Economic Growth and Development: A Comprehensive Guide for Associate of Arts in Liberal Arts Students

Question 1

How does technological progress contribute to economic growth?

Accepted Answer

Increases productivity

Answer

Reduces consumer spending

Answer

Creates unemployment

Answer

Increases environmental degradation

Question 2

Which factor is MOST crucial for the success of an economic development strategy?

Accepted Answer

Political stability.

Answer

Implementing strategies without errors.

Answer

Abundant natural resources.

Answer

Prioritizing short-term economic gains over environmental sustainability.

Question 3

How does investing in human capital contribute to economic development? Explain the relationship between education, skills, and economic growth.

Accepted Answer

Investing in human capital increases the availability of skilled workers, leading to higher productivity, innovation, and economic growth.

Answer

Investing in human capital primarily reduces unemployment rates and increases labor force participation.

Answer

Investing in human capital has no impact on economic growth.

Question 4

How do economic growth and development affect the environment, and how can nations strike a balance between economic progress and environmental sustainability?

Accepted Answer

Increased pollution, resource depletion, and climate change due to industrialization and consumption

Accepted Answer

Technological advancements and environmental regulations can lessen the negative environmental effects of economic growth and promote sustainability

Answer

Economic growth can be separated from environmental degradation, resulting in little to no environmental impact

Answer

Economic growth always has beneficial environmental effects because of increased investment in environmental protection

Question 5

Which factor is NOT considered a determinant of economic growth and development?

Accepted Answer

Availability of natural resources

Answer

Technological progress

Answer

Human capital

Answer

International trade

Question 6

The process of enhancing the skills and knowledge of a population is known as:

Accepted Answer

Human capital development

Answer

Economic growth

Answer

Economic development

Answer

Technological progress

Question 7

Which of the following countries is typically considered a less developed country?

Accepted Answer

Bangladesh

Answer

United States

Answer

China

Answer

Germany

Question 8

What is the primary objective of economic development strategies?

Accepted Answer

To promote sustainable economic growth

Answer

To reduce economic inequality

Answer

To protect the environment

Answer

To enhance social equity

Question 9

Which factor positively influences technological progress and innovation?

Accepted Answer

Increased investment in research and development

Answer

Strict government regulations

Answer

Limited access to education

Answer

Political instability and conflict

Question 10

How does international trade contribute to economic growth and development?

Accepted Answer

By fostering specialization and increasing efficiency

Answer

By reducing competition and protecting domestic industries

Answer

By limiting consumer choice and innovation

Answer

By creating trade barriers and restricting imports

Question 11

Which measure is commonly used to assess the overall economic growth of a country?

Accepted Answer

Gross domestic product (GDP)

Answer

Inflation rate

Answer

Unemployment rate

Answer

Poverty rate

Question 12

How can economic inequality impact economic development?

Accepted Answer

It can hinder economic growth by limiting opportunities

Answer

It can promote economic growth by stimulating competition

Answer

It has no significant impact on economic development

Answer

It always leads to economic decline and stagnation

Question 13

What is the significance of the "Kuznets Curve" in economic development?

Accepted Answer

It illustrates the relationship between economic growth and income inequality

Answer

It predicts the timing of economic recessions

Answer

It measures the level of inflation in an economy

Answer

It estimates the rate of unemployment

Question 14

How do governments influence economic growth and development through their policies, interventions, and investments?

Accepted Answer

Governments can stimulate growth through fiscal policies like increasing spending or cutting taxes to boost demand.

Accepted Answer

Government regulations can impact growth by setting market rules and standards, fostering innovation or limiting industry entry.

Accepted Answer

Government investments in infrastructure and education can contribute to growth by enhancing productivity and human capital.

Answer

Government intervention in the economy is not always necessary for growth and development.

