1. The largest component of GDP in Canada is:

Question 1 options:

Consumption expenditure

Exports

Government Spending

Investment

2. In order to achieve faster economic growth, countries should:

Question 2 options:

increase exports.

cut taxes.

invest in human capital and technology, while increasing physical capital.

encourage more consumption expenditure.

3. In the early 1900s the most common occupation in Canada was working on a farm. Now less than 2% of Canadians work on farms. What explains this change?

Question 3 options:

A preference for urban living.

A demographic transition.

Increases in productivity.

The world needs less food.

4. Why are property rights important for economic growth?

Question 4 options:

They encourage the use of productive debt.

They allow income to be redistributed more equally across society.

They allow home ownership, and housing is the largest part of the economy.

They encourage investment in future production and lead to an increased number of transactions.