1676. Based on the following statement, de-
scribes the role of entrepreneurship in termine whether it will result in positive
Latin America? OR negative growth AND a shift in PPC OR

A. Entrepreneurship is rapidly growing movement towards the PPC-“A discovery
since the government does not regulate or of new oil reserves”
tax new businesses. A. Positive
B. Entrepreneurship is growing but there B. Negative
are many government obstacles and taxes C. Shift in PPC curve
entrepreneurs must face.
C. Entrepreneurship is declining since
many Latin Americans are finding govern- 1677. Australia and Canada both invest in cap-
ment jobs. ital goods at higher rates than Ethiopia.
D. Many Latin America governments give Based on this fact, which conclusion below
entrepreneurs generous tax breaks and explains what would be most logical?
incentives to start new businesses. A. Ethiopia has a smaller growth rate.
1673. A smartboard is an example of a B. Ethiopia has fewer uses for capital.
A. Capital Goods C. Ethiopia has more natural resources.
B. Entrepreneur D. Ethiopia can’t trade with either coun-
try.
C. Human Capital
D. Natural Resources 1678. The literacy rate for the region of Latin
America is 90%. Country A has a liter-
1674. Machinery, tools, and trucks to trans- acy rate is 51%. Which statement best
port goods are examples of which of the reflects these factors of economic growth
four factors of economic growth? in Country A?
A. human capital A. Country A’s low investment in human
B. natural resources capital lowers the GDP per capita.
C. entrepreneur B. Country A has greater opportunity for

other capital investments than education.
D. capital goods
C. Country A’s GDP per capita would de-
1675. Why is human capital important for eco- crease if there was more investment in hu-
nomic growth? man capital.
A. Innovation and competitiveness have D. Country A’s high investment in human
no relation to economic growth capital lowers the GDP per capita
B. Economic growth is solely dependent 1679. Technical progress that increases the
on natural resources productivity of L proportionally more than
C. Human capital has no impact on eco- the productivity of K is called:
nomic growth A. capital savings.
D. Human capital is important for eco- B. labor saving.
nomic growth because it increases pro-
ductivity, innovation, and competitive- C. neutral.
ness. D. any of the above.

1680. An economy’s output gap moves from 1683. What Factor of Economic Growth is be-
being positive to negative. The most likely ing described in the image?
reason for this is that?
A. Taxes have increased
B. Interest rates have been cut
C. Unemployment has fallen
D. Taxes have been cut
NARAYAN CHANGDER
1681. The more a country invests in its capital
goods, the and higher the GDP
A. Capital Goods
A. increase in GDP
B. Entrepreneurship
C. Human Capital
C. technology
E. boosts a country’s exports 1684. What is a key feature of sustainable
economic growth?
1682. Which diagram best fits the following A. High inflation rates
change:industrial pollution destroys the
environment B. Short-term profit maximization
C. Long-term environmental conserva-
tion
A. D. Rapid industrialization regardless of
environmental impact
1685. What does GDP per capita include

A. How much wealth there is in an econ-
omy
B.
B. how the wealth is distributed within an
economy
C. what the living standards are
D. what life expectancy is
C. 1686. “to contribute, promote or help” means
A. to accompany
B. to foster
D. C. to interpret
D. to target
Explanation:The destruction of factors of 1687. Real GDP is when

production reduces potential growth in an A. GDP has been adjusted to the effects
economy. of inflation

B. GDP has been not adjusted to the ef-

fects of inflation

1688. Which of these is NOT a characteristic
of an unemployed person?
A. He/she does not work
B. He/she has made specific efforts to
find a job
A. Potential growth
C. He/she is laid off from a job in the suc-
ceeding months B. Actual growth
D. He/she is undergoing a career change C. Economic growth

D. Improvement in standards of living
1689. Economic growth is a situation where an
economy’s real GDP increase. 1693. Mexico:$9, 00
A. True A. True
B. False
B. False
1694. The rate of growth of an economy
1690. A cost to economic growth are negative mainly depends upon
externalities
A. The rate of growth of the labour force
A. Yes, I understand this from the notes B. The proportion of national income
B. No, I don’t understand this from the saved and invested
notes C. The rate of technological improve-
ments
not read the notes D. All of the above
D. none of above 1695. Level 2Between 2000 and 2004

Botswana experienced economic growth
1691. Which answer choice below defines hu- but there was a fall in itsHuman Develop-
man capital? ment Index.Which combination of events
could explain this apparent paradox?
A. A person that invests their own money
in starting a business
B. The training and education that work-
ers need to be good at their job
C. Factories, tools and machines used to
A. A
produce other goods and products
B. B
D. none of above
C. C
1692. The following graph represents? D. D

1696. Which one of these is NOT a sign that 1700. Which of the following goods is included
living standards are improving? in GDP?
A. Decrease in life expectancy A. Dresses
B. Increase in access to education B. Screws used in a cruise missile
C. Decrease in poverty rate C. Flour for making bread
D. Improvement in healthcare facilities D. Cloth for making dresses
NARAYAN CHANGDER
1701. The costs and benefits of economic
1697. Level 2New space in the mind of the
growth are best evaluated in the context
customer is different from the space occu-
of ?
pied by existing products. There are ADDI-
TIONAL benefits to an existing product. A. Population size
B. Different economies
C. Political systems
D. Geographic location
1702. Define GDP per capita

A. The income of a country
B. The income of a country divided by its
population
A. Differentiated Products
C. Average income of the population
B. Niche Products
D. GDP x population
C. Breakthrough products
1703. Factories are an example of human cap-
D. Copycat Products ital.
1698. The phrase “an English innovation” in A. True
the passage is closest in meaning to B. False tagsS2789894
A. A type of agreement negotiated in En-
glish
B. A type of partnership based on English
law
C. An arrangement found only in England
D. A new development introduced by the
English
1699. What is a concern related to aid weari-

ness? A. It’s the location where the most peo-
ple live within a country
A. It promotes economic development
B. It’s the place where the most work is
B. It leads to increased aid flows
performed within a country
C. It reduces flows of aid
C. It’s the people who sell their labour to
D. It encourages innovation produce goods and services

D. It’s the building where most people C. The consumers price index (CPI) is a
work in a country or state measure of inflation

1705. According to the normal relationship, if D. The consumers price index (CPI) is a
Iran decided to invest money in education measure of inflation for Australian house-
and training, how would their GDP likely holds
be affected?
1710. CHOOSE THE CORRECT SPELLING
A. It would decrease
A. ECONOMIC
B. It would not change.
B. ECONOMIC
C. It would increase.
C. ECONOMIC
D. It would flucuate.
D. ECONOMIC
1706. The national income can be measured
by the expenditure method which involves 1711. What major political issue does the
the sum of the following expenditures: 13th, 14th and 15th Amendments cover?
A. C + I + X + M + G A. Individual Rights
B. C + I + G + (X-M) B. Slavery
C. C + I + (X-M) C. Right to bear arms
D. C + I + G + (M-X) D. own property
1707. What are the two sections of every 1712. The image shown here depicts which
economy? form of LRAS curve?
A. private sector and public sector
B. banking regulations and competition
C. government control and tariffs
D. cultural biases and trade barriers
1708. GDP is often measured as “GDP per

capita”. This is the GDP divided by a coun-
tries A. Neoclassical
A. imports B. Keynesian
B. exports C. Austrian
C. resources D. Short run
D. population
1713. Why is a country better off if they can
1709. What is CPI use their own natural resources?
A. The consumers price index (CPI) is a A. just to have
measure of inflation for Australia
B. for trade
B. The consumers price index (CPI) is a
C. to seem rich to other countries
measure of inflation for Australian produc-
ers D. to buy from other countries

1714. What is one criticism of Rostow’s 1719. Which of the following contributed
stages of economic growth model? MOST to this process toward territories
A. It doesn’t consider Earth’s carrying ca- gaining statehood?
pacity and new ecological limits A. Overcrowded cities in the East pushed
B. It doesn’t account for how countries in- European immigrants to go west to seek
fluence one another better opportunities.
C. It was based on the United States and B. The expansion of major railroads link-
NARAYAN CHANGDER
Europe in the 1960s ing the West and the East enabled people
D. All of the above and supplies to move cheaply.
1715. According to the article, China’s econ- C. With the signing of the Fort Laramie
omy is doing than the economy of Treaty, there was less fighting with Amer-
other countries. ican Indians.
A. Better D. Because of the new restrictions on

monopolies, many businesses moved out
B. No different
West.
C. Worse
D. none of above 1720. When labour demand curve shifts left,
equilibrium price will and equilibrium
1716. Which of these factors affect economic qty of labour will
growth
A. increase / increase
A. Levels of infrastructure
B. Human capital B. decrease / decrease
C. Real wages C. increase / decrease
D. All of them D. decrease / increase
1717. Entrepreneurship involves:
1721. What allows companies to manufacture
A. The physical labor of workers products much faster than before the use
B. The use of money and financial assets of technology?
C. The creation and management of busi- A. Advanced facilities
nesses or innovative projects
B. Skilled workforce
D. Natural resources extraction and pro-
cessing C. Human capital
1718. How were Native American nations re- D. Physical capital
gionally divided?
A. Based on birth place of parents 1722. GDP stands for
B. Based on where they lived and birth A. gross domestic product
place of family
B. gross domestic problems
C. According to social class
C. great domestic problems
D. Based on where they lived and lan-
guage groups D. great domino product

1723. A benefit of economic growth is that C. Shift in PPC curve

wages and employment will rise D. Movement towards PPC curve

1728. What is the economic sector most af-
B. No, I don’t understand this from the fected by the pandemic?
notes
A. Technology
not read the notes B. Restaurants
D. none of above C. Textiles
D. Tourism
1724. Long-term impact of child labor.
A. Diseases past on to younger genera- 1729. When the amount of capital per worker
tions increases, labor productivity also in-
creases.
B. Lack of education limited their future
A. True
C. Child laborers became expert crafts-
men B. False
D. none of above 1730. What is a potential outcome of economic
growth that is too high?
1725. Turner’s thesis on the American said
that this is where the American character A. High unemployment rates
comes from. B. Increased life expectancy
A. dream C. High inflation rates
B. frontier D. Reduced income inequality
C. horror story
1731. Explain the concept of sustainable eco-
D. Revolution nomic development.
1726. A financial record of a country’s trans- A. Maximizing profits at the expense of
actions (goods and services) with the rest environmental and social concerns.
of the world is called: B. Focusing solely on short-term eco-
A. International Specialisation nomic gains without considering long-
B. Regional Specialisation term consequences.
C. Balance of Payments C. Promoting economic development

without any regard for the environment
D. Visible Trade Balance or future generations.
E. Fiscal Policy D. Achieving economic growth while en-
1727. Based on the following statement, de- suring the long-term well-being of the
termine whether it will result in positive environment, society, and future genera-
OR negative growth AND a shift in PPC OR tions.
movement towards the PPC-“An increase 1732. Gave government owned land to small
in cyclical unemployment” farmers-had to stay on the land for 5
A. Positive years.
B. Negative A. Morrill Act

B. Land Act 1737. Advancement in communication during

C. Homestead Act the Industrial Age.
D. Reservation Act A. Telephone

B. Internet
1733. Enes lives in Turkey. He travels to China
for business. When he arrives, he visits a C. Railroad
small restaurant. What will Enes need to D. none of above
do before he is able to purchase a meal?
NARAYAN CHANGDER
1738. What are some of the challenges that
A. pay a specified fee to Chinese govern- countries face in achieving sustainable eco-
ment officials nomic growth?
B. exchange his Turkish money for Chi- A. High employment rates, low inflation,
nese money and stable currency exchange rates
C. find a job in China in order to earn Chi- B. Rapid population growth, technologi-
nese money cal advancement, and increased foreign
D. file paperwork to become a temporary investment
Chinese citizen C. Decreased government spending, in-
1734. Economic growth measures the creased taxes, and reduced international
trade
A. Growth of productivity
D. Income inequality, environmental
B. Increase in nominal income degradation, and resource depletion
C. Increase in output
1739. What are the benefits of investing in hu-
D. None of the above man capital?
1735. Why did the African’s population in- A. No impact on productivity, skills and
crease during the colonial period? knowledge, earning potential, job oppor-
tunities, and economic growth.
A. Africans wanted to come to the New
World for a better way of life B. Increased productivity, improved
skills and knowledge, higher earning po-
B. Africans came to the New World look-
tential, better job opportunities, but no
ing for gold and silver
impact on overall economic growth.
C. Africans were brought to the New
C. Decreased productivity, outdated
World to provide free labor to colonial set-
skills and knowledge, lower earning po-
tlers
tential, limited job opportunities, and over-
D. Africans migrated to the New World all economic decline.
during the Ice Age
D. Increased productivity, improved
1736. Which of the following factors is most skills and knowledge, higher earning po-
lkely to increase Economic Growth? tential, better job opportunities, and over-
all economic growth.
A. Higher exchange rate
B. Higher interesr rates 1740. The United Kingdom has few natural
resources. However, they do very well
C. Higher terms of trade in manufacturing, banking, and technology
D. Higher import demand services. They focus on these parts of

their economy and trade for natural re- 1744. Which of the following countries has a
sources. What economic term describes high standard of living due to oil reserves?
what the United Kingdom is doing?

A. a. Mexico
A. Trade Barriers B. b. Saudi A rabia
B. Specialization C. c. Germany
C. Mixed Economy D. d. England
D. Entrepreneurship E. And. India
1741. Financial difficulties, unrest in the army, 1745. Governments and the regulation of mar-
native conflicts, trouble with Mexico were kets
all problems faced by the Republic of A. The colonies served as outlets for man-
Texas. Which scenario identifies with ufactured goods from Europe
these struggles?
B. The discovery voyages led to the colo-
A. Houston decides that these problems nization of countries
could be solved by more immigrants
C. Precious metals never flowed from
B. Houston and others wanted annexa- the colonies into Europe which increased
tion to the US their wealth
C. Jones raised an Army and Navy to at- D. Discoverers looked for unexplored
tract more settlers places where they found resources that
D. Houston signs a treaty with Mexico would strengthen the economic and politi-
cal power of the mother city
1742. A strong rise in energy cost is likely to
lead to 1746. What is the difference between actual
growth rates and long-term trends in
A. A rise in real GDP and the price level growth rates?
B. A fall in GDP and the price level A. Actual growth is caused by increases
C. A fall in real GDP but a rise in the price in AD, while long-term trends are the long
level run expansion of the productive potential
of an economy
D. A rise in real GDP but a fall in the price
level B. Actual growth is caused by increases
in AS, while long-term trends are caused
1743. Iron, precious metals, and fuel, such as by increases in AD
oil and coal, are the top three categories C. Actual growth is the percentage in-
of EXPORTS from Russia. What conclusion crease in a country’s real GDP, while long-
about the Russian economy can be drawn term trends are caused by increases in AS
based on this information?
D. Actual growth is the long run expan-
A. Russia has a pure market economy. sion of the productive potential of an econ-
B. Russia has a pure command economy. omy, while long-term trends are the per-
centage increase in a country’s real GDP
C. The Russian economy relies on manu-
facturing. 1747. Actual economic growth can be repre-
D. The Russian economy relies on natural sented by:
resources. A. Leftward shift of AD

B. Leftward shift of LRAS 1753. What is a recommended policy for

C. Rightward shift of AD achieving inclusive growth?
D. Rightward shift of LRAS A. Enhancing environmental sustainabil-
ity
B. Limiting access to finance for the poor
would you expect living standards to be
at their highest? C. Promoting geographical immobility of
labor
A. Slump
NARAYAN CHANGDER
D. Exploiting child labor
B. Recession
C. Recovery 1754. What is CPI
D. Boom A. The consumers price index (CPI) is a
measure of inflation for New Zealand
1749. Economic growth measures the
B. The consumers price index (CPI) is a
A. Growth of productivity measure of inflation for New Zealand pro-
B. Increase in nominal income ducers
C. Increase in national output C. The consumers price index (CPI) is a
D. None of the above measure of inflation
D. The consumers price index (CPI) is
1750. Capital goods are
a measure of inflation for New Zealand
A. A person that invests their own money households
in starting a business
1755. Economic growth can be measured by
B. The training that workers need to be
good at their job A. The CPI
C. Factories, tools and machines used to B. The CBI
produce other goods and products C. GDP
D. none of above D. MPC
1751. Which country is described as having 1756. The following is a diagram of
substantial regional differences in terms of
wealth and age structure?
A. Japan
B. Thailand
C. India
D. South Korea
1752. What animal did many Native American
tribes of the Great Plains depend upon for
A. Actual growth-caused by increased in
their survival?
AD
A. Buffalo
B. Potential growth-caused by increased
B. Boar in AD
C. Moose C. Actual growth-caused by increased in
D. none of above SRAS

D. Potential growth-caused by increased 1761. What might refuse to open up to other

in LRAS markets and limit trade and economic
growth?

1757. What causes economic growth?
A. Politics
A. * Savings, so Supply of Loanable B. Natural resources
Funds, so real interest rate, so Capital
Investment, so Capital Stock, therefore C. Overpopulation
LRAS and PPC both. D. Culture
B. Increased labor productivity 1762. What is the significance of natural re-
C. Increases in technology, education, in- sources in the economy?
novation A. Natural resources are essential for
D. Demanding more stuff or else economic growth and development.
B. Natural resources are only important
1758. What is the key sign of recovery in the for certain industries.
economy?
C. Natural resources hinder economic
A. Decrease in consumer confidence growth and development.
B. Increase in investment D. Natural resources have no impact on
the economy.
C. Fall in house prices
D. Lower interest rates 1763. Bianca is in form two. She attends
classes daily and works hard to get good
1759. Which statement best describes the re- grades in all her subjects. This situation
lationship between a country’s investment falls under education.
in capital goods and its gross domestic A. Formal
product (GDP)?
B. Informal
A. Investments in capital goods typically
C. Special
lead to a decrease in GDP.
D. none of above
B. Investments in capital goods typically
lead to an increase in GDP 1764. have training in a particular are and
C. A decrease in GDP typically leads to in- can work independently.
vestments in capital goods A. unskilled
D. A increase in GDP typically leads to in- B. semi-skilled
vestments in capital goods C. skilled
1760. What is the main advantage of Mum- D. highly skilled
bai’s location on the west coast of India? 1765. When did United Nations published the
A. Access to Middle East and European first Human Development Report?
markets A. 1990
B. Access to African markets B. 1999
C. Access to Asian markets C. 1929
D. Access to North American markets D. 2021

1766. “Economic Growth” is measured by: 1770. Why should countries invest in develop-
A. Comparing the TOTAL UNITS of producing capital goods?
tion in one year vs. previous year.
B. Comparing the TOTAL SUCCESS of pro-
duction in one year vs. previous year.
C. Comparing the TOTAL VALUE of produc-
tion in one year vs. previous year.
NARAYAN CHANGDER
D. none of above
1767. A movement from X to C would mean?
A. they shouldn’t, it is too expensive
B. because capital goods cannot be sold
to other countries
C. when countries invest in capital goods,
they are providing better facilities, re-
sources, and/or materials for the peo-
a more productive workforce leading to
A. Consumers are more likely to pur-
greater economic growth (higher GDP).
chase mobile phones.
B. The economy can produce more of all D. because capital goods are less expen-
goods. sive than private goods
C. The economy is operating below it pro-
ductive potential for all goods. 1771. How do natural resources contribute to
the economy?
D. The inflation rate of all other goods
must have fallen A. Natural resources have no impact on
the economy
1768. Short run economic growth can be cre-
ated by increasing aggregate demand B. Natural resources are a burden on the
economy
B. No, I don’t understand this from the C. Natural resources only benefit foreign
notes countries
C. No, I don’t understand this, as I have D. Natural resources contribute to the
not read the notes economy by providing raw materials for in-
D. none of above dustries, creating job opportunities, gen-
erating revenue through exports, and at-
1769. The Act made monopolies illegal in tracting foreign investment.
the U.S., which is why there aren’t any to-
day. 1772. does not consider the depletion of
A. Labor Union natural resources which might lead to pol-
lution, congestion & disease.
B. Meat Inspection
C. Sherman Anti-Trust A. Economic Growth
D. none of above B. Economic Development