Question 15

Human capital refers to the:

Accepted Answer

Aggregate knowledge, skills, and abilities within a population

Answer

Physical infrastructure present in a country

Answer

Natural resources available to a nation

Answer

Government expenditure

Question 16

An economic development strategy focused on enhancing a country's human capital is termed:

Accepted Answer

Human capital development

Answer

Export-oriented growth

Answer

Import substitution industrialization

Answer

Neoclassical economics

Question 17

Which of these is NOT typically associated with an underdeveloped country?

Accepted Answer

Robust financial institutions

Answer

Low literacy rates

Answer

High poverty levels

Answer

Limited healthcare accessibility

Question 18

The transition of countries from low to high levels of economic development is known as:

Accepted Answer

Economic development

Answer

Economic progress

Answer

Industrialization

Answer

Modernization

Question 19

Which of the following policies is most likely to promote technological progress?

Accepted Answer

Increased government spending on research and development

Answer

Reduced taxes on capital gains

Answer

Increased minimum wage

Answer

Reduced environmental regulations

Question 20

Which of the following is **not** a benefit of international trade?

Accepted Answer

Increased unemployment

Answer

Increased competition

Answer

Access to cheaper goods and services

Answer

Stimulation of innovation

Question 21

Which of the following is a well-established determinant of economic growth?

Accepted Answer

Technological progress

Answer

Increased population without corresponding increases in productivity

Answer

Rising inflation

Answer

Political instability

Question 22

Which of the following best defines human capital?

Accepted Answer

The skilled and educated labor force of a country

Answer

Investment in machinery and equipment

Answer

Natural resources available to a country

Answer

Monetary policy implemented by central banks

Question 23

Which of the following is NOT a common strategy employed for economic development?

Accepted Answer

Imposing tariffs on imported goods to protect domestic industries

Answer

Investing in education and healthcare

Answer

Providing subsidies to new industries

Answer

Building infrastructure

Question 24

What is the primary mission of the World Bank?

Accepted Answer

To promote economic development in developing countries

Answer

To set monetary policy for member states

Answer

To facilitate global trade negotiations

Answer

To enforce international environmental regulations

Question 25

Which of the following is a frequently used indicator of economic growth?

Accepted Answer

Gross domestic product (GDP)

Answer

Consumer price index (CPI)

Answer

Unemployment rate

Answer

Exchange rate

Question 26

Which of the following is a characteristic of developed economies?

Accepted Answer

High levels of innovation and technological advancement

Answer

Predominance of agriculture and natural resource extraction

Answer

Large informal sector

Answer

Low life expectancy

Question 27

The concept of sustainable development emphasizes the need to:

Accepted Answer

Balance economic growth with environmental protection

Answer

Maximize short-term economic gains at any cost

Answer

Reduce government intervention in the economy

Answer

Prioritize industrialization above all else

Question 28

Which of the following is considered a key factor in promoting economic growth and development?

Accepted Answer

Technological progress that enhances productivity and innovation

Answer

Lack of international trade that isolates the economy

Answer

Low levels of education that hinder skilled labor development

Answer

Political instability that undermines investor confidence

Question 29

Human capital refers to:

Accepted Answer

The aggregate stock of knowledge, skills, and abilities possessed by a population

Answer

The abundance of natural resources available in a territory

Answer

The level of government expenditure on social programs

Question 30

Which of the following is a potential benefit of international trade?

Accepted Answer

Increased economic efficiency through specialization and comparative advantage

Answer

Loss of domestic jobs due to outsourcing and automation

Answer

Reduced consumer prices at the expense of domestic producers

Answer

Increased trade deficits that strain a nation's balance of payments

Question 31

The process of economic growth involves:

Accepted Answer

A sustained increase in the capacity of an economy to produce goods and services

Answer

A temporary reduction in unemployment rates

Answer

A higher standard of living for a limited population

Question 32

Which of the following is a characteristic of a developing country?

