Lesson 4.2.6.5

4.2.6.5 Economic growth and development Quiz: AQA Economics, Unit 2

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 4.2.6.5, Economic growth and development: 20 multiple choice questions for the AQA Economics (7136), Unit 2: The national and international economy, written with Revision Ninja.

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The 20 questions

  1. What is the difference between economic growth and economic development?

    • Growth refers only to population increases, while development refers to exports
    • Growth is an increase in real output, while development includes wider improvements in health, education and living standards
    • Growth and development are identical measures of national income
    • Development is an increase in output, while growth is a rise in living standards

  2. Which three measures are combined to form the Human Development Index?

    • Tax revenue, government spending and the budget deficit
    • Exports, imports and the exchange rate
    • Life expectancy, education and GNI per capita
    • Inflation, unemployment and the balance of payments

  3. Which of the following is a main characteristic of less-developed economies?

    • High GNI per capita and a service sector that dominates output
    • Low population growth and high levels of manufacturing exports
    • Low GNI per capita and a large share of employment in primary production such as farming
    • Stable and high levels of life expectancy for all citizens

  4. Which of the following is a barrier to growth and development?

    • A well-developed transport network that lowers costs
    • Access to education, which raises human capital
    • Corruption, which can divert resources and deter investment
    • Strong property rights, which encourage saving and investment

  5. Why does investment in education and training support economic development?

    • It raises human capital, which increases productivity and the economy's capacity to grow
    • It reduces the number of workers in the labour force, which raises incomes
    • It raises the price level, which increases real incomes
    • It has no effect on productivity, because workers are only paid for hours worked

  6. What is one role of aid in promoting development?

    • It always raises inflation and reduces incomes in recipient countries
    • It always removes the need for any domestic investment or policy
    • It can finance infrastructure and health programmes, though it can also create dependency if poorly managed
    • It reduces the amount of trade a country can conduct with others

  7. Which of these is a market-based strategy for promoting growth and development?

    • Liberalising trade and encouraging private investment with limited state intervention
    • Closing the economy to all foreign investment and trade
    • Setting high tariffs on all imports to protect every domestic industry
    • Nationalising all major industries and setting all prices by government decree

  8. A country's life expectancy rises from 60 to 70 years and school enrolment rises sharply, but GNI per capita is unchanged. What is the most likely conclusion about development?

    • Development is unchanged, because development depends only on income
    • Development has risen only in the cities, not nationally
    • Development has improved, even though income per head has not changed
    • Development has fallen, because income per head has not risen

  9. GDP grows by 4 per cent and population grows by 3 per cent in one year. What is the approximate growth in GDP per head?

    • About 1 per cent
    • About 7 per cent
    • About 4 per cent
    • About 3 per cent

  10. Poor road and port infrastructure in a country is an example of which barrier?

    • Poor infrastructure, which raises the cost of transporting goods and limits access to markets
    • A surplus of skilled workers, which lowers wages in every sector
    • Low interest rates, which encourage excessive borrowing by firms
    • Strong institutions, which enforce contracts and protect investors

  11. An interventionist strategy involves government direction of investment into strategic industries. Which example best illustrates this?

    • Removing all tariffs and allowing free capital movement without government involvement
    • Industrial policy in which the state targets investment in selected manufacturing sectors
    • Privatising all state-owned enterprises at once
    • Allowing firms to set prices without any government regulation

  12. Why does a lack of property rights discourage investment in less-developed economies?

    • Investors cannot be sure they will keep the returns from their investment, so they are less willing to invest
    • Property rights only affect the exchange rate, not domestic investment
    • Property rights have no effect on investment decisions
    • Investors gain more from unclear property rights, so they invest more

  13. Why might a shortage of human capital limit growth in an economy?

    • Human capital reduces the demand for goods, which lowers growth
    • Human capital has no effect on output, because only machines produce goods
    • Without skilled workers, firms cannot adopt more productive methods, so output and productivity grow slowly
    • Skilled workers reduce productivity because they demand higher wages

  14. How might trade help promote growth and development?

    • Through higher import prices, which always raise domestic output
    • Through export earnings, access to new technology and greater competition, which can raise productivity
    • Through a reduction in exports, which keeps domestic goods in the economy
    • Through a fall in productivity, which reduces competition

  15. A country's HDI rises while its GDP growth is zero. What is a plausible explanation?

    • The HDI always rises with GDP, so this combination cannot happen
    • Improvements in health and education have raised the HDI even though output growth has stalled
    • The HDI measures only income, so the rise must be an error
    • The HDI is unaffected by health and education

  16. Evaluate the relative merits of market-based and interventionist strategies for growth.

    • Market-based approaches always fail, while interventionist strategies always succeed in every country
    • Market-based approaches can encourage efficiency, but interventionist strategies may correct market failures and target key sectors
    • Both strategies have identical effects in all economies, so the choice does not matter
    • Interventionist strategies always reduce growth, so they should never be used

  17. Evaluate the effectiveness of aid in promoting development.

    • Aid can help finance essential investment, but its effects depend on governance, targeting and whether it builds lasting capacity
    • Aid always promotes development, whatever the policies in the recipient country
    • Aid never has any effect on development in any country
    • Aid always harms development, because it reduces investment in every case

  18. Explain why corruption can reduce economic growth.

    • It diverts public resources, raises the cost of doing business and discourages both domestic and foreign investment
    • It lowers the cost of business by removing rules, which raises investment
    • It has no effect on growth, because it affects only government officials
    • It increases public spending on infrastructure, which always raises growth

  19. Evaluate whether trade always promotes development in less-developed countries.

    • Not always, since the benefits depend on the type of trade, the terms of trade and whether gains are shared domestically
    • Yes, but only because trade always increases the price of primary commodities
    • No, trade never affects development in any country
    • Yes, trade always promotes development in every country without exception

  20. Evaluate the usefulness of the Human Development Index as a measure of development.

    • It measures only the exchange rate of each country's currency
    • It gives a broader picture than income alone, but it omits factors such as inequality, environment and political freedom
    • It is useless, because it measures only the price level of goods
    • It is a complete measure of every aspect of development, with no limitations

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