McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Master of Arts in Economics (MA Economics) .
| 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 | |
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