McqMate
| 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 | |
| 26. |
Which growth model inspired the use of capital-output ratio for development planning? |
| A. | the Harrod-Domar model |
| B. | Solow's mode |
| C. | Kaldor's model |
| D. | Feldman's model |
| Answer» A. the Harrod-Domar model | |
| 27. |
Which of the following models makes the assumption of constant saving-income ratio? |
| A. | Kaldor model |
| B. | Leontief model |
| C. | Harrod-Domar model |
| D. | Joan Robinson model |
| Answer» C. Harrod-Domar model | |
| 28. |
The Harrod-Domar model is one of the well- known models of growth. Which of the two authors of this model wrote earlier and in which year? |
| A. | Domar in 1940 |
| B. | Harrood in 1939 |
| C. | Domar in 1946 |
| D. | Domar in 1948 |
| Answer» B. Harrood in 1939 | |
| 29. |
The concept of economic growth is __________ . |
| A. | Identical with the concept of economic development |
| B. | Narrower than the concept of economic development |
| C. | W ider as compared to that of economic development |
| D. | Unrelated to the concept of economic development |
| Answer» B. Narrower than the concept of economic development | |
| 30. |
Economic growth in India will happen necessarily if there is . |
| A. | Population growth |
| B. | Capital formation |
| C. | Technical progress in the global economy |
| D. | All the above |
| Answer» B. Capital formation | |
| 31. |
Which of the following is inconsistent with Adam Smith’s theory of development? |
| A. | Development process is cumulative in nature |
| B. | There is no limit to the growth process |
| C. | Capital accumulation and market extension are two prerequisites for output expansion |
| D. | There should be no government interference in the working of the economy |
| Answer» B. There is no limit to the growth process | |
| 32. |
Karl Marx ideas about development theory are available in __________ . |
| A. | Communist Manifesto |
| B. | Das Kapital |
| C. | Capital: A Critique of Political Economy |
| D. | None of these |
| Answer» C. Capital: A Critique of Political Economy | |
| 33. |
In Schumpeter’s theory of development maximum stress has been laid on: |
| A. | Capital |
| B. | Interest |
| C. | Land |
| D. | Entrepreneurship |
| Answer» D. Entrepreneurship | |
| 34. |
Which sector was emphasised most by Ricardo in the context of economic growth? |
| A. | Trade |
| B. | Industry |
| C. | Agriculture |
| D. | Services |
| Answer» C. Agriculture | |
| 35. |
Which one of the following, according to Ricardo, would form a bottleneck to economic growth? |
| A. | Shortage of land |
| B. | Rising rent |
| C. | Shortage of gold and silver |
| D. | Rising wage bills |
| Answer» A. Shortage of land | |
| 36. |
Which of the following is inconsistent with the Schumpeter's theory of development? |
| A. | The course of growth is continuous |
| B. | The output expansion, initiated by the entrepreneur, increases in size with time, making it cumulative |
| C. | Growth takes place on account of entrepreneurs who, with the help of bank credit, invest ininnovative activity |
| D. | Capitalism destroys itself by being successful through the erosion of its institutions, by the hostility of its intellectuals and other elite classes, and also by the weakening of entrepreneurial innovation |
| Answer» A. The course of growth is continuous | |
| 37. |
According to the Schumpeter's model, the innovating entrepreneurs get the necessary finance from__________. |
| A. | Voluntary Savings |
| B. | Own Resources |
| C. | Bank Credit |
| D. | Government |
| Answer» C. Bank Credit | |
| 38. |
Which one of the following was given a central place by Schumpeter in his theory of development? |
| A. | Capital accumulation |
| B. | Role of the Government |
| C. | Need for balanced growth |
| D. | Role of innovations |
| Answer» D. Role of innovations | |
| 39. |
In which year was the first volume of Das Capital be Karl Marx published? |
| A. | 1848 |
| B. | 1859 |
