Deck 1: Economic Growth and Development Theory: Part A

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

Economic development is characterized by

A)Structural change in the economy
B)Change in the occupational structure
C)Both A and B
D)None of the above

Answer 2

Both A and B

Question 3

Underdevelopment is defined in terms of?

A)National income
B)Per capita income
C)Poverty ratio
D)Rate of unemployment

Answer 3

Per capita income

Question 4

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

Question 5

Which of the following is generally regarded as the true index of economic growth?

A)An increase in national income at constant prices during a year
B)A sustained increase in real per capita income
C)An increase in national income at current prices over time
D)An increase in national income along with a corresponding increase in population

Question 6

The concept of economic growth is___________.

A)Identical with the concept of economic development
B)Narrower than the concept of economic development
C)Wider as compared to that of economic development
D)Unrelated to the concept of economic development

Question 7

Which of the following is not an indicator of economically underdeveloped countries?

A)Low per capita income
B)High death-rate
C)Low proportion of labour force in the primary sector
D)High level of illiteracy

Question 8

The rate of growth of an economy mainly depends upon ___________ .

A)The rate of growth of the labour force
B)The proportion of national income saved and invested
C)The rate of technological improvements
D)All of the above

Question 9

Among the following determinants of growth, which is a non-economic factor?

A)Natural resources
B)Population growth
C)Favourable legislation
D)Capital accumulation

Question 10

Besides increase in output, economic development is concerned with:

A)Inputs and their efficiency
B)Equitable distribution of income
C)Life sustenance, self-esteem and freedom from want, ignorance and squalor
D)All of the above

Question 11

Economic growth can be seen by an outward shift of __________ .

A)The Production Possibility Frontier
B)The Gross Domestic Barrier
C)The Marginal Consumption Frontier
D)The Minimum Efficient Scale

Question 12

The concept of Economic Planning in India is derived from?

A)USA
B)UK
C)Australia
D)Russia

Question 13

Economic development refers to __________.

A)Economic growth.
B)Economic growth plus changes in output distribution and economic structure.
C)Improvement in the well-being of the urban population.
D)Sustainable increases in Gross National Product.

Question 14

Economic development means__________.

A)Economic growth.
B)Economic growth plus structural and qualitative changes.
C)Improvement in the living standard of the urban population.
D)Sustainable increases in Gross National Product (GDP).

Question 15

In the Ricardian scheme of things, savings are provided by .

A)Labourers
B)Capitalists
C)Landlords
D)Both B and C

Question 16

Which one of the following statements is not in tune with the Ricardian theory of growth?

A)Rent tends to rise
B)Money wages tend to rise
C)Profits tend to fall
D)Profits tend to rise

Question 17

Which one of the following is not an assumption of the Ricardian theory?

A)Rising real wages
B)Fixity of land
C)Operation of the law of diminishing returns
D)Perfect competition

Question 18

Ricardo built his theory round .

A)Value
B)Capital
C)Wages
D)Natural resources

Question 19

In the Ricardian system, a crucial role in development was assigned to .

A)Specialisation
B)Technological changes
C)Profits
D)Government

Question 20

Which of the following models uses three distinct concepts of stages of growth?

A)Ramsey model
B)Harrod model
C)Domar model
D)Lewis model

Question 21

The classical theory of economic development is of relevance for the less developed countries today because it lays emphasis on .

A)Need for favourable institutional and social initiatives
B)Extension of markets
C)Capital accumulation
D)All of the above