McqMate
Chapters
1. |
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» B. A sustained increase in real per capita income |
2. |
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 |
3. |
Economic growth is measured as a percentage change in |
A. | Gross Domestic Product |
B. | Gross National Product |
C. | Both (a) and (b |
D. | Government expenditure |
Answer» C. Both (a) and (b |
4. |
The concept of economic growth is more relevant for |
A. | Developed countries |
B. | Underdeveloped countries |
C. | European countries |
D. | All of the above |
Answer» A. Developed countries |
5. |
Which of the following is not an indicator of economic development? |
A. | Increase in literacy level |
B. | Low growth of population |
C. | Low proportion of labour force in the primary section |
D. | Decrease in inequality of income |
Answer» C. Low proportion of labour force in the primary section |
6. |
The rate of growth of the economy mainly depends upon |
A. | The rate of growth of 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 |
7. |
Among the following determinants of growth, which is a non-economic factor? |
A. | Natural resources |
B. | Population growth |
C. | Favourablelegislation |
D. | Capital accumulation |
Answer» C. Favourablelegislation |
8. |
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 |
9. |
The most simple and popular method of measuring economic development is to calculate the trend of Gross National Product (GNP) at |
A. | Current prices |
B. | Constant prices |
C. | Both of the above |
D. | None of the above |
Answer» B. Constant prices |
10. |
The most important factor in economic development is |
A. | Quality of human resources |
B. | Quality of natural resources |
C. | Quality of governance |
D. | Quality of banking system |
Answer» A. Quality of human resources |
11. |
When economic development takes place |
A. | Share of services in GDP increases |
B. | Share of agriculture in GDP increases |
C. | Share of industry in GDP increases |
D. | Both (a) and (c |
Answer» D. Both (a) and (c |
12. |
Which of the following is acting as an obstacle to economic development |
A. | Shortage of money |
B. | Urbanization |
C. | Political instability |
D. | Shortage of labour |
Answer» C. Political instability |
13. |
The Solow’s growth model assumes that the two factors of production labour and capital are paid according to |
A. | their marginal physical productivities |
B. | the skills of the labour |
C. | the quality of the output |
D. | None of the above |
Answer» A. their marginal physical productivities |
14. |
Neo-classical growth model considered two-factor production function with |
A. | Technology and output |
B. | Capital and labour |
C. | Labour and technology |
D. | Capital and technology |
Answer» B. Capital and labour |
15. |
Technological progress helps in |
A. | Increase in overall productivity |
B. | Economic growth |
C. | Both of the above |
D. | None of the above |
Answer» C. Both of the above |
16. |
The technique of production in which the amount of capital used per unit of labour is larger than that of labour is known as |
A. | Capital-intensive technique |
B. | Modern technique |
C. | Scientific technique |
D. | All of the above |
Answer» A. Capital-intensive technique |
17. |
Economic growth can be measured in terms of changes in |
A. | GDP per head in agricultural sector |
B. | GDP per head of working population |
C. | Real national income per head |
D. | All of the above |
Answer» C. Real national income per head |
18. |
Assuming that 3 units of capital are required to produce 1 unit of output, then capitaloutput ratio would be |
A. | 3 ∶ 2 |
B. | 3 ∶ 1 |
C. | 3 ∶ 3 |
D. | 3 ∶ 4 |
Answer» B. 3 ∶ 1 |
19. |
With economic growth, the proportion of labour-force engaged in agriculture |
A. | Increases |
B. | Decreases |
C. | Remains unaffected |
D. | Changes in uncertain manner |
Answer» B. Decreases |
20. |
A strategy of heavy industry is sometimes preferred for a developing economy because it can |
A. | generate employment opportunities on a large scale |
B. | provide a strong base for rapid industrialization |
C. | contain inflationary measures |
D. | both (a) and (b |
Answer» D. both (a) and (b |
21. |
The incremental capital-output ration (ICOR) refers to the |
A. | Ratio of investment to change in output |
B. | Ratio of capital stock to the total output |
C. | Marginal productivity of capital |
