Economics Of Development Set 1

Bachelor of Commerce (B Com)

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This set of Economics of Development Multiple Choice Questions & Answers (MCQs) focuses on Economics Of Development Set 1

Q1 | Which of the following explains the term economic growth?
  • Increase in per capita production
  • Increase in per capita real income
  • Structural change in the economy
  • All the above are right
Answer: All the above are right
Q2 | Economic development is characterized by
  • Structural change in the economy
  • Change in the occupational structure
  • Both A and B
  • None of the above
Answer: Both A and B
Q3 | Underdevelopment is defined in terms of?
  • National income
  • Per capita income
  • Poverty ratio
  • Rate of unemployment
Answer: Per capita income
Q4 | Which of the following explains the term economic development?
  • Improvement in the technology involved
  • Improvement in production
  • Improvement in distribution system
  • All the above
Answer: All the above
Q5 | Which of the following is generally regarded as the true index of economic growth?
  • An increase in national income at constant prices during a year
  • A sustained increase in real per capita income
  • An increase in national income at current prices over time
  • An increase in national income along with a corresponding increase in population
Answer: An increase in national income at constant prices during a year
Q6 | The concept of economic growth is___________.
  • Identical with the concept of economic development
  • Narrower than the concept of economic development
  • Wider as compared to that of economic development
  • Unrelated to the concept of economic development
Answer: Narrower than the concept of economic development
Q7 | Which of the following is not an indicator of economically underdeveloped countries?
  • Low per capita income
  • High death-rate
  • Low proportion of labour force in the primary sector
  • High level of illiteracy
Answer: Low proportion of labour force in the primary sector
Q8 | The rate of growth of an economy mainly depends upon ___________ .
  • The rate of growth of the labour force
  • The proportion of national income saved and invested
  • The rate of technological improvements
  • All of the above
Answer: All of the above
Q9 | Among the following determinants of growth, which is a non-economic factor?
  • Natural resources
  • Population growth
  • Favourable legislation
  • Capital accumulation
Answer: Favourable legislation
Q10 | Besides increase in output, economic development is concerned with:
  • Inputs and their efficiency
  • Equitable distribution of income
  • Life sustenance, self-esteem and freedom from want, ignorance and squalor
  • All of the above
Answer: All of the above
Q11 | Economic growth can be measured by __________ .
  • The CPI
  • The CBI
  • GDP
  • MPC
Answer: GDP
Q12 | Economic growth can be seen by an outward shift of __________ .
  • The Production Possibility Frontier
  • The Gross Domestic Barrier
  • The Marginal Consumption Frontier
  • The Minimum Efficient Scale
Answer: The Production Possibility Frontier
Q13 | Development economics is the study of the
  • Alleviation of absolute poverty.
  • Transformation of institutions.
  • Allocation of resources in developing countries.
  • All of the above.
Answer: All of the above.
Q14 | A good definition of the meaning of development is the __________.
  • Elimination of absolute poverty.
  • Improvement in the quality of life.
  • Fulfillment of the potential of individuals.
  • All of the above.
Answer: All of the above.
Q15 | Development economics must have a scope wider than traditional economics because
  • Values and attitudes play little role in the pace of development.
  • People in developing societies do less utility-maximizing.
  • Transformation of social institutions is necessary for development.
  • All of the above.
Answer: Transformation of social institutions is necessary for development.
Q16 | The concept of Economic Planning in India is derived from?
  • USA
  • UK
  • Australia
  • Russia
Answer: Russia
Q17 | Economic development refers to __________.
  • Economic growth.
  • Economic growth plus changes in output distribution and economic structure.
  • Improvement in the well-being of the urban population.
  • Sustainable increases in Gross National Product.
Answer: Economic growth plus changes in output distribution and economic structure.
Q18 | Economic development means__________.
  • Economic growth.
  • Economic growth plus structural and qualitative changes.
  • Improvement in the living standard of the urban population.
  • Sustainable increases in Gross National Product (GDP).
Answer: Economic growth plus structural and qualitative changes.
Q19 | In the Ricardian scheme of things, savings are provided by .
  • Labourers
  • Capitalists
  • Landlords
  • Both B and C
Answer: Capitalists
Q20 | Which one of the following statements is not in tune with the Ricardian theory of growth?
  • Rent tends to rise
  • Money wages tend to rise
  • Profits tend to fall
  • Profits tend to rise
Answer: Profits tend to rise
Q21 | Which one of the following is not an assumption of the Ricardian theory?
  • Rising real wages
  • Fixity of land
  • Operation of the law of diminishing returns
  • Perfect competition
Answer: Rising real wages
Q22 | Ricardo built his theory round .
  • Value
  • Capital
  • Wages
  • Natural resources
Answer: Wages
Q23 | In the Ricardian system, a crucial role in development was assigned to .
  • Specialisation
  • Technological changes
  • Profits
  • Government
Answer: Profits
Q24 | Which of the following models uses three distinct concepts of stages of growth?
  • Ramsey model
  • Harrod model
  • Domar model
  • Lewis model
Answer: Harrod model
Q25 | The classical theory of economic development is of relevance for the less developedcountries today because it lays emphasis on .
  • Need for favourable institutional and social initiatives
  • Extension of markets
  • Capital accumulation
  • All of the above
Answer: All of the above
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