Accepted Answer

Low per capita income that indicates limited economic development

Answer

High levels of industrialization that suggest advanced economic structures

Answer

A well-developed service sector that supports a diversified economy

Answer

A large middle class that signifies widespread prosperity

Question 33

The role of government in promoting economic growth and development may include:

Accepted Answer

Providing public infrastructure that enhances connectivity and economic activity

Answer

Controlling prices that may distort market mechanisms

Answer

Setting minimum wages that can stifle job creation

Answer

Banning foreign investment that limits access to capital and technology

Question 34

Sustainable economic development aims to:

Accepted Answer

Meet the needs of the present without compromising the ability of future generations to meet their own needs

Answer

Maximize economic growth regardless of environmental or social consequences

Answer

Prevent economic inequality by redistributing wealth

Question 35

What is the process by which individuals develop their skills, knowledge, and capabilities?

Accepted Answer

Human capital formation

Answer

Technological innovation

Answer

Market liberalization

Answer

Economic diversification

Question 36

Which of the following is an advantage of international trade?

Accepted Answer

Access to a wider range of goods and services

Answer

Increased government spending

Answer

Slowed economic growth

Answer

Reduced inflation

Question 37

What is the primary goal of economic development strategies?

Accepted Answer

To improve living standards and well-being

Answer

To reduce crime

Answer

To increase military spending

Answer

To protect the environment

Question 38

How does technological progress contribute to economic growth?

Accepted Answer

By increasing productivity and efficiency

Answer

By reducing labor costs

Answer

By lowering consumer demand

Answer

By increasing inflation

Question 39

Which of the following is NOT a barrier to economic development?

Accepted Answer

A free and democratic society

Answer

Lack of infrastructure

Answer

Political instability

Answer

Corruption

Question 40

What is the relationship between economic growth and environmental sustainability?

Accepted Answer

They can be mutually reinforcing or conflicting, depending on economic policies and practices.

Answer

Environmental sustainability can only be achieved at the expense of economic growth.

Answer

Economic growth always leads to environmental degradation.

Question 41

How does human capital contribute to international trade?

Accepted Answer

By improving a country's comparative advantage in certain industries.

Answer

By increasing the cost of labor

Answer

By reducing the demand for imported goods

Question 42

Which of the following is a sustainable economic development strategy?

Accepted Answer

Investing in renewable energy and improving energy efficiency.

Answer

Exploiting natural resources without regard for environmental consequences.

Answer

Promoting economic growth at any cost.

Question 43

How does human capital contribute to economic development?

Accepted Answer

Enhances productivity and innovation

Answer

Reduces unemployment rates

Answer

Decreases government expenditure

Answer

Promotes economic inequality

Question 44

What is a potential benefit of international trade?

Accepted Answer

Access to a wider variety of goods and services

Answer

Depreciation of the local currency

Answer

Elimination of trade barriers

Answer

Reduced domestic production

Question 45

How does technological progress impact economic growth?

Accepted Answer

Increases productivity and efficiency

Answer

Leads to widespread job displacement

Answer

Causes inflation

Answer

Reduces demand for goods and services

Question 46

What is a key challenge associated with economic growth?

Accepted Answer

Environmental degradation

Answer

Political instability

Answer

Overpopulation

Answer

Lack of financial institutions

Question 47

How does international trade affect economic inequality?

Accepted Answer

Can lead to job displacement in certain sectors

Answer

Benefits all countries equally

Answer

Has no impact on economic inequality

Answer

Always reduces income disparities

Question 48

What is the primary role of government in promoting economic growth?

Accepted Answer

Provide infrastructure and education

Answer

Decrease regulations on businesses

Answer

Reduce government spending

Answer

Control prices and wages

Question 49

How does economic growth impact social well-being?

Accepted Answer

Can improve access to healthcare and education

Answer

Benefits only the wealthy

Answer

Has no effect on living standards

Answer

Always leads to environmental degradation

Question 50

Which of the following is a key indicator of economic development?

Accepted Answer

GDP per capita

Answer

Inflation rate

Answer

Military spending

Answer

Population growth rate