National Income and Economic Growth: Interactive Learning Quizzes

Question 1

Which measure most accurately represents a country's total economic output?

Accepted Answer

Gross Domestic Product (GDP)

Answer

Gross Domestic Income (GDI)

Answer

Gross National Income (GNI)

Answer

Gross National Product (GNP)

Question 2

Which sector of the economy is responsible for producing goods and services that are directly consumed by individuals and households?

Accepted Answer

Tertiary Sector

Answer

Primary Sector

Answer

Secondary Sector

Answer

Quaternary Sector

Question 3

The Consumer Price Index (CPI) measures:

Accepted Answer

Changes in prices of a basket of goods and services over time

Answer

Changes in the number of consumers in a country

Answer

Changes in the unemployment rate

Answer

Changes in the interest rate

Question 4

Fiscal policy primarily involves the use of:

Accepted Answer

Government spending and taxation

Answer

Interest rates and monetary supply

Answer

Tariffs and import quotas

Answer

Subsidies and price controls

Question 5

The Kuznets curve illustrates a relationship between:

Accepted Answer

Economic growth and income inequality

Answer

Economic growth and unemployment

Answer

Economic growth and inflation

Answer

Economic growth and consumer spending

Question 6

Which of the following is a key characteristic of a mixed economic system?

Accepted Answer

Coexistence of both public and private ownership

Answer

Central planning of all economic activities

Answer

Complete absence of government intervention

Answer

Dominance of the primary sector

Question 7

According to Okun's Law, there is a:

Accepted Answer

Negative relationship between unemployment and economic growth

Answer

Negative relationship between unemployment and inflation

Answer

Positive relationship between unemployment and inflation

Answer

Positive relationship between unemployment and economic growth

Question 8

The production of which of the following would contribute to GDP?

Accepted Answer

Building a new bridge

Answer

Buying a new car

Answer

Selling a used phone

Answer

Caring for a child at home

Question 9

Which of the following is a factor that can positively impact economic growth?

Accepted Answer

Increased investment in education and research

Answer

Technological stagnation

Answer

Low consumer confidence

Answer

Political instability

Question 10

What is the role of fiscal policy in managing economic growth?

Accepted Answer

Influencing the level of government spending and taxation

Answer

Controlling the money supply

Answer

Setting interest rates

Answer

Adjusting foreign exchange rates

Question 11

How would a decline in investment spending affect GDP?

Accepted Answer

Decrease GDP

Answer

Increase GDP

Answer

Have no effect on GDP

Answer

Cannot be determined without more information

Question 12

What is the relationship between national income and disposable income?

Accepted Answer

The relationship varies depending on taxation and other deductions

Answer

National income is always greater than disposable income

Answer

Disposable income is always greater than national income

Answer

National income and disposable income are the same

Question 13

What is a potential downside of government efforts to boost economic growth?

Accepted Answer

Reduced market efficiency

Answer

Increased private investment

Answer

Lower unemployment rates

Answer

Higher consumer spending

Question 14

Which of the following is a determinant of economic growth?

Accepted Answer

Government spending

Accepted Answer

Technological advancement

Answer

Natural disasters

Answer

Declining population

Question 15

What is the key difference between real GDP and nominal GDP, and why is this distinction important for economists?

Accepted Answer

Real GDP accounts for inflation, showing the true value of goods and services produced, while nominal GDP uses current prices.

Answer

Nominal GDP is more accurate than real GDP because it isn't affected by inflation.

Answer

The difference between real and nominal GDP is insignificant for economic analysis.

Question 16

Which of the following is **NOT** included in the calculation of Gross Domestic Product (GDP)?

Accepted Answer

Imports of goods and services

Answer

Government spending on infrastructure

Answer

Value of goods and services produced within a country's borders

Question 17

Which of the following is a factor that **does not** influence economic growth?

Accepted Answer

Natural disasters

Answer

Government policies

Answer

Human capital

Answer

Technological advancements

Question 18

Which of the following economic indicators **best** measures the overall performance of an economy?

Accepted Answer

National Income

Answer

Consumer confidence index

Answer

Unemployment rate

Answer

Inflation

Question 19

Which of the following is **not** a benefit of economic growth?

Accepted Answer

Improved environmental quality

Answer

Reduced inequality

Answer

Increased standard of living

Answer

Lower unemployment rates

Question 20

Which of the following is a potential challenge associated with economic growth?

Accepted Answer

Environmental degradation

Answer

Increased social mobility

Answer

Higher employment opportunities

Answer

Improved infrastructure

Question 21

Which of the following measures the total value of all final goods and services produced in an economy within a specific time period?

Accepted Answer

Gross Domestic Product (GDP)

Answer

Gross National Income (GNI)

Answer

Personal Income

Answer

Net National Product (NNP)

Question 22

Which of the following is **not** a component of aggregate expenditure?

Accepted Answer

Savings

Answer

Government spending

Answer

Exports

Answer

Imports

Question 23

Which of the following fiscal policy tools **may be** used to stimulate economic growth?

Accepted Answer

Tax cuts

Answer

Higher taxes on imports

Answer

Interest rate increases

Answer

Reduced government spending

Question 24

Which of the following monetary policy tools **can be** used to control inflation?

Accepted Answer

Interest rate increases

Answer

Tax incentives for investment

Answer

Quantitative easing

Answer

Lower reserve requirements

Question 25

Which of the following economic policies aims to promote economic growth by **encouraging** private investment?

Accepted Answer

Supply-side economics

Answer

Marxist economics

Answer

Keynesian economics

Answer

Monetarism