McqMate
| 1. |
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» D. sustainable increases in gross national product. | |
| 2. |
The Physical Quality of Life Index (PQLI) combines three indicators. They are |
| A. | infant mortality, life expectancy and adult literacy rate. |
| B. | crime rate, clean environment and quality of housing. |
| C. | air pollution rate, water pollution rate and sanitation. |
| D. | health, education and environment. |
| Answer» C. air pollution rate, water pollution rate and sanitation. | |
| 3. |
The Human Development Index (HDI) summarizes a great deal of social performance in asingle composite index, combining |
| A. | disparity reduction rate, human resource development rate and the composite index. |
| B. | longevity, education and living standard. |
| C. | minimum schooling, adult literacy and tertiary educational attainment. |
| D. | human resource training, development and r&d. |
| Answer» A. disparity reduction rate, human resource development rate and the composite index. | |
| 4. |
As economic development proceeds, income inequality tends to follow a(n) __________ curve |
| A. | convex. |
| B. | inverted u-shaped. |
| C. | l-shaped. |
| D. | s-shaped. |
| Answer» B. inverted u-shaped. | |
| 5. |
The Harrod-Domar growth model suggests that growth is |
| A. | directly related to savings and inversely related to the capital/output ratio. |
| B. | directly related to the capital/output ratio and inversely related to savings. |
| C. | indirectly related to savings and the capital/output ratio. |
| D. | directly related to savings and the capital/output ratio |
| Answer» D. directly related to savings and the capital/output ratio | |
| 6. |
Rostow’s economic stages are |
| A. | the preconditions for take-off, the take-off, the drive to maturity, and the age of creative destruction. |
| B. | the traditional society, the preconditions for take-off, the take-off, the drive to maturity, and the age of high mass consumption. |
| C. | the preconditions for consumption, the replication, the drive to maturity, and the age of high mass consumption. |
| D. | the learning curve, the age of high mass consumption, post-take-off, and the drive to maturity. |
| Answer» B. the traditional society, the preconditions for take-off, the take-off, the drive to maturity, and the age of high mass consumption. | |
| 7. |
A value of 1 in Gini index represents |
| A. | low inequality. |
| B. | maximum inequality. |
| C. | 100% inequality. |
| D. | 1% inequality. |
| Answer» B. maximum inequality. | |
| 8. |
The Lorenz curve shows |
| A. | patterns of poverty between developed and developing countries. |
| B. | the change in gdp per capita over time. |
| C. | the poorest’s income shares fall in the early stages of growth. |
| D. | income concentration relative to a 45-degree line. |
| Answer» D. income concentration relative to a 45-degree line. | |
| 9. |
Progress that meets the needs of the present without compromising the ability of future generations to meet their own needs is |
| A. | the tragedy of commons. |
| B. | sustainable development. |
| C. | net primary productivity (npp). |
| D. | the impossibility theorem. |
| Answer» B. sustainable development. | |
| 10. |
Economic growth can be measured by: |
| A. | the cpi |
| B. | the cbi |
| C. | gdp |
| D. | mpc |
| Answer» C. gdp | |
| 11. |
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 | |
| 12. |
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 | |
| 13. |
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 | |
| 14. |
The stationary state as envisaged by Adam Smith, is marked by: |
| A. | low rate of profit |
| B. | subsistence level wages |
| C. | high rents |
| D. | all of the above |
| Answer» D. all of the above | |
| 15. |
Which growth model inspired the use of capital-output ratio for development planning? |
| A. | the harrod-domar model |
| B. | solow’s model |
| C. | kaldor’s model |
| D. | feldman’s model |
| Answer» A. the harrod-domar model | |
| 16. |
With economic growth, the proportion of labour-force engaged in agriculture: |
| A. | increases |
| B. | decreases |
| C. | remains unaffected |
| D. | changes in an uncertain manner |
| Answer» B. decreases | |
| 17. |
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 | |
| 18. |
Identify the model which is concerned with the ‘golden age’ equilibrium: |
| A. | kaldor model |
| B. | joan robinson model |
| C. | keynesian model |
| D. | domar model |
| Answer» B. joan robinson model | |
| 19. |
India’s First Five Year Plan was based on: |
| A. | mahalanobis model |
| B. | feldman model |
| C. | harrod-domar model |
| D. | leontief model |
| Answer» C. harrod-domar model | |
| 20. |
