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This set of Economics of Development Multiple Choice Questions & Answers (MCQs) focuses on Economics Of Development Set 2
Q1 | Which growth model inspired the use of capital-output ratio for development planning?
- the Harrod-Domar model
- Solow's mode
- Kaldor's model
- Feldman's model
Q2 | Which of the following models makes the assumption of constant saving-income ratio?
- Kaldor model
- Leontief model
- Harrod-Domar model
- Joan Robinson model
Q3 | The Harrod-Domar model is one of the well- known models of growth. Which of the twoauthors of this model wrote earlier and in which year?
- Domar in 1940
- Harrood in 1939
- Domar in 1946
- Domar in 1948
Q4 | The concept of economic growth is __________ .
- Identical with the concept of economic development
- Narrower than the concept of economic development
- W ider as compared to that of economic development
- Unrelated to the concept of economic development
Q5 | Economic growth in India will happen necessarily if there is .
- Population growth
- Capital formation
- Technical progress in the global economy
- All the above
Q6 | Which of the following is inconsistent with Adam Smith’s theory of development?
- Development process is cumulative in nature
- There is no limit to the growth process
- Capital accumulation and market extension are two prerequisites for output expansion
- There should be no government interference in the working of the economy
Q7 | Karl Marx ideas about development theory are available in __________ .
- Communist Manifesto
- Das Kapital
- Capital: A Critique of Political Economy
- None of these
Q8 | In Schumpeter’s theory of development maximum stress has been laid on:
- Capital
- Interest
- Land
- Entrepreneurship
Q9 | Which sector was emphasised most by Ricardo in the context of economic growth?
- Trade
- Industry
- Agriculture
- Services
Q10 | Which one of the following, according to Ricardo, would form a bottleneck to economicgrowth?
- Shortage of land
- Rising rent
- Shortage of gold and silver
- Rising wage bills
Q11 | Which of the following is inconsistent with the Schumpeter's theory of development?
- The course of growth is continuous
- The output expansion, initiated by the entrepreneur, increases in size with time, making it cumulative
- Growth takes place on account of entrepreneurs who, with the help of bank credit, invest ininnovative activity
- 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
Q12 | According to the Schumpeter's model, the innovating entrepreneurs get the necessary financefrom__________.
- Voluntary Savings
- Own Resources
- Bank Credit
- Government
Q13 | Which one of the following was given a central place by Schumpeter in his theory ofdevelopment?
- Capital accumulation
- Role of the Government
- Need for balanced growth
- Role of innovations
Q14 | In which year was the first volume of Das Capital be Karl Marx published?
- 1848
- 1859
- 1867
- 1873
Q15 | Myrdal builds his theory of economic development around the idea of__________ .
- Regional inequalities on the national plane
- Regional inequalities on the international plane
- Both A and B
- None of the above
Q16 | The concept of, Vicious Circle of Poverty’ is related to __________.
- Karl Marx
- Nurkse
- Adam Smith
- None of the above
Q17 | Who formulated the theory of circular and cumulative causation which explains the perpetuation of underdevelopment through growing inequalities between developed and the underdeveloped countries?
- Lewis
- Gunnar Myrdal
- Higgins
- J. H. Boeke
Q18 | In the context of which region was the 'big push' strategy of development formulated?
- South Asia
- South East Asia
- Eastern Europe
- East Africa
Q19 | Which among the following is a characteristic of underdevelopment?
- Vicious circle of poverty
- Rising mass consumption
- Growth of industries
- High rate of urbanization
Q20 | Who fixes the poverty line?
- Government
- Lok Sabha
- Rajya Sabha
- Planning Commission
Q21 | The basic logic behind the ‘big-push’ strategy of development is related to .
- Internal economies
- External economies
- An optimum combination
- Both A and B
Q22 | Under the ‘big-push’ strategy of development, large investments are to be directed towards__________.
- Agriculture
- Industry
- Power
- Tr
Q23 | The division of labour, according to Adam Smith, is limited by __________.
- The extent of the market
- The quantity of capital available
- Both (a) and (b)
- The size of labour force
Q24 | The 'big-push' strategy of development was first advocated by:
- Paul N-Rosenstein-Rodan
- Simon Kuznets
- W. A. Lewis
- A. O. Hirshman
Q25 | Who has given "Big Push Theory"?
- R. Rodan
- Jack Hamilton
- Amritya Sen
- Dr. Abhishek Mathur