MCQs of Economics - Comparative GDP – Multiple Choice Question

Question 1 of 20

1. Question

A reasonable measure of the standard of living in a country is

real GDP per person
nominal GDP per person.
Real GDP
The growth rate of nominal GDP per person

Question 2 of 20

2. Question

Many East Asian countries are growing vary quickly because:

They save and invest an unusually high percentage of their GDP
They have always been wealthy and will continue to be wealthy, Which is known as the "snowball effect"
They are imperialists and have collected wealth from previous victories in war
They have enormous natural resources.

Question 3 of 20

3. Question

When a national has very little GDP per person,

it is doomed to being relatively poor forever
none of these answers
an increase in capital will likely have little impact on output
it has the potential to grow relatively quickly due to the "catch-up-effect"
It must be a small nation.

Question 4 of 20

4. Question

Once a country is wealthy

it no longer needs any human capital
capital becomes more productive due to the "catch-up- effect"
none of these answers
it may be harder for it to grow quickly because of the diminishing returns to capital

Question 5 of 20

5. Question

The opportunity cost of growth is:

a reduction in current investment
a reduction in current consumption
a reduction in taxes
a reduction in current saving

Question 6 of 20

6. Question

For a given level of technology, we should expect an increase in productivity within a nation when there is an increase in each of the following except

labour
physical capital/worker
human capital/worker
natural resources/worker

Question 7 of 20

7. Question

Which of the following statements is true?

Countries all have the same growth rate and level of output because any country can obtain the same factors of production
Countries have great variance in both the level and growth rate of GDP/person thus poor countries can become relatively rich over time
Countries may have different level of GDP/person but they all grow at the same reate
Countries may have a different growth rate but they all have the same level of GDP/person

Question 8 of 20

8. Question

If a production function exhibits constant returns to scale,

doubling all of the inputs more than doubles output due to the catch up effect
doubling all of the inputs has absolutely no impact on output because output is constant
doubling all of the inputs less then doubles output due to diminishing returns
doubling all of the inputs doubles output

Question 9 of 20

9. Question

Copper is an example of

a renewable natural resource
physical capital
technology
a non-renewable natural resource

Question 10 of 20

10. Question

Which of the following statements regarding the impact of population growth on productivity is true?

There is no evidence yet that rapid population growth stretches natural resources to the point that it limits growth in productivity
All of these answers
Rapid population growth may dilute the capital stock lowering productivity
Rapid population growth may promote technological progress increasing productivity.

Question 11 of 20

11. Question

Thomas Malthus argued that:

none of these answers
an ever increasing population is constrained only by the food supply resulting in chronic faminies
technological progress will continuously generate improvement in productivity and living standards.
labour is the only true factor of production

Question 12 of 20

12. Question

Which of the following best describes the rate of growth in productivity in the United states over the last fifty years?

Productivity growth has been steady over the last 50 years
Productivity has been growing more slowly every decade since world War II
Productivity grew quickly in the 1950s and 1960s more slowly from the early 1970s through 1995 and then quickly agian
Productivity grew slowly from the 1950s through the 1970s and then began to accelerate probably due to advances in computer technology

Question 13 of 20

13. Question

Which of the following describes an increase in technological knowledge?

A farmer sends his child to agricultural college and the child returns to work on the farm
A farmer hires another day labourer
A farmer buys another tractor
A farmer discovers that it is better to plant in the spring rather than in the fall

Question 14 of 20

14. Question

Our standards of living is most closely related to:

how hard we work:
our supply of capital because every thing of value is produced by machinery
our productivity because our income is equal to what we produce
our supply of natural resources because they limit production

Question 15 of 20

15. Question

Which of the following is an example of foreign portfolio investment?

Toyota builds a new plant in the north of England
EDF of France buys shares in Scottish & Southern Energy of the UK, and Scottish & Southern Energy uses the Proceeds to build a new hydro-electric power station in Scotland
Deutsche Bank of Germany buys some new software from UK Supplier
JCB builds a new plant near Manchester

Question 16 of 20

16. Question

Which of the following government policies is least likely to increase likely to increase growth in Africa?

increase expenditure on public education
eliminate civil war
All of these answers would increase growth
increase restrictions on the importing of American tractors and electronics

Question 17 of 20

17. Question

If Toyota builds a new plant in the north of England ,

None of these answers
There has been an increase in foreign portfolio investment in the UK
Once the plant starts producing cars UK GDP will rise less than UK GNP
once the plant starts producing cars UK GDP will rise more than UK GNP

Question 18 of 20

18. Question

If in Pakistan real GDP/person in 2004 is Rs18,073 and real GDP/person is 2005 is Rs18,635 What is the growth rate of real output per person over this period?

3.1 percent
3.0 percent
18.6 percent
18.0 percent

Question 19 of 20

19. Question

Which of the following expenditures to enhance productivity is most likely to emit a positive externality?

Megabank buys a new computer
Naila pays her university tuition fees.
OGDC leases a new oil field
Indus Motors buys a new drill press

Question 20 of 20

20. Question

To increase growth, governments should do all of the following except:

encourage foreigners to investment in your country
encourage saving and investment
nationalize major industries
encourage research and development
Promote free trade

MCQs of Economics – Comparative GDP

Economics - Comparative GDP

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