Economic Growth Quiz - CBSE Class 12 Economics
Free practice quiz: Economic Growth (CBSE Class 12 Economics). 20 multiple-choice questions with answers and explanations. Play online, no sign-up needed.
Play all 20 questions freeSample questions
What does economic growth refer to?
- Increase in GDP
- Increase in population
- Increase in government spending
- Increase in exports
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Answer: A. Increase in GDP
Economic growth refers to the increase in the value of goods and services produced in an economy over time, commonly measured by an increase in GDP.
What is the impact of technological innovation on economic growth?
- It slows down growth
- It has no impact
- It fosters growth
- It causes economic instability
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Answer: C. It fosters growth
Technological innovation increases productivity and efficiency, leading to economic growth.
What is the significance of foreign direct investment (FDI) for economic growth?
- Reduces national investment
- Increases capital availability
- Leads to economic contraction
- Increases unemployment
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Answer: B. Increases capital availability
Foreign direct investment (FDI) brings in capital which can be used for development and expansion, thus enhancing economic growth.
What is the concept of sustainable economic growth?
- Growth that depletes resources
- Growth that maintains the environment
- Growth without technological advancement
- Growth without human capital development
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Answer: B. Growth that maintains the environment
Sustainable economic growth ensures that resource exploitation does not compromise the ability of future generations to meet their needs.
Which of the following is considered a structural factor affecting economic growth?
- Fiscal policy
- Monetary policy
- Demographics
- Interest rates
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Answer: C. Demographics
Demographics, such as age distribution and population growth, are structural factors that can have long-term effects on economic growth.