The number of deaths of children under one year of age per 1000 live births is the: |
| A. | child mortality rate |
| B. | infant mortality rate |
| C. | toddler mortality rate |
| D. | neo-natal mortality rate |
| Answer» B. infant mortality rate | |
| 21. |
The Gini coefficient is a technique frequently used to show: |
| A. | variations in life expectancy |
| B. | income inequality |
| C. | differences in infant mortality |
| D. | the education gap |
| Answer» B. income inequality | |
| 22. |
A graphical technique that can be used to show the degree of inequality that exists between two variables is the: |
| A. | lorenz curve |
| B. | median-line bar graph |
| C. | kuznets curve |
| D. | semantic differential profile |
| Answer» A. lorenz curve | |
| 23. |
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 | |
| 24. |
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 | |
| 25. |
An underdeveloped economy is characterized by |
| A. | high per capita real income |
| B. | large proportion of labour force in the tertiary sector |
| C. | state of deprivation of large proportion of population |
| D. | all the above |
| Answer» C. state of deprivation of large proportion of population | |
| 26. |
Scarcity of capital, technological backwardness and unemployment are generally found in |
| A. | developed countries |
| B. | underdeveloped countries |
| C. | both |
| D. | none of the above |
| Answer» B. underdeveloped countries | |
| 27. |
Which of the following denotes an underdeveloped economy? |
| A. | high level of inequalities |
| B. | low level of capital productivity |
| C. | a relatively closed economy |
| D. | all the above |
| Answer» D. all the above | |
| 28. |
The concept of PQLI was developed by |
| A. | morris d morris |
| B. | uno |
| C. | undp |
| D. | oxford poverty and human development initiative |
| Answer» A. morris d morris | |
| 29. |
The parameter/s of the PQLI is/are |
| A. | life expectancy index |
| B. | standard of living index |
| C. | infant mortality rate |
| D. | a and c |
| Answer» D. a and c | |
| 30. |
The concept of HDI was popularized by |
| A. | morris d morris |
| B. | adam smith |
| C. | keynes |
| D. | mahbub ul haq |
| Answer» D. mahbub ul haq | |
| 31. |
The component/s of HDI is/are |
| A. | life expectancy index |
| B. | infant mortality rate |
| C. | population growth rate |
| D. | all the above |
| Answer» A. life expectancy index | |
| 32. |
The Multidimensional Poverty Index has been developed by |
| A. | the undp |
| B. | oxford hdi |
| C. | the uno |
| D. | morris d morris |
| Answer» B. oxford hdi | |
| 33. |
Which of following is not a component of Multidimensional Poverty Index? |
| A. | health |
| B. | education |
| C. | occupation |
| D. | standard of living |
| Answer» C. occupation | |
| 34. |
Which of the following is not an indicator to measure Multidimensional Poverty Index? |
| A. | electricity |
| B. | nutrition |
| C. | cooking fuel |
| D. | profession |
| Answer» D. profession | |
| 35. |
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» D. all the above | |
| 36. |
The financial year in India is |
| A. | april 1 to march 31 |
| B. | january 1 to december 31 |
| C. | march 1 to april 30 |
| D. | march 16 to march 15 |
| Answer» A. april 1 to march 31 | |
| 37. |
A multi-dimensional measure of poverty include includes which of the following elements? |
| A. | health level |
| B. | education level |
| C. | living standards |
| D. | all of these answer |
| Answer» D. all of these answer | |
| 38. |
Which of the following is a goal of economic development? |
| A. | economic growth |
| B. | reduction of poverty |
| C. | improvement of human development (education, health, etc). |
| D. | all of these answers |
| Answer» D. all of these answers | |
| 39. |
In the Solow model, if capital is in the steady state, output: |
| A. | will continue to grow. |
| B. | is also in the steady state. |
| C. | will continue to grow, but its rate of growth will slow down. |
| D. | will decline, but its rate of growth will be positive. |
| Answer» B. is also in the steady state. | |
| 40. |
For Rostow, which of the following constitute pre-conditions for take-off? |
| A. | investment rate of at least 5% of gnp |
| B. | universal primary education |
| C. | development of one or more manufacturing sectors with a high growth rate |
| D. | both a and b |
| Answer» A. investment rate of at least 5% of gnp | |
| 41. |
Which of the following is not an important objective of development? |
| A. | increases in per capita income |
| B. | the expansion of available choices |
| C. | increases in individual and national self-esteem |
| D. | all of the above are important objectives of d |
| Answer» D. all of the above are important objectives of d | |
