Which of the following is a reasonable measure of a country’s standard of living?
Correct answer B. Real GDP per person
Topic / 19 questions
Comparative GDP MCQs
Comparative GDP MCQs test how economists compare output and living standards across countries and over time, using real GDP per person, growth rates and the factors behind productivity. They suit CSS, PMS, UGC NET and BCS economics candidates. Every question has an instant answer, so you can check calculations and concepts as you practise.
- Miscellaneous Economics 737
- Basic of Economics 430
- Markets, Efficiency And The Public Interest 167
- Agriculture & Irrigation System of Pakistan 126
- Market 87
- Macroeconomic Issues and Analysis 75
- Money, Interest Rates And Output 73
- Introduction To Economics 70
- Population And Development 62
- Profit Maximizing Under Perfect Competition And Monopoly 56
- Income Inequality 52
- Non-Tariff Trade Barriers 48
- Aggregate Supply, Unemployment And Inflation 45
- Natural Resources and the Environment Toward Sustainable Development 44
- Costs , Supply And Perfect Competition 44
- Human Capital 42
- Labour Market 39
- Monopoly 35
- Long Term Economic Growth 30
- Inflation & Productivity 30
- Regional Trading Arrangements 29
- Characteristics and Institutions of Developing Countries 24
- Oligopoly 23
- Consumer Theory vs. Real Consumers 20
- Applied Microeconomics 20
- Alternative Theories Of The Firm 20
- Public Goods 20
- Balance of Payments, Aid and Foreign Investment 19
- Prices, Wages & Taxes 19
- Comparative GDP 19
- Budget Deficits And The Trade Balance 18
- Macroeconomic Policy Tools 18
- Asymmetric Information 17
- Application of Economics 16
- Production Factors 16
- Monopoly & Competition 15
- Capital Formation, Investment Choice, Information Technology, And Technical Progress 15
- Monetary, Fiscal And Incomes Policy, And Inflation 15
- Average And Total Cost 14
- Poverty, Malnutrition, And Income Inequality 12
- Monetary Union 10
Which statement is true of a nation whose GDP per person is very low?
Correct answer D. It has the potential to grow relatively quickly due to the "catch-up effect"
What is the opportunity cost of economic growth?
Correct answer A. A reduction in current consumption
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Copper is an example of which of the following?
Correct answer A. A non-renewable natural resource
What did Thomas Malthus argue?
Correct answer B. An ever-increasing population is constrained only by the food supply, resulting in chronic famines
Which of the following represents an increase in technological knowledge?
Correct answer B. A farmer discovers that it is better to plant in the spring rather than in the autumn
Which of the following counts as foreign portfolio investment?
Correct answer A. EDF of France buys shares in Scottish & Southern Energy of the UK, and Scottish & Southern Energy uses the proceeds to build a new hydro-electric power station in Scotland
Suppose Toyota builds a new plant in the north of England. Which of the following is then true?
Correct answer A. Once the plant starts producing cars, UK GDP will rise more than UK GNP
Which of these productivity-enhancing expenditures is most likely to generate a positive externality?
Correct answer B. Naila pays her university tuition fees
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Which of the following should a government NOT do if it wants to increase economic growth?
Correct answer A. Nationalise major industries
Why have many East Asian countries been growing very quickly?
Correct answer B. They save and invest an unusually high percentage of their GDP
Which of the following is true once a country has become wealthy?
Correct answer B. It may be harder for it to grow quickly because of diminishing returns to capital
Holding technology constant, an increase in which of the following would NOT be expected to raise productivity within a nation?
Correct answer D. Labour
What happens if a production function shows constant returns to scale?
Correct answer A. Doubling all of the inputs doubles output
Which statement about the effect of population growth on productivity is true?
Correct answer D. All of these answers
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Which statement best describes US productivity growth over the past fifty years?
Correct answer D. Productivity grew quickly in the 1950s and 1960s, more slowly from the early 1970s through 1995, and then quickly again
To what is our standard of living most closely related?
Correct answer C. Our productivity because our income is equal to what we produce
Which of the following government policies is least likely to increase growth in Africa?
Correct answer C. Increase restrictions on the importing of American tractors and electronics
In Pakistan, real GDP per person was Rs 18,073 in 2004 and Rs 18,635 in 2005. What was the growth rate of real output per person over this period?
Correct answer C. 3.1 percent
About Comparative GDP MCQs
This topic focuses on measuring and explaining differences in prosperity. Questions ask you to calculate a growth rate from two years of real GDP per person, for example Pakistan's figures for 2004 and 2005, and to identify real GDP per person as a reasonable measure of the standard of living. You will also meet constant returns to scale in a production function, the link between living standards and productivity, examples of technological progress, and the difference between foreign direct and foreign portfolio investment. Policy questions ask which measures governments should use to raise long-run growth.
Exams that include Comparative GDP MCQs
Pakistan
- CSS
- PMS
- Lecturer tests
India
- UGC NET
- UPSC CSE
Bangladesh
- BCS
- Bangladesh Bank recruitment
Frequently asked questions
How do you calculate the growth rate of real GDP per person?
Subtract last year's real GDP per person from this year's figure, divide the difference by last year's figure and multiply by 100. For example, a rise from Rs 18,073 to Rs 18,635 gives 562 divided by 18,073, which is about 3.1 percent.
What is foreign portfolio investment?
Foreign portfolio investment is the purchase of financial assets, such as shares or bonds, in another country without gaining management control of the firm. It differs from foreign direct investment, where the investor owns and operates a business or takes a controlling stake.
How many Comparative GDP MCQs are on MCQs360?
There are 19 Comparative GDP MCQs on MCQs360, each with an instant answer and free with no sign-up. Practise the growth rate formula on paper first, then use these questions to apply it alongside the related theory.
Last reviewed October 2026