Question 1

Development with unlimited supplies of labour hypothesis was originally formulated by __________.
A)Gustav Ranis
B)W. A. Lewis
C)R. Nurkse
D)J. Schumpeter

Accepted Answer

The unlimited supplies of labour hypothesis was originally formulated by W. A. Lewis. This theory, often associated with the Lewis Model, posits that in developing countries, there is a surplus of labor in the agricultural sector which can be moved to the industrial sector without loss of agricultural output.

Question 2

Identify the economist who first advocated a rolling plan for developing countries?
A)J. Robinson
B)N. Kaldor
C)G. Myrdal
D)Paul A. Samuelson

Accepted Answer

Gunnar Myrdal was the economist who first advocated the concept of a rolling plan for developing countries, emphasizing flexibility and adaptability in economic planning.

Question 3

Gunnar Myrdal was awarded Noble Prize for Economics in 1974. What is his nationality?
A)Norwegian
B)Dutch
C)Swedish
D)American

Accepted Answer

Gunnar Myrdal was Swedish. He was awarded the Nobel Prize in Economics in 1974 alongside Friedrich Hayek for their pioneering work in the theory of money and economic fluctuations and for their penetrating analysis of the interdependence of economic, social and institutional phenomena.

Question 4

How much population is living below poverty line in India ?
A)Approx 24%
B)Approx 25%
C)Approx 26%
D)Approx 27%

Accepted Answer

The answer of How much population is living below poverty...

Question 5

Economic growth measures the?
A)Growth of productivity
B)Increase in nominal income
C)Increase in output
D)None of the above

Accepted Answer

Economic growth is primarily measured by the increase in a country's output, typically its Gross Domestic Product (GDP) or Gross National Product (GNP). This reflects the total value of all goods and services produced over a specific time period, indicating how the economy is expanding.

Question 6

The basic characteristic of an underdeveloped economy is__________ .
A)Low income and poverty
B)Low productivity
C)Low per capital income
D)High illiteracy level

Accepted Answer

Low income and poverty is the basic characteristic of an underdeveloped economy.

Question 7

According to Lewis's model, the dual economy grows only when __________ .
A)The modern sector increases its output share relative to the traditional sector.
B)Agricultural sector uses modern equipment.
C)Agricultural sector hires labor economically.
D)Modern manufacturing sector is labor- intensive.

Accepted Answer

Lewis's model of economic development suggests that a dual economy grows when the modern sector (often industrial or service-oriented) increases its output share relative to the traditional sector (often agricultural). This growth is driven by the transfer of labor from the traditional sector to the more productive modern sector, leading to overall economic growth.

Question 8

The vicious circle theory states that __________ .
A)Growing government assistance creates addiction to welfare programs.
B)Low income levels create pressure for money creation.
C)Low income levels create pressure for cheap imports.
D)Low per capita income creates low savings that keep incomes low.

Accepted Answer

The vicious circle theory, in the context of economic development, posits that low per capita income leads to low levels of saving, which in turn results in low levels of investment and thus keeps income levels low. This cycle perpetuates itself, making it difficult for economies to break out of poverty.

Question 9

Who have written the book "Capital and Growth"?
A)R. Rodon
B)Hicks
C)Adam Smith
D)Marshall

Accepted Answer

"Capital and Growth" was written by Sir John Hicks, who was a British economist and one of the most important and influential economists of the twentieth century.

Question 10

SEZ India mobile app has been launched in January 2017 by __________.
A)Ministry of Labour and Employment.
B)Ministry of Finance
C)Ministry of Commerce and Industry
D)Ministry of Corporate Affairs

Accepted Answer

The SEZ India mobile app was launched by the Ministry of Commerce and Industry to help the Special Economic Zone (SEZ) Units and Developers to find information easily and track their transactions on SEZ Online System.

Question 11

Which among the following is First Indian Special Economic Zone (SEZ)?
A)Visakhapatnam SEZ
B)Kandla SEZ
C)Noida Special Economic Zone
D)Cochin

Accepted Answer

Kandla SEZ was the first Special Economic Zone established in India in 1965. It was set up to enhance foreign investment and provide an internationally competitive and hassle-free environment for exports.