1773. Which factor of economic growth is all B. increased taxes, decreased govern-
of the goods that are produced in the coun- ment spending, raising interest rates, pro-
try and then used to make other goods & tectionist trade policies, divestment in in-

services? frastructure, cutting education and skills
development programs, increased regula-
tion
B. Human Capital
C. tax cuts, increased government spend-
C. Capital Goods ing, lowering interest rates, trade poli-
cies, investment in infrastructure, edu-
D. Entrepreneurship
cation and skills development programs,
1774. A, B, C, D? deregulation
D. increased taxes, decreased govern-
A. A
ment spending, raising interest rates, pro-
B. B tectionist trade policies, divestment in in-
C. C frastructure, cutting education and skills
development programs, increased regula-
D. D tion
1775. The Difference between Economic 1777. Unemployment caused when a man re-
Growth and Economic development are signs from his job to start looking for a
higher paying job.
A. Economic development is single dimen- A. Structural
sion for example economic activities, & B. Seasonal
economic growth is multiple dimension
(social, environment & politic) C. Frictional
B. Economic development is single dimen- D. Cyclical

sion & economic growth is qualitative
1778. Israel’s literacy rate is 99%. What
change (all sectors)
does this mean?
C. Economic growth is possible without A. 99% of Israeli adults are en-
development & economic development is trepreneurs.
gradual & steady change
B. 99% of Israeli adults have a low stan-
D. Development relate to growth of hu- dard of living.
man capital indexes & economic growth
focus on product C. 99% of Israeli adults are unemployed.
D. 99% of Israeli adults can read and
1776. What are some examples of govern- write.
ment policies that can promote economic
growth? 1779. Human capital includes the people
use to produce goods and services.
A. increased taxes, decreased govern-
ment spending, raising interest rates, pro- A. Raw materials
tectionist trade policies, divestment in in- B. Factories machines, & technology
frastructure, cutting education and skills
development programs, increased regula- C. Skills, knowledge, and experience
tion D. none of the above

1780. One supply-side mechanism that the C. Skipping in order

government can use to stimulate economic
D. Following in order
growth is:
A. Increasing tariffs 1785. Which of the following were settlers
B. Decreasing tariffs who took advantage of the Homestead
Act?
C. Increasing aggregate demand
A. Sooners
D. Decreasing aggregate deman
NARAYAN CHANGDER
B. 49ers
1781. The Human Development Index (HDI) is
a summary measure of average achieve- C. Exodusters
ment in key dimensions of human develop- D. none of above
ment. Option that is not in the mentioned
dimensions is 1786. In an effort to avoid recession, the gov-
A. a long and healthy life ernment implements a tax rebate program,
effectively cutting taxes for households.
B. decent standard of living We would expect this to:
C. being knowledgeable
A. affect neither aggregate supply nor ag-
D. Community Generosity gregate demand.
1782. Money exchanged between businesses B. increase aggregate demand.
and individuals for labour: C. reduce aggregate demand.
A. Wages
D. reduce aggregate supply.
B. Revenue
C. Spending 1787. Improving the economic situation →
better lives for people
D. Profit
A. Urbanization
1783. What is the impact of climate change on
Bangladesh’s economy? B. Industrialization
A. Improved agricultural productivity C. Modernization
B. No impact on the economy D. Economic Development

C. The impact of climate change on
1788. The business cycle
Bangladesh’s economy includes in-
creased frequency of natural disasters, A. describes the evolution of the trade
loss of agricultural productivity, and dis- balance
placement of people due to rising sea lev- B. describes the evolution of the interest
els. rates
D. Decreased frequency of natural disas-
C. none of the options are correct
ters
D. describes the evolution of the busi-
1784. Consecutive means nesses
A. Randomly scattered E. describes the evolution of the balance
B. Opposite in order of payments

1789. Why may GDP not be a good measure to 1793. Tradeoffs, Opportunity costs, marginal
compare the living standard of two coun- costs, marginal benefits, and personal pri-
tries? orities are all important to consider when

A. It does not include government expen- A. Dealing with fiscal policy
diture B. Using credit
B. It does not take account of population C. Making a rational economic choice
size
D. Responding to monetary policy
C. It is based on sample basket of goods
1794. The percentage change in real GDP from
D. It only compares export prices with im-
one period to another is called
port prices
A. Real GDP.
1790. Which of the following is a way a coun- B. Nominal GDP.
try can save money when making manu-
factured goods? C. The growth rate.
D. GDP per capita.
1795. A deflationary gap is characterized by:
A. Excessive spending
B. Low levels of unemployment
C. Aggregate demand being lower than
potential output
A. using the natural resources that they
D. Rapid economic growth
already have
B. buying natural resources from another 1796. What are the 3 questions countries need
country to ask in when setting up their economic
system up?
C. importing Opals from the USA
A. what to produce, where to produce,
D. exporting services to New Zealand
how to produce
1791. A lack of investment in human capital B. what to produce, who is going to pro-
has led to high poverty (70%) & unem- duce it, how to produce
ployment in which country? C. what kind of producing, where to pro-
A. Kenya duce, how to produce
B. South Africa D. what to produce, how to produce, for
C. Nigeria whom to produce
D. Egypt 1797. What is Long-Run Economic Growth?

(Select ALL that apply)
1792. What can a government do to increase
A. An increase in Real GDP over time
demand in its economy?
B. An increase in the quality/quantity of
A. budget for a surplus
the factors of production
B. cut taxes C. Where at least one factor of produc-
C. encourage savings tion is fixed
D. reduce its expenditure D. A shift right in the PPC

1798. Which of the following is both a demand 1802. A country’s is the total dollar value
and supply factor influencing the level of of all goods and services produced in one
Economic Growth? year.
A. productivity A. Gross Domestic Product (GDP)
B. the level of disposable income B. Gross Domestic Imports (GDI)
C. Gross Domestic Resources (GDR)
C. consumer confidence
D. Gross Domestic Exports (GDE)
D. interest rates
NARAYAN CHANGDER
1803. outdated and slow
1799. Households do NOT use income to
A. sector
A. save money B. obsolete
B. buy services C. GDP per capita
C. pay taxes D. capital
D. buy factors of production E. relationship
E. purchase goods 1804. What is the relationship between
adding elements of a market system to
1800. What is the usual relationship between a country’s economy and the country’s
a country’s standard of living and the lit- economic growth?
eracy rate of that country?
A. When there is total government con-
A. The higher the standard of living, the trol
lower the literacy rate. B. When countries lift some government
B. There is no relationship between these control, they experience economic growth
two items. C. When countries have no government
C. The lower the literacy rate, the lower or citizen control, then they will experi-
the standard of living. ence economic growth
D. If there is a low population, there will D. none of above

be a low literacy rate. 1805. Human resources can be developed
through sports and culture.
1801. Export-import trade activities are a re-
flection of world household economic de- A. true
velopment. B. false
1806. According to paragraph 1, what was
true of Europe during the medieval period?
A. The general level of prosperity de-
clined.
B. Foreign trade began to play an impor-
tant role in the economy.
C. There was relatively little economic
A. True growth.
B. False D. Agricultural productivity declined.

1807. If operators are fired and replaced with D. Abundance of water, but a scarcity of
computer technology, the operators would phosphates
be considered

1811. Which of the following is not a require-
A. frictionally unemployed ment for increased growth?
B. structurally unemployed
A. capital expenditure
C. cyclically unemployed
B. increased labour force
D. dissatisfiededly unemployed dissatis-
C. increased human capital
fiededly unemployed
D. increased productivity
1808. What is the economic growth rate in
year 2? 1812. Things that come from nature
A. Capital Goods
B. Entrepreneur
C. Human Capital
A. 5% D. Natural Resources
B. 10% 1813. Literacy Rate

C. 11% A. The level of wealth and material com-
D. 20% fort available to a people.
Explanation:change in GDP = [(220- B. Percent of a nation’s population over
200)/200] x 100 = (20/200) x 100 = 10% the age of 15 who are able to read and
write.
1809. Economic growth happens when
A. the needs and wants of a growing pop- 1814. A characteristic of a recession is
ulation are satisfied and new jobs are cre- A. High unemployment
ated for those who enter the workforce.
B. High inflation
B. the needs and wants of a population
are satisfied and new jobs are created for C. High prices
those who enter the workforce. D. High level of outputs
C. the needs and wants of a growing pop-
1815. Why did Texas give land grants to rail-
ulation are satisfied.
road companies?
D. none of above
A. to expand the railroad system in Texas.
1810. Which of the following correctly shows B. to give them full control of Texas.
how natural resources are unevenly dis-
C. to destroy the environment.
tributed in Southwest Asia?
D. none of above
A. Abundance of oil, but a scarcity of wa-
ter 1816. What incentive might a national govern-
B. Abundance of coal, but a scarcity of ment have for improving education and lit-
copper eracy in their country?
C. Abundance of natural gas, but a A. Educated populations do not need to
scarcity of oil trade with other countries.

B. Educated populations have a higher 1821. Who was the first African American to
standard of living than uneducated popu- win a major tennis championship?
lations.
A. Oliver Hill
C. Educated populations are less likely to
distrust the government. B. Arthur Ashe
D. Educated populations produce more C. Harry F Byrd
agricultural goods than D. Linwood Holton
NARAYAN CHANGDER
1817. workers have very specialized skills
and can usually supervise others. 1822. According to the economist Raul Fabella,
increasing the percentage of foreign own-
A. skilled ership as allowed in the 1987 Constitution
B. highly skilled would not guarantee an increase of foreign
C. semi skilled investment if:
D. unskilled A. the foreigners cannot become Filipino
citizens.
1818. What key factor affects a nation’s eco-
nomic growth the MOST? B. the costs of electricity are too high,
and infrastructures are still substandard.
A. the goods in which its trading partners
specializes
1823. Which of the words below describe the
B. the amount of choices available to its performance of China’s retail sales?
consumers
A. Expansion
C. the education and skill level of its work-
force B. Steady
D. the length of time its leader has been C. Contraction
in office
D. none of above
1819. Starts to develop and improve infras-
tructure (roads, electrical grid, water sys- 1824. If real GDP in 2018 is $100 and real
tems, etc.) GDP in 2019 is $125, how much did real
GDP change by?
B. Stage 2:Pre-Condition for Take-Off A. 25%
C. Stage 3:Take-Off B. 100%
D. Stage 4:Drive to Maturity C. 20%
E. Stage 5:High Mass Consumption D. 0%
1820. It also leads to the creation of more
opportunities in the sectors of education, 1825. Payment made for the use of borrowed
healthcare, employment, and the conser- money is called
vation of the environment. It implies an A. Financial Institution
increase in the per capita income of every
citizen. B. Creditors
A. Economic Growth C. Interest

B. Economic Development D. Secured

1826. Starts individual socio-economic mobil- 1830. ‘Unemployment has begun to rise in the
ity and growth. Starts to become possible UK. What should policy makers do? Al-
to climb socio-economic classes. ready the Bank of England has cut interest

A. Stage 1:Traditional Society rates. Also, the government has begun to
spend more without covering all of the in-
B. Stage 2:Pre-Condition for Take-Off crease by a rise in taxes.’It can be inferred
C. Stage 3:Take-Off from the data that in response to rising un-
employment
A. both monetary policy and fiscal policy
E. Stage 5:High Mass Consumption are expansionary.
1827. To boost economic growth the govern- B. monetary policy is expansionary whilst
ment is most likely to fiscal policy is contractionary.
A. Increase interest rates C. monetary policy is contractionary
whilst fiscal policy is expansionary.
B. Increase taxation rates
D. both monetary policy and fiscal policy
C. Provide incentives to invest
are contractionary.
D. Provide incentives to save
1831. Which country has the largest per capita
1828. Natural resources are the materials that GDP
, such as land, forests, minerals, water, A. Nigeria
etc.
B. South Africa
A. materials & labor
C. GDP information is not available
B. four main categories
D. The GDPs are almost all the same.
C. come from nature
D. income when exported 1832. What is the production possibilities
curve?
1829. Level 3Targeting a specific group of cus- A. A graph that shows how much an econ-
tomers who have an identifiable but very omy can produce between two goods
narrow range of product or services inter-
B. The price of two goods in an economy
ests and compromise
C. The absolute advantage one economy
has over another
D. Land, labour, capital, entrepreneurs
1833. What occurred soon after the formation

of the Organization of the Petroleum Ex-
porting Countries (OPEC)?
A. Integrity and Responsibility A. OPEC members gained more influence
over the price of oil.
B. Customer Focused
B. OPEC members lost their influence
C. Innovative
over the price of oil.
D. Niche Market C. OPEC became more dependent on the
E. Quality Performance sale of oil.

D. OPEC became less dependent on the 1839. Scarcity:

sale of oil. A. stems from the incompatibility be-
tween limited resources and unlimited
1834. In division of labour, each worker han- wants.
dles a specific task
B. can be overcome by discovering new
A. True resources.
B. False C. can be eliminated by rationing prod-
ucts.
NARAYAN CHANGDER
1835. A newspaper reports that there D. is a bigger problem in market
has been economic growth in an econ- economies than in socialist economies.
omy.What does this mean to an
economist? 1840. The process of improving the quality of
all human lives and capabilities by raising
A. Population has increased.
people’s levels of living, self-esteem and
B. Production has increased. freedom.
C. Saving has increased. A. development
D. Taxation has increased. B. upliftment
C. increase economy
1836. Poor decisions made about how to orga- D. standard of living
nize farming in North Korea have resulted
in many years of: 1841. Which of the following factors will not
shift the AD curve right?
A. Drought
A. Increase in the cost of labour
B. Farmers refusing to work
B. Increase in consumer confidence
C. Starvation
C. Increased exports
D. Arguments about what crops to grow D. Increased investment
1837. What is one consequence of a recession? 1842. An advance in technology will cause:
A. Increased unemployment A. AD to shift to the right
B. Increased income B. AS to to shift to the left

C. LRAS to shift to the right
C. Increased asset prices
D. LRAS to shift to the left
E. AD to shift to the left
1838. Which of the following were problems 1843. Between 2000 and 2004 Botswana
farmers encountered on the Great Plains? experienced economic growth but there
Select all that apply! was a fall in itsHuman Development In-
A. Difficult soil dex.Which combination of events could ex-
plain this apparent paradox?
B. Sod homes
C. Wildfires
D. Extreme weather

A. A B. Increase retirement ages

B. B C. Invest in infrastructure

C. C D. Promote internal migration
D. D 1849. In the UK, the economic growth rate for
the third quarter of 2019 was-0.2%. Eco-
1844. What mostly drives UK economic nomic growth occurs when there is an in-
growth crease in
A. Equality A. the inflation rate.
B. Pride B. wage rates.
C. Incentives C. the economy’s productive potential ca-
D. Wheels pacity.
D. none of above
1845. What is the Gini Coefficient of Cam-
bridge? 1850. The US Social Security Administration
A. 74 raises the age requirement for receiving
retirement benefits. Will economic growth
B. J occur? Which growth factor contributed is
C. 0.56 the cause? (If none, only select one an-
D. 0.46 swer)
1846. what is a boom
A. when lots of explosion happen during
C. Technology
a period
D. Human Capital
B. when lots of economic activity hap-
pens during a period E. Economic Environment
C. when there is a high level of employ- 1851. Which countries have the highest unen-
ment during a period ployment rates?
D. when the country’s GDP falls for 2 con- A. Romania.
secutive quarters B. Portugal.
1847. AD curve shift to right to show potential C. Greece.
economic growth D. Spain.
A. True 1852. This political ideology focuses on using
B. False the power of the democratically elected
Explanation:AD curve shifts to the right to government to protect the interests of
show actual economic growth. the poorest citizens, limit the negative
side effects of capitalism, and redistribute
1848. According to the article, what is the easi- wealth.
est way for countries to extend the effects
A. Democratic socialism
of a “working-age bulge” and boost their
demographic dividend? B. Federal system
A. Implement policies that encourage im- C. Land reform
migration D. Welfare state

1853. The Australian economy has experi- 1858. Level 1People who buy and use a prod-
enced in 2020 uct and services
A. An expansion
B. A recession
C. A boom
D. A bust
NARAYAN CHANGDER
1854. Updating Factories
A. Human Capital A. Suppliers
B. Capital Goods B. Customers
1855. Which SE Asian country does not follow C. Employees

the regular theory that a high literacy rate D. Competitors
usually equals a high standard of living?
A. India 1859. What are natural resources?
B. South Korea
C. China
D. North Korea
1856. Structural unemployment is

A. AN unemployment where people are
only required at certain periods of the A. resources that are considered worth-
year as that is when demand is high. less
B. The unemployment which exists in any B. materials or substances that occur in
economy due to people being in the pro- nature and can be used for economic gain.
cess of moving from one job to another.
C. Is a factor of overall unemployment 1860. Define actual growth
that relates to the regular ups and downs A. in PPC model, refer to growth that oc-
in growth and production, curs due to the reduction of unemploy-
D. Unemployment resulting from an In- ment or improvement in efficiency of re-
dustry shift, typically due to a technologi- source use, resulting in movement from
cal change, rather than changes in supply inside PPC to point closer to PPC
or demand.
B. in PPC model, refers to growth that oc-
1857. Economists measure economic growth curs due to increase in quantity or qual-
primarily using: ity of resources, resulting in shift to the
right of PPC curve, also referred to as
A. Gross National Product (GNP) long-term growth
B. Inflation rate
C. Gross Domestic Product (GDP) change:an improvement in the level of ed-
D. Unemployment rate ucation and skills of workers

D. Maintaining low inflation, fluctuating

A. cies, and an unstable financial system.

1864. What percentage of the total world pop-
ulation do the BRIC countries have?
A. Less than 10%
B. Around 20%
B. C. Around 40%
D. More than 60%
1865. What is the relationship between in-
vestment in human capital and GDP?
C. A. GDP fluctuates
B. GDP decreases
C. GDP increases
D. GDP remains the same
D. 1866. What does it mean to have a decent job?

A. Earning a lot of money.
B. Have a job that originates a living wage
Explanation:As before, when you invest in protects rights and guarantees gender
human capital, you improve the quality of equality.
labor as a factor of production.
C. None answer is correct.
1862. How does the Clerk of Superior Court D. All answers are correct.
help to govern a city?
1867. The level of private investment spend-
A. Principal Record Keeper ing (I) and rate of economic growth would
B. Weather Reporter tend to increase if there was a:
C. Governor A. rise in business confidence about fu-
ture sales
D. All of the above?
B. rise in interest rates on bank loans to
1863. What are the key factors for achieving businesses
macroeconomic stability? C. fall in business profits
A. High inflation, fluctuating exchange D. rise in the rate of company tax on
rates, unsustainable fiscal policies, and firms.
an unstable financial system.
1868. When there is an influx foreign tal-
B. Maintaining low inflation, stable ex- ent/workers, there will be a/an:
change rates, sustainable fiscal policies,
A. increase in labour demand
and a stable financial system.
C. Maintaining high inflation, fluctuating
exchange rates, unsustainable fiscal poli- C. increase in labour supply
cies, and an unstable financial system. D. decrease in labour supply

1869. Balanced growth implies A. Oil is found in all countries of the Mid-
A. Simultaneous development of a variety dle East.
of activities, which support one another B. Larger countries have more oil than
B. Equal allocation of resources to differ- smaller countries.
ent sectors C. Some countries may have oil, others
C. Different sectors growing at their nat- may not.
ural rates of growth D. Small countries do you have oil.
NARAYAN CHANGDER
D. Uniform rate of growth of output over 1874. According to the article, why was
time China’s economic growth growth slower
1870. What is one method used to stop com- than predicted?
petitors from stealing an idea? A. China’s economy is just performing
A. Secrecy badly
B. Competition B. The international economic impact of

the virus is still uncertain
C. Collaboration
C. Nobody knows
D. Government intervention
D. none of above
E. Coded messages
1875. Long run economic growth is the result
1871. A high employment rate happens in the of supply side factors that increase the pro-
phase of ductive potential of the economy
A. Expansion A. Yes, I understand this from the notes
B. Boom B. No, I don’t understand this from the
C. Bust notes
D. Recession C. No, I don’t understand this, as I have
not read the notes
1872. Which of the following events shifts the
D. none of above
short-run aggregate supply curve to the
right? 1876. The “Fire” Nation’s GDP in 2018 was
A. a decrease in the money supply £2, 380, 250. If in 2018, the population
of the Fire Nation was 65, 536, what is
B. a drop in oil prices
the GDP per Capita of the Fire Nation?
C. an increase in government spending
A. £32.32 / per capita
on military equipmentd
B. £33.62 / per capita
D. an increase in price expectations
C. £36.32 / per capita
1873. Which is true about oil in the Middle
D. £32.63 / per capita
East?
E. £36.23 / per capita
1877. The reaper, steel plow, windmill and

barbed wire all helped in
A. the oil business
B. the cotton industry

C. the driving of cattle 1882. Import

D. farming in Texas A. the man-made materials that are

needed to produce goods and services
1878. Which of the following are the reasons
B. a good means to send it to another
for a potential economic growth to occur?
country to be sold
Please check if there are more than one
reason C. to bring in a good from another coun-
try to sell
D. someone who makes things
B. Better technology used
1883. The shift from LRAS1 to LRAS2 could be
C. Household’s income level increase
caused by what?
D. Discovery of new resources
1879. Suppose the economy is initially in long-

run equilibrium. Then suppose there is a
drought that destroys much of the wheat
crop. According to the model of aggregate
demand and aggregate supply, what hap-
pens to prices and output in the short run?
A. Prices rise; output falls. A. Discovery of new land
B. Prices fall; output rises. B. Increase in the birth rate
C. Prices rise; output rises. C. Apprenticeships
D. Prices fall; output falls. D. Research and development
1880. Would the following be included or not E. All of the above

included in GDP? Ford has 15, 000 2016 1884. Why is it beneficial for a country to have
Explores that were not sold by December an abundance of natural resources?
31st 2017.
A. countries that have a lot of natural re-
A. Included sources are able to use them to produce
B. Not included goods and services cheaper than a coun-
try that has to import them. Therefore,
1881. Of the following policy initiatives, a country with a lot of natural resources
which one is least likely to increase aggre- usually has a greater GDP than a country
gate supply in the economy? with little natural resources.
A. Increased government spending on in- B. they cannot become communist
frastructure C. they cannot become communist
B. Increased government spending on D. there is no advantage since most nat-
education and training ural resources are worthless
C. Increased government outlays allo-
1885. Growing your business by buying com-
cated to payment of unemployment bene-
panies along your supply chain (like deliv-
fits
ery, assembly, raw materials) is called
D. A reduction in company tax rates integration.

