Deck 3: Economics and Development

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

Answer 1

W. A. Lewis

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

Answer 2

G. Myrdal

Question 3

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

A)Norwegian
B)Dutch
C)Swedish
D)American

Answer 3

Swedish

Question 4