| 42. |
The Harrod-Domar growth model is based on the relationship of what two economic elements? |
| A. | raw materials and technology |
| B. | savings and investment |
| C. | educational enrolment and number of teachers |
| D. | tariff and tax levels |
| Answer» B. savings and investment | |
| 43. |
Rate of growth of an economy is measured in terms of: |
| A. | per capita income |
| B. | industrial development |
| C. | number of people who have been lifted above the poverty line |
| D. | national income |
| Answer» D. national income | |
| 44. |
Sen’s welfare theory relies on |
| A. | individuals’ accomplishments. |
| B. | individuals’ capabilities. |
| C. | individuals’ wealth. |
| D. | individuals’ education. |
| Answer» A. individuals’ accomplishments. | |
| 45. |
How does Sen define poverty? |
| A. | the lack of material well-being |
| B. | the deprivation of basic capabilities for an individual |
| C. | the lack of supportive social institutions to ensure one’s basic livelihood |
| D. | the lack of a cultural or religious identity |
| Answer» B. the deprivation of basic capabilities for an individual | |
| 46. |
Harrod’s definition of rate of growth of an economy do not include |
| A. | warranted (required) rate of growth |
| B. | actual rate of growth |
| C. | sustainable rate of growth |
| D. | natural rate of growth |
| Answer» C. sustainable rate of growth | |
| 47. |
The rate of growth of output which is required to fully employ the entire growing labour force is the |
| A. | warranted (required) rate of growth |
| B. | actual rate of growth |
| C. | sustainable rate of growth |
| D. | natural rate of growth |
| Answer» D. natural rate of growth | |
| 48. |
The instability of equilibrium in the Harrod model was used by him to explain the business cycles above and below the trend path of -------- |
| A. | warranted (required) rate of growth |
| B. | actual rate of growth |
| C. | sustainable rate of growth |
| D. | natural rate of growth |
| Answer» A. warranted (required) rate of growth | |
| 49. |
Harrod explained the peaks and troughs of the business cycles through the use of |
| A. | warranted (required) rate of growth of output |
| B. | actual rate of growth of output |
| C. | sustainable rate of growth of output |
| D. | natural rate of growth of output |
| Answer» D. natural rate of growth of output | |
| 50. |
Harrod argues that in an economy with constant capital-labour ratio, the ------------ can never be more than the natural rate of growth of output. |
| A. | warranted (required) rate of growth of output |
| B. | actual rate of growth of output |
| C. | sustainable rate of growth of output |
| D. | natural rate of growth of output |
| Answer» B. actual rate of growth of output | |
| 51. |
In Domar’s Model National Income (output) is determined by investment through the |
| A. | accelerator |
| B. | multiplier |
| C. | saving |
| D. | none of the above |
| Answer» B. multiplier | |
| 52. |
In Joan Robinson’s growth model, capital accumulation depends on |
| A. | saving-income ratio |
| B. | profit-wage relation and labour productivity |
| C. | profit-income ratio and capital productivity |
| D. | saving-investment ratio |
| Answer» B. profit-wage relation and labour productivity | |
| 53. |
In dual gap model, the gap can be filled up by |
| A. | raising the level of saving |
| B. | export promotion |
| C. | steady rate of growth |
| D. | foreign aid |
| Answer» D. foreign aid | |
| 54. |
Harrod-Domar model of growth is based on the concepts of and their equality |
| A. | population and productivity growth. |
| B. | investment and average growth rate of income. |
| C. | actual, warranted and natural growth rate |
| D. | productivity growth and investment growth |
| Answer» C. actual, warranted and natural growth rate | |
| 55. |
The characteristics of Rostow’s Traditional society include |
| A. | enlarged production function |
| B. | employment in agriculture |
| C. | social mobility |
| D. | political power |
| Answer» A. enlarged production function | |
| 56. |
The Prior Saving Theory regards saving as a prerequisite of -------- |
| A. | investment |
| B. | income |
| C. | consumption |
| D. | inflation rate |
| Answer» A. investment | |
| 57. |
In the Keynesian model, investment is not constrained by prior savings but by ------------ acceptable to the workers. |
| A. | investment |
| B. | income |
| C. | consumption |
| D. | inflation rate |
| Answer» D. inflation rate | |
| 58. |
The extension of Harrod-Domar model was made by adding the term for foreign trade balance as per cent of |
| A. | investment |
| B. | national income |
| C. | export |
| D. | import |
| Answer» B. national income | |
| 59. |
