Topic Questions (EASY): Economic Growth

Which of the following outcomes of rapid economic growth is not likely to harm the environment?

Increased vehicle ownership leading to greater mobility of workers

Increased levels of income that reduce fertility rates and family size

Relocation of workers from agricultural to manufacturing employment

When calculating growth rates, why is real GDP per capita a better indicator than nominal GDP per capita?

Real GDP per capita adjusts for inflation by using a base year.

Real GDP per capita is not affected by fluctuations in exchange rates.

Real GDP per capita takes into account changes in the population.

Real GDP per capita measures output at factor cost rather than market prices.

What is a likely explanation for a situation where an economy experiences faster growth in real national output than the increase in employment?

A rise in the general price level

An improvement in the country's terms of trade

An increase in labour productivity

An increase in the proportion of the population working

What conclusion can be drawn from the statement that the Polish economy expanded by 3.3% between 2014 and 2015?

The cost of living in Poland increased by 3.3%.

The output of the Polish industrial sector increased by 3.3%.

The price of goods and services in Poland increased by 3.3%.

The Polish economy experienced positive economic growth.

Suppose a household’s income increased by 3%, and the rate of inflation was also 3%. Which statement is true?

The household's nominal income and real income both increased by 3%.

The household's nominal income remained unchanged, while its real income increased by 3%.

The household's nominal income increased by 3%, while its real income remained unchanged.

The household's nominal income increased by 3%, while its real income increased by 6%.