D. | Financed by the citizens of a country and the income enjoyed by them |
Answer» A. Ratio of investment to change in output |
22. |
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 |
23. |
Which of the following is the indicators of economics growth |
A. | National income |
B. | Per capita income |
C. | Per capita consumption |
D. | All of the above |
Answer» D. All of the above |
24. |
According to the neo-classical theory, economic development is |
A. | Gradual |
B. | Harmonious |
C. | Cumulative |
D. | All of the above |
Answer» D. All of the above |
25. |
Which growth model inspired the use of capital-output ratio for development planning? |
A. | Harrod-Domar model |
B. | Solow model |
C. | Kaldor model |
D. | Feldman model |
Answer» A. Harrod-Domar model |
26. |
Harrod-Domar model of economic growth is based on |
A. | Underveloped economy |
B. | Advanced capitalist economy |
C. | Developing economy |
D. | All of the above |
Answer» B. Advanced capitalist economy |
27. |
Harrod-Domar model operates in a |
A. | Closed economy |
B. | Open economy |
C. | Both open and closed economy |
D. | None of the above |
Answer» A. Closed economy |
28. |
Harrod- Domar model is based on |
A. | Two distinct rates of growth |
B. | Three distinct rates of growth |
C. | Four distinct rates of growth |
D. | Five distinct rates of growth |
Answer» B. Three distinct rates of growth |
29. |
Solow’s model of long-run growth is an improvement over that of |
A. | J.E. Meade |
B. | Harrod-Domar |
C. | J. Robinson |
D. | A.K.Sen |
Answer» B. Harrod-Domar |
30. |
The major difference between Harrod-Domar and Solow models of growth lies in |
A. | Returns to scale |
B. | Returns to variable factors |
C. | Substitutability between labour and capital |
D. | Growth of income |
Answer» C. Substitutability between labour and capital |
31. |
Which growth model analyses the contribution of technological progress to the overall growth rate |
A. | Solow model |
B. | Kaldor model |
C. | Harrod model |
D. | All of the above |
Answer» A. Solow model |
32. |
The saving ratio in Solow’s model is |
A. | Constant |
B. | Negative |
C. | Flexible |
D. | None of the above |
Answer» A. Constant |
33. |
Which of the following models formed the basis of India’s First Five Year Plan |
A. | Malanobis model |
B. | Feldman model |
C. | Harrod-Domar model |
D. | Leontief model |
Answer» C. Harrod-Domar model |
34. |
Which of the following models uses three distinct concepts of growth? |
A. | Ramsey model |
B. | Harrod-Domar model |
C. | Solow model |
D. | Lewis model |
Answer» B. Harrod-Domar model |
35. |
The sequence of the three growth rates in Harod-Domar model is |
A. | actual, warranted and natural growth rates |
B. | natural,warranted and actual growth rates |
C. | warranted, actual and natural growth rates |
D. | natural,actual and warranted growth rates |
Answer» A. actual, warranted and natural growth rates |
36. |
Which of the following models makes the assumption of constantsaving-income ratio? |
A. | Kaldor model |
B. | Leontief model |
C. | Hoarrod-Domar model |
D. | Joan Robinson model |
Answer» C. Hoarrod-Domar model |
37. |
For neo-classical theorists, economic under- development is the product of which of the following |
A. | Inappropriate economic policies and too much state interference in the economy |
B. | Barriers against free trade |
C. | Low prices for raw-materials |
D. | Both (a) and (b |
Answer» D. Both (a) and (b |
38. |
In Harrod-Domar model, the actual growth rate represented by G, is determined by |
A. | Aggregate demand and aggregate supply |
B. | Saving ratio and the capital-output ratio |
C. | Increase in productive capacity |
D. | Net autonomous investment |
Answer» B. Saving ratio and the capital-output ratio |
39. |
According to Harrod-Domar model, once the steady growth is interrupted and the economy falls into disequilibrium, cumulative forces tend to perpetuate divergence thereby leading to |
A. | inflation in the economy |
B. | either secular deflation or secular inflation |
C. | Low economic growth rates |
D. | All of the above |
Answer» B. either secular deflation or secular inflation |
40. |
In Solow’s model of economic growth, production takes places under |
A. | Increasing returns to scale |
B. | Constant returns to scale |
C. | decreasing returns to scale |
D. | None of the above |
Answer» B. Constant returns to scale |
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