| C. | 1867 |
| D. | 1873 |
| Answer» C. 1867 | |
| 40. |
Myrdal builds his theory of economic development around the idea of__________ . |
| A. | Regional inequalities on the national plane |
| B. | Regional inequalities on the international plane |
| C. | Both A and B |
| D. | None of the above |
| Answer» C. Both A and B | |
| 41. |
The concept of, Vicious Circle of Poverty’ is related to __________. |
| A. | Karl Marx |
| B. | Nurkse |
| C. | Adam Smith |
| D. | None of the above |
| Answer» B. Nurkse | |
| 42. |
Who formulated the theory of circular and cumulative causation which explains the perpetuation of underdevelopment through growing inequalities between developed and the underdeveloped countries? |
| A. | Lewis |
| B. | Gunnar Myrdal |
| C. | Higgins |
| D. | J. H. Boeke |
| Answer» B. Gunnar Myrdal | |
| 43. |
In the context of which region was the 'big push' strategy of development formulated? |
| A. | South Asia |
| B. | South East Asia |
| C. | Eastern Europe |
| D. | East Africa |
| Answer» C. Eastern Europe | |
| 44. |
Which among the following is a characteristic of underdevelopment? |
| A. | Vicious circle of poverty |
| B. | Rising mass consumption |
| C. | Growth of industries |
| D. | High rate of urbanization |
| Answer» A. Vicious circle of poverty | |
| 45. |
Who fixes the poverty line? |
| A. | Government |
| B. | Lok Sabha |
| C. | Rajya Sabha |
| D. | Planning Commission |
| Answer» D. Planning Commission | |
| 46. |
The basic logic behind the ‘big-push’ strategy of development is related to . |
| A. | Internal economies |
| B. | External economies |
| C. | An optimum combination |
| D. | Both A and B |
| Answer» B. External economies | |
| 47. |
Under the ‘big-push’ strategy of development, large investments are to be directed towards __________. |
| A. | Agriculture |
| B. | Industry |
| C. | Power |
| D. | Tr |
| Answer» A. Agriculture | |
| 48. |
The division of labour, according to Adam Smith, is limited by __________. |
| A. | The extent of the market |
| B. | The quantity of capital available |
| C. | Both (a) and (b) |
| D. | The size of labour force |
| Answer» C. Both (a) and (b) | |
| 49. |
The 'big-push' strategy of development was first advocated by: |
| A. | Paul N-Rosenstein-Rodan |
| B. | Simon Kuznets |
| C. | W. A. Lewis |
| D. | A. O. Hirshman |
| Answer» A. Paul N-Rosenstein-Rodan | |
| 50. |
Who has given "Big Push Theory"? |
| A. | R. Rodan |
| B. | Jack Hamilton |
| C. | Amritya Sen |
| D. | Dr. Abhishek Mathur |
| Answer» A. R. Rodan | |
| 51. |
Development with unlimited supplies of labour hypothesis was originally formulated by __________. |
| A. | Gustav Ranis |
| B. | W. A. Lewis |
| C. | R. Nurkse |
| D. | J. Schumpeter |
| Answer» B. W. A. Lewis | |
| 52. |
Identify the economist who first advocated a rolling plan for developing countries? |
| A. | J. Robinson |
| B. | N. Kaldor |
| C. | G. Myrdal |
| D. | Paul A. Samuelson |
| Answer» C. G. Myrdal | |
| 53. |
Gunnar Myrdal was awarded Noble Prize for Economics in 1974. What is his nationality? |
| A. | Norwegian |
| B. | Dutch |
| C. | Swedish |
| D. | American |
| Answer» C. Swedish | |
| 54. |
How much population is living below poverty line in India ? |
| A. | Approx 24% |
| B. | Approx 25% |
| C. | Approx 26% |
| D. | Approx 27% |
| Answer» C. Approx 26% | |
| 55. |
Economic growth measures the? |
| A. | Growth of productivity |
| B. | Increase in nominal income |
| C. | Increase in output |
| D. | None of the above |
| Answer» C. Increase in output | |
| 56. |
The basic characteristic of an underdeveloped economy is__________ . |
| A. | Low income and poverty |
| B. | Low productivity |
| C. | Low per capital income |
| D. | High illiteracy level |
| Answer» A. Low income and poverty | |
| 57. |
According to Lewis’s model, the dual economy grows only when __________ . |
| A. | The modern sector increases its output share relative to the traditional sector. |
| B. | Agricultural sector uses modern equipment. |
