Micro Economics MCQ (GK Set-1) with Answers

If the population continually grows, while everything else stays the same, then living standards will be lower than they would be if the population was constant.

If people save and invest a higher proportion of their incomes, while everything else stays the same, then there will be sustained growth

If people save and invest a higher proportion of their incomes, while everything else stays the same, living standards could fall

A new technology which makes workers more productive, while everything else stays the same, may not lead to sustained growth.

Both 1 and 2

1 only

2 only

Neither 1 nor 2

The poor country may have more rapid population growth

The rich country may have more human capital.

The poor country may have a higher saving ratio.

The rich country may be more open to the world economy.

Both 1 and 2

1 only

2 only

Neither 1 nor 2

They assume the production function shifts upwards whenever the stock of physical capital increases.

They suggest that if the level of investment is higher than depreciation, then there could be sustained growth.

They are called endogenous growth theories.

They argue that increasing the saving ratio will have only a temporary effect on output per worker.