McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) .
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 |
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