The prior savings approach is based on classical economics which emphasizes that prior saving determines |
| A. | investment |
| B. | income |
| C. | consumption |
| D. | inflation rate |
| Answer» A. investment | |
| 60. |
The assumptions of Technological dualism not include |
| A. | there are two sectors of the economy |
| B. | there are two factors of production |
| C. | two commodities are produced |
| D. | there are two modes of production |
| Answer» D. there are two modes of production | |
| 61. |
Dualism and dichotomies in geography do not include |
| A. | general geography versus regional geography |
| B. | physical geography versus human geography |
| C. | quantitative versus behavioural geography |
| D. | hard geography versus soft geography |
| Answer» D. hard geography versus soft geography | |
| 62. |
Development of one leading sector is a feature of Rostow’s stage of growth of |
| A. | the traditional society |
| B. | pre-conditions for take off |
| C. | the take off stage |
| D. | drive to maturity |
| Answer» C. the take off stage | |
| 63. |
The existence of Different Frameworks in the Society is a feature of Rostow’s stage of growth of |
| A. | the traditional society |
| B. | pre-conditions for take off |
| C. | the take off stage |
| D. | drive to maturity |
| Answer» C. the take off stage | |
| 64. |
Shift in Occupational Distribution is a feature of Rostow’s stage of growth of |
| A. | the traditional society |
| B. | pre-conditions for take off |
| C. | the take off stage |
| D. | drive to maturity |
| Answer» D. drive to maturity | |
| 65. |
Shift in Consumption Pattern is a feature of Rostow’s stage of growth of |
| A. | the traditional society |
| B. | pre-conditions for take off |
| C. | the take off stage |
| D. | drive to maturity |
| Answer» D. drive to maturity | |
| 66. |
Shift in Consumption of Leading Sector is a feature of Rostow’s stages of growth |
| A. | the traditional society |
| B. | pre-conditions for take off |
| C. | the take off stage |
| D. | drive to maturity |
| Answer» D. drive to maturity | |
| 67. |
The Entrepreneurial Leadership and Boredom are non-economic factors of the Rostow’s stages of growth of |
| A. | the traditional society |
| B. | pre-conditions for take off |
| C. | the take off stage |
| D. | drive to maturity |
| Answer» D. drive to maturity | |
| 68. |
Rostow had advocated his theory as an alternative to |
| A. | smith’s theory |
| B. | marx’s theory |
| C. | malthusian theory |
| D. | none of these |
| Answer» B. marx’s theory | |
| 69. |
Who explains the theory of technological dualism? |
| A. | prof. b. higgins |
| B. | prof. boeke |
| C. | prof. myint |
| D. | a.o. hirshman |
| Answer» A. prof. b. higgins | |
| 70. |
Who explains the theory of social dualism? |
| A. | prof. b. higgins |
| B. | prof. boeke |
| C. | prof. myint |
| D. | a.o. hirshman |
| Answer» B. prof. boeke | |
| 71. |
Differences in Factor Endowment is fundamental bases of |
| A. | technical dualism |
| B. | social dualism |
| C. | geographical dualism |
| D. | financial dualism |
| Answer» A. technical dualism | |
| 72. |
Differences in Production Function is fundamental bases of |
| A. | technical dualism |
| B. | social dualism |
| C. | geographical dualism |
| D. | financial dualism |
| Answer» A. technical dualism | |
| 73. |
Personal touch between the moneylenders and borrowers is the characteristics of |
| A. | organised money market |
| B. | unorganised money market |
| C. | organised capital market |
| D. | un organised capital market |
| Answer» B. unorganised money market | |
| 74. |
Informality in dealing with borrowers by the moneylenders is the characteristics of |
| A. | organised money market |
| B. | unorganised money market |
| C. | organised capital market |
| D. | un organised capital market |
| Answer» B. unorganised money market | |
| 75. |
Flexibility in loan transactions is the characteristics of |
| A. | organised money market |
| B. | unorganised money market |
| C. | organised capital market |
| D. | un organised capital market |
| Answer» B. unorganised money market | |
| 76. |
Multiplicity of lending activities, i.e., combining moneylending with other economic activities such as trading is the characteristics of |
| A. | organised money market |
| B. | unorganised money market |
| C. | organised capital market |
| D. | un organised capital market |
| Answer» B. unorganised money market | |
| 77. |
Multiplicity of interest rates at the interest rate varying with the need of the borrower, the amount of loan, the time for which it is needed, and the nature of security is the characteristics of |
| A. | organised money market |
| B. | unorganised money market |
| C. | organised capital market |
