Deck 1: Economic Growth and Development: Understanding Underdeveloped Economies, Balanced and Unbalanced Growth Strategies, and the Indian Economy

Question 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 1

all the above are right

Question 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 2

All the above

Question 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 3

State of deprivation of large proportion of population

Question 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

Question 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

Question 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

Question 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 of the above

Question 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 of the above

Question 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 of the above

Question 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

Question 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

Question 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 of the above

Question 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 of the above

Question 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

Question 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

Question 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

Question 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 of the above

Question 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

Question 19

The state with lowest death rate is

A)West Bengal
B)Haryana
C)Bihar
D)Kerala

Question 20

The state with lowest birth rate is

A)West Bengal
B)Kerala
C)Karnataka
D)Assam

Question 21

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 of the above

Question 22

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

Question 23

An open economy is one where

A)Deficit financing is absent
B)No export activities
C)No import activities
D)Economy opened to the world