Economic Growth Unit 5

Question 1

What is economic growth?

Answer 1

Economic growth is the increase in the production of goods and services in an economy over a specific period.

Question 2

True or False: Economic growth can be measured by the increase in Gross Domestic Product (GDP).

Answer 2

True

Question 3

Fill in the blank: Economic growth is often expressed as a percentage increase in _____ over time.

Answer 3

GDP

Question 4

What are two primary factors that contribute to economic growth?

Answer 4

Capital accumulation and technological innovation.

Question 5

Which of the following is NOT a common indicator of economic growth? A) GDP B) Unemployment Rate C) Inflation Rate

Answer 5

C) Inflation Rate

Question 6

What is the difference between nominal GDP and real GDP?

Answer 6

Nominal GDP is measured at current market prices, while real GDP is adjusted for inflation.

Question 7

True or False: Economic growth leads to an increase in the standard of living.

Answer 7

True

Question 8

What is the role of government in promoting economic growth?

Answer 8

Governments can promote economic growth through policies that enhance education, infrastructure, and business investment.

Question 9

Name one potential downside of rapid economic growth.

Answer 9

Environmental degradation.

Question 10

Multiple Choice: Which theory suggests that economic growth is driven by improvements in productivity? A) Keynesian Theory B) Neoclassical Theory C) Marxist Theory

Answer 10

B) Neoclassical Theory