| D. | un organised capital market |
| Answer» B. unorganised money market | |
| 78. |
Defective system of maintaining accounts at receipts are not issued for interest charged and the principal repaid is the characteristics of |
| A. | organised money market |
| B. | unorganised money market |
| C. | organised capital market |
| D. | un organised capital market |
| Answer» B. unorganised money market | |
| 79. |
Utmost secrecy in maintaining accounts and lending procedures is the characteristics of |
| A. | organised money market |
| B. | unorganised money market |
| C. | organised capital market |
| D. | un organised capital market |
| Answer» B. unorganised money market | |
| 80. |
The coexistence of organised and unorganised money market in the LDCs is called |
| A. | financial exclusion |
| B. | financial dualism |
| C. | financial institution |
| D. | financial inclusion |
| Answer» B. financial dualism | |
| 81. |
Circular cumulative causation theory is developed by Swedish economist |
| A. | gunnar myrdal |
| B. | prof. boeke |
| C. | prof. myint |
| D. | a.o. hirshman |
| Answer» A. gunnar myrdal | |
| 82. |
The growth in progressive regions affects the growth in lagging regions through Spread effects and Backwash effects is the analysis put forward by |
| A. | gunnar myrdal |
| B. | prof. boeke |
| C. | prof. myint |
| D. | a.o. hirshman |
| Answer» A. gunnar myrdal | |
| 83. |
The theory of Low-Level Equilibrium Trap has been developed by |
| A. | gunnar myrdal |
| B. | prof. boeke |
| C. | prof. myint |
| D. | r.r. nelson |
| Answer» D. r.r. nelson | |
| 84. |
Who put forward the view that UDCs are characterized by vicious circle of poverty which keeps them around a low-income per capita equilibrium state? |
| A. | nelson |
| B. | harvey leibenstein |
| C. | hirschman |
| D. | rosenstein-rodan |
| Answer» B. harvey leibenstein | |
| 85. |
Those incentives which do not increase national income, but they bring a change in the distribution of income is called |
| A. | zero-sum incentives |
| B. | positive sum incentives |
| C. | negative incentives |
| D. | none of the above |
| Answer» A. zero-sum incentives | |
| 86. |
Those incentives which result in expansion of national income is called |
| A. | zero-sum incentives |
| B. | positive sum incentives |
| C. | negative incentives |
| D. | none of the above |
| Answer» B. positive sum incentives | |
| 87. |
Zero-Sum incentives and Positive Sum incentives are introduced by |
| A. | nelson |
| B. | harvey leibenstein |
| C. | hirschman |
| D. | rosenstein-rodan |
| Answer» B. harvey leibenstein | |
| 88. |
Which of the following is not correctly matched? |
| A. | big-push strategy: paul n. rosenstein- rodan |
| B. | balanced growth theory: r. nurkse |
| C. | development with unlimited supplies of labour: a-0. hirschman |
| D. | critical minimum strategy: prof. harvey leibenstein |
| Answer» C. development with unlimited supplies of labour: a-0. hirschman | |
| 89. |
Who distinguishes three kinds of indivisibilities and externalities with a view to specify the areas where big push needs to be applied? |
| A. | nelson |
| B. | harvey leibenstein |
| C. | hirschman |
| D. | rosenstein-rodan |
| Answer» A. nelson | |
| 90. |
Balanced growth implies: |
| A. | simultaneous development of a variety of activities, which support one another |
| B. | equal allocation of resources to different sectors |
| C. | different sectors growing at their natural rates of growth |
| D. | uniform rate of growth of output over time |
| Answer» C. different sectors growing at their natural rates of growth | |
| 91. |
Which of the following about strategy of balanced growth is right? |
| A. | simultaneous investment in all sectors |
| B. | all sectors are independent. |
| C. | both |
| D. | none |
| Answer» A. simultaneous investment in all sectors | |
| 92. |
Which of the following about strategy of unbalanced growth is right? |
| A. | deliberate imbalance in favour of some sectors |
| B. | simultaneous investment in all sectors |
| C. | both |
| D. | none |
| Answer» A. deliberate imbalance in favour of some sectors | |
| 93. |
Lumpinessof capital, especially in the creation of social overhead capital is called |
| A. | indivisibilities in the production function |
| B. | indivisibility of demand |
| C. | indivisibility of savings |
| D. | indivisibility of investment |
| Answer» A. indivisibilities in the production function | |
| 94. |
Complementarityof demand is called |
| A. | indivisibilities in the production function |
| B. | indivisibility of demand |
| C. | indivisibility of savings |
| D. | indivisibility of investment |
| Answer» B. indivisibility of demand | |
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