Deck 2: Economic Growth and Development Theory: Part B

Question 1

Which growth model inspired the use of capital-output ratio for development planning?

A)the Harrod-Domar model
B)Solow's mode
C)Kaldor's model
D)Feldman's model

Answer 1

the Harrod-Domar model

Question 2

Which of the following models makes the assumption of constant saving-income ratio?

A)Kaldor model
B)Leontief model
C)Harrod-Domar model
D)Joan Robinson model

Answer 2

Harrod-Domar model

Question 3

The Harrod-Domar model is one of the well- known models of growth. Which of the two authors of this model wrote earlier and in which year?

A)Domar in 1940
B)Harrood in 1939
C)Domar in 1946
D)Domar in 1948

Answer 3

Harrood in 1939

Question 4

The concept of economic growth is __________ .

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

Question 5

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 6

Which of the following is inconsistent with Adam Smith's theory of development?

A)Development process is cumulative in nature
B)There is no limit to the growth process
C)Capital accumulation and market extension are two prerequisites for output expansion
D)There should be no government interference in the working of the economy

Question 7

Karl Marx ideas about development theory are available in __________ .

A)Communist Manifesto
B)Das Kapital
C)Capital: A Critique of Political Economy
D)None of these

Question 8

In Schumpeter's theory of development maximum stress has been laid on:

A)Capital
B)Interest
C)Land
D)Entrepreneurship

Question 9

Which sector was emphasised most by Ricardo in the context of economic growth?

A)Trade
B)Industry
C)Agriculture
D)Services

Question 10

Which one of the following, according to Ricardo, would form a bottleneck to economic growth?

A)Shortage of land
B)Rising rent
C)Shortage of gold and silver
D)Rising wage bills

Question 11

Which of the following is inconsistent with the Schumpeter's theory of development?

A)The course of growth is continuous
B)The output expansion, initiated by the entrepreneur, increases in size with time, making it cumulative
C)Growth takes place on account of entrepreneurs who, with the help of bank credit, invest ininnovative activity
D)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

Question 12

According to the Schumpeter's model, the innovating entrepreneurs get the necessary finance from__________.

A)Voluntary Savings
B)Own Resources
C)Bank Credit
D)Government

Question 13

Which one of the following was given a central place by Schumpeter in his theory of development?

A)Capital accumulation
B)Role of the Government
C)Need for balanced growth
D)Role of innovations

Question 14

In which year was the first volume of Das Capital be Karl Marx published?

A)1848
B)1859
C)1867
D)1873

Question 15

Myrdal builds his theory of economic development around the idea of__________ .

A)Regional inequalities on the national plane
B)Regional inequalities on the international plane
C)Both A and B
D)None of the above

Question 16

The concept of, Vicious Circle of Poverty' is related to __________.

A)Karl Marx
B)Nurkse
C)Adam Smith
D)None of the above

Question 17

Who formulated the theory of circular and cumulative causation which explains the perpetuation of underdevelopment through growing inequalities between developed and the underdeveloped countries?

A)Lewis
B)Gunnar Myrdal
C)Higgins
D)J. H. Boeke

Question 18

In the context of which region was the 'big push' strategy of development formulated?

A)South Asia
B)South East Asia
C)Eastern Europe
D)East Africa

Question 19

Which among the following is a characteristic of underdevelopment?

A)Vicious circle of poverty
B)Rising mass consumption
C)Growth of industries
D)High rate of urbanization

Question 20

Who fixes the poverty line?

A)Government
B)Lok Sabha
C)Rajya Sabha
D)Planning Commission

Question 21

The basic logic behind the 'big-push' strategy of development is related to .

A)Internal economies
B)External economies
C)An optimum combination
D)Both A and B

Question 22

Under the 'big-push' strategy of development, large investments are to be directed towards __________.

A)Agriculture
B)Industry
C)Power

Question 23

The division of labour, according to Adam Smith, is limited by __________.

A)The extent of the market
B)The quantity of capital available
C)Both (a) and (b)
D)The size of labour force

Question 24

The 'big-push' strategy of development was first advocated by:

A)Paul N-Rosenstein-Rodan
B)Simon Kuznets
C)W. A. Lewis
D)A. O. Hirshman

Question 25

Who has given "Big Push Theory"?

A)R. Rodan
B)Jack Hamilton
C)Amritya Sen
D)Dr. Abhishek Mathur