Question 1

Multiplicity of lending activities, i.e., combining moneylending with other economic activities such as trading is the characteristics of
A)organised money market
B)unorganised money market
C)organised capital market
D)un organised capital market

Accepted Answer

The unorganised money market often involves lenders engaging in multiple economic activities, such as trading, in addition to lending money. This contrasts with the more specialized and regulated activities of the organised money and capital markets.

Question 2

Multiplicity of interest rates at the interest rate varying with the need of the borrower, the amount of loan, the time for which it is needed, and the nature of security is the characteristics of
A)organised money market
B)unorganised money market
C)organised capital market
D)un organised capital market

Accepted Answer

The unorganised money market is characterized by a multiplicity of interest rates, which vary according to the borrower's needs, the loan amount, the duration of the loan, and the nature of the security offered. This is because the unorganised sector is less regulated, leading to a wide range of terms and conditions for loans.

Question 3

Defective system of maintaining accounts at receipts are not issued for interest charged and the principal repaid is the characteristics of
A)organised money market
B)unorganised money market
C)organised capital market
D)un organised capital market

Accepted Answer

The unorganised money market is characterized by a lack of formal structure and regulation, which can lead to practices such as not issuing receipts for interest charged and the principal repaid. This contrasts with the organised markets, which have structured processes and regulations in place.

Question 4

Utmost secrecy in maintaining accounts and lending procedures is the characteristics of
A)organised money market
B)unorganised money market
C)organised capital market
D)un organised capital market

Accepted Answer

The unorganised money market is characterized by its informal nature, including a lack of regulation and transparency, which leads to utmost secrecy in maintaining accounts and lending procedures. This contrasts with the organised markets, which are regulated and operate with more transparency.

Question 5

The coexistence of organised and unorganised money market in the LDCs is called
A)financial exclusion
B)financial dualism
C)financial institution
D)financial inclusion

Accepted Answer

Financial dualism refers to the simultaneous existence of formal (organised) and informal (unorganised) financial sectors within an economy, particularly in less developed countries (LDCs). This concept highlights the divide between the two sectors in terms of access to financial services and products.

Question 6

Circular cumulative causation theory is developed by Swedish economist
A)gunnar myrdal
B)prof. boeke
C)prof. myint
D)a.o. hirshman

Accepted Answer

Gunnard Myrdal developed the theory of Circular Cumulative Causation, which emphasizes the idea that economic processes in regions or countries can lead to a self-reinforcing cycle of growth or decline.

Question 7

The growth in progressive regions affects the growth in lagging regions through Spread effects and Backwash effects is the analysis put forward by
A)gunnar myrdal
B)prof. boeke
C)prof. myint
D)a.o. hirshman

Accepted Answer

Gunnar Myrdal put forward the analysis that the growth in progressive regions affects the growth in lagging regions through spread effects and backwash effects.

Question 8

The theory of Low-Level Equilibrium Trap has been developed by
A)gunnar myrdal
B)prof. boeke
C)prof. myint
D)r.r. nelson

Accepted Answer

The theory of Low-Level Equilibrium Trap was developed by R.R. Nelson. This theory suggests that economies can get stuck in a state of low productivity, which in turn perpetuates low income and savings rates, making it difficult for the economy to break out into a path of higher growth without external intervention.

Question 9

Who put forward the view that UDCs are characterized by vicious circle of poverty which keeps them around a low-income per capita equilibrium state?
A)nelson
B)harvey leibenstein
C)hirschman
D)rosenstein-rodan

Accepted Answer

Harvey Leibenstein put forward the view that UDCs are characterized by vicious circle of poverty which keeps them around a low-income per capita equilibrium state.

Question 10

Those incentives which do not increase national income, but they bring a change in the distribution of income is called
A)zero-sum incentives
B)positive sum incentives
C)negative incentives
D)none of the above

Accepted Answer

Zero-sum incentives refer to situations where the gain of one party is exactly balanced by the loss of another, meaning there is no net increase in national income, but there is a redistribution of income among different parties.

Question 11

Those incentives which result in expansion of national income is called
A)zero-sum incentives
B)positive sum incentives
C)negative incentives
D)none of the above

Accepted Answer

Positive sum incentives are those that result in the expansion of national income, as they create situations where the total pie increases for everyone involved, rather than redistributing existing wealth.

