| 1. |
Which of the following explains the term economic growth? |
| A. | Increase in per capita production |
| B. | Increase in per capita real income |
| C. | Structural change in the economy |
| D. | All the above are right |
| Answer» D. All the above are right | |
| 2. |
Economic development is characterized by |
| A. | Structural change in the economy |
| B. | Change in the occupational structure |
| C. | Both A and B |
| D. | None of the above |
| Answer» C. Both A and B | |
| 3. |
Underdevelopment is defined in terms of? |
| A. | National income |
| B. | Per capita income |
| C. | Poverty ratio |
| D. | Rate of unemployment |
| Answer» B. Per capita income | |
| 4. |
Which of the following explains the term economic development? |
| A. | Improvement in the technology involved |
| B. | Improvement in production |
| C. | Improvement in distribution system |
| D. | All the above |
| Answer» D. All the above | |
| 5. |
Which of the following is generally regarded as the true index of economic growth? |
| A. | An increase in national income at constant prices during a year |
| B. | A sustained increase in real per capita income |
| C. | An increase in national income at current prices over time |
| D. | An increase in national income along with a corresponding increase in population |
| Answer» A. An increase in national income at constant prices during a year | |
| 6. |
The concept of economic growth is___________. |
| A. | Identical with the concept of economic development |
| B. | Narrower than the concept of economic development |
| C. | Wider as compared to that of economic development |
| D. | Unrelated to the concept of economic development |
| Answer» B. Narrower than the concept of economic development | |
| 7. |
Which of the following is not an indicator of economically underdeveloped countries? |
| A. | Low per capita income |
| B. | High death-rate |
| C. | Low proportion of labour force in the primary sector |
| D. | High level of illiteracy |
| Answer» C. Low proportion of labour force in the primary sector | |
| 8. |
The rate of growth of an economy mainly depends upon ___________ . |
| A. | The rate of growth of the labour force |
| B. | The proportion of national income saved and invested |
| C. | The rate of technological improvements |
| D. | All of the above |
| Answer» D. All of the above | |
| 9. |
Among the following determinants of growth, which is a non-economic factor? |
| A. | Natural resources |
| B. | Population growth |
| C. | Favourable legislation |
| D. | Capital accumulation |
| Answer» C. Favourable legislation | |
| 10. |
Besides increase in output, economic development is concerned with: |
| A. | Inputs and their efficiency |
| B. | Equitable distribution of income |
| C. | Life sustenance, self-esteem and freedom from want, ignorance and squalor |
| D. | All of the above |
| Answer» D. All of the above | |
| 11. |
Economic growth can be measured by __________ . |
| A. | The CPI |
| B. | The CBI |
| C. | GDP |
| D. | MPC |
| Answer» C. GDP | |
| 12. |
Economic growth can be seen by an outward shift of __________ . |
| A. | The Production Possibility Frontier |
| B. | The Gross Domestic Barrier |
| C. | The Marginal Consumption Frontier |
| D. | The Minimum Efficient Scale |
| Answer» A. The Production Possibility Frontier | |
| 13. |
Development economics is the study of the |
| A. | Alleviation of absolute poverty. |
| B. | Transformation of institutions. |
| C. | Allocation of resources in developing countries. |
| D. | All of the above. |
| Answer» D. All of the above. | |
| 14. |
A good definition of the meaning of development is the __________. |
| A. | Elimination of absolute poverty. |
| B. | Improvement in the quality of life. |
| C. | Fulfillment of the potential of individuals. |
| D. | All of the above. |
| Answer» D. All of the above. | |
| 15. |
Development economics must have a scope wider than traditional economics because |
| A. | Values and attitudes play little role in the pace of development. |
| B. | People in developing societies do less utility-maximizing. |
| C. | Transformation of social institutions is necessary for development. |
| D. | All of the above. |
| Answer» C. Transformation of social institutions is necessary for development. | |
| 16. |
The concept of Economic Planning in India is derived from? |
| A. | USA |
| B. | UK |
| C. | Australia |
| D. | Russia |
| Answer» D. Russia | |
| 17. |
Economic development refers to __________. |
| A. | Economic growth. |
| B. | Economic growth plus changes in output distribution and economic structure. |
| C. | Improvement in the well-being of the urban population. |
| D. | Sustainable increases in Gross National Product. |
| Answer» B. Economic growth plus changes in output distribution and economic structure. | |
| 18. |
Economic development means__________. |
| A. | Economic growth. |
| B. | Economic growth plus structural and qualitative changes. |
| C. | Improvement in the living standard of the urban population. |
| D. | Sustainable increases in Gross National Product (GDP). |
| Answer» B. Economic growth plus structural and qualitative changes. | |
| 19. |
In the Ricardian scheme of things, savings are provided by . |
| A. | Labourers |
| B. | Capitalists |
| C. | Landlords |
| D. | Both B and C |
| Answer» B. Capitalists | |
| 20. |
Which one of the following statements is not in tune with the Ricardian theory of growth? |
| A. | Rent tends to rise |
| B. | Money wages tend to rise |
| C. | Profits tend to fall |
| D. | Profits tend to rise |
| Answer» D. Profits tend to rise | |
| 21. |
Which one of the following is not an assumption of the Ricardian theory? |
| A. | Rising real wages |
| B. | Fixity of land |
| C. | Operation of the law of diminishing returns |
| D. | Perfect competition |
| Answer» A. Rising real wages | |
| 22. |
Ricardo built his theory round . |
| A. | Value |
| B. | Capital |
| C. | Wages |
| D. | Natural resources |
| Answer» C. Wages | |
| 23. |
In the Ricardian system, a crucial role in development was assigned to . |
| A. | Specialisation |
| B. | Technological changes |
| C. | Profits |
| D. | Government |
| Answer» C. Profits | |
| 24. |
Which of the following models uses three distinct concepts of stages of growth? |
| A. | Ramsey model |
| B. | Harrod model |
| C. | Domar model |
| D. | Lewis model |
| Answer» B. Harrod model | |
| 25. |
The classical theory of economic development is of relevance for the less developed countries today because it lays emphasis on . |
| A. | Need for favourable institutional and social initiatives |
| B. | Extension of markets |
| C. | Capital accumulation |
| D. | All of the above |
| Answer» D. All of the above | |
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