A. vertical B. Recession
B. horizontal C. Recovery
C. diagonal D. Slump
D. none of above
1891. What is GDP (Gross Domestic Product)?
1886. What is the impact of economic growth A. a person who takes a risk to start a
on current and future living standards? new business
NARAYAN CHANGDER
A. Decrease in consumer concern about B. the value that people bring to the work-
the environment force
B. Increase in average wages C. the total amount of goods and services
C. Decrease in public service improve- produced in a country in one year
ment D. tools that make other goods
D. Increase in damage to the environ-
1892. however is concerned with sustain-
ment
ability which means meeting the needs of
1887. Stagflation means: the present without compromising future
needs. These environmental effects are
A. a higher price level and lower GDP
becoming more of a problem for Govern-
B. a higher price level and higher GDP ments now that the pressure has increased
C. a lower price level and lower GDP on them due to Global warming.
D. a lower price level and higher GDP A. Economic Growth
1888. Why is real GDP considered a better
measure of growth than nominal GDP? 1893. What is a country’s GDP divided by its
A. It includes inflation population called?
B. It takes into account price changes A. GDP per country
C. It shows the distribution of income in B. GDP per capita
the economy C. GDP per year
D. It includes non-economic factors D. GDP per calendar
1889. At which stage of the economic cycle 1894. Supply-side fiscal policies affect aggre-
would you expect to growth to be at its gate demand, aggregate supply, and po-
highest? tential output in the short run and long
A. Boom run by influencing that affect house-
hold and business economic behavior.
B. Recovery
A. incentives
C. Recession
B. politicians
D. Slump
C. the costs
would you expect to unemployment to be D. none of above
at its highest? 1895. True or False:Until laws were passed
A. Boom to protect laborers, the police and courts

sided with companies if there was a dis- D. all of the above

agreement.
1901. South Africa’s role in the international

A. True gold market is relatively stable due to
B. False which of the following?
1896. GDP means A. effective government regulation of

gold mining
A. Gross domestic product
B. stable markets and revenue-
B. Great domestic product generating tariffs
C. Gross domestic production C. possession of two-fifths of the world’s
D. none of above gold supply
D. the strength of the South African rand
1897. What animal made it easier for Native
against the US dollar
American tribes to hunt the buffalo?
A. Horse 1902. Which of the following best explains the
term Marginal Propensity to Consume?
B. Cow
A. The proportion of total income remain-
C. Boar
ing after consumption
D. Giraffe
B. The proportion of an extra dollar re-
1898. Labor demand is maining after taxation
A. The money wage rate divided by the C. The proportion of total income remain-
price level ing after taxation
B. The relationship between the quantity D. The proportion of an extra dollar of in-
of labor demanded and the real wage rate come spent on consumption
C. The relationship between the amount 1903. Based the map, which investment would
of labor supplied and the real wage rate have the most significant impact on
D. The forces of supply and demand op- China’s GDP?
erate in labor markets just as they do in
markets for goods and services
1899. Gross Domestic product is the total

value of goods produced and services pro-
vided in a country
A. True
B. False
A. Purchasing the capital goods to im-
1900. Which of the following were the impacts prove mining
the Continental Railroad had on the US? B. Building oil pipelines to receive oil
A. Enabled people to have quicker access from their coast
to the Asian markets. C. Educating their workforce in finances
B. Caused conflicts with native Ameri- and banking
cans. D. Training their workforce in engineer-
C. Encouraged people to settle the west. ing and electronics

1904. The GDP (Gross Domestic Product) is: 1909. What can we infer from the image?
A. The total output of a firm
B. The total output of a country
C. The number of products purchased by
an average household
D. Number of products the country ex-
ports A. investing in entrepreneurship can in-
NARAYAN CHANGDER
crease GDP
1905. The family is the first place we gain ed-
ucation. B. investing in natural resources can in-
A. true crease GDP
B. false C. investing in capital goods can increase

GDP
1906. What are the four factors of production
that influence economic growth within a D. investing in standard of living can in-
country? crease GDP
A. Natural ResourcesHuman CapitalCapi-
tal GoodsEntrepreneurship 1910. The level of wealth and material com-
fort available.
B. Natural DisasterGlobal WarmingCapi-
tal TradeBusiness Ventures A. standard of living
C. Gold DiamondsOilGas B. literacy rate
D. LandWaterAirSilver C. production
1907. Which of the following statements best D. capital goods
describes fiscal policy?
A. Using taxation and government expen- 1911. In Australia, what is the proportion of
diture policy to influence the level of ag- consumption (C) in national income?
gregate demand
A. 40%
B. Using money supply to alter interest
rates and thereby the level of aggregate B. 50%
demand
C. 60%
C. A set of policies aimed at increasing
the economy’s productive capacity D. 20%
D. Reducing the barriers to trade be-
1912. Economic growth can be measured by
tween nations
A. CPI
1908. Potential economic growth can be repre-
sented by: B. Inflation
A. Leftward shift of AD C. GDP
B. Leftward shift of LRAS
D. MPC
C. Rightward shift of AD
D. Rightward shift of LRAS 1913. An inward shift in the PPF depicts

A. True
B. False

1918. The ‘big-push’ strategy of development
was first advocated by
A. Paul N-Rosenstein-Rodan
B. Simon Kuznets
C. W.A, Lewis
A. Actual Economic Growth D. A.O.Hirshman
B. Economic Contraction 1919. Economic growth measures the

C. Potential Economic Growth A. Growth of productivity
D. A recession B. Increase in nominal income
C. Increase in output
1914. If someone says that Japan’s citizens
make an average of $48, 919 a year, they D. None of the above
are describing Japan’s
1920. What is the role of entrepreneurship in
A. natural resources economic growth?
B. GDP per capita A. Decreases economic growth
C. capital goods B. No impact on economic growth
D. GDP C. Fluctuates economic growth
1915. An increase in business confidence will D. Increases economic growth
cause what change? 1921. What is the role of government policies
A. Increase in AD in economic development?
B. Decrease in AD A. Government policies are only impor-
C. Increased AS tant in certain industries for economic de-
velopment.
D. Decrease in AS
B. Government policies play a crucial role
1916. What is a GPD? in economic development.
A. GDP is often measured as “GDP per C. Government policies hinder economic
capita” (per person). development.
B. I dont know what a GPD is D. Government policies have no impact
on economic development.
1917. Unemployment can trigger an increase
in crime rates. 1922. Which of the following would you use to
measure the standard of living in a coun-
try?
A. GDP per capita
B. Human Development Index (HDI)
C. GDP
D. none of the options

1923. What is Schumpeterian Destruction? A. Migration

A. Inefficient firms fail in a recession to B. Urbanization
allow better firms to survive C. Immigration
B. Businesses fire workers to gain more D. Immigrants
revenue
C. Pubs benefit in a recession 1929. Potential economic growth is a situation
where an economy’s productive capacity
D. Firms buy out other firms to grow improved.
NARAYAN CHANGDER
1924. According to paragraph 8, each of the A. True
following was a source of funds used to B. False
finance economic expansion EXCEPT
A. Joint-stock companies 1930. Use the information in the table to an-
swer the questions. (a) is most likely to
B. Wealthy merchants export goods for construction companies.
C. The state (b) exports both sugar and citrus products.
D. Groups of investors engaged in short-
term financial cooperation
1925. What are the benefits of economic

growth for firms?
A. More menu costs
B. Decrease in investment
A. a Brazil
C. Development of new technologies
B. b Cuba
D. Decrease in business confidence
C. Mexico
1926. GDP + earnings from overseas is D. Colombia
A. GDP E. Haiti
B. GNP/GNI
1931. A financial record of the export and im-
C. NNI port of physical goods is called:
D. GVA A. International Specialisation
1927. the total market value of the goods and B. Regional Specialisation
servicesproduced by a country in a specific C. Balance of Payments
year
D. Visible Trade Balance
A. gross domestic people
E. Fiscal Policy
B. gross domestic population
C. gross domestic product (GDP) 1932. What is the basis of Nigeria’s economy?
D. gross domestic prenuptials A. Timber

B. Oil
1928. It is the movement of people from ru-
ral areas to urban areas with the aim of C. Diamonds
finding jobs. D. Gold

1933. When the government takes control of poverty due to the mismanagement of
businesses and industries that were for- economies by the corrupt government.
merly privately owned.

A. Democratic socialism an actual economic growth to occur?
B. Welfare state A. Improvement to quality of education in
C. Nationalization the country
D. Martial law B. Better technology used in production
in the country
1934. What contributed to quick wealth cre-
ation in the 1920s? C. Fall in prices of raw materials
Explanation:recall:what is actual eco-
A. Investment in agricultural commodi- nomic growth and how is actual economic
ties growth achieved?
B. Gold and silver mining D. none of above
C. Real estate investment, especially buy-
ing on credit 1937. was a muckraker that exposed civil
rights violations.
D. Stock market investment, especially
buying on margin A. Sinclair
B. Wells
1935. Which of the following statements is
TRUE concerning literacy rates and stan- C. Tarbell
dard of living? D. Nast
1938. An inflationary gap occurs when:

A. Aggregate demand is below potential
output
B. The economy is at full employment
C. Aggregate demand exceeds potential
output
D. Interest rates are excessively high
A. Mexico with its low literacy rate will
never be able to raise the standard for 1939. A country investing in newer technology
their citizens due to language barriers and
traditions. A. Human Capital
B. All Latin American countries with high B. Capital Good

literacy rates enjoy a high standard of liv- 1940. According to world system theory,
ing due to the employment and prosperity which countries dominate and take advan-
of their citizens. tage of peripheral countries for labor and
C. Brazil with its low literacy rate has raw materials?
been able to overcome and achieve high A. Core countries
standards of living for its citizens through
hard labor and determination. B. Peripheral countries
D. Cuba has a high literacy rate though C. Semi-peripheral countries

its citizens live with unemployment and D. None of the above

1941. What is one way firms try to appropri- 1946. Hundreds of Lakota men, women, and
ate the value of innovation? children were killed by at
A. Secrecy A. Apaches; Pikes Peak
B. Competition B. the U.S. Army; Wounded Knee
C. Collaboration C. vigilantes; Fort Laramie
D. Government intervention D. George Custer’s soldiers; Sand Creek
E. Corruption
NARAYAN CHANGDER
1947. Development means increasing stan-
1942. What is the main goal of foreign direct dards and quality of life
investment (FDI) flows in developing coun-
tries? A. True
A. To promote protectionism B. False

B. To encourage export promotion 1948. A Spanish term for cowboy is
C. To reduce government intervention
D. To increase technology transfer and
job creation
1943. Measured in the millions, billions and
trillions. Determines economic growth.
A. Capital Goods
B. Natural Resources
C. Human Capital
A. taco
B. cowboy
1944. Literacy Rate C. maestro
A. the percentage of adults who can read
D. student
and write
B. the ability to read and write 1949. was a leader in the banking and
C. None of the above steel industries.
D. how well or how poorly a person or A. Rockefeller

group live in terms of having their needs B. Walker
and wants met
C. Carnegie
1945. Economic growth is defined as? D. Morgan
A. The decrease in productive capacity of E. Vanderbilt
an economy
B. The inverse relationship between 1950. Which is the best definition of a “boom
money and productive capacity and bust cycle”?
C. The increase of the prices of good A. a period of business growth followed
within an economy by a period in industry failures
D. The increase in productive capacity of B. a period of high unemployment fol-
an economy lowed by a growth period

C. a period of low profits followed by a B. FALSE

large growth in an industry
1956. doing or making a lot.

D. a period of growth leading to higher
employment A. productive
1951. Why don’t government planners try to B. net

end seasonal unemployment? C. per capita
A. It would eliminate too many jobs. D. none of above
B. Many people do not want to work all
year. 1957. resources come from nature.
C. It would be too expensive. A. human
D. It is a natural part of a healthy econ- B. natural
omy. C. labour
1952. Which of the following is an example of D. physical
human capital?
A. trucks
economic growth?
B. factories
A. A rise in the standard of living
C. education
B. Increased pollution
D. highways
C. Increased congestion
1953. An appropriate fiscal policy to combat
a recession would be to increase which of D. Inequalities in income and wealth
the following?
1959. This type of government has many laws
A. Interest rates that support the needs and well being of
B. The money supply its citizens e.g free health care, subsidized
housing & childcare, and unemployment
C. Taxes
compensation
A. Reformist socialism
1954. Which of the following causes a fall in B. Bretton woods agreement
SREG? (Select ALL that apply)
C. Welfare state
A. Higher interest rates
D. Federal system
B. Increased wages
C. Increased government spending 1960. What is GDP per capita?
D. A rise in the value of sterling A. The gpd of a single person (total money
E. Lower income tax a single person earns in a year)
B. Total money earned by a country in 1/4
1955. Economic growth should always be the
of a year
top priority of the country, therefore con-
verting ancestral land to productive land is C. Total money earned by a single com-
correct always. pany in a country
A. TRUE D. Total money earned by a household.

1961. What is the main condition necessary A. Raw materials used to produce prod-
for the success of import substitution in- ucts
dustrialization (ISI)? B. Labour and materials
A. Subsidies for domestic industries C. Money and financing
B. Free movement of labor D. Resources used by a company to pro-
C. Liberalized trade duce good and services
D. Protectionist system with tariff barri- 1966. What are decent work characteristics?
NARAYAN CHANGDER
ers
1962. Central Asia has an abundance of min-

eral resources such as gold.
A. True
B. False
1963. What is Gross Domestic Product (GDP)?

A. Earning a lot of money and work little.
B. Having social protection for families,
better prospects for personal develop-
ment and social integration.
C. Working in extreme conditions.
D. All answers are correct.
1967. By devaluing the value of a country’s

A. Goods, services, and intermediate currency, the price of their exports in over-
products bought by consumers in other seas markets will become more expensive
countries. and the price of imports into the country
B. The total value of goods and services will become cheaper.
produced in a country in one year A. True
C. The amount of output the average B. False
worker can produce in an hour.
D. Goals and data provided to the govern- 1968. Which answer choice below defines lit-
ment from entrepreneurs eracy rate?
A. Machines, tools, and factories use to
1964. d. an increase in the government deficit make products and goods
following a decrease in personal income
B. The training that workers need to be
taxes.
good at their job
A. increased economic growth
C. The amount of people over 15 in a
B. decreased economic growth country that can read write
C. no change in economic growth D. none of above
D. none of above 1969. What is the effect of capital goods on
1965. What is the best explanation of factors economics?
of production? A. Fluctuates GDP

B. Increases GDP 1975. Which of the following are associated

C. No impact on GDP with cowboys?

A. buffalo
D. Decreases GDP
B. farms
1970. What happens to GDP when education
C. cattle
levels go up?
D. cowtowns
A. It increases
E. ranches
B. It decreases
1976. An example of capital investment is
1971. a material on or in the earth that has
economic value A. buying computers
A. capital goods B. building an oil rig
B. standard of living C. both
C. human capital D. none of above
D. natural resource 1977. What did reduced taxes contribute to in

the 1920s?
1972. Why did miners in the West create
A. Income inequality
groups of vigilantes?
B. Economic recession
A. To clear forests and prepare for min-
ing. C. Government budget deficits
B. To take control of claims from busi- D. Economic growth and prosperity
nesses.
1978. Wealth, power and accumulation
C. To enforce laws and punish criminals.
A. Power was vested in the kings,
D. To replace independent prospectors. churches and landlords
1973. Agricultural overproduction, scarcity of B. Owning land was not the main form of
money, high shipping costs, and debt wealth
were: C. Peasants were allowed to live on the
A. farmers problems landlords land but had to pay their land-
lord with their surplus production
B. pull factors of westward expansion
D. People settled down permanently on
C. push factors of Irish immigration farms and it led to the growing of sur-
D. monopoly pluses
1974. What do you call a mark burned into the 1979. Why does the author mention that “En-
hide (skin) of an animal claiming owner- glish and Dutch ships carrying rye from the
ship? Baltic states reached Spain and Portugal”?
A. maverick A. To argue that shipping introduced a
range of new products
B. cowboy
B. To contrast the importance of agricul-
C. round up tural products with manufactured prod-
D. brand ucts

C. To suggest how extensive trading rela- A. There was increased demand which
tions were caused inflation.
D. To suggest that England and the B. The cost of living rose by 3%
Netherlands were the two most important C. There was positive economic growth
trading nations in seventeenth-century Eu-
rope D. The output of the industrial sector rose
by 3%
1980. GDP per capita is
1985. Economic growth is possible if there is a
NARAYAN CHANGDER
A. The population divided by total GDP. high inflation rate and high unemployment.
B. Investment as a percentage of GDP. A. True
C. Total GDP divided by total population. B. False
D. The same as GDP per worker.
1986. Refer to the above diagram. If the ini-
1981. The GDP of “Wonderland” is $2380 in tial aggregate demand and supply curves
2020, and $2615 in 2021. What is the are AD0 and AS0, the initial equilibrium
economic growth of Wonderland? price level and real output GDP will be:
A. 8%
B. 9%
C. 10%
D. 11%
E. 12%
1982. Use the information to answer the ques-

tion. Cattle ranching is important for
A. F and C, respectively.
Brazil’s economy. However, large herds
of cattle need lots of space to graze. B. G and B, respectively.
Which of the following industries would C. F and A, respectively.
MOST LIKELY suffer if cattle ranching ex-
D. E and B, respectively.
panded in Brazil?
A. agriculture 1987. What is the main focus of export promo-
tion strategy?
B. lumber
A. Increasing imports
C. manufacturing
B. Liberalising trade
D. mining
C. Promoting domestic industries
1983. alleviates people from low stan- D. Reducing FDI flows
dards of living into proper employment
with suitable shelter. 1988. Define full employment level of output
A. Economic Growth A. an increase in real GDP or the real
B. Economic Development quantity of goods and services produced
over a period of time (typically a year),
1984. South Africa’s economy expands at a and is usually expressed as a percentage
rate of 3%. What necessarily follows change in real GDP or GDP/capita over a
from this statement? period of time