| C. | Agricultural sector hires labor economically. |
| D. | Modern manufacturing sector is labor- intensive. |
| Answer» A. The modern sector increases its output share relative to the traditional sector. | |
| 58. |
The vicious circle theory states that __________ . |
| A. | Growing government assistance creates addiction to welfare programs. |
| B. | Low income levels create pressure for money creation. |
| C. | Low income levels create pressure for cheap imports. |
| D. | Low per capita income creates low savings that keep incomes low. |
| Answer» D. Low per capita income creates low savings that keep incomes low. | |
| 59. |
Who have written the book "Capital and Growth"? |
| A. | R. Rodon |
| B. | Hicks |
| C. | Adam Smith |
| D. | Marshall |
| Answer» B. Hicks | |
| 60. |
SEZ India mobile app has been launched in January 2017 by __________. |
| A. | Ministry of Labour and Employment. |
| B. | Ministry of Finance |
| C. | Ministry of Commerce and Industry |
| D. | Ministry of Corporate Affairs |
| Answer» C. Ministry of Commerce and Industry | |
| 61. |
Which among the following is First Indian Special Economic Zone (SEZ)? |
| A. | Visakhapatnam SEZ |
| B. | Kandla SEZ |
| C. | Noida Special Economic Zone |
| D. | Cochin |
| Answer» B. Kandla SEZ | |
| 62. |
According to the supply side of the vicious circle theory of development a country is poor because . |
| A. | Technology levels do not allow for self sufficiency |
| B. | It was previously too poor to save and invest |
| C. | Underemployment is too widespread |
| D. | Resource allocation is poor |
| Answer» B. It was previously too poor to save and invest | |
| 63. |
The synchronized application of capital to a wide range of different industries is called __________ by its advocates. |
| A. | Balanced growth |
| B. | Capitalization |
| C. | Elasticity of capital |
| D. | Indivisibilities |
| Answer» A. Balanced growth | |
| 64. |
For Rosentein Rodan a major indivisibility is in __________. |
| A. | Supply |
| B. | Infrastructure |
| C. | Agriculture |
| D. | Services |
| Answer» B. Infrastructure | |
| 65. |
Economic growth is important because __________. |
| A. | People want less crime |
| B. | People want be happier |
| C. | People want a better environment |
| D. | People want higher incomes and more consumer goods. |
| Answer» D. People want higher incomes and more consumer goods. | |
| 66. |
The golden-rule saving rate is the rate of saving that __________. |
| A. | Gets the highest rate of interest |
| B. | Maximises the level of long-run investment |
| C. | Maximises the level of long-run consumption |
| D. | Maximises human capital |
| Answer» C. Maximises the level of long-run consumption | |
| 67. |
Backward and forward linkage are relevant for which kind of growth strategy? |
| A. | Unbalanced growth |
| B. | Trickle down growth |
| C. | Balanced growth |
| D. | Equilibrium growth |
| Answer» A. Unbalanced growth | |
| 68. |
Two economists have been particularly associated with the formulation of development with surplus labour hypothesis. One is R. Nurkse. Who is the other? |
| A. | W.A. Lewis |
| B. | James S. Duessenberry |
| C. | W.W. Rostow |
| D. | Simon Kuznets |
| Answer» B. James S. Duessenberry | |
| 69. |
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 | |
| 70. |
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 | |
| 71. |
To achieve full economic growth, Malthus laid special emphasis on the proper combination of__________. |
| A. | Production and distribution |
| B. | Natural resources and capital |
| C. | Labour and technology |
| D. | Production and trade |
| Answer» A. Production and distribution | |
| 72. |
According to R. Nurkse, the inducement to invest in the context of an underdeveloped economy is limited mainly by the: |
| A. | Lack of savings |
| B. | Size of the market |
| C. | Lack of investment opportunities |
| D. | Low productivity of labour |
| Answer» B. Size of the market | |
