Economic Growth and Development: A Comprehensive Guide for Students

Question 1

Which of the following is NOT a key factor in driving long-term economic growth?

Accepted Answer

Abundance of natural resources

Answer

Capital accumulation

Answer

Technological advancements

Answer

Government policies

Question 2

Which of these factors is crucial for fostering economic growth in developing nations?

Accepted Answer

Infrastructure investments

Accepted Answer

Human capital development

Accepted Answer

Embracing new technologies

Answer

Protectionist trade policies

Question 3

Which of the following is NOT a primary determinant of economic growth?

Accepted Answer

Political stability

Answer

Capital accumulation

Answer

Technological progress

Answer

Government policies

Question 4

Which of the following is NOT a primary factor that directly contributes to economic growth?

Accepted Answer

Government regulations and policies

Answer

Accumulation of capital resources

Answer

Advancements in technology

Answer

Development of a skilled workforce

Question 5

According to the Harrod-Domar model, which of these factors is crucial for economic growth?

Accepted Answer

Capital accumulation

Answer

Low levels of inflation

Answer

Limited government spending

Answer

Restrictive trade policies

Question 6

In Rostow's model of economic development, which stage is characterized by rapid urbanization and industrial expansion?

Accepted Answer

Drive to maturity

Answer

Preconditions for take-off

Answer

Traditional society

Answer

Age of high mass consumption

Question 7

Which of the following is a potential negative consequence of technological progress?

Accepted Answer

Increased income inequality

Answer

Reduced environmental pollution

Answer

Enhanced healthcare technologies

Question 8

When promoting economic growth, what is the primary goal of a government's fiscal policy?

Accepted Answer

Stimulating aggregate demand

Answer

Stabilizing exchange rates

Answer

Balancing the budget

Answer

Controlling inflation

Question 9

Which indicator best measures an individual's level of human capital?

Accepted Answer

Educational attainment

Answer

Income level

Answer

Health status

Answer

Occupation

Question 10

How does economic growth generally impact poverty levels?

Accepted Answer

Reduces poverty

Answer

Leads to higher income inequality

Answer

Has no significant impact on poverty

Answer

Increases poverty rates

Question 11

Which of these challenges commonly hinders economic growth in developing countries?

Accepted Answer

Insufficient infrastructure

Answer

High literacy rates

Answer

Stable political systems

Answer

Abundant natural resources

Question 12

What is the overarching principle of economic sustainability?

Accepted Answer

Ensuring the needs of present and future generations are met

Answer

Maximizing short-term economic gains

Answer

Eliminating social inequalities

Question 13

Which indicator is commonly used to measure economic inequality?

Accepted Answer

Gini coefficient

Answer

Unemployment rate

Answer

GDP per capita

Question 14

What is a key benefit of international trade in the context of economic development?

Accepted Answer

Encourages specialization and efficiency

Answer

Leads to environmental degradation

Answer

Increases government control

Answer

Reduces competition

Question 15

Which of the following is a crucial determinant of economic growth over the long-term?

Accepted Answer

Technological progress

Answer

Upswing in consumer spending

Answer

Changes in currency exchange rate

Answer

Frequency of natural disasters

Question 16

As per the Harrod-Domar model, which factor will lead to an increase in economic growth?

Accepted Answer

Higher savings rate

Answer

Strengthening of the domestic currency

Answer

Increase in population

Answer

Lower government expenditures

Question 17

Which of the following traits is a distinguishing feature of a developed economy?

Accepted Answer

High levels of human capital

Answer

Stagnant technological advancements

Answer

Dominance of the agricultural sector

Answer

Limited access to healthcare

Question 18

What is the primary function of government in supporting economic growth?

Accepted Answer

Providing essential infrastructure and education

Answer

Controlling inflation

Answer

Setting key interest rates

Answer

Managing exchange rates in the foreign exchange market

Question 19

Which of the following best describes a potential advantage of economic growth?

Accepted Answer

Improved standard of living for citizens

Answer

Automatically reduced unemployment rate

Answer

Guaranteed improvement in environmental quality

Question 20

What's the essence of the idea known as 'trickle-down economics'?

Accepted Answer

The notion that economic growth eventually benefits all levels of society

Answer

Economic growth should primarily benefit the wealthy

Answer

Government policies should prioritize redistribution of wealth

Question 21

Which of the following factors is crucial for an economy's long-term growth potential?

Accepted Answer

Quantity and quality of capital

Answer

Abundance of natural resources

Answer

Size of government involvement

Question 22

How does economic growth relate to income inequality?

Accepted Answer

The relationship can be positive, negative, or neutral, influenced by factors like government policies and technological advancements

Answer

Economic growth always leads to reduced income inequality

Question 23

Which of the following poses a potential obstacle to achieving sustainable economic growth?

Accepted Answer

Depletion of natural resources

Answer

Rapid technological innovation

Answer

Low interest rates

Answer

High levels of foreign investments

Question 24

Which of the following factors is considered a key determinant of economic growth?

Accepted Answer

Technological progress

Answer

Political stability

Answer

Availability of natural resources

Answer

Favorable weather conditions

Question 25

Which stage of economic development is characterized by a significant shift from agriculture to manufacturing?

Accepted Answer

Industrialization

Answer

Post-industrial

Answer

Pre-industrial

Answer

Transitional

Question 26

How does human capital contribute to economic growth?

Accepted Answer

Enhances labor productivity and fosters innovation

Answer

Increases government revenue

Answer

Reduces unemployment rates

Answer

Promotes social mobility

Question 27

Which of the following is a potential benefit of sustained economic growth?

