Economics Of Development Set 3

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 3

Q1 | Development with unlimited supplies of labour hypothesis was originally formulated by__________.
  • Gustav Ranis
  • W. A. Lewis
  • R. Nurkse
  • J. Schumpeter
Answer: W. A. Lewis
Q2 | Identify the economist who first advocated a rolling plan for developing countries?
  • J. Robinson
  • N. Kaldor
  • G. Myrdal
  • Paul A. Samuelson
Answer: G. Myrdal
Q3 | Gunnar Myrdal was awarded Noble Prize for Economics in 1974. What is his nationality?
  • Norwegian
  • Dutch
  • Swedish
  • American
Answer: Swedish
Q4 | How much population is living below poverty line in India ?
  • Approx 24%
  • Approx 25%
  • Approx 26%
  • Approx 27%
Answer: Approx 26%
Q5 | Economic growth measures the?
  • Growth of productivity
  • Increase in nominal income
  • Increase in output
  • None of the above
Answer: Increase in output
Q6 | The basic characteristic of an underdeveloped economy is__________ .
  • Low income and poverty
  • Low productivity
  • Low per capital income
  • High illiteracy level
Answer: Low income and poverty
Q7 | According to Lewis’s model, the dual economy grows only when __________ .
  • The modern sector increases its output share relative to the traditional sector.
  • Agricultural sector uses modern equipment.
  • Agricultural sector hires labor economically.
  • Modern manufacturing sector is labor- intensive.
Answer: The modern sector increases its output share relative to the traditional sector.
Q8 | The vicious circle theory states that __________ .
  • Growing government assistance creates addiction to welfare programs.
  • Low income levels create pressure for money creation.
  • Low income levels create pressure for cheap imports.
  • Low per capita income creates low savings that keep incomes low.
Answer: Low per capita income creates low savings that keep incomes low.
Q9 | Who have written the book "Capital and Growth"?
  • R. Rodon
  • Hicks
  • Adam Smith
  • Marshall
Answer: Hicks
Q10 | SEZ India mobile app has been launched in January 2017 by __________.
  • Ministry of Labour and Employment.
  • Ministry of Finance
  • Ministry of Commerce and Industry
  • Ministry of Corporate Affairs
Answer: Ministry of Commerce and Industry
Q11 | Which among the following is First Indian Special Economic Zone (SEZ)?
  • Visakhapatnam SEZ
  • Kandla SEZ
  • Noida Special Economic Zone
  • Cochin
Answer: Kandla SEZ
Q12 | According to the supply side of the vicious circle theory of development a country is poorbecause .
  • Technology levels do not allow for self sufficiency
  • It was previously too poor to save and invest
  • Underemployment is too widespread
  • Resource allocation is poor
Answer: It was previously too poor to save and invest
Q13 | The synchronized application of capital to a wide range of different industries is called__________ by its advocates.
  • Balanced growth
  • Capitalization
  • Elasticity of capital
  • Indivisibilities
Answer: Balanced growth
Q14 | For Rosentein Rodan a major indivisibility is in __________.
  • Supply
  • Infrastructure
  • Agriculture
  • Services
Answer: Infrastructure
Q15 | Economic growth is important because __________.
  • People want less crime
  • People want be happier
  • People want a better environment
  • People want higher incomes and more consumer goods.
Answer: People want higher incomes and more consumer goods.
Q16 | The golden-rule saving rate is the rate of saving that __________.
  • Gets the highest rate of interest
  • Maximises the level of long-run investment
  • Maximises the level of long-run consumption
  • Maximises human capital
Answer: Maximises the level of long-run consumption
Q17 | Backward and forward linkage are relevant for which kind of growth strategy?
  • Unbalanced growth
  • Trickle down growth
  • Balanced growth
  • Equilibrium growth
Answer: Unbalanced growth
Q18 | Two economists have been particularly associated with the formulation of development withsurplus labour hypothesis. One is R. Nurkse. Who is the other?
  • W.A. Lewis
  • James S. Duessenberry
  • W.W. Rostow
  • Simon Kuznets
Answer: James S. Duessenberry
Q19 | 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
Q20 | 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
Q21 | To achieve full economic growth, Malthus laid special emphasis on the proper combinationof__________.
  • Production and distribution
  • Natural resources and capital
  • Labour and technology
  • Production and trade
Answer: Production and distribution
Q22 | According to R. Nurkse, the inducement to invest in the context of an underdevelopedeconomy is limited mainly by the:
  • Lack of savings
  • Size of the market
  • Lack of investment opportunities
  • Low productivity of labour
Answer: Size of the market
Q23 | We can increase rate of economic growth in India if we increase:
  • Taxes
  • Imports
  • Investment
  • Population
Answer: Investment
Q24 | When an economy produces more output per capital the economy is said to be having:
  • Inflation
  • Economic growth
  • Economic planning
  • Living standard
Answer: Economic growth
Q25 | By growth rate of an economy can be speeded up.
  • Investment in share market
  • Investment abroad
  • Investment in human capital formation
  • Investment in primary sector
Answer: Investment in human capital formation
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