B. refers to the natural rate of unemploy- B. Recession

ment, or unemployment of labour that pre- C. Boom
vails when the economy is producing po-

tential output, or real GDP, determined by D. Recovery
the position of the LRAS curve (long run E. none of the options
equilibrium)
1993. What happens when countries have a
C. refer to the maximum output of combi-
low GPD
in an economy with fixed resources and A. They are higher than others
technology, provided there is full or max- B. They fail at everything
ciency in production, implying zero unem- C. They have weaker economies
ployment D. They have no money
D. levels of income, wealth and consump-
1994. Why would it be unwise for an economy
tion of goods and services, including
to invest all its money in human and phys-
healthcare and education
ical capital?
1989. fencing designed with sharp points A. Overinvestment would cause some in-
A. boll weevil dustries to fail.
B. texas fever B. A country needs to diversify its factors

of production.
C. barbed wire
C. There would be no resources to ad-
D. creates vance technological knowledge.
1990. What are Entrepreneurs? D. No goods and services would be avail-
able to consume.
A. People who sell goods
E. Other countries cou ld copy its pro-
B. People who sell products
cess.
C. People who provide the money to start
and operate a business 1995. Which country among the BRIC coun-
tries has shown the highest economic
D. People who play professional business
growth?
men or women
A. Brazil
1991. The term refers to a person who is
willing to take a risk to start a business B. Russia
that makes a good or service. C. India
A. land D. China
B. labor 1996. What does the expenditure method of
C. entrepreneur measuring GDP include?
D. capital A. C-I + G + NX
1992. Economic activity is at its highest level B. C + I + G + NX

when business cycle reaches its: C. C + I + G-NX
A. Trend D. C + I-G + NX

1997. Entrepreneurs (a) take risks and (b) in- 2000. The separate emirates were called Tru-
novators which sets them apart from the cial states
rest of the labor force. A. True
A. a do
B. False
B. b are
C. do not 2001. investing in the humans who produce
goods or services
D. are not tagsS2789894
NARAYAN CHANGDER
A. Economic Continuum
1998. What is one solution for welfare costs?
B. Economy
A. Decrease the retirement age.
C. Human Capital
B. Decrease the number of young people
entering the workforce. D. Capital Goods
C. Raise the amount of money given to
2002. An increase in the number of workers
the retired people.
produces
D. Raise the retirement age.
A. More output and potential GDP in-
1999. What is the difference between crease
claimant count measure and labor force
B. More output and potential GDP de-
survey measure in measuring the unem-
creases
ployment?
C. Less output and potential GDP in-
A. The claimant count measure is based
creases
on the number of people claiming unem-
ployment benefits, while the labor force D. Less output and potential GDP de-
survey measure includes those who are creases
out of work and actively seeking employ-
ment. 2003. Routes taken to get cattle to auction is
called
B. The claimant count measure includes
those who are out of work and ac- A. Brand
tively seeking employment, while the la- B. Texas Railroad Commission
bor force survey measure is based on the
number of people claiming unemployment C. Cattle Trail
benefits. D. Treaty of Medicine Lodge
C. The claimant count measure is based
on the number of people claiming unem- 2004. Countries with strong, well-funded edu-
ployment benefits, while the labor force cation systems generally have
survey measure includes only those who A. fewer trading partners than other
are out of work and actively seeking em- countries
ployment.
B. higher unemployment than other coun-
D. The claimant count measure includes tries.
only those who are out of work and ac-
tively seeking employment, while the la- C. lower populations than other coun-
bor force survey measure is based on the tries.
number of people claiming unemployment D. more entrepreneurs than other coun-
benefits. tries

2005. What does Per Capita Mean?

A. Per Household

B. Per Object
C. Per Worker A. $2, 177.99
D. Per Person B. $4, 233.42
2006. A positive output gap puts up with pres- C. $6, 100.23
sure on inflation D. $8, 461.54
2011. What is represented on the x-axis on
B. No, I don’t understand this from the the AD/AS Model?
notes A. Price Level
C. No, I don’t understand this, as I have B. Growth
not read the notes
C. Real Output GDP
D. none of above
D. Nominal GDP
2007. What can cause a production possibili-
2012. Between 2002 and 2007, approxi-
ties curve to move to the right?
mately 18 million Latin American house-
A. Thousands of people relocate out of holds moved out of poverty.Which change
the country in the region is most likely to have caused
B. A pandemic kills thousands of young this fall in poverty?
men and women A. An increase in economic growth
C. A new invention lowers the cost of pro- B. An increase in inflation
duction C. A reduction in employment
D. The population grows increasingly old D. A reduction in exports
2008. When taxes decrease, consumption 2013. The supervisor explained to Greg, the
A. increases, so aggregate demand shifts owner, they were waiting for the repair-
right man to come and fix the hydraulic press
that stamped the grommets out of steel.
B. increases, so aggregate supply shifts
The supervisor explained that it was the
right
sixth time in the last three months the
C. decreases, so aggregate demand press had broken and stopped production.
shifts left
A. Greg should have obtained more natu-
D. decreases, as aggregate supply shifts ral resources for the grommet factory.
left
B. Greg should have invested in the hu-
2009. A country investing in education man capital of the employees who work
at the grommet factory.
A. Human Capital
C. Greg should have invested in new cap-
B. Capital Good ital goods for the grommet factory.
2010. Which of the following is the MOST rea- D. Greg should have hired employees
sonable to conclude about Nigeria’s GDP with more entrepreneurship to work in the
per capita? grommet factory.

2014. A material on or in the earth that has 2019. How many factors of production are
economic value. there?
A. public sector A. 20
B. private sector B. 11
C. 4
D. literacy rate
D. 2
NARAYAN CHANGDER
2015. Which of the following is famous for
saying, “I will fight no more forever”? 2020. What is the consequence of a country
aging before growing rich?
A. Custer
B. Sitting Bull A. Increased investment in productivity-
boosting skills
C. Crazy Horse
B. Higher economic growth
D. Chief Joseph
C. Decreased spending on health care
2016. True or False:Entrepreneurship can stim- and pensions
ulate economic growth by creating new
jobs and industries. D. Slower growth and difficulty in invest-
ing in infrastructure
A. True
B. Entrepreneurship only benefits the in- 2021. Real GDP may increase for two differ-
dividual entrepreneur ent reasons:The economy may return to
C. False full employment in the expansion phase of
the business cycle or potential GDP may
D. Entrepreneurship has no impact on increase.
economic growth
A. True
2017. What is the difference between GNI and
B. False
NNI?
A. NNI is GNI minus depreciation and in- 2022. How has the Saudi government used its
direct taxes. national wealth to change the country?
B. NNI is GNI plus depreciation and indi- A. All Saudi citizens are given an equal
rect taxes. share of the national wealth.
C. NNI is GNI plus subsidies and transfer
B. The Saudi government has spent very
payments.
little to improve the lives of citizens.
D. NNI is GNI minus inflation and direct
taxes. C. A majority of the national wealth has
been given to religious organizations in
2018. What is the immediate reason that the country.
some countries are rich? D. The government has paid for improve-
A. Their workers are very productive ments in transportation, education, health
B. They have good institutions care, and agriculture.
C. They have a lot of physical capital 2023. In which country are the people ex-
D. They have a dependable legal system pected to live the longest?

2028. It is risky and expensive to be an en-

trepreneur because they often (or bor-
row it) to start their business

A. reduce the risk
B. fresh ideas
A. India C. creates more jobs
B. United States D. invest their own money
C. Australia E. could lose money
D. Nigeria
2029. a naturally-made item, such as a tree,
2024. What is one of the reasons for the lim- mineral, or fresh water, that people can
ited economic growth of the BRIC countries use to help meet a need or want
after 2010? A. tv screens
A. Decrease in commodity prices B. telephones
B. Increase in commodity prices C. natural resource
C. Political instability D. tires
D. Lack of foreign investment
2030. What are capital goods?
2025. What is the main goal of trade liberal-
ization?
A. To increase environmental regulations
B. To increase government revenue
C. To reduce trade barriers
D. To increase unemployment A. the factories, machinery, and technol-
2026. Samuel Morse invented the
B. goods that are produced without natu-
A. Model T (assembly line car) ral resources
B. telegraph
2031. Through which of the following combi-
C. telephone nations do firms produce output?
D. light bulb and electricity power plant A. capital and labour
E. airplane B. capital and productivity
2027. Which of the following would be likely C. labour and productivity

to lead to a fall in the level of exports? D. labour and land
A. An increase in foreign incomes. 2032. Which of the following best describes
B. An increase in inflation rates among Human Development?
trading partners. A. It measures high, low and middle in-
C. An increase in free trade. come countries.
D. An increase in the exchange rate. B. It is the environment people grow in.

C. It is used to compare countries to see replaces the question marks in the timeline
what life would be like. above?
D. It is a concept that provides a more ac- A. Texas becomes and independent coun-
curate picture of how well people are liv- try
ing in each country.
B. The city of Austin become the capital
2033. Actual economic growth is a situation of Texas
where an economy’s growth is fueled by C. Texas joins the Confederate States of
NARAYAN CHANGDER
high total spending in an economy. America
A. True D. Mexico invades Texas
B. False
2038. Brownville’s GDP impressively in-
2034. Which statement below describes en- creased 9.2% from 2006 to 2007. This
trepreneurship? fact supports which statement about
A. The ability to harvest and use natural Brownville’s workforce?
resources to create products to be sold to A. During this time, there was less immi-
consumers. gration into Brownsville.
B. Machines, tools, and devices used for B. Brownville’s workforce is producing
production. fewer goods now than it did before inde-
C. Putting together productive resources pendence.
to produce a good or service. C. This increase in production can only be
D. The physical talents of people to build explained by Brownville’s workforce get-
things. ting larger.
D. Since the 1990s there has been an in-
2035. Real GDP is:
crease in spending on education and train-
A. The value of all goods and services pro- ing.
duced in a country within a given period
2039. Which part of Europe has the lowest lit-
B. The value of all final goods and ser-
eracyrates?
vices produced in a country within a given
period, adjusted for inflation A. Eastern Europe
C. The total income of a country B. Balkans
D. The total wealth of a country C. Northern Europe
2036. A garbage truck driver is an example of D. All of Europe has high literacy rates
which Factor of Production?
2040. Long-run growth shows an increase in
A. human capital the trend rate of growth
B. land (natural resources) A. Yes, I understand this from the notes
C. entrepreneurship B. No, I don’t understand this from the
D. capital notes
2037. TX Declaration of Independence C. No, I don’t understand this, as I have

1836US annexes Texas 1845Gadsden not read the notes
Purchase 1853? 1861 Which event best D. none of above

2041. What do countries with strong, well- C. To reduce government intervention

funded education systems generally have? D. To provide economic aid for recon-
Analyze the image for a tip.

struction
2045. What is Nominal GDP?

A. Using inflation to show growth
B. Using current value of money on the
day
C. Seeing changes to output
D. Showing the growth of an economy by
A. lower populations than other countries looking at output increases
B. more entrepreneurs than other coun-
tries 2046. MOST LIKELY if a country has a high lit-
eracy rate they will have a
C. higher unemployment than other coun-
tries A. low standard of living
D. fewer trading partners than other B. high standard of living

countries C. Traditional economy
Explanation:Click on the image for a hint. D. standard of living that stays the same
2042. the total dollar value of all goods and 2047. In the Lewis model, what does the term
services produced in one year defines “surplus labor” refer to
what ?
A. An amount of labor that is so high that
A. Gross Domestic Product (GDP) it deflates wages throughout the economy
B. Taxable income B. Labor that does not have at least a pri-
C. tariffs mary level education
D. Standard of living C. Labor that can be withdrawn from the
low productivity agricultural sector with-
2043. The diagram shows a country’s produc- out a decrease in the total production
tion possibility curve and a number of al-
D. Labor that is exploited by the capitalist
ternative production points. Which change
class
in the country’s output would be most
likely to lead to a fall in potential growth? 2048. During times of economic recession the
A. U to V unemployment rate usually
B. U to X A. stays around 25%.
C. Y to X B. stays the same.
D. Y to Z C. increases.
D. decreases.
2044. What is the main objective of the Mar-
shall Plan in post-World War II Europe? 2049. Which of the following is an ‘injection’
A. To increase debt burden on recipient into the circular of income?
countries A. Savings
B. To promote international trade B. Taxation

C. Imports 2055. What role does education play in eco-

nomic growth?
D. Exports
A. Education enhances economic growth
2050. Saudi Arabia’s specializes in the oil pro- by developing human capital and improv-
duction. The government maintains training labor market outcomes.
ing programs to ensure that workers have
B. Education hinders economic growth by
the skills needed to produce oil. This is an
increasing unemployment rates.
example of investing in what?
NARAYAN CHANGDER
C. Education has no impact on economic
A. capital resources
growth.
B. human capital
D. Education only benefits individuals and
C. natural resources does not contribute to overall economic
growth.
D. entrepreneurs
2056. An inward shift in the PPF depicts
2051. A country investing in skills.
A. human capital
B. capital goods
2052. tools used in the production of goods

and services
A. Economic Continuum
B. Economy
C. Human Capital
D. Capital Goods A. Economic Growth
2053. Based on the following statement, de-
termine whether it will result in positive C. Higher standard of living
OR negative growth AND a shift in PPC D. A recession/Economic decline
OR movement towards the PPC-“A fall in
natural unemployment” 2057. Can a desk be considered human capi-
A. Positive tal?
B. Negative A. Yes
C. Shift in PPC curve B. No
D. Movement towards PPC curve 2058. When labour supply curve shifts left,
equilibrium price will and equilibrium
2054. Lumber is an example of this qty of labour will
A. Capital Goods A. increase / increase
B. Entrepreneur B. decrease / decrease
C. Human Capital C. increase / decrease
D. Natural Resources D. decrease / increase

2059. The maximum potential output of the 2063. The index to measure economic well-
economy is the definition of what? being is

A. Real GDP A. GPD per person.
B. Productive Capacity B. All answers are correct.
C. Inflation rate.
C. Nominal GDP
D. The unemployment growth rate.
D. Net Social Welfare
2064. the measurement of the annual income
2060. Those who risk their own money and re- of citizens in acountry
sources to create a new business or ser-
A. sector
vice.
B. obsolete
A. literate
C. GDP per capita
D. capital
C. entrepreneur E. relationship
D. literacy rate
2065. Which of these might indicate that the
national economy is stable?
2061. What factor of production is repre-
sented by the chart below?Mexico’s Key A. Prices for groceries and other daily
Products:oil, wheat, soybeans, corn and needs go down from year to year.
silver B. Prices for groceries and other daily
needs stay about the same from year to
year.
C. Prices for groceries and other daily
needs go up from year to year.
D. Prices for groceries and other daily
needs are tightly regulated.
A. Entrepreneurship 2066. how do you work out rate of growth?
B. Human Capital A. original GDP/change in GDP
C. Natural Resources B. change in GDP/original GDP
C. original GDP/change in GDP x100
D. Capital Goods
D. change in GDP/original GDP x100
2062. Potential growth measures
2067. What is a key objective of inclusive
A. The growth of the fastest economy in growth policies?
the world
A. To increase income inequality
B. The fastest growth an economy has B. To limit access to economic advance-
ever achieved ments
C. The present rate of growth of an econ- C. To create a more balanced and just so-
omy ciety
D. The rate of growth that could be D. To promote discrimination in the work-
achieved if resources were fully employed force

2068. How are goods transported to Mumbai C. increase taxes

from the rest of India? D. print more money
A. By air
2072. was a leader in the hair care product
B. By road industry.
C. By sea A. Rockefeller
D. By rail B. Walker
C. Carnegie
NARAYAN CHANGDER
2069. Which country controlled most of Africa
(had the largest % of land)? D. Morgan
E. Vanderbilt
2073. Economic growth MOST directly leads to
A. increases in economic actors
B. fluctuations in economic activity
C. increases in tax rates
D. reductions in socia l well-being
E. improvements in living standards
2074. What does obsolete mean? This is what
describes North Korea’s capital goods.
A. Belgium A. old
B. United States B. modern
C. France C. new
D. Great Britain D. perfect
E. Germany 2075. What contributed to increased produc-

tion efficiencies during the 1920s?
2070. What is the role of entrepreneurs in a A. Assembly line production
capitalist society?
B. None of the above
A. To bring ideas, people, and capital to-
C. Both A and B
gether to produce valuable products
D. Standardization of product sizes,
B. To enforce contracts and borrow and
weights, and packaging units
lend money
C. To protect investments through prop- 2076. Productive Resources
erty rights A. the materials and labor used to create
D. To create competitive and open mar- goods and services
kets B. the percentage of adults who can read
and write
2071. What can a government do in order to
C. a good means to send it to another
ensure economic growth?
country to be sold
A. Keep high employment rates D. to bring in a good from another country
B. increase interest rates to sell

2077. Economic growth guarantees develop- B. Decrease AD

ment occurs for all people.
C. Increase SRAS

A. TRUE
D. Decrease SRAS
B. FALSE
2082. If a country does not invest in its hu-
2078. What happens when countries have a man capital, how can it affect the coun-
higher GPD try’s gross domestic product (GDP)?
A. They get more money
A. Investment in human capital has little
B. They have stronger economies effect on the GDP.
C. They fail B. Most workers want to keep their jobs
D. I don’t know what happens and do not care about the GDP.
C. GDP is only affected if workers pay for
2079. In order for a country to have an increas-
the investment out of their own pocket.
ing GDP, it can’t invest in human capital
through education & training, and it must D. GDP may go down because poorly
produce goods that have value to be sold trained workers will not be able to do their
within the country or exported. jobs well.
A. I agree
2083. What would cause AD to decrease?
B. I disagree
A. an increase in tax rates
2080. Countries with a high GDP Per Capita B. a decrease tax rates
usually have a
C. an increase in government spending
D. keeping government spending con-
stant
2084. The opportunity cost of increasing pro-

duction from 4, 000 to 9, 000 boats is
A. high literacy rate and high standard of

living
B. low literacy rate and low standard of
living A. 2, 000 boat
B. 5, 000 boats
2081. What would be the effect of an increase
in imports? C. 2, 000 trucks
A. Increase AD D. 5, 000 trucks

2085. What do entrepreneurs do? 2089. What are some of the economical prob-
lems the pandemic brought?
A. Financial marketing volatility and dis-
ruption to industrial production
B. Rapid devaluation of a currency
C. Raise in the cost of products
D. none of above
NARAYAN CHANGDER
A. represent business at the capital
B. start their own business, invent some- 2090. What are the four types of economies?
thing new, or change the way something A. command, demand, capitalist, commu-
was previously done so that it works bet- nism
ter B. traditional, command, market, mixed
2086. Which one is the correct formula to cal- C. mixed, market, traditional, primary
culate economic growth rate D. None of the above
A. (GDP in current year-GDP in previous
year) / GDP in previous year 2091. Economic growth becomes greater than
population growth.
B. (GDP in current year-GDP in previous
year) / GDP in previous year * 100 A. Stage 1:Traditional Society
C. (GDP in current year-GDP in previous B. Stage 2:Pre-Condition for Take-Off

year) / GDP in current year * 100 C. Stage 3:Take-Off
D. (GDP in current year + GDP in previ- D. Stage 4:Drive to Maturity
ous year) / GDP in previous year * 100
2087. TESLA invents a transportation system
2092. A price index determined by measuring
that is faster and cheaper than current sys-
the price of a standard group of goods
tems. Will economic growth occur? Which
meant to represent the market basket of
growth factor contributed is the cause? (If
a typical consumer.
none, only select one answer)
A. Customer Purchasing Index
C. Consumer Policy Index
C. Physical Capital
D. Inflation
D. Human Capital
E. Economic Environment 2093. The rate of growth of an economy
mainly depends upon
2088. Which of the following is a measure of A. The rate of growth of the labour force
economic growth?
B. The proportion of national income
A. Real GDP per capita saved and invested
B. Productive Capacity C. The rate of technological improve-
C. Net Social Welfare ments
D. All of the above D. All of the above

2094. How do entrepreneurs impact a coun- C. financing the deficit by selling state as-
try’s GDP? sets to private firms

A. if you have better machines, you will be D. ncreasing tax rates to eliminate the
more productive and make more money deficit
B. the more entrepreneurs, then the
more companies, which leads to more 2099. What is being represented by the
jobs, more production, more profit and a “green flow lines”
higher GDP
C. the more entrepreneurs, then the
more companies, which leads to less jobs,
more production, more profit and a lower
GDP
D. none of above
2095. the measure of goods and services pro-

duced ina country within a year A. Flow of Money
A. exports B. Flow of Goods and Services
B. imports
C. Taxes
C. gross domestic product
D. law
D. natural resources
E. economy 2100. Write a statement that describes the re-
lationship between a country’s investment
2096. What is a method to increase economic in human capital, capital goods and it’s
growth? GDP.
A. Increase labour productivity A. Investment in capital goods negatively
B. Reduce government expenditure impacts a country’s GDP.
C. Increase regulations B. Investment in human capital nega-
D. increase unemployment tively impacts a country’s GDP.
2097. Investing in Technology C. Investment in human capital and cap-

ital goods has no impact on a country’s
A. Human Capital GDP.
B. Capital goods
D. Investment in human capital and capi-
2098. Due to a cyclical downturn, a govern- tal leads to an increase GDP.
ment is experiencing a budget deficit.If
the government wishes to stimulate aggre- 2101. What is the main factor that influences
gate demand, which policy would be most economic growth?
effective? A. Land
A. financing the deficit by borrowing from B. Entrepreneurship
the Central Bank
C. Capital Goods
B. financing the deficit by selling bonds to
individuals D. Labor

2102. How does the graphic above explain the 2106. The rate of growth of an economy
relationship between investment in human mainly depends upon
capital and GDP? A. The rate of growth of the labour force
B. The proportion of national income
saved and invested
C. The rate of technological improve-
ments
NARAYAN CHANGDER
D. All of the above
A. There is little difference in the lifetime 2107. What were the two specific measures
incomes of college graduates and high taken under Warren Harding’s economic
school graduates. policy?
B. College graduates will likely have a A. Raising protective tariffs and reducing
higher standard of living compared to high taxes
school graduates. B. Increasing government spending and
C. It is undesirable to graduate from col- raising taxes
lege because you will be put in a higher C. Implementing price controls and re-
tax bracket. ducing regulations
D. There is no economic value in graduat- D. Lowering protective tariffs and in-
ing from High School.’ creasing taxes
2103. What is GDP per capita? 2108. Jeffrey signs his employees up to learn
A. GDP x population how to run a new machine.
B. GDP / population A. Capital Goods
C. GDP + population B. Entrepreneur
D. GDP-population C. Human Capital

2104. Which major Texas city had the largest
population increase due to the Railroad 2109. When a government has the acceptance
Boom? and support of its citizens
A. Galveston A. Dissidents
B. Saint Anthony B. Legitimacy
C. Step C. Federal system
D. dallas D. Nationalization
2105. What industry was huge in Texas fol- 2110. How might an increase in investment
lowing the Civil War? in capital goods affect the economies of
Kenya and Nigeria?
A. agriculture
A. It would lead to a decrease in both
B. oil GDP and GDP per capita
C. cattle B. It would lead to an increase in both
D. railroads GDP and GDP per capita.

