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 | |
Done Studing? Take A Test.
Great job completing your study session! Now it's time to put your knowledge to the test. Challenge yourself, see how much you've learned, and identify areas for improvement. Don’t worry, this is all part of the journey to mastery. Ready for the next step? Take a quiz to solidify what you've just studied.