Chapter: Introduction
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.

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
3.

An underdeveloped economy is characterized by

A. High per capita real income
B. Large proportion of labor 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
4.

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
5.

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
6.

Capital formation in underdeveloped countries is a major bottleneck. The reason can be

A. Small size of market with no incentive for investment
B. Low level of income
C. vicious circle of poverty
D. All the above
Answer» D. All the above
7.

Consider the following statements and identify the right ones. i. Higher level of capital-output ratio indicates efficient use of capital. ii. It reflects the productivity of capital in the economy

A. I only
B. ii only
C. both
D. none
Answer» B. ii only
8.

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
9.

Which of the following about strategy of unbalanced growth is right?

A. Deliberate imbalance in favor of some sectors
B. Simultaneous investment in all sectors
C. Both
D. None
Answer» A. Deliberate imbalance in favor of some sectors
10.

The additional capital used per unit of additional production is called

A. Induced investment
B. Autonomous investment
C. Incremental Capital Output ratio
D. None of the above
Answer» C. Incremental Capital Output ratio
11.

Depression is characterized by

A. unprecedented level of underemployment
B. Drastic fall in income
C. Drastic fall in output and employment
D. All the above
Answer» D. All the above
12.

Consider the following statements and identify the right ones. i. During independence, Indian economy was heavily dependent on the tertiary sector ii. Development of industrial and services sector was not limited.

A. I only
B. ii only
C. both
D. none
Answer» D. none
13.

Consider the following statements and identify the right ones. i. The share of agriculture to the GDP today is less than 5% today ii. The tertiary sector contributes about 55%of the occupational structure. (employment)

A. I only
B. ii only
C. both
D. none
Answer» D. none
14.

Dual economy refers to existence of

A. Imports and export activities
B. Bilateral ties
C. Traditional and modern aspects in the economy
D. Both a and b
Answer» C. Traditional and modern aspects in the economy
15.

Mixed economy means an economy where there is

A. Existence of capitalism
B. Privatization, liberalization and globalization
C. Existence of both public and private sectors
D. Growing crops along with rearing animals
Answer» C. Existence of both public and private sectors
16.

Indian economy today is a i. Developing economy ii. Emerging economy iii. Dual economy iv. Non-agricultural economy

A. I and ii only
B. I, ii and iii
C. I, ii, iii, iv
D. iii and iv
Answer» B. I, ii and iii
17.

Consider the following statements and consider the right ones. i. In India, structure of economy and occupational structure is very similar. ii. Today, Tertiary sector contributes the highest to the GDP.

A. I only
B. ii only
C. both
D. none
Answer» B. ii only
18.

Arrange in the right order the contribution of sectors to the GDP from highest to lowest.

A. Agriculture, manufacturing, tertiary
B. Agriculture, tertiary, manufacturing
C. Tertiary, manufacturing, agriculture
D. Manufacturing, tertiary, agriculture
Answer» C. Tertiary, manufacturing, agriculture
19.

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
20.

Consider the following statements and identify the right ones. i. National income is the monetary value of all final goods and services produced. ii. Depreciation is deducted from gross value to get the net value

A. I only
B. ii only
C. both
D. none
Answer» C. both
21.

The state with lowest death rate is

A. West Bengal
B. Haryana
C. Bihar
D. Kerala
Answer» A. West Bengal
22.

The state with lowest birth rate is

A. West Bengal
B. Kerala
C. Karnataka
D. Assam
Answer» B. Kerala
23.

Consider the following statements and identify the right ones. i. The Planning Commission was set up by the Government resolution. ii. It formulates plans for effective utilization of resources.

A. I only
B. ii only
C. both
D. none
Answer» C. both
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