Question 1

Which of the following explains the term economic growth?

Accepted Answer

Economic growth encompasses an increase in per capita production, an increase in per capita real income, and structural changes in the economy, making all the given options correct.

Question 2

Which of the following explains the term economic development?

Accepted Answer

Economic development encompasses improvements in technology, production, and distribution systems, all of which contribute to the overall economic growth and advancement of a society.

Question 3

An underdeveloped economy is characterized by

Accepted Answer

An underdeveloped economy is often characterized by a state of deprivation of a large proportion of its population, which includes low levels of income, poor access to education and healthcare, and inadequate living conditions. Choices A and B are typically characteristics of more developed economies.

Question 4

Scarcity of capital, technological backwardness and unemployment are generally found in

Accepted Answer

Scarcity of capital, technological backwardness, and unemployment are characteristic issues of underdeveloped countries, where resources are limited, technology is not advanced, and job opportunities are insufficient.

Question 5

Which of the following denotes an underdeveloped economy?

Accepted Answer

All the options listed are characteristics of an underdeveloped economy. High levels of inequalities, low levels of capital productivity, and a relatively closed economy are common indicators of underdevelopment.

Question 6

Capital formation in underdeveloped countries is a major bottleneck. The reason can be

Accepted Answer

All the mentioned factors contribute to capital formation issues in underdeveloped countries: small markets limit investment opportunities, low income reduces savings and investment, and the vicious circle of poverty perpetuates these conditions.

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

Accepted Answer

A higher level of capital-output ratio actually indicates a less efficient use of capital, as it means more capital is needed to produce each unit of output. However, it does reflect the productivity of capital in the economy, showing how much output is produced per unit of capital.

Question 8

Which of the following about strategy of balanced growth is right?

Accepted Answer

The strategy of balanced growth involves simultaneous investment in all sectors of the economy, aiming to avoid imbalances that could hinder development.

Question 9

Which of the following about strategy of unbalanced growth is right?

Accepted Answer

The strategy of unbalanced growth involves deliberately focusing resources and investment in certain key sectors rather than attempting to develop all sectors of an economy simultaneously. This approach is based on the idea that prioritizing certain industries can lead to more rapid overall economic growth.

Question 10

The additional capital used per unit of additional production is called

Accepted Answer

The Incremental Capital Output Ratio (ICOR) is the additional capital required to produce an additional unit of output. It is a measure of the efficiency of capital investment.

Question 11

Depression is characterized by

Accepted Answer

Depression in economic terms is characterized by a combination of factors including a drastic fall in income, output, and employment, as well as unprecedented levels of underemployment. These factors collectively contribute to the economic downturn associated with a depression.

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.

Accepted Answer

At the time of independence, the Indian economy was primarily agrarian with a heavy dependence on the primary sector, not the tertiary sector. The development of the industrial and services sector was indeed limited due to various factors including colonial policies that favored the export of raw materials and the import of finished goods.

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)

Accepted Answer

The share of agriculture to GDP is more than 5%, and the tertiary sector does not contribute 55% to employment; it is lower.

Question 14

Dual economy refers to existence of

Accepted Answer

Dual economy refers to the coexistence of a traditional agricultural sector and a modern industrial sector within the same economy. This concept highlights the divide between these two sectors in terms of productivity, income, and technology.

Question 15

Mixed economy means an economy where there is

Accepted Answer

A mixed economy is characterized by the coexistence of both public and private sectors, allowing for a blend of free market principles and government intervention.

Question 16

Indian economy today is a
i. Developing economy
ii. Emerging economy
iii. Dual economy
iv. Non-agricultural economy

Accepted Answer

The Indian economy is considered a developing economy due to its lower income per capita, an emerging economy because of its rapid growth and integration into the global economy, and a dual economy because it encompasses both modern industrial and traditional agricultural sectors. It is not a non-agricultural economy as agriculture still plays a significant role.

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.

Accepted Answer

The structure of the economy and occupational structure in India are not very similar due to a significant portion of the workforce being employed in agriculture (primary sector) while the tertiary sector contributes the most to the GDP. This discrepancy indicates that although a large number of people are employed in the primary sector, the tertiary sector is the largest contributor to the country's GDP.

Question 18

Arrange in the right order the contribution of sectors to the GDP from highest to lowest.

Accepted Answer

Tertiary, manufacturing, agriculture is the correct order of sectors by their contribution to GDP in most advanced economies. The tertiary sector, which includes services, typically contributes the most, followed by manufacturing, and then agriculture.

Question 19

The state with lowest death rate is

Accepted Answer

The answer of The state with lowest death rate is
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Question 20

The state with lowest birth rate is

Accepted Answer

Kerala has consistently had one of the lowest birth rates among Indian states, attributed to its high literacy rate, better healthcare facilities, and widespread use of family planning.

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