C. . It would lead to a decrease in GDP, 2116. Unemployment is most likely to occur

but an increase in GDP per capita. during an economic expansion

D. It would lead to an increase in GDP, A. True
but a decrease in GDP per capita. B. False
2111. What is the main drawback to growth C. 12
and development in developing countries?
D. Mr. Bush
A. Lack of trade liberalisation
2117. Why did Gullah evolve?
B. Excessive government intervention
C. High level of debt repayments A. Because of a need to have a common
language on the Sea Islands
D. Low level of foreign aid
B. Planters brought the Gullah people
2112. does not consider the size of the in- from different tribes
formal economy. The informal economy is
C. Planters freed their mistresses and
also known as the black economy which is
form a group called the “Gullah People”
unrecorded economic activity.
D. Because of the desire to have a written
A. Economic Growth
language
2118. What is Human Capital?
2113. Which is an example of a capital good?
A. Skills, education, training that a
A. Factories worker possesses in order to produce a
B. Education good or service
C. Job Training B. Skills, labor, training that a worker
D. Tariffs possesses in order to make a living
C. Skills, knowledge, training that a per-
2114. If there is improved technique of Produc-
son needs to get a job
tion in both of the goods on a PPC, how
will the PPC will be affected? D. Skills, training, technical education a
worker needs to get hired
A. Leftward shift of PPC
B. Rightward shift of PPC 2119. Name one type of capital good.
C. Movement outwards of the x or y axis, A. raw materials
not both B. equipment
D. None of the above C. tools
2115. Why would a business invest money in D. machinery
capital goods?
2120. True or False:Globalization can lead to
A. if you invest money, you will make
both positive and negative effects on eco-
more money
nomic growth.
B. if you have better machines, you will be
A. False
more productive and make more money
C. more natural resources allows you to B. Only positive effects
make more goods C. Only negative effects
D. none of above D. True

2121. India’s government has invested heav-

ily in factories, modern machinery, and
technology. This investment in is called D.
A. Human Capital
Explanation:The firm is making use of ex-
B. Capital Goods isting resources (in this case labor) so
C. Monetary Capital there is movement closer to the curve,
NARAYAN CHANGDER
D. Currency Exchange but it doesn’t shift the curve outward.
2122. Of the countries below, check all those 2125. Sugar processing is one of Cuba’s most
whose economies are expected to grow in important industries. However, produc-
2020? tion is often slowed by old, inefficient tech-
nology. Based on this information, what
A. USA would would be the BEST way to improve
B. China the efficiency of Cuba’s sugar industry?
C. Germany A. investing in capital goods
D. United Kingdom B. investing in human capital
2123. How can we increase a countries GDP C. reducing quotas on foreign sugar
per capita? D. increasing tariffs on foreign sugar
A. Increase the unemployment rate 2126. What is one way that Brazil has in-
B. Invest in education and healthcare vested in developing its human capital?
C. Increase the poverty rate
D. Increase the tax rate

change:firms hire more workers
A. A. Providing free public education for stu-

dents.
B. Improving access to electricity for
farmers.
C. Updating factory equipment and ma-
B. chinery.
D. Expanding highways and railroads.
2127. Actual economic growth is caused by

an increase in quality and quantity of re-
C. sources.
A. True
B. False

2128. How does entrepreneurship impact eco- 2133. The production possibilities frontier
nomic growth? shows the combinations of two prod-
ucts that may be produced in a particular

A. By creating new businesses, jobs, and
innovations that increase productivity and time period with available resources.
stimulate economic activity. A. minimum attainable
B. Entrepreneurship only benefits large B. maximum attainable
corporations and not the overall economy C. only
C. Entrepreneurship leads to increased D. equitable
unemployment and decreased productiv-
ity 2134. A positive output gap will occur during
a boom when the economy is overheating
D. Entrepreneurship has no impact on
economic growth A. Yes, I understand this from the notes
2129. This man hired a team of experts to cre- notes
ate practical inventions.
A. Thomas Edison not read the notes
B. Alexander Graham Bell D. none of above
C. George Washington Carver 2135. What is the only thing that makes an
D. Elias Kodak economy grow in the long run?
A. Increases in labour productivity
2130. LRAS curve shift to right to show poten- growth
tial economic growth
B. Decreases in labour productivity
A. True growth
B. False C. Increases in the labour force
2131. When something loses its value, we call D. Decreases in the labour force
this
2136. AD curve shift to right to show actual
A. salaries economic growth
B. depreciation A. True
C. inflation B. False
D. subsidy 2137. Economic growth can be seen by an out-
ward shift of
2132. The rate of growth of an economy
mainly depends upon A. The Production Possibility Frontier
B. The Gross Domestic Product
A. The rate of growth of the labour force
C. The Marginal Propensity Curve
B. b)The proportion of national income
saved and invested D. The Closer Economic Relations
C. c) The rate of technological improve- 2138. What did buying on margin refer to in
ments the context of the stock market?
D. d) All of the above A. Investing in mutual funds

B. Selling stocks short B. 3 branches

C. Purchasing stocks with cash C. 4 branches
D. Borrowing money to purchase stocks D. 5 branches
2139. A person who starts a business is called 2144. Something of value that can be claimed
a/an by a lender if a loan is not repaid
A. human capitalist A. Property
B. Creditor
NARAYAN CHANGDER
B. entrepreneur
C. natural resource operator C. Collateral
D. servicer D. Interest
2140. Which of the following is a disadvan- 2145. Which of the following is not consid-
tage of import substitution strategy? ered an ‘injection’ in the circular flow of
income?
A. It leads to inflation
A. Investments
B. It encourages R&D investment
B. Exports
C. It protects jobs in the long run
C. Savings
D. It promotes competition
2141. Which best describes the reason for in-
2146. When a government changes the laws
equality in Cambridge?
regarding land ownership and redis-
A. Well paid jobs in Cambridge require tributes land based on those laws.
highly skilled professionals and therefore A. Bretton Woods Agreement
people with fewer qualifications have to
manage high house prices without high B. Federal system
salaries. C. Land reform
B. High house prices mean that some D. Socialized medicine
people cannot afford housing.
2147. Which of the following countries has the
C. Jobs require particularly high qualifi- LEAST amount of natural resources?
cations in some areas and therefore not
everyone can access highly paid jobs. A. a. Democratic Republic of Congo
D. Many of the jobs in Cambridge are well B. b. the United States

paid and therefore house prices increase C. c. Kuwait
as people are able to pay more and want D. d. Japan
to live close to their jobs.
E. And. Russia
2142. True or False Developing Countries have
2148. Government program created to encour-
strong infrastructure
age settlement in the western territories.
A. True
A. Homestead Act
B. False
B. Cowtown Act
2143. Virginia’s government consists of C. National Grange
A. 2 branches D. none of above

2149. What is the role of education in human B. land, entrepreneurship

capital? C. land, capital

A. Education has no impact on human cap- D. capital and land, entrepreneurship
ital.
2153. What was the main purpose of buying
B. Education enhances human capital by
stocks on margin?
developing knowledge, skills, and abilities
that increase productivity and economic A. To leverage borrowed money for po-
value. tential higher returns
C. Education decreases human capital by B. To minimize investment risk
wasting time and resources. C. To diversify investment portfolio
D. Education only improves human capi- D. To invest in long-term bonds
tal in certain industries.
2154. “This is all of the goods that are pro-
2150. How does voluntary trade help the econ- duced in the country and then used to make
omy other goods & services.” Which produc-
tion factor is this?
A. Voluntary trade mean prices will al-
ways be low. A. Human Capital
B. Voluntary trade only works when tar- B. Capital Goods
iffs are in place. C. Entrepreneurship
C. This sort of trade involves many gov- D. Natural Resources
ernment regulations
2155. How can a country increase their GDP?
D. It encourages specialization and usu-
A. Spend less money on education
ally means more profit.
B. Spend less money on healthcare
2151. List two factors contributing to inequal- C. Invest more money in technology
ity.
D. Spend less money food
A. Unequal distribution of wealth and in-
come, lack of access to education and 2156. What can shift LRAS to the right?
healthcare A. increase in taxes
B. Government policies and regulations, B. Increase in investment
lack of access to technology and internet C. decrease in taxes
C. Equal distribution of wealth and in- D. decrease in investment
come, lack of access to education and
healthcare 2157. An increase in which of the following
D. High taxes on the wealthy, lack of ac- would be most likely to increase long-run
cess to transportation and housing growth?
A. Pension payments
2152. Compensation of employees is the pay-
B. unemployment compensation
ments for labor services, net interest,
rental income, corporate profits, and pro- C. tariffs on imported capital goods
prietors are the payment for and profit D. tariffs on imported oil
for E. subsides to businesses for purchases
A. entrepreneurship, capital and land of capital goods

2158. Calculate the economic growth rate if A. The poverty cycle only affects individ-
GDP was £100 billion in Year 1 and £102 ual households and does not impact eco-
billion in Year 2. nomic growth.
A. 1% B. The poverty cycle increases productiv-
B. 2% ity and access to education and health-
care, and creates high consumer demand.
C. 10%
C. The poverty cycle reduces productivity,
D. 20% limits access to education and healthcare,
NARAYAN CHANGDER
and creates a lack of consumer demand.
2159. Which of the following is not a form of
labour? D. The poverty cycle has no impact on eco-
nomic growth.
A. children’s work
B. adult’s work 2164. The total GDP divided by the population
of the said country
C. machine’s work
A. Real GDP
D. immigrant’s work
B. Nominal GDP
2160. Which of the following does not fall C. GDP per capita
within the category of land as a factor of
production? D. Other things being equal
A. A building 2165. What occurs over decades and genera-

B. Trees tions, when seemingly small differences of
a few percentage points in the annual rate
C. Coal of economic growth make an enormous dif-
D. Water ference in per capita GDP?
A. Convergence
2161. Which country in order of GDP is the
highest B. Human Capital
A. Brazil C. Labor Productivity
B. Cuba D. Sustained Economic Growth
C. Haiti 2166. In the long run, sustained economic
D. Mexico growth requires ?
A. A stable political system
2162. I calculated the country’s education
spending by diving its education budget by B. Consistent weather patterns
its population. C. Growth in the factors of production
A. economy D. A fixed exchange rate
B. per capita
2167. It is often argued that the present rate
C. net of economic growth will soon lead to the
D. none of above exhaustion of reserves of material re-
sources, such as minerals and oil. What
2163. Explain how poverty cycle impacts eco- does this argument fail to take into ac-
nomic growth. count?

A. the drawbacks of present GDP levels 2172. What does a Tax Commissioner do to
as an indicator of the ‘happiness’ of the help govern a city?
population

A. -Pays taxes for county-Maintains Tax
B. the effect of increasing resource Records-Receives Tax Returns
prices on the discovery and exploitation of B. -Sets the amount of income a person
new reserves can receive
C. the right of future generations to enjoy
C. -Judges a court hearing
present standards of living
D. Helps the sheriff keep the citizens
D. the role of education in economic de-
safe.
velopment
2173. What best refers to the the widespread
2168. What does the smooth upward sloping
use of power-driven machinery and the
line on the diagram represent?
economic and social changes that occurred
A. Actual growth in the first half of the 1800s?
B. Trend growth A. Mercantilism
C. Boom phase B. Industrial Revolution
D. Recession phase C. Modern Economic Growth
2169. movement of settlers into the American D. Special Economic Zone
West, began with the Louisiana Purchase
and the belief in “manifest destiny”. 2174. What is an example of capital goods?
A. Westward Expansion A. tools
B. Buffalo Soldiers B. equipment
C. James Hogg C. technology
D. Open-range system D. lumber
2170. What does “gross domestic product” E. all of the above

mean? 2175. Which of the following is NOT a function
A. Total number of natural resources. of education?1. Improve skills2. promote
B. GDP per capita leisure time activities3. produce knowl-
edge and improve creativity4. promote
C. Total number of people that cannot ethical behaviour and pass on cultural val-
read or write. ues and traditions
D. Total value of goods & services pro-
A. 1
duced in one year.
B. 2
2171. Which Cuban industry depends mostly
C. 3
on a labor force with a high human capi-
tal? D. 4
A. Cuba’s tourist industry 2176. something that comes from Earth or na-
B. Cuba’s health care industry ture that is useful to humans
C. Cuba’s tobaccos industry A. Natural resources
D. Cuba’s sugar and agri-businesses B. Economy

C. Human Capital D. the man-made materials that are

D. Entrepreneur needed to produce goods and services
2177. Free zone is the basic physical and orga- 2183. A fall in unemployment affects which de-
nizational structures and facilities. terminant of consumption most directly?
A. True A. Interest rates
B. False B. Asset prices
NARAYAN CHANGDER
2178. Limited formal education prevents eco- C. Consumer confidence
nomic development. D. none of above
A. true
2184. When countries focus on making certain
B. false
goods because they are cheaper and more
2179. The principle established that protects efficient to make. Also known as “Do
individual and entity rights to use their what you do best, and trade for the rest”.
property as they see fit; This must be clear, A. Imports
public, fair, and enforced, and applicable to
all members of society? B. Exports
A. Contractual Rights C. Specialization
B. Convergence D. Globalization
C. Let it happen
2185. A policy focusing on technological in-
D. Rule of Law novation impacts sustainable economic
growth by:
2180. Which of the following defines economic
growth? A. Reducing the need for skilled labor
A. Increase in exports B. Increasing short-term environmental
B. Increase in Government revenue harm
C. Increase in total output C. Enhancing long-term productive effi-
ciency
D. Increase in Imports
D. Encouraging monopolistic practices
2181. Younger populations require the govern-
ment to spend LESS on education. 2186. Which of the following is NOT a diffi-
A. true culty when measuring GDP?
B. false A. Increases in population may be higher
than output
2182. Good
B. Governments may spend money in the
A. a physical object that is sold to make economy to provide education
money
C. Some income is not declared in eco-
B. the materials and labor used to create
nomic data
goods and services
D. Spending on regrettable distort data
C. a good means to send it to another
country to be sold E. Doesn’t take into account externalities

2187. The Australian government seeks to A. Monopoly

achieve the goal of a strong and sustain- B. Dividend
able rate of economic growth. This is cur-

rently defined as an annual long-term rise C. Vertical Integration
in GDP averaging around: D. none of above
A. 1-2 per cent 2192. Which one of these is not a benefit of
B. 2-3 per cent economic growth?
C. 3-3.5 per cent A. Increased tax revenues spent on edu-
cation
D. above 4-5 per cent.
B. Increased tax revenues spent on
2188. What is the equation to calculate Gross health service
National Income (GNI)? C. Increased pollution and destruction of
A. GNI = GDP + Net Factor Income the environment
B. GNI = GDP-Environmental Costs D. Increased revenues spent on research
anddevelopment
C. GNI = GDP / Population
D. GNI = GDP-Income earned by foreign 2193. What is the definition of GDP?
workers and firms A. The value of all final goods and ser-
vices produced in an economy in a year
2189. Which best describes the goal of mercan-
B. The total income generated by a coun-
tilism?
try’s factors of production
A. To give Africans a share of the profits
C. The value of all goods and services pro-
B. The mother country obtains its wealth duced in an economy in a year, adjusted
by exporting more than it imports for inflation
C. To make merchants rich D. The value of all goods and services pro-
D. To help planters grow more crops duced in an economy in a year, regardless
of location
2190. On a scale of 1 to 10, Mexicans gave
Mexico a score of 6 in the quality of life
survey in 2020.
A. True A. Human Capital

B. False B. Capital Goods
2191. When a company has near complete con- C. Natural Resources
trol of all the business in an industry. D. Entrepreneurship

2195. An individual receives an additional D. none of above

$100 in income and saves $20. Which of
the following is true? 2200. Natural resources are man made.
A. The average propensity to consume is A. True
0.8 B. False
B. The average propensity to consume is 2201. Which country specializes in automo-
0.2 biles?
C. The marginal propensity to consume is
NARAYAN CHANGDER
A. United Kingdom
0.2
B. Russia
D. The marginal propensity to consume is
0.8 C. Germany
D. none of above
2196. What do we call the phase when the
economy improves again after a reces- 2202. A recession is
sion?
A. negative real GDP over 2 successive
A. A boom quarters
B. A reborn B. negative real GDP for 1 quarter
C. An expansion C. a reduction general price level over
D. A high two successive quarters
2197. An entrepreneur needs to be innovative. D. a reduction in investment over a whole

What does that word mean? year
A. comes up with new ideas 2203. National Income is defined as
B. a risk taker A. Total population of a country
C. a follower B. Total area of a country
D. a person who is static (not a constant C. Total number of businesses in a coun-
learner) try
2198. Developing countries, like Trinidad and D. Total value of all goods and services
Tobago, tend to have young populations produced within a country’s borders in a
because the birth rate is specific time period
A. high 2204. An input is
B. low A. A factor of production
2199. A country invests in its human capital by B. An investment
C. An output
A. Allowing people to work without train- D. none of above
ing
B. Buying more tools than another coun- 2205. A developed country often has greater
try economic growth and a developing coun-
try.
C. Building schools and universities, in-
vesting in educational programs and work A. True
training programs B. False

2206. Which of the following are the reasons D. Unequal distribution of wealth and in-
for a potential economic growth to occur? come, lack of access to education and
healthcare