| 73. |
We can increase rate of economic growth in India if we increase: |
| A. | Taxes |
| B. | Imports |
| C. | Investment |
| D. | Population |
| Answer» C. Investment | |
| 74. |
When an economy produces more output per capital the economy is said to be having: |
| A. | Inflation |
| B. | Economic growth |
| C. | Economic planning |
| D. | Living standard |
| Answer» B. Economic growth | |
| 75. |
By growth rate of an economy can be speeded up. |
| A. | Investment in share market |
| B. | Investment abroad |
| C. | Investment in human capital formation |
| D. | Investment in primary sector |
| Answer» C. Investment in human capital formation | |
| 76. |
Gross domestic capital formation is defined as__________. |
| A. | Flow of expenditure devoted to increase or maintaining of the capital stock |
| B. | Expenditure incurred on physical assets only |
| C. | Production exceeding demand |
| D. | Net addition to stock after depreciation |
| Answer» D. Net addition to stock after depreciation | |
| 77. |
Economic growth in India will happen necessarily if there is? |
| A. | Population growth |
| B. | Capital formation |
| C. | Technical progress |
| D. | All the above |
| Answer» B. Capital formation | |
| 78. |
The most important indicators of HRD . |
| A. | Those which measure a country’s stock of human capital |
| B. | Those which measure the additions to this stock |
| C. | Both a and b |
| D. | None |
| Answer» C. Both a and b | |
| 79. |
The capital-output ratio is determined by: |
| A. | Sectoral allocation of capital |
| B. | Level of economic activity |
| C. | Human and natural resources |
| D. | All of the above |
| Answer» D. All of the above | |
| 80. |
HRD ways in education planning is / are. |
| A. | Manpower approach |
| B. | Social demand approach |
| C. | Rate of return approach |
| D. | All the above |
| Answer» D. All the above | |
| 81. |
Investment in human capital is related with expenditure in __________ . |
| A. | Education |
| B. | Training |
| C. | Health Services |
| D. | All the above |
| Answer» D. All the above | |
| 82. |
Mechanism of Human Resource Development includes |
| A. | Job Redesign |
| B. | Rewards |
| C. | Human Resource Information System |
| D. | All of the above |
| Answer» D. All of the above | |
| 83. |
Which of the following is correct regarding the Gross Domestic Savings in India? |
| A. | Contribution of Household sector is the largest |
| B. | Contribution of Government sector is the largest |
| C. | Contribution of Corporate sector is the largest |
| D. | None of these. |
| Answer» A. Contribution of Household sector is the largest | |
| 84. |
Which of the following would typically be considered “human capital”? |
| A. | Gender and race |
| B. | Health and education |
| C. | Prime ministers and presidents |
| D. | Religious world views and trust |
| Answer» A. Gender and race | |
| 85. |
On which date Swachh Bharat Abhiyan was launched? |
| A. | 2nd October |
| B. | 15th August |
| C. | 26th Jaunary |
| D. | 14th April |
| Answer» A. 2nd October | |
| 86. |
Swachch Bharat Mission (Rural) programme comes under which ministry? |
| A. | Ministry of Panchayati Raj |
| B. | Ministry of Drinking Water and Sanitation |
| C. | Ministry of Woman and Child Development |
| D. | Ministry of Rural Development |
| Answer» B. Ministry of Drinking Water and Sanitation | |
| 87. |
According to the human capital view of education __________. |
| A. | Has no impact on the human capital of workers |
| B. | Increases human capital and the wages of workers |
| C. | Can make any worker into a superstar |
| D. | Only helps firms sort workers into high ability and low-ability workers. |
| Answer» B. Increases human capital and the wages of workers | |
| 88. |
All primary schools will be upgraded to the. |
| A. | High levels |
| B. | Middle level |
| C. | Secondary level |
| D. | None of these |
| Answer» B. Middle level | |
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