Title MCQs - Economic Growth.pdf ✅

+923443903583 Economic Growth – MCQ Topical @adilusmanzoberi From the desk of Adil Usman P a g e | 1 1. How is economic growth measured? A) changes in consumer expenditure B) changes in living standards C) changes in population size D) changes in real GDP 2. A country experiences a 4% rise in real GDP and a 4% rise in nominal GDP. What would explain this combination of changes? Price level Output A) fallen by 4% risen by 4% B) risen by 4% fallen by 4% C) fallen by 4% unchanged D) unchanged risen by 4% 3. How would economic growth caused by an increase in aggregate demand and economic growth caused by an increase in productive capacity be shown on a production possibility curve diagram? Economic growth caused by an increase in aggregate demand Economic growth caused by an increase in productive capacity A) movement from a point inside the PPC toward the curve shift to the right of the PPC B) movement from a point outside the PPC to appoint on the curve shift to the left of the PPC C) shift to the left of the PPC movement from a point inside the PPC toward the curve D) shift to the right of the PPC movement from a point outside the PPC to a point on the curve
+923443903583 Economic Growth – MCQ Topical @adilusmanzoberi From the desk of Adil Usman P a g e | 2 4. What may reduce economic growth in the short run but increase it in the long run? A) a decrease in government spending on healthcare B) a decrease in the size of the labour force C) an increase in the inflation rate D) an increase in the savings ratio 5. What is most likely to cause a recession? A) a decrease in business optimism B) a decrease in unemployment C) an increase in government spending D) an increase in net exports 6. What cause of a fall in the price level is unlikely to result in a recession? A) advances in technology B) collapse of the banking system C) expectations of a fall in the price level D) reduction in international competitiveness 7. A country’s economy grows by 2%. The size of its labour force remains unchanged. What would explain a rise in unemployment in these circumstances? A) a decrease in the capital intensiveness of firms B) a decrease in the average hours people work C) an increase in labour productivity D) an increase in the ability of workers to change jobs 8. What must have increased as a result of a rise in real GDP? A) income inequality B) inflation C) output D) population
+923443903583 Economic Growth – MCQ Topical @adilusmanzoberi From the desk of Adil Usman P a g e | 3 9. What is not a possible benefit of economic growth? A) lower levels of poverty B) lower levels of unemployment C) higher government spending on education without any opportunity cost D) higher tax revenue without having to raise tax rates 10. Why may a government switch from aiming for a 5% growth rate to a 0% economic growth rate? A) to avoid anyone being without a job B) to conserve non-renewable resources C) to maintain real GDP per head D) to reduce living standards