B. Better technology used 2211. MOST of the difference in standards of
living between North and South Korea can
C. Household’s income level increase
b e attributed to differences in
D. Discovery of new resources A. physical capital
2207. There are many similarities between the B. natural resources
US and TX Constitutions. Which one is a C. human capital
difference?
D. governmental institutions
A. US has been amended 27 times, TX has
E. land costs
been amended 450 times
B. US has 3 branches and the TX does not 2212. Which factor BEST explains the price de-
creasing in the Model T automobile?
C. TX has a Bill of Rights and the US
A. Low demand
doesn’t
B. Organized labor
D. TX has a Supreme court and the US
does not C. Mass production
D. Wartime inflation
2208. The ability to read and write at an
eighth grade level is called 2213. Which is NOT an example of a natural
resource?
A. readability rate
A. Land
B. illiterate rate
B. Sun
C. literacy rate
C. Broccoli
D. writerability rate
D. Minerals
2209. Factories, machines, technologies, and
2214. Wealth of a nation, minus depreciation
property are all examples of
is
A. human capital A. GDP
B. natural resources B. GNP/GNI
C. gross domestic product C. NNI
D. capital goods D. GVA
2210. Explain two factors contributing to in- 2215. How is the economic growth of a coun-
equality. try measured?
A. High taxes and government regula- A. by comparing to other countries
tions, lack of technological advancement B. by analyzing natural and produced re-
B. Equal distribution of wealth and in- sources
come, lack of access to education and C. by studying the types of cars and
healthcare houses the citizens purchase
C. Lack of natural resources, overpopula- D. by comparing the GDP of different
tion years

2216. What caused the cattle ranching indus- 2221. Which branch of Virginia’s government
try to struggle in the late 1800s? enforces the laws?
A. Farmers fenced off land where cattle A. executive branch
could previously graze freely.
B. legislative branch
B. A severe drought led to the death of
grass on the prairie. C. judicial branch
C. WIldfires killed large number of cattle. D. none of above
NARAYAN CHANGDER
2222. What is Not an example of human capi-
D. none of above
tal?
2217. Which taxes were eliminated or low- A. How much money a person spends
ered during the 1920s?
B. Talents
A. Taxes on luxury items
B. Taxes on foodstuffs and consumer C. Skills
goods D. Education
C. Taxes on freight and transportation
2223. The diagram shows a Lorenz curve, with
D. All of the above two areas, X and Y, identified. How is the
2218. Would the following be included or not corresponding Gini coefficient calculated?
included in GDP? Grandpa Smith’s Social
Security check from the government.
A. Included
B. Not included
2219. Which of these examples would de-

scribe growth due to improved physical
capital?
A. Harvard College was founded in 1636
and is still open to this day. A. X divided by (X plus Y)
B. German inventor Johannes Gutenberg B. X plus Y divided by X
invented the printing press C. X plus Y divided by Y
C. The U.S funded the building of the
D. Y divided by (X plus Y)
Panama Canal, completed in 1914.
D. NAFTA was created to promote trade 2224. An organization of workers established
among the North American countries to serve and advance its members’ in-
terests in terms of wages, benefits, and
2220. What product most often comes from
working hours and conditions
the Coastal Plain (Tidewater) region?
A. closed shop
A. seafood
B. coal B. labor union
C. technology C. blacklist
D. apples D. lockout

2225. The number of adults who are able to 2229. Define GDP
read and write in a country is the A. The value of goods and services in an

A. proportion of labor economy in a year
B. GNI B. The value of goods and services pro-
duced in an economy in a year
C. literacy rate
C. The value of goods and services pro-
D. per capita rate
duced in an economy in a 6 month period.
2226. What was one of the main factors that D. The value of goods and services in an
contributed to the economic growth and economy during a year.
prosperity of the 1920s?
2230. Literacy Rate
A. Labor union strikes
A. the percentage of adults who can read
B. Government regulations and write
C. International trade barriers B. someone who buys things
D. Stock market investment C. the man-made materials that are
needed to produce goods and services
2227. What is the potential economic growth?
D. an activity offered as a product that is
A. An increase in the output of an econ-
sold to make money
omy (short-run)
B. An increase in an economy’s produc- 2231. What are the possible advantages of
tive capacity (long-run) economic integration?
C. An increase in an economy’s produc- A. Increased unemployment
tive capacity (short-run) B. Undermining the role of the WTO
D. An increase in the output of an econ- C. Increased trade diversion
omy (long-run)
D. Larger export markets
2232. What does GDP stand for?
A. Georgia Department of Police
B. Georgia Domestic Public
C. Gross Domestic People
2233. Which of the following BEST represents

A. the value of a person’s skills and edu- the role of an entrepreneur?
cation, scientists, doctors, or workers A. A person who creates a new business
B. a person who takes a risk to start a B. A leader (CEO) who runs the business
new business
C. A worker in a factory who gets a raise
C. goods used to make other goods for working hard
D. gifts of the earth-coal, oil, natural gas, D. A student who decides to further their
trees, gold education and get their masters degree

2234. Which of the following is generally re- 2238. A is one company that controls the
garded as the true index of economic whole industry.
growth A. would-opoly
A. An increase in national income at con- B. monopoly
stant prices during a year
C. collective bargaining
B. A sustained increase in real per capita
D. muckraker
income
2239. Which population has the Highest hu-
NARAYAN CHANGDER
C. An increase in national income at cur-
rent prices over time man capital?
D. An increase in national income along

with a corresponding increase in popula-
tion
2235. What part of Europe has low literacy A. South Africa

rates?
B. Nigeria
A. The Balkans
C. Sudan
B. The Appalachians
D. Egypt
C. The Arctic
2240. True or False:Monopolists of the early
D. The eastern side 1900s were nicknamed Robber Barons be-
cause they had ethical business practices
2236. the factories, machines, technology,
and treated their work force well.
tools, equipment, and anyother man-made
goods used to make other goods or ser- A. True
vices B. False
A. how things work 2241. Why has education reform been slow to
B. chief petty officer take place in Sudan?
C. capital goods A. The Quran forbids formal education
among its followers.
D. asphalt
B. Sudan has been involved in civil war for
2237. Which of the following is not primarily many years.
an aggregate demand policy designed to C. It has been difficult to find any teach-
promote economic growth? ers to teach in Sudan.
A. Decreasing the rates of personal and D. Most people are trained to work in the
company tax to decrease incentives and oil fields and do not need to go to school.
profits
2242. The economy of the USA grew by ap-
B. Decreasing interest rates proximately 4% a year between 1990
C. Decreasing income taxes to increase and 2000.What must have increased from
disposable income 1990 to 2000?
D. Policies designed to increase produc- A. average price level

tivity and profits B. gross domestic product

C. labour productivity 2248. Which of these people is officially unem-

D. level of employment ployed

A. A secretary who took 6 months off for
2243. Which country is Bangladesh secretly maternity leave
becoming the richest in?
B. An aspiring actress who waits tables
A. Atlantis but would rather act
B. World
C. Maid who got fired and will start a new
C. Mars job in 2 weeks
D. Narnia D. A student who only works 4 hours a
week in the library
2244. What is economic growth?
A. An increase in the productive potential 2249. Which of the following combinations of
of the economy Fiscal and Monetary policy measures could
be used to promote economic growth
B. A decrease in the productive potential
of the economy A. Increase in government spending and
increase in the rate of interests
C. An increase in the annual change in
real GDP B. Decrease in taxes and increase in the
D. A decrease in the annual change in money supply
real GDP C. Decrease in taxation and decrease in
the rate of interests
2245. What did the elimination of taxes on
freight and transportation do? D. Increase in government spending and
increase in interest rates
A. Had no effect on businesses
B. Led to higher consumer prices 2250. What is the role of demand-side policies
in promoting economic growth?
C. Reduced profits of businesses
A. They focus on increasing government
D. Increased profits of businesses
spending.
2246. What is economic growth? B. They aim to reduce unemployment.
A. an increase in real GDP per capita C. They stimulate aggregate demand.
B. a decrease in real GDP per capita D. They primarily target supply-side fac-
C. an increase in poverty tors.
D. none of above
2251. What does it mean to invest?
2247. What does a country do to its natural A. to put in time, money, or energy in the
resources? hopes that something better will come out
A. Specialize in developing it into a valu- of it
able product. B. education and healthcare
B. Trade them with other countries. C. a person who takes a risk to start a
C. Keep them. new business
D. All of the above. D. none of above

2252. A person opens up a new sandwich shop D. Egypt

and hires people to work at the restaurant E. Congo
is an example of a/an
A. human capital 2256. Which of the following is the term for
“the value of the output of all goods and
B. entrepreneur services produced within a country in a
C. capital goods year”
D. physical capital A. human capital
NARAYAN CHANGDER
B. gross domestic product
2253. An import is a tax aimed to reduce
imported goods. C. capital goods
A. tariff D. entrepreneurship
B. quota 2257. Given a government spending invest-
C. income ment on infrastructure of £10 million, with
a final GDP increase of £45 million, find
D. direct the MULTIPLIER.
2254. Based on the following statement, de- A. 3
termine whether it will result in positive B. 4
OR negative growth AND a shift in PPC OR
movement towards the PPC-“An increase C. 3.5
in quantity of capital goods” D. 4.5
A. Positive 2258. The amendment started prohibition.
B. Negative A. 13th Amendment
C. Shift in PPC curve B. 15th Amendment
D. Movement towards PPC curve C. 20th Amendment
2255. Which 2 areas of Africa remained inde- D. 18th Amendment
pendent during this colonial period?
2259. Which factor of economic growth is All
of the things found in or on the earth;
“gifts of nature”?
A. Entrepreneurship
C. Human Capital
D. Capital Goods
2260. What are the factors that can cause fluc-

tuations in actual growth?
A. Predictable shocks
A. Madagascar B. Demand side shocks
B. Ethiopia C. Supply side shocks
C. Liberia D. Stable economic conditions

2261. What is not a leakage from the circular 2266. Which of the following statements
flow of income? would be classified as “full employment’?

A. expenditure on foreign goods A. Everyone who wants to work has a job
B. indirect taxes B. Approximately 95% of people have a
job
C. undistributed profits
C. People who have been hunting for a
D. unemployment benefits job for a long time
2262. What is the BEST way for a country to D. Everyone who wants to work have full
encourageeconomic growth in its private time jobs
sector?
2267. If the economy were in the contracting
A. restricting trade with other countries phase of the business cycle, how might
B. reducing barriers to entrepreneurship that affect your ability to find work?
C. increasing government spending A. It might be easier to find work because

businesses would be more likely to hire
D. nationalizing important industries new employees.
2263. If Israel’s literacy rate is high, what can B. It might be easier to find work because
be concluded about their standard of living businesses would have fewer workers to
in Israel? choose from.
C. It might be more difficult to find work
A. The standard of living is low in Israel.
because businesses would be less likely
B. The standard of living is high in Israel. to hire new employees.
C. The standard of living is not affected D. It would have no effect on finding
by the literacy rate. work.
D. The standard of living will decrease as 2268. Why are literacy rates for girls lower
the GDP increases. than those for boys in both Kenya and Su-
dan?
2264. How much share/assets can a foreign
investor own for corporations in the Philip- A. Very few schools have been opened for
pines in general? girls in either country.
A. 40% B. Girls have shown they cannot do
schoolwork as easily as boys.
B. 50%
C. Traditional cultures teach that females
C. 60% should marry rather than seek an educa-
D. None of the above tion.
D. Most girls in these countries do not
2265. What is South Africa’s main export want to go to school.
A. Oil
2269. In the circular flow diagram firms pay
B. Textiles wages for which factor of production?
C. Gold and diamonds A. Land
D. Agricultural products B. Labour

C. Entrepreneurship C. The actual level of output that an econ-

D. Raw materials omy produces
D. The maximum level of output that an
2270. Foreigners cannot fully own land in the economy can produce
Philippines.
2275. 22 is
A. TRUE
A. the number of unemployed people in
B. FALSE
the world (in million)
NARAYAN CHANGDER
2271. What was the primary goal of the B. The number of UN’s Sustainable Devel-
Dawes Act? opment Goals.
A. To provide education to American Indi- C. the number of countries who were
ans. likely to see per capita incomes decline in
B. To preserve reservations for American 2020
Indians. D. the percent of the world’s youth that
C. To protect American Indian cultures. weren’t engaged in either education, em-
polyment or training
D. To encourage American Indians to be-
come farmers. 2276. What are the characteristics of a suc-
cessful entrepreneur?
2272. What is a major issue with using Green
A. Determination, passion, creativity, re-
GDP as a measure of economic growth?
silience, adaptability, strong work ethic,
A. Difficulty in putting a monetary value risk-taking ability, leadership skills, and
on environmental costs the ability to learn from failures.
B. Inclusion of informal activity B. Laziness, lack of passion, and fear of
C. Risk of double counting failure.
D. Exclusion of income earned abroad C. Weak work ethic, lack of determina-

tion, and inability to learn from failures.
2273. The total market value of goods and ser- D. Inflexibility, lack of creativity, and
vices produced is aversion to risk.
A. GDP
2277. In a traditional economy, how are eco-
B. GNP/GNI nomic decisions made? In a traditional
C. NNI economy, how are economic decisions
made?
D. GVA
A. Custom and habit
2274. What is the potential output of an econ- B. Government leaders
omy?
C. Consumers and planners
A. The level of output that an economy
could produce if resources were not fully D. Combination of consumers and produc-
employed ers
B. The level of output that an economy 2278. are long-term changes in systems of
could produce if resources were fully em- production and distribution of goods and
ployed services that affecting human welfare.

A. Economic Growth 2283. What is the risk of double counting

B. Economic Development when using GDP as a measure of growth?

A. Including informal activity
2279. Which country was the earliest to reach
the maturity stage according to Rostow’s B. Including income earned abroad
model?
C. Including the value of output in multi-
A. Great Britain ple sectors
B. United States D. Including environmental costs
C. Canada
2284. The Rybczynski theorem claims that
D. Russia
doubling L at constant relative product
2280. What measuring instrument can be used prices:
to assess the level of economic growth in A. doubles the production of the product
a country? What method can be used to of intensity L.
assess economic growth of a country?
B. reduces the production of the K inten-
A. For Capita Income
sity product.
B. Future Income
C. increases production of both products.
C. Gross Domestic Product
D. reduces production of both products.
D. Present Value
2281. Which of the following is a type of aid 2285. Monetary policy to combat deflation
that involves extension on a loan, reduced might include:
rates of interest or an agreement not to A. Raising bank reserve requirements
repay some of the loan?
B. Tightening credit availability
A. Bilateral aid
C. Lowering interest rates
B. Soft Aid
C. Debt relief D. Decreasing money supply
D. Tied aid 2286. Which of the following shifts a PPC out-
2282. Level 3Mutual respect to all customers ward?
A. a recession
B. increase in unemployment
C. increase in resource costs
D. increase in capital stock

being an investor?
A. Integrity and Responsibility
A. Can receive a shar of company profits.
B. Customer Focused
C. Innovative B. Control of day to day decisions.
D. Niche Market C. Seat on board of directors.
E. Quality Performance D. none of above

2288. Estimated total value of goods and ser- 2293. What does Real GDP growth rate take
vices produced in nation in a years time: out?
A. Wage A. Deflation
B. Gross Domestic Product B. Recession
C. Entrepreneurship C. Inflation
D. For Capita D. Stagnation
NARAYAN CHANGDER
2289. If there has been an increased in eco- 2294. If the Organization of the Petroleum Ex-
nomic growth there has been porting Countries reduced its oil production
target, the MOST LIKELY result would be
A. More goods produced in the economy that
B. An increase in the value of goods pro- A. tariffs on oil would increase.
duced in an economy
B. tariffs on oil would decrease.
C. an increase in resources available to C. prices for oil would increase
use in the economy
D. prices for oil would decrease
D. more goods exported overseas than
imported into the country 2295. is a narrower concept than economic
development.
2290. Human capital includes the people
A. Economic Growth
use to produce goods and services.
A. Raw Materials
B. Factories, Machines, & Technology 2296. Desires to create an egalitarian (belief
that people are equal and deserve equal
C. Skils, Knowledge, & Experience rights and opportunities) society.
D. none of above A. Stage 1:Traditional Society
2291. What led boomtowns to turn into ghost- B. Stage 2:Pre-Condition for Take-Off
towns? C. Stage 3:Take-Off
A. People left once there was nothing left D. Stage 4:Drive to Maturity
to extract from the mine.
B. People left due to the high crime rates.
2297. Someone who has an idea and takes a
C. People left because the mine was risk to produce their ideas is a
haunted.
A. entrepreneur
D. none of above
B. nomad
2292. The most accurate method of measuring C. bantu
is the Human Development Index (HDI)
D. miner
which considers the literacy rates & life
expectancy which affects productivity and 2298. What type of jobs are created in Mum-
could lead to Economic Growth. bai’s growing financial and IT sectors?
A. Economic Growth A. Cleaners and mechanics
B. Economic Development B. Taxi drivers and recycling operatives

C. High-skilled and educated positions 2303. The Populist party was most attractive
to
D. Factory workers and small-scale busi-

ness owners
2299. According to paragraph 3, what was

one reason villages had such great eco-
nomic potential?
A. Village inhabitants established mar- A. Business people
kets within their villages. B. Farmers
B. Some village inhabitants made invest- C. Teachers
ments in industrial development. D. Whigs
C. Villages were located in regions where
2304. Which of the following BEST describes
agricultural production was relatively ad-
human capital?
vanced.
A. Anything humans have to offer to an
D. Villages were relatively small in pop- economic system.
ulation and size compared with urban ar-
eas. B. how many people are working in a com-
pany.
2300. If a citizen of Russia wishes to travel
to the United Kingdom for vacation, they C.
should first visit which of these institu-
tions in order to exchange their Russian
rubles for British pounds? D.
A. Bank
B. Stock market 2305. Why did European countries want to im-
perialize Africa?
C. Any British store
D. Any Russian store
2301. True or False:An advantage of mass pro-

duction (on an assembly line) is that there
were interchangeable parts to fix products
available.
A. True
A. They wanted more raw materials and
B. False
new people to sell too
2302. What is the term used to describe a sud- B. They were just mean
den increase in the price of raw materials? C. They needed the land for their people
A. Boom D. Their military needed bases
B. Slowdown 2306. Productivity is
C. Recession A. production
D. Supply side shock B. efficiency

2307. According to Robert Solow, what hap- 2311. Adolf Dassler was the founder of the
pens to GDP per capita as capital in- German sportswear company Adidas. His
creases? brother Rudolf founded Puma. Both of
these Germans are examples of which fac-
A. It increases by a larger amount
tor of production?
B. It increases by a smaller amount
A. capital goods
C. It remains constant B. human capital
D. It decreases
NARAYAN CHANGDER
E. It decreases by a smaller amount D. entrepreneurship
2308. A strong wire with barbs at regular in- 2312. Capital goods are the that are
tervals used to prevent passage is called needed to produce goods and services
A. man-made materials
C. technology
E. boosts a country’s exports
2313. What term best describes the picture?
A. lumber
B. brick
C. barbed wire
D. rope
2309. We can obtain some idea of what is hap- A. entrepreneur

pening to the average standard of living by B. natural resource
looking at what is happening to real GNP
C. human capital
D. economy
A. net investment
B. per head 2314. What does ‘per capita mean?
C. non replacement A. For each company

B. For each country
D. mobility
C. For each household
E. leisure
D. For each individual
2310. True or False:A claim is a topic sentence
2315. GDP of “Water” Countries in 2017 was
that is written as a neutral fact about a
£12489 & 2018 was £13422. If we use
topic.
2018 as the base year, how much will the
A. True Fire Nation’s economy grow?
B. False A. 7.47%

B. 7.74% C. No, I don’t understand this, as I have

C. 7.44% not read the notes

D. 7.77% D. none of above
E. 7.49% 2320. At which stage of the economic cycle
would you expect unemployment to begin
2316. How do literacy rates affect their stan-
to rise / employment begin to fall?
dard of living?
A. The higher the literacy rates the higher A. Recession
the standard of living. B. Recovery
B. The higher the standard of living the C. Slump
lower the literacy rates.
D. Boom
C. The higher the literacy rates the lower
the standard of living. 2321. What is the example of a country that
D. The lower the literacy rates the higher experienced rapid growth once better in-
the standard of living. centives and institutions were put into
place?
2317. Would the following be included or not
included in GDP? Income earned from cash- A. China
ing in a U.S. savings bond. B. United States
A. Included C. India
B. Not included
D. Brazil
2318. Discuss the potential negative effects
of rapid economic growth on the environ- 2322. Based on the following statement, de-
ment. termine whether it will result in posi-
tive OR negative growth AND a shift in
A. Increased pollution, deforestation, PPC OR movement towards the PPC-“The
loss of biodiversity, and depletion of natu- widespread use of a new technology”
ral resources
A. Positive
B. Improved living standards for the pop-
ulation B. Negative
C. Enhanced access to education and C. Shift in PPC curve
healthcare
D. Increased employment opportunities
2323. Which of the following is NOT a goal of
2319. I’m able to show trend growth and ac- a labor union?
tual growth on the same diagram, and I
am able to illustrate the negative output A. ownership in the company
gap and positive output gap on the same B. higher wages
diagram.
C. safer work conditions
D. shorter hours
notes E. no child labor

2324. The most accurate definition of GDP is 2329. If the real GDP for a given period is di-
A. The value of goods and services provided by the size of the population for that
duced in an economy same period, it is known as
B. The value of goods and services pro- A. GDP at factor cost
duced in an economy in a year B. GDP at market prices
C. The ttotal value of goods and services C. real GDP
produced in a year
D. GDP per capita
NARAYAN CHANGDER
D. The total value of goods and services
produced in an economy in a year 2330. Brazil is building new factories and us-
ing newer technology. These are exam-
2325. What is the main natural resource found ples of
in Southwest Asia?
A. Opportunity costs.
A. Trees
B. Gross domestic product.
B. Oil
C. Investment in human capital.
C. Water
D. Investment in capital goods.
D. Gold
2331. GDP (select all that apply):
2326. What are capital goods?
A. tools that make other goods A. measures the monetary value of goods
& services produced within a country in a
B. gifts from nature year
C. value that people bring to the work B. is the Gross Demand Product
force
C. is used to measure economic growth
D. none of above
D. none of the option is correct
2327. How is economic growth and develop-
ment measured? 2332. Human Capital
A. Using indicators such as temperature, A. someone who takes risks to start a
rainfall, and wind speed new business
B. Using indicators such as GDP, GNI, B. the man-made materials that are
HDI, and other economic and social indi- needed to produce goods and services
cators. C. includes the skills and knowledge of its
C. Measuring economic growth and de- people that support the economy
velopment is not possible D. the total dollar value of all goods and
D. By counting the number of cars and services produced by a country in one
houses in a country year
2328. What is Short-Run Economic Growth? 2333. Some American Indians on the Great
A. An increase in Real GDP over time Plains lived in tepees because
B. An increase in the quality/quantity of A. They were difficult for enemies to spot.
the factors of production B. They could support a nomadic lifestyle.
C. Where all factors of production vary C. They would last a long time in a single
D. A shift right in the PPC place.