Accepted Answer

Improved living standards

Answer

Enhanced environmental quality

Answer

Reduced income inequality

Question 28

What is the primary purpose of government intervention in promoting economic growth?

Accepted Answer

Address market failures and externalities

Answer

Reduce unemployment

Answer

Control inflation

Answer

Promote equality

Question 29

Which of the following is a commonly used measure of economic growth?

Accepted Answer

Gross Domestic Product (GDP)

Answer

Human Development Index (HDI)

Answer

Consumer Price Index (CPI)

Answer

Purchasing Power Parity (PPP)

Question 30

How is economic development distinguished from economic growth?

Accepted Answer

Economic development encompasses broader qualitative improvements, while economic growth primarily focuses on quantitative changes.

Answer

Economic growth is long-term, while economic development is short-term.

Question 31

Which characteristic is typically associated with developing countries?

Accepted Answer

Low per capita income

Answer

High life expectancy

Answer

Advanced technological infrastructure

Answer

Strong democratic institutions

Question 32

How does population growth impact economic growth, if at all?

Accepted Answer

The relationship is complex and can vary significantly based on factors such as age structure, education levels, and labor market conditions.

Answer

Population growth always benefits economic growth.

Question 33

Which of the following is a potential obstacle to economic growth in developing countries?

Accepted Answer

Political instability

Answer

Educated workforce

Answer

Favorable climate

Answer

Abundant natural resources

Question 34

Which of the following is NOT considered a major factor contributing to economic growth?

Accepted Answer

Scarcity of skilled labor

Answer

Technological advancements

Answer

Human capital development

Answer

Capital accumulation

Question 35

The process of transitioning an economy from a traditional, agrarian society to a modern, industrialized one is referred to as:

Accepted Answer

Economic development

Answer

Economic recession

Answer

Economic stagnation

Answer

Globalization

Question 36

Which of the following is a primary role of government in fostering economic growth?

Accepted Answer

Providing infrastructure and education

Answer

Subsidizing private businesses

Answer

Restricting international trade

Answer

Imposing high taxes on corporations

Question 37

According to the Harrod-Domar model, economic growth is primarily determined by:

Accepted Answer

Savings rate and capital-output ratio

Answer

Government spending and monetary policy

Answer

Innovation and productivity growth

Answer

Population growth and labor force participation

Question 38

A characteristic commonly associated with developing countries is:

Accepted Answer

Low per capita income

Answer

Extensive industrialization

Answer

Strong political stability

Answer

Highly developed healthcare system

Question 39

Which of the following is a positive outcome associated with economic growth?

Accepted Answer

Improved living standards

Answer

Increased income disparity

Answer

Environmental degradation

Answer

Political instability

Question 40

The Solow model explains economic growth as the result of:

Accepted Answer

Capital accumulation and technological progress

Answer

Population growth and labor force participation

Answer

Resource abundance and exports

Answer

Government spending and monetary policy

Question 41

A significant challenge confronting developing countries in their pursuit of economic growth is:

Accepted Answer

Political instability

Answer

Abundant natural resources

Answer

High levels of education

Answer

Advanced infrastructure

Question 42

Sustainable economic growth can be defined as:

Accepted Answer

Economic growth that meets current needs without compromising future generations

Answer

Economic growth driven solely by technological advancements

Answer

Economic growth that benefits only certain segments of society

Question 43

Which of the following is a widely recognized factor that contributes to sustained economic growth?

Accepted Answer

Technological progress

Answer

Favorable exchange rates

Answer

Natural resource abundance

Answer

Government intervention

Question 44

The concept of economies evolving through distinct stages of development is primarily associated with which influential economic theorist?

Accepted Answer

W.W. Rostow

Answer

John Maynard Keynes

Answer

Milton Friedman

Answer

Joseph Schumpeter

Question 45

Which of the following is NOT considered a key characteristic of human capital?

Accepted Answer

It is an innate ability, not acquired through investment

Answer

It can be depleted or depreciated over time

Answer

It encompasses knowledge, skills, and experience

Answer

It contributes significantly to economic productivity

Question 46

Which of the following government policies is commonly employed to promote technological advancements?

Accepted Answer

Subsidies for research and development

Answer

Increasing government expenditure

Answer

Raising interest rates

Answer

Imposing import tariffs

Question 47

In the Rostowian model of economic development, which stage is characterized by a transition from traditional agricultural practices to large-scale manufacturing?

Accepted Answer

Take-off

Answer

Drive to maturity

Answer

Preconditions to take-off

Answer

High mass consumption

Question 48

Which of the following is a widely accepted indicator of economic growth and development?

Accepted Answer

Gross Domestic Product (GDP)

Answer

Balance of trade

Answer

Unemployment rate

Answer

Inflation rate

Question 49

The term that describes the process of transitioning from a less developed to a more advanced economic state is:

Accepted Answer

Economic development

Answer

Industrialization

Answer

Economic advancement

Answer

Modernization

Question 50

Which of the following is a potential benefit of technological progress for an economy?

Accepted Answer

Enhanced productivity and efficiency

Answer

Higher inflation

Answer

Environmental degradation

Answer

Increased unemployment

Question 51

According to the theory of comparative advantage, countries should focus on producing and exporting goods where they have a:

Accepted Answer

Lower opportunity cost

Answer

Government subsidies

Answer

Higher absolute advantage

Answer

Domestic demand

Question 52

Which of the following factors can potentially hinder economic growth and development?

Accepted Answer

Inadequate investment in education and skills development

Answer

Low government debt

Answer

Abundant natural resources

Answer

Stable political and economic environment