Question 12

Zero-Sum incentives and Positive Sum incentives are introduced by
A)nelson
B)harvey leibenstein
C)hirschman
D)rosenstein-rodan

Accepted Answer

Harvey Leibenstein introduced the concepts of Zero-Sum incentives and Positive Sum incentives, particularly in the context of economic theories related to X-efficiency and other economic behaviors.

Question 13

Which of the following is not correctly matched?
A)big-push strategy: paul n. rosenstein- rodan
B)balanced growth theory: r. nurkse
C)development with unlimited supplies of labour: a-0. hirschman
D)critical minimum strategy: prof. harvey leibenstein

Accepted Answer

Development with unlimited supplies of labour is associated with W. Arthur Lewis, not A.O. Hirschman. Hirschman is known for his work on the strategy of economic development and the concept of "linkages" in economic growth.

Question 14

Who distinguishes three kinds of indivisibilities and externalities with a view to specify the areas where big push needs to be applied?
A)nelson
B)harvey leibenstein
C)hirschman
D)rosenstein-rodan

Accepted Answer

The answer of Who distinguishes three kinds of indivisibilities and...

Question 15

Balanced growth implies:
A)simultaneous development of a variety of activities, which support one another
B)equal allocation of resources to different sectors
C)different sectors growing at their natural rates of growth
D)uniform rate of growth of output over time

Accepted Answer

The answer of Balanced growth implies:
A)simultaneous development of a variety...

Question 16

Which of the following about strategy of balanced growth is right?
A)simultaneous investment in all sectors
B)all sectors are independent.
C)both A and B
D)none of the above

Accepted Answer

The strategy of balanced growth involves simultaneous investment in all sectors of the economy, aiming to ensure that no sector lags behind in development, thereby promoting overall economic growth. This approach contrasts with strategies that focus on specific sectors, under the belief that growth in one sector will stimulate growth in others.

Question 17

Which of the following about strategy of unbalanced growth is right?
A)deliberate imbalance in favour of some sectors
B)simultaneous investment in all sectors
C)both A and B
D)none of the above

Accepted Answer

The strategy of unbalanced growth involves a deliberate imbalance in favor of some sectors over others, based on the idea that focusing on certain key sectors can have a multiplier effect on the economy, leading to overall growth.

Question 18

Lumpinessof capital, especially in the creation of social overhead capital is called
A)indivisibilities in the production function
B)indivisibility of demand
C)indivisibility of savings
D)indivisibility of investment

Accepted Answer

Indivisibilities in the production function refer to situations where certain investments or production processes cannot be scaled down or divided into smaller, more manageable parts without losing efficiency or functionality. This is particularly relevant in the context of social overhead capital, such as infrastructure projects, where the nature of the investment is large-scale and cannot be easily divided.

Question 19

Complementarityof demand is called
A)indivisibilities in the production function
B)indivisibility of demand
C)indivisibility of savings
D)indivisibility of investment

Accepted Answer

Complementarity of demand refers to a situation where the demand for one good or service is directly linked to the demand for another, essentially meaning that the demand for these goods or services is indivisible or cannot be separated. This is why it is referred to as "indivisibility of demand."

Quiz 4: Characteristics, Theories, and Strategies in Economic Development

Multiplicity of lending activities, i.e., combining moneylending with other economic activities such as trading is the characteristics of

Multiplicity of interest rates at the interest rate varying with the need of the borrower, the amount of loan, the time for which it is needed, and the nature of security is the characteristics of

Defective system of maintaining accounts at receipts are not issued for interest charged and the principal repaid is the characteristics of

Utmost secrecy in maintaining accounts and lending procedures is the characteristics of

The coexistence of organised and unorganised money market in the LDCs is called

Circular cumulative causation theory is developed by Swedish economist

The growth in progressive regions affects the growth in lagging regions through Spread effects and Backwash effects is the analysis put forward by

The theory of Low-Level Equilibrium Trap has been developed by

Who put forward the view that UDCs are characterized by vicious circle of poverty which keeps them around a low-income per capita equilibrium state?

Those incentives which do not increase national income, but they bring a change in the distribution of income is called

Those incentives which result in expansion of national income is called

Zero-Sum incentives and Positive Sum incentives are introduced by

Which of the following is not correctly matched?

Who distinguishes three kinds of indivisibilities and externalities with a view to specify the areas where big push needs to be applied?

Balanced growth implies:

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

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

Lumpinessof capital, especially in the creation of social overhead capital is called

Complementarityof demand is called