D. They could be built in many sizes for 2338. Which of these examples would de-
large or small families. scribe growth due to improved human cap-
ital?

2334. Which of the following was NOT a dis-
advantage of urbanization? A. Harvard College was founded in 1636
and is still open to this day.
A. overcrowding
B. German inventor Johannes Gutenberg
B. sanitation issues invented the printing press
C. jobs C. The U.S funded the building of the
D. none of above Panama Canal, completed in 1914.
2335. Use the following quote to answer ques- D. NAFTA was created to promote trade
tion # :“The countries of Latin America among the North American countries
and the Caribbean have invested strongly 2339. A country’s GDP is the total dollar value
in education over the past decades, and of all in one year.
our societies and economies are benefiting
today from this investment. Enrollment
has increased spectacularly in primary and B. goods & services produced
secondary education.” Marcio Barbarosa, C. others do not
United Nations, 2009 What is a likely con- D. per person
sequence of the actions taken in the quote
above? E. weaker economies
A. an increase in unemployment 2340. was a leader in the oil industry.

B. more machinery will be available for A. Rockefeller
use B. Walker
C. a decrease in productivity C. Carnegie
D. an eventual increase in GDP D. Morgan
2336. The country of Brownsville has decided E. Vanderbilt
to invest heavily in new capital equipment 2341. Define maximum output
and technology. The factor that has been
described BEST influences A. an increase in real GDP or the real
A. economic freedom. over a period of time (typically a year),
B. supply and demand. and is usually expressed as a percentage
C. economic growth. change in real GDP or GDP/capita over a
period of time
D. opportunity costs.
2337. What economic practice helps motivate ment, or unemployment of labour that pre-
companies to keep prices low and improve vails when the economy is producing po-
product quality? tential output, or real GDP, determined by
A. Combination the position of the LRAS curve (long run
equilibrium)
B. Consolidation
C. refer to the maximum output of combi-
C. Competition nation of two goods that can be produced
D. Overproduction in an economy with fixed resources and

technology, provided there is full or max- E. less

F. roads
ployment 2346. By including the quotation in paragraph
D. levels of income, wealth and consump- 6 by the financier from Antwerp, the au-
tion of goods and services, including thor is emphasizing that
healthcare and education A. Waiting to pay for goods until the
goods had been delivered
NARAYAN CHANGDER
2342. How do ranchers identify their cattle?
A. branding B. Paying for their purchases through
bills of exchange
B. cattle drives
C. Doing all their business by using Dutch
C. line riders
currency
D. round ups
D. Using third parties in Marseille to buy
2343. What Economic terms refers to the level goods for them
of material comfort available to a person
or community? 2347. How did the Oil Industry and Railroad
Industry affect the Texas Population?
A. Population decreased in the West.
B. Population decreased in the East.
C. Population increased in the East.
D. Population increased in the West.
A. Gross Domestic Product 2348. Jessie’s grandfather tells him that a dol-
B. Standard of Living lar went farther when he was a child than
it does today. What does he mean?
C. Literacy Rate
A. Currency was more durable when he
D. Entrepreneurship
was young.
2344. What is the main source of economic B. A dollar had more purchasing power
growth in Bangladesh? when he was young.
A. Tourism industry C. People today do not take care of their
B. Ready-made garment industry money.
C. Agriculture sector D. U.S. currency is used in more countries
today.
D. Technology sector
2345. With (a) populations, the (b) skills, tal- 2349. What group made up the Buffalo Sol-
ents and (c) the country will have. diers?
A. a larger A. African Americans
B. b more B. Native Americans
C. c creativity C. Mexican Americans
D. smaller D. German Americans

2350. What is the relationship between the B. Economic growth is the increase in
cattle industry and the railroad industry? quality of life and well-being, while eco-
nomic development is the increase in

A. There is no connection between the
quantity of goods and services produced.
cattle industry and the railroad industry
C. Economic growth is the decrease in
B. Cattle ranchers would set up their
quantity of goods and services produced,
ranches along train stations
while economic development is the de-
C. Cattle ranchers would also invest in crease in quality of life and well-being.
railroad companies D. Economic growth is the increase in
D. The end destination of cattle trails was quantity of goods and services produced,
the railroad stations that would take cat- while economic development is the im-
tle to markets provement in quality of life and well-being.
2351. The degree to which an individual is 2355. South Carolina and other British colonies
healthy, comfortable, and able to partici- developed their own economies without
pate in or enjoy life events much interference from their mother coun-
try
A. Quality of Life
A. True
B. Economic Growth
B. False
2356. Which of the following is the biggest dif-
D. Economic Development ference between an employee and an en-
trepreneur?
2352. What is a recommended policy for ad-
dressing inequality?
A. Abolish all taxes
B. Implement flat taxation
C. Ignore inequality
D. Implement progressive taxation
2353. What best refers to a combination of in-

vention (advances in knowledge) and inno-
vation, which is putting those advances to A. an employee is the boss, an en-
use in a new product or service? trepreneur has a boss
A. Human Capital B. an employee uses capital goods, an en-
trepreneur uses human capital
B. Labor Productivity
C. an employee has a boss, an en-
C. Physical Capital trepreneur is the boss
D. Technological Change D. an employee uses human goods, an en-
trepreneur uses capital goods
2354. What is the difference between eco-
nomic growth and economic development? 2357. As a result of the Regulator Movement,
A. Economic growth and economic devel- the government of South Carolina
opment are the same thing. A. Created a new political system

B. Dissolved the plantation system A. Capital per worker increases and Out-
C. Established circuit courts in the Back- put per worker increases
country B. Capital per worker increases and Out-
D. Regulated trade with the Native Amer- put per worker decreases
icans C. Capital per worker doesn’t change and
Output per worker increases
2358. How did increased production efficien-
D. Capital per worker decreases and Out-
cies impact the cost of goods?
put per worker increases
NARAYAN CHANGDER
A. Had no effect on the cost of goods E. Capital per worker decreases and Out-
B. Increased the cost of goods put per worker decreases
C. Made goods unavailable 2363. The American Federation of Labor dif-
D. Lowered the cost of goods fered from the Knights of Labor in that it
A. Opposed strikes.
2359. What is Entrepreneurship?
B. Held meetings in secret.
A. Job shadowing for customers
C. Included several trade unions.
B. The process of working under a boss
D. Supported unskilled laborers.
C. The process of starting, organizing,
managing, and assuming the responsibil- 2364. Which diagram best fits the following
ity for a business change:A discovery of new oil reserves
D. Working the cash
2360. A student decides to open his own A.

lemonade stand in order to make money
to buy an Xbox. This is an example of:
A. Human Capital
B. Entrepreneur
C. Capital Good B.
D. none of above
2361. What benefit occurs when even small

changes in the rate of growth are sus-
tained and compounded over long periods
C.
of time?
B. Increased Human Capital
C. Increased Standard of Living
D. Improved Labor Production D.
2362. An increase in net investment leads to

faster economic growth because capital Explanation:Having a new source for a re-
per worker and output per worker will source (”oil reserves”) expands an econ-
change in which of the following ways? omy’s overall possible production power.

2365. a person who takes a risk and starts C. human

their own business D. none of above

2371. What is the term for a good that can’t
B. Economy
be shared between more than one person
C. Human Capital without diminishing it?
D. Entrepreneur A. Rival good
2366. the total value of all the goods and B. Non-rival good
services produced within a country in one C. Excludable good
year
D. Non-excludable good
A. Human Capital
E. Scarce goods
C. Literacy Rate 2372. Service
D. Gross Domestic Product (GDP A. a physical object that is sold to make
money
2367. Which crops were on the “enumerated
B. the system of how money is made and
list” of products that could be sold only to
England?
A. Beef and rice C. the materials and labor used to create
goods and services
B. Rice and Indigo
D. an activity offered as a product that is
C. Naval stores and beef sold to make money
D. Naval stores and rice
2373. How does the Organization of the
2368. Economic growth is Petroleum Exporting Countries (OPEC)
A. Quantitative achieve its goal of stabilizing the world-
wide price for oil?
B. Qualitative
A. by setting member production quotas
2369. How do entrepreneurs influence eco- to lower the overall supply of oil
nomic growth?
B. by purchasing most of the oil available
A. They create and sell good and services, on the market from nonmembers
which people use money to buy
C. by arranging exclusive contracts with
B. They only produce goods and services private and nationalized oil companies
for themselves
D. by using its vote on the United Nations
C. They do not invest their own money, in- Security Council to set acceptable prices
stead they take from the population
D. none of above 2374. Private Sector
A. Those who risk their own money and
2370. are the most important resources in resources to create a new businesses or
a country. service.
A. natural B. The part of the economy owned and op-
B. physical erated by private citizens

2375. gross domestic product expressed in 2380. According to the HSBC Global Connec-
constant, or unchanging, prices tion survey, what percentage of firms al-
A. gdp ready operating in Indonesia are planning
to prioritize their growth in the country
B. nominal gdp over the next two years?
C. real gdp A. 20%
D. personal income B. 15%
2376. What is the main challenge faced by
NARAYAN CHANGDER
C. 25%
Bangladesh in terms of political stability? D. 22%
A. Frequent political unrest and violence
2381. Government established rules to pre-
B. High literacy rate
vent businesses from harming citizens.
C. Strong political leadership
A. Regulations
D. Lack of natural resources
B. Reservations
2377. Countries with a higher GDP per capita C. Populism
have stronger economies, while countries
D. none of above
with lower GDP per capita have
A. productive resources 2382. Describe the impact of poverty cycle on
society.
B. goods & services produced
A. Increased crime rates, lower educa-
C. others do not
tional attainment, poor health outcomes,
D. per person and perpetuation of inequality
E. weaker economies B. Increased economic growth, higher
employment rates, improved infrastruc-
2378. A suitable policy to address a deflation-
ture, and reduction of poverty
ary gap would be:
C. Decreased crime rates, higher educa-
A. Decreasing government spending
tional attainment, improved health out-
B. Raising interest rates comes, and reduction of inequality
C. Lowering taxes D. No impact on crime rates, educational
D. Reducing minimum wage attainment, health outcomes, or inequal-
ity
2379. What are the four basic factors that in-
fluence economic growth in ANY part of 2383. Many of the hostilities and conflicts
the world? between the Native Americans and Euro-
A. natural resources, capital goods, hu- peans occur as a result of
man resources, and technology A. Hostile Indian leaders who did not like
B. natural resources, capital goods, hu- the white settlers
man resources, entrepreneurship B. Different understandings about land
C. natural resources, capital goods, hu- ownership
man nature, machines C. Not being able to speak the same lan-
D. natural resources, capital goods, ura- guage
nium, entrepreneurship D. Conflicting religious beliefs

2384. Argentinean players paying PLAY STA- A. Total amount of money deposited in
TION PLUS service in dollars: the bank each year.

A. Argentina Balance of payment in- B. Total value of all natural resources in
creases a country.
B. Argentina Balance of payment de- C. Total value of goods and services pro-
creases duced in one year.
C. Argentina Balance of payment remains D. Total value of goods and serviced pro-
the same duced in ten years.
D. none of above 2390. Which of the following is a cost of eco-
nomic growth?
2385. How is GDP per capita calculated?
A. Increase in employment opportunities
A. GDP * Population
B. Increase in national income
B. GDP-Population
C. Increase in standard of living
C. GDP / Population
D. Increase in environmental problems
2391. The US Government commits to only
2386. What type of GDP is calculated with the
purchase American-made products moving
current year’s prices?
forward. Will economic growth occur?
A. Nominal GDP Which growth factor contributed is the
B. Real GDP cause? (If none, only select one answer)
C. GDP per capita A. Growth will occur
D. none of above B. Growth will not occur

C. Technology
2387. Which is an example of a natural re-
source? D. Human Capital
A. A desk E. Economic Environment
B. A computer 2392. Efforts to improve the welfare of the

C. An evergreen forest people are
D. A private business
2388. Which countries were included in the

term ‘BRIC’?
A. Brazil, Russia, India, China
B. Bangladesh, Egypt, Indonesia, Iran
C. Mexico, Indonesia, Turkey
D. Nigeria, Pakistan, Philippines, South A. economic development
Korea B. economic growth
2389. What does Gross Domestic Product C. economic strategy

mean? D. economic development

2393. What is a potential consequence of a fall B. Human capital

in consumer/business confidence during a C. Capital goods
recession?
D. Natural resources
A. Increased demand.
B. Higher production. 2398. A stokvel is:
C. Reduction in supply. A. a group of old people contributing
monies to gamble
D. Lower demand and supply.
NARAYAN CHANGDER
B. a group savings scheme where mem-
2394. The following graph represents? bers contribute a fixed amount of money
every month to a common pool
C. a group of companies that want to
reach their sales target by fixing prices on
their products
D. a group of young people that con-
tribute a certain percentage of their in-
comes in order to take vacations on
planned trips
A. Potential growth
2399. Why are poverty rates higher in rural
B. Actual growth areas than average?
C. Economic growth A. People in rural areas do not use money
D. Improvement in standards of living as much.
B. Jobs may be more limited in many ru-
2395. GDP is often measured as “GDP per
ral areas.
capita” ( )
C. Schools are not as good in rural areas.
D. Inner cities have the best jobs.
B. goods & services produced
C. others do not 2400. What best refers to a process whereby
a firm turns economic inputs like labor, ma-
D. per person
chinery, and raw materials into outputs
E. weaker economies like goods and services that consumers
use?
2396. Calculate the economic growth rate if
GDP was £60 billion in Year 1 and £63 A. Aggregate Production
billion in Year 2. B. Capital Deepening
A. 1% C. Convergence
B. 5% D. Production Function
C. 10%
2401. Apart from GDP, the following factors
D. 15% influence the high and low happiness rates
2397. Doctors, teachers, factory workers, etc. in a country, EXCEPT
are examples of: A. Life Expectancy
A. Entrepreneurship B. Health Insurance

C. Education C. Natural Resources

D. Community Generosity D. Gross Domestic Product

E. Life Standard
2407. To address an inflationary gap, a gov-
2402. What happened to cattle trails when the ernment might:
railroad expanded?
A. Increase public spending
A. Barbed wire became more popular.
B. Reduce taxes
B. They were no longer used.
C. Increase interest rates
C. Stampedes became more common.
D. Subsidize exports
D. All of the above
2403. What is most likely to cause economic 2408. How well or poorly a person or group of
growth? people live in terms of having their needs
and wants met
A. Increased unemployment
A. Capital Goods
B. Increased interest rates
C. Increased education and training for B. Literacy Rate
workers C. Standard of Living
D. Increased money supply D. Gross Domestic Product (GDP)
2409. Which one is NOT an example of capital
ship) between natural resources and GDP?
goods?
A. GDP goes down when there is an abun-
dance of natural resources. A. factories
B. GDP goes up when there is an abun- B. computers

dance of natural resources. C. apples
2405. What is the main objective of the Heav- D. tools and equipment
ily Indebted Poor Countries (HIPC) Initia-
tive? 2410. This type of inflation occurs when an
A. To improve access to banking in devel- increase in the in production costs are
oping countries passed on to the consumer.
B. To increase indebtedness of develop- A. Supply Inflation

ing countries B. Cost Push Inflation
C. To relieve the indebtedness of develop- C. Imported Inflation
ing countries
D. Demand Pull Inflation
D. To reduce corruption in developing
countries
2411. is a normative concept i.e., it applies
2406. Country’s total value of goods and ser- in the context of people’s sense of moral-
vices produced in a single year. ity (right and wrong, good, and bad).
A. Human Capital A. Economic Growth
B. Capital Goods B. Economic Development

2412. GDP (Gross Domestic Product) 2416. What are the ultimate causes of why
A. (per person) the total amount of money some countries are rich and others are
made by a country, divided by its number poor?
of citizens A. Factors of production
B. the total dollar value of all goods and B. Incentives
C. Good institutions
year
C. includes the skills and knowledge of its D. History, ideas, culture, geography,
NARAYAN CHANGDER
people that support the economy and luck
D. the percentage of adults who can read 2417. The following are all examples of natu-
and write ral resources. (a) (b) (c)
2413. What are some factors that influence A. a sun
economic growth? B. b rivers
A. population growth, inflation, and in- C. c animals
come inequality
D. buildings
B. climate change, social unrest, and po-
litical instability E. people
C. lack of government intervention, low F. skills
taxes, and deregulation
2418. Investing in Education
D. investment in physical and human cap-
ital, technological advancements, govern- A. Human Capital
ment policies, natural resources, and in- B. Capital Goods
ternational trade
2419. Source:CIA World Factbook, 2015 What
2414. Which country is considered an industri- factor BEST explains the difference in life
alizing, semi-peripheral country according expectancy between the African nations
to world system theory? listed in the table and nations in other
A. Mexico parts of the world?
B. Great Britain A. barriers to trade
C. United States B. industrial pollution
D. Russia C. high rates of obesity
2415. What is the relationship between liter- D. the spread of disease
acy rate and standard of living?
2420. Achieving economic growth is one of the
A. There is no effect on the standard of
government objectives.
living.
B. The higher the literacy rate the higher A. True
the standard of living. B. False
C. The standard of living is independent
2421. PPC stands for
of literacy rate.
D. Low literacy rate creates a higher stan- A. Production Possibilities Curve
dard of living. B. Production Possibilities Cat

2422. A woman brings together capital, natu- A. The US Constitution

ral, and human resources to start a custom
B. The ideas of John Locke and Adam
furniture business. This is an example of

Smith
C. Its colonial parent, Great Britain
D. An open frontier and freedom to try
new ideas
2427. What is a reservation?

