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.

This CBSE Class 12 Economics practice quiz has 20 multiple-choice questions on Economic Growth, and 20 of them come with an explanation. Try the 5 sample questions below (tap an option to check yourself), then play the full quiz online. No sign-up needed.

Sample questions

1. What does economic growth refer to?

   1. Increase in GDP
   2. Increase in population
   3. Increase in government spending
   4. Increase in exports
   Show answer

   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.

2. What is the impact of technological innovation on economic growth?

   1. It slows down growth
   2. It has no impact
   3. It fosters growth
   4. It causes economic instability
   Show answer

   Answer: C. It fosters growth

   Technological innovation increases productivity and efficiency, leading to economic growth.

3. What is the significance of foreign direct investment (FDI) for economic growth?

   1. Reduces national investment
   2. Increases capital availability
   3. Leads to economic contraction
   4. Increases unemployment
   Show answer

   Answer: B. Increases capital availability

   Foreign direct investment (FDI) brings in capital which can be used for development and expansion, thus enhancing economic growth.

4. What is the concept of sustainable economic growth?

   1. Growth that depletes resources
   2. Growth that maintains the environment
   3. Growth without technological advancement
   4. Growth without human capital development
   Show answer

   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.

5. Which of the following is considered a structural factor affecting economic growth?

   1. Fiscal policy
   2. Monetary policy
   3. Demographics
   4. Interest rates
   Show answer

   Answer: C. Demographics

   Demographics, such as age distribution and population growth, are structural factors that can have long-term effects on economic growth.

More questions in this quiz

Answers and explanations are in the full quiz.

1. Which of the following is a sign of economic growth?
2. What is a primary indicator of economic growth?
3. Which of the following factors does NOT contribute to economic growth?
4. How does an increase in investment contribute to economic growth?
5. Which policies are likely to stimulate economic growth?
6. Which of the following is an effect of long-term economic growth?
7. Which economic theory emphasizes the importance of demand in driving economic growth?
8. What role do institutions play in economic growth?
9. Which of the following best explains the relationship between population growth and economic growth?
10. Which economic model incorporates the effects of technological change on growth?
11. What is the primary challenge of achieving rapid economic growth?
12. How do economic downturns affect long-term growth potential?
13. What is the significance of human capital in economic growth?
14. What does the term 'crowding out' refer to in economic growth?
15. Which type of growth policy is most likely to lead to short-term economic gains?

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