Title: QUIZ: What Are the "Ingredients" for Economic Growth? -- Page One Economics®
Course: Recommended Resources for AP Macro from FRE > Section: Unit 5: Long-Run Consequences of Stabilization Policies

Q: What is economic growth, as defined in the text?
- A decrease in the amount of goods and services that an economy produces
- An increase in the amount of goods and services that an economy produces
- An increase in wages and living standards of its citizens
- A more equal distribution of economic resources
A: An increase in the amount of goods and services that an economy produces

Q: What is the impact of economic growth on standards of living?
- Decreased standards of living
- No effect on standards of living
- Increased standards of living
- Redistribution of resources
A: Increased standards of living

Q: Which of the following contributes to sustainable long-run growth, according to the text?
- More capital and labor
- Better use of existing resources
- Redistribution of resources
- Decrease in productive capacity
A: Better use of existing resources

Q: Why is it important for a society to invest in human capital?
- Physical assets such as machinery increase productivity.
- A well-educated workforce is generally more productive.
- Accumulation of knowledge increases standards of living.
- A well-educated workforce does not use available technology efficiently.
A: A well-educated workforce is generally more productive.

Q: What is a key factor driving technological progress, according to the text?
- Accumulation of physical capital
- Increased labor force
- Innovation and new ideas
- Redistribution of resources
A: Innovation and new ideas

Q: How do patent protections contribute to economic growth?
- By guaranteeing protections for firms
- By preventing firms from profiting after patent violations
- By allowing firms to profit from developing new technologies
- By restricting access to new technologies
A: By allowing firms to profit from developing new technologies

Q: What is essential to encourage private investment and innovation, according to the text?
- Weak property rights
- Lack of legal infrastructure
- Strong property rights
- Unpredictable legal decisions
A: Strong property rights

Q: How do competitive markets promote economic growth?
- By limiting efficiency
- By discouraging growth
- By fostering efficiency
- By preventing price changes
A: By fostering efficiency

Q: What role do financial institutions play in economic growth?
- They hinder economic growth.
- They limit access to loans.
- They transform savers' deposits into loans for borrowers.
- They increase inflation rates.
A: They transform savers' deposits into loans for borrowers.

Q: What does the text suggest is crucial for generating rising standards of living over time?
- Well-designed institutions
- Redistribution of resources
- Limited economic and political infrastructure
- Lack of incentives for individuals and firms
A: Well-designed institutions