A. Land set aside by the U.S. government
for Native Americans to be relocated onto.
B. A limit created by the U.S. government
B. a capital good on the number of buffalo that could be
C. human capital killed each year.
D. entrepreneurship C. System created to reserve cattle for
shipment to eastern cities.
2423. Which of the following DOESN’T cause
economic growth? D. none of above
A. Increased investment 2428. Which of the following does Virginia
B. Improved technology NOT export?
C. Increased labour productivity A. poultry
D. Less investment in education B. bananas
2424. Informal education can be acquired from C. large ships
the (a), (b) or the (c) . D. tobacco
A. a community
2429. What is the role of investment in eco-
B. b peer group
nomic growth?
C. c church
A. It decreases production capacity.
D. school
B. It hinders technological progress.
E. university
C. It enables firms and economies to ex-
2425. What is the macro objective for pand their production capacities.
growth?
D. It leads to inflation.
A. Strong and sustained economic
growth 2430. What is Real GDP?
B. Fluctuating economic growth A. The National Output of an Economy
C. Negative economic growth B. National Output taking into account In-
D. Stagnant economic growth flation
C. The Average GDP Per Person in the
2426. What influenced the United States’ ten-
Economy
dency towards a market economy and
democratic institutions? D. none of above

2431. the measure of a nation’s quality of was previously done so that it works bet-
life based on income, education, life exter
pectancy, and other factors D. work in politics with regards to foreign
A. standard of living business
B. standard of excellence
2434. Which productive resource can be a
C. standard of wealth source of income when exported?
D. standard of money A. Capital goods
NARAYAN CHANGDER
2432. What are the economic sectors that con- B. Natural resources
tributed the most to 2020 GDP? C. Human capital
D. Entrepreneurship
2435. Native American ceremony believed to

bring a new world free of white people.
A. Ghost Dance
B. Christmas
C. Reservation
D. Horse Dance
A. Agriculture and ranching Gas and elec- 2436. are the materials that come from na-
tricity supplyPublic administration and ture, such as land, forests, minerals, wa-
Professional activities ter, etc
B. Construction. Artistic activities Mining A. Natural resources
industry
B. Capital Goods
C. manufacturing, extractive industry,
C. Productive Resources
tourism
D. Human Resources
D. public administration, mining industry
and proffesional activities 2437. What are the advantages of the ‘Dough-
2433. What do entrepreneurs do? nut Economics’ model?
A. It isn’t guaranteed to work in develop-
ing countries.
B. It takes time to implement.
C. It assumes people will magically be-
come warier of their surroundings.
D. It combines both social and monetary
A. represent business at the capital economics.
B. make all the laws in regards to busi- 2438. The graphs indicate economic perfor-
ness mance in a country between 2011 and
C. start their own business, invent some- 2014.Which conclusion may be drawn
thing new, or change the way something from the graphs?

2442. which year is the one designed to meet

those goals?

A. 2030
B. 1990
A. Between 2011 and 2012 industrial pro-
C. 2022
duction and GDP fell but prices rose.
D. 2031
B. Between 2012 and 2013 the rates of
growth of industrial production, GDP and 2443. Which of the following explains the
prices all increased. term economic growth
C. GDP and industrial production were at A. Increase in per capita production
their lowest in 2012.
B. Increase in per capita real income
D. At no time between 2011 and 2014 did
industrial production, GDP or prices fall. C. Structural change in the economy
D. All of the above
2439. How do you measure the strength of a
nations economy? 2444. What are the key institutions for eco-
nomic growth?
A. Adding up how many natural resources
it has A. Property rights, honest government,
political stability, a dependable legal sys-
B. Looking at a nations GDP and GDP per
tem, and competitive and open markets
capita
B. Physical capital, human capital, and
C. Adding up how many entrepreneurs a
technological knowledge
nation has
C. Incentives and organization
D. Asking all citizens to complete the cen-
sus every 10 years D. History, ideas, culture, geography,
and luck
2440. Why is the natural environment impor-
tant? 2445. Purchases of high order goods become
more and more common.
A. Gives us a wealth of services that are
difficult to measure in dollars A. Stage 1:Traditional Society
B. Helps clean our air, purify our water, B. Stage 2:Pre-Condition for Take-Off
produce food and medicines, C. Stage 3:Take-Off
C. Green spaces help keep us healthy D. Stage 4:Drive to Maturity
D. all of the above E. Stage 5:High Mass Consumption
2441. The total sum of all goods and services 2446. In GDP, this is long-term spending by
produced in a certain time period. businesses and individuals.
A. GDP per capita A. consumption
B. GDP B. investment
C. GNP C. net exports
D. GNH D. imports

2447. Which statement is true about the circu- C. Recession

lar flow diagram? [Product Market:where D. Trough
final G&S are sold. Factor Market:factors
of production (land, labour )] 2451. What are the four main categories of
A. Households are demanders in the productive resources?
product market and suppliers in the factor A. food, games, and drinks
market B. Air, trees, life, and water
B. Businesses are demanders in the prod-
NARAYAN CHANGDER
C. I dont know the answer
uct market and suppliers in the factor mar-
ket. D. human capital, capital goods, and en-
trepreneurship.
C. Households are demanders in the fac-
tor market and suppliers in the product 2452. What is the trend of wages growth in
market. this graph?
D. Businesses and households are not
components of the circular flow diagram.
2448. Suppose that in the country of Xanadu,

the real GDP in 2004 was R1883 billion.
In 2005, real GDP was R1610 billion. In
Xanadu, real GDP grew by
A. 14.5%
B. 17%
C. -14.5% A. Wages growth is down. Private sec-
tor growth is above 2% and public sector
D. -17% growth is above 2%
2449. Countries with strong infrastructure B. Wages growth is down. Private sec-
[transportation/ communication/ health- tor growth is above 2% and public sector
care/ education systems] would be which growth is below2%
level of economic development? C. Wages growth is down. Private sec-
tor growth is below 2% and public sector
growth is below 2%
D. Wages growth is down. Private sec-
tor growth is below 2% and public sector
growth is above 2%
2453. Which of the following are costs of eco-

A. Developed countries nomic growth? (Select ALL that apply)
B. Developing countries A. LREG requires sacrificing current con-
2450. What is the term used to describe the sumption
phase when growth is rampant and above B. Deflation
potential? C. Increase in pollution
A. Boom D. Redistributes income in the economy
B. Slowdown from the poor to the rich

E. Spending more money on domestic 2458. Sustainable economic growth aims to:
goods A. Maximize short-term gains regardless

of long-term consequences
2454. What do households provide to the re-
source market? B. Deplete natural resources as quickly
as possible to boost the economy
A. Land, labour, capital, and en-
trepreneurship C. Balance economic development with
environmental and social considerations
B. Money
D. Maintain high inflation rates for an ex-
C. People tended period
D. Income
2459. Saudi Arabia’s literacy rate increased
2455. What is the term coined by Joseph from approximately 48% in 1980 to over
Schumpeter to describe the replacement of 78% by 2009. Using the chart above,
old methods with new and more produc- which of the following conclusions can be
tive ways? drawn?
A. Creative destruction
B. Technological unemployment
C. Innovation today A. Iran has a higher literacy rate
D. Appropriation B. GDP has decreased because of the
spending
E. Creative inception
C. Saudi Arabia raised its capital goods
2456. The relationship between the literacy spending
rate and standard of living in Southwest D. Saudi Arabia increased investment in
Asia is human capital
A. The literacy rate has no effect on the
2460. If everyone who wants to work can can
standard of living.
find a job, a country has:
B. The standard of living is independent A. Inflation
of the literacy rate.
B. Economic Freedom
C. A low literacy rate creates a higher
C. Full Employment
standard of living.
D. Employment Insurance
D. The higher the literacy rate the higher
the standard of living. 2461. In an economy, economic growth al-
ways occurs when:
2457. What is economic growth?
A. there is more spending on goods and
A. An increase in a nation’s capacity to services between one year and the next.
produce goods and services over time
B. there is more production of goods and
B. A decrease in a nation’s capacity to services between one year and the next.
produce goods and services over time
C. there are more resources available be-
C. The total market value of goods and tween one year and the next.
services D. business activity is steady between
D. None of the above one year and the next.

2462. Using the chart under Data analysis, (on 2467. Economic growth can be measured by
page 51) What country has the highest lit- A. The CPI
eracy rate?
B. The CBI
A. Haiti
C. GDP
B. Brazil D. MPC
C. Mexico
2468. What is the Economic Freedom Index
D. all of the above (EFI) of Israel?
NARAYAN CHANGDER
A. Not open to entrepreneurship
2463. True or False:The assembly line created
a large number of unskilled labor jobs in B. Highly open to entrepreneurship
cities. C. No impact on entrepreneurship
A. True D. Moderately open to entrepreneurship
B. False 2469. things needed to produce goods and ser-
vices
2464. Each individual on food stamps in
Delaware can receive up to $194 a month. A. Capital Goods
Is this included in government spending? B. Factors of Production
A. Yes-Government spending C. Standard of Living
B. Yes-Consumer Spending D. Gross Domestic Product (GDP)
C. No-Intermediate Goods 2470. Germany specializes in the production of

automobiles. Based on this information,
D. No-Transfer payment
which statement is MOST LIKELY correct?
E. None of the above A. Germany has no natural resources
that other countries demand.
2465. Which is true of industrialized nations?
B. Germany has a low gross domestic
A. They have little economy product and high unemployment.
B. They offer basic military training C. Germany can produce automobiles
C. They offer no education more efficiently than other countries.
D. They have high literacy rates. D. Germany sells automobiles to domes-
tic consumers for very low prices.
2466. Which is the best description of Gross
2471. Based on the following statement, de-
Domestic Product (GDP)?
termine whether it will result in positive
A. grocery stores OR negative growth AND a shift in PPC OR
B. public banking movement towards the PPC-“An improve-
ment in the level of education and skills of
C. estimate of the goods and services workers”
that are manufactured and produced
A. Positive
within one year of a country
B. Negative
D. a measurement that compares and
contrasts real estate and real estate in- C. Shift in PPC curve
vestments D. Movement towards PPC curve

2472. Which concept describes how invest- D. They did not gather their food from
ment in business can lead to wider im- wild plants and animals
provements in the local area?

2476. What is the main factor that makes In-
A. Multiplier effect donesia favorable for investors?
B. Demographic Transition Model
A. Limited Natural Resources
C. Gini coefficient
B. Government Opposition to FDI
D. Hoyt sector model
C. Strong Fundamentals and Government
2473. How does investment in capital (money) Support
influence GDP? D. Low Population Size
A. education and healthcare will increase
2477. A nation’s determine the strength of
B. to put in time, money, or energy will its economy
decrease the GDP
C. if you invest money, you will make
more money and then the GDP will in- B. goods & services produced
crease C. others do not
D. none of above D. per person
2474. Which of the following is an example of E. weaker economies
a government policy that can promote eco-
2478. James Watt invented the steam engine
nomic growth?
in 1765, resulting in the industrial revo-
A. Providing tax breaks for individuals, re- lution, which is a characteristic of society
ducing infrastructure spending, and cut- according to Rostow, namely society
ting funding for education and research
A. Takeoff Prerequisites
B. Tax incentives for businesses, infras-
tructure development, and investment in B. Traditional
education and research C. High Level Consumption
C. Increasing taxes on businesses, re- D. Economic Maturity
ducing infrastructure spending, and cut- E. Takeoff Phase
ting funding for education and research
D. Implementing strict regulations on 2479. The forecast of Germany’s GDP growth
businesses, neglecting infrastructure de- in 2013 was 1.5%.What might cause eco-
velopment, and reducing funding for edu- nomic growth?
cation and research A. AN increase in imports
2475. Self-sufficiency and dependency on agri- B. An increase in interest rates
culture includes the following C. An increase in productivity
A. The earliest humans were nomadic D. An increase in unemployment
hunters
B. Agricultural development started 2480. what is a recession?
slowly A. when your hairline recedes
C. Later on they tamed animals to assist B. when the country’s GDP falls for a
them to farm quarter

C. when the country’s GDP falls for 2 con- 2484. What was the long term impact of the
secutive quarters decreasing buffalo population on Native
D. when the country’s GDP falls for half a American tribes?
year A. Native Americans were forced on to
reservations
2481. The political situation in a country can-
B. Native Americans began to raise buf-
not influence economic development
falo on farms
NARAYAN CHANGDER
C. Native Americans moved to cities.
D. Native Americans began hunting wild
horses.
2485. Why should a country invest in infras-

tructure/capital?
A. True A. increasing investments in infrastruc-
ture will eventually increase the GDP
B. False
B. increasing innovative thinkers will in-
2482. The four facts of Economic Growth increase the GDP
clude:Capital, entrepreneurs, , and
C. decreasing infrastructure will help the
A. Uranium & Oil country decrease unemployment
B. Human capital & oil D. investing in infrastructure would not
C. Natural Resources & capital be beneficial and should be avoided
D. human capital and natural resources 2486. Why should countries invest in develop-
ing capital goods?
2483. Which of the following would be an in-
A. they shouldn’t, it is too expensive
vestment in Human Capital for your Opal
mine? B. because capital goods cannot be sold
to other countries
C. when countries invest in capital goods,
they are providing better facilities, re-
sources, and/or materials for the peo-
a more productive workforce leading to
greater economic growth (higher GDP).
D. because capital goods are less expen-
sive than private goods
2487. Because of inflation, you should use:

A. Opals in a mine in Coober Pedy
A. Real GDP
B. Opal jewelry for sale at the local mall
B. Net GDP
C. buying new digging machines for your
Opal mine C. Gross GDP
D. training your employees how to use D. all options are correct

the Opal mining equipment E. none of the options are correct

2488. Spreads entrepreneurial mentality. Peo- C. The government increased its support
ple begin to start and run their own busi- for striking workers
nesses and industries.

D. The union succeeded once the
A. Stage 1:Traditional Society Supreme Court ruled in their favor
B. Stage 2:Pre-Condition for Take-Off 2494. What is the trend of inflation in this
C. Stage 3:Take-Off graph?
2489. What major issue led to the Republican

Party?
A. Slavery
B. Farming
C. Immigration
D. Women’s Suffrage A. Trend is increasing in the short term
and falling in the long term
2490. In a recession, GDP
B. Trend is increasing in the short term
A. Shrinks and increasing in the long term
B. Grows slowly C. There is not change over the long term
C. Grows by 0% D. Trend is falling in the short term and
D. Grows rapidly falling in the long term
2491. A country investing in new machinery. 2495. The presence or absence of these factors
determine the country’s GDP for the year
A. human capital
A. False
B. capital goods
B. True
2492. Which of the following is an increase
by society in the average level of physical 2496. Which statement best describes the rela-
and/or human capital per person? tionship between a country’s literacy rate
& it’s standard of living.
A. The higher the literacy rate, the lower
C. Economic Output
B. The higher the literacy rate, the in-
D. Productivity crease in government corruption.
2493. What was the result of the Homestead C. The higher the literacy rate, the higher
Strike at a Carnegie Steel mill? the standard of living.
A. The strike collapsed months later and D. The higher the literacy rate, the more
the union was defeated animals living there.
B. Higher wages were granted to the 2497. There are stages in the economic cy-
union strikers after months of negotiating cle

A. 3 2503. A is a plant where crude oil is puri-

fied into petroleum.
B. 4
A. Petrol Station
2498. What is one reason that a country could B. Petrol Factory
have a high GDP?
C. A High
A. Because they have high wages.
D. Refinery
B. Because they have a highly educated
NARAYAN CHANGDER
population. 2504. Which of these is NOT a consequence of
economic growth
C. Because they have low taxes.
A. Improved living standards
D. Because they love going to space.
B. Increase in income
2499. When prices are compared without ad- C. Increase in unemployment
justing them for inflation, this is called
D. Consumption of more luxury products
A. Real comparison
2505. The countries with the highest HDIs
B. Adjusted comparison mostly belong to which continent?
C. Inflated comparison A. Asia
D. Nominal comparison B. Africa
C. Europe
2500. Explorers from what European country
brought cattle to North America? D. none of above
A. England 2506. An increased in the stock of capital (a
B. Italy major cause of economic growth) is de-
scribed as
C. Portugal
A. mobility
D. Spain B. non replaceable
2501. An economy that depends on agriculture C. per head
and bartering, where decisions are made D. net investment
based on traditions, customs, habits, or be-
E. leisure
liefs
A. Mixed Economy 2507. What is an example of an investment in
human capital?
B. Market Economy
A. A company pays for its workers to go
C. Traditional Economy to graduate school.
D. Command Economy B. A company buys a new computer sys-
tem to improve productivity.
2502. A country with high GDP has a low stan-
C. A company hires a lobbyist to fight gov-
dard of living.
ernment regulations.
A. True
D. A company starts using better materi-
B. False als to improve product quality.

2508. In the last five years, China has become 2512. The a country’s GDP, the better the
Latin America’s most important partner. country’s standard of living.

A. lower
B. greater
C. smaller
D. answers 1 and 3 are correct
2513. At which point in the trade/business cy-
cle is unemployment the HIGHEST?
A. True
B. False
2509. Israel’s GDP per Capita is about $35,

000 while Turkey’s is about $20, 000.
Which country more than likely has a
higher standard of living? A. Peak
A. Israel B. Expansion
B. Turkey C. Trough
D. Boom
C. Saudi Arabia
D. Not enough info to answer the ques- 2514. The total value of all final goods and ser-
tion vices produced in a country in a given year.
A. Gross Domestic Product
2510. Which of the following is least likely to
be a benefit of FDI in Country X?
C. Inflation
A. Producers in Country X replicating the
production techniques of an MNC D. Unemployment
B. Increased employment 2515. (a) is the total amount of final goods

and services produced in a country within
C. Repatriation of profits
1 year.
D. Increased exports A. a Gross Domestic Product (GDP)
Explanation:If MNCs located in an ELSE
they may send profits back to their home B. Entrepreneurs
country. C. Capital Goods
D. Natural Resources tagsS2789894
2511. Groups of people within a country who
disagree with its government or leaders 2516. Economy
and fight against them
A. the materials that come from nature,
A. Dissidents such as land, forests, minerals, water,
etc.
B. Destalinization
B. (per person) the total amount of money
C. Reformist socialism
made by a country, divided by its number
D. Martial law of citizens

C. the system of how money is made and resource found in in Southwest Asia?
A. Oil
D. the total dollar value of all goods and
services produced by a country in one B. Freshwater
year C. Minerals
2517. Which of the following is not a natural D. Cotton
NARAYAN CHANGDER

Economic Growth

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4. A 5. B 6. B 7. C 8. A 8. B 8. C 9. C 10. A 11. D 12. A

13. Investment in capital goods typically leads

13. A 14. A 15. C 16. B 17. B 18. C 19. B 20. B 21. B

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23. What are the two characteristics en-

25. What does inflation mean?

28. Growth of money and forms of saving

financial institutions have more money A. Increased employment opportunities,

34. What is a type of development aid that

32. What are the long-term consequences of C. Separation of Powers

29. B 30. D 31. C 32. C 33. C 34. B 35. A 36. C 37. C

37. The percentage of a nations labour force B. Child Labor

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43. RURAL societies typically mean what kind

38. C 39. A 40. B 41. A 42. B 43. B 44. D 45. A 46. D

47. What connection can be made between a C. is a system of production, resource

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A. True D. It will create a smarter and more pro-

66. How much affordable housing was in- C. technology

A. increase in GDP D. capital market efficiency

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A. Entrepreneurship A. Depletion of natural resources

A. public sector A. Zillions and quadrillion

86. Which of these African nations produces C. Technological advancement

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B. Real wages A. Factors of production

D. Real GDP C. Good institutions

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107. Factories, machinery, technology, etc.

D. Capital goods C. They are a factor of production that

C. Make sure political parties don’t fight. A. capital goods

C. someone who makes things C. GDP per capita

D. someone who buys things D. Real GDP per capita

114. In what way is capitalism good for con-

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125. Level 1What do entrepreneurs do? C. Europe

130. How did the Transcontinental Railroad im-

D. They inform the government on how D. none of above

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134. According to the Human Development In- 138. Investing in Skills

136. Which of the following correctly shows

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142. Education and training does NOT lead to

143. Which item is an example of a natural re-