Question 12

According to the supply side of the vicious circle theory of development a country is poor because .
A)Technology levels do not allow for self sufficiency
B)It was previously too poor to save and invest
C)Underemployment is too widespread
D)Resource allocation is poor

Accepted Answer

The supply side of the vicious circle theory suggests that a country remains poor because it lacks the savings and investments needed for economic growth, which is a result of being too poor initially to generate these savings.

Question 13

The synchronized application of capital to a wide range of different industries is called __________ by its advocates.
A)Balanced growth
B)Capitalization
C)Elasticity of capital
D)Indivisibilities

Accepted Answer

Balanced growth is a strategy that involves investing in a variety of sectors simultaneously to ensure economic stability and growth. This approach is advocated for its potential to reduce risks associated with focusing on a single industry and to stimulate overall economic development.

Question 14

For Rosentein Rodan a major indivisibility is in __________.
A)Supply
B)Infrastructure
C)Agriculture
D)Services

Accepted Answer

Rosenstein Rodan identified a major indivisibility in infrastructure, arguing that significant investments in infrastructure are necessary to stimulate economic development and overcome the barriers to growth in underdeveloped regions.

Question 15

Economic growth is important because __________.
A)People want less crime
B)People want be happier
C)People want a better environment
D)People want higher incomes and more consumer goods.

Accepted Answer

Economic growth is directly linked to increases in incomes and the availability of more consumer goods, which are primary goals for many people and economies.

Question 16

The golden-rule saving rate is the rate of saving that __________.
A)Gets the highest rate of interest
B)Maximises the level of long-run investment
C)Maximises the level of long-run consumption
D)Maximises human capital

Accepted Answer

The golden-rule saving rate is the rate of saving that maximizes the level of long-run consumption in an economy. This concept is derived from the Solow growth model, where the optimal saving rate balances between saving enough to invest in future growth and consuming enough to ensure high welfare in the present.

Question 17

Backward and forward linkage are relevant for which kind of growth strategy?
A)Unbalanced growth
B)Trickle down growth
C)Balanced growth
D)Equilibrium growth

Accepted Answer

Backward and forward linkages are concepts associated with the unbalanced growth strategy, which focuses on investing in key sectors to stimulate growth in related industries.

Question 18

Two economists have been particularly associated with the formulation of development with surplus labour hypothesis. One is R. Nurkse. Who is the other?
A)W.A. Lewis
B)James S. Duessenberry
C)W.W. Rostow
D)Simon Kuznets

Accepted Answer

The answer of Two economists have been particularly associated with...

Question 19

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

Accepted Answer

Economic growth refers specifically to the increase in a country's output or income over time, while economic development encompasses economic growth along with improvements in living standards, reduction in poverty, and equitable distribution of wealth, making it a broader concept.

Question 20

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

Accepted Answer

The rate of growth of an economy is influenced by multiple factors including the growth of the labor force, the level of savings and investment, and technological advancements. All these elements contribute to economic development and productivity improvements.

Quiz 3: Economics and Development

Development with unlimited supplies of labour hypothesis was originally formulated by __________.

Identify the economist who first advocated a rolling plan for developing countries?

Gunnar Myrdal was awarded Noble Prize for Economics in 1974. What is his nationality?

How much population is living below poverty line in India ?

Economic growth measures the?

The basic characteristic of an underdeveloped economy is__________ .

According to Lewis's model, the dual economy grows only when __________ .

The vicious circle theory states that __________ .

Who have written the book "Capital and Growth"?

SEZ India mobile app has been launched in January 2017 by __________.

Which among the following is First Indian Special Economic Zone (SEZ) ?

According to the supply side of the vicious circle theory of development a country is poor because .

The synchronized application of capital to a wide range of different industries is called __________ by its advocates.

For Rosentein Rodan a major indivisibility is in __________.

Economic growth is important because __________.

The golden-rule saving rate is the rate of saving that __________.

Backward and forward linkage are relevant for which kind of growth strategy?

Two economists have been particularly associated with the formulation of development with surplus labour hypothesis. One is R. Nurkse. Who is the other?

The concept of economic growth is __________.

The rate of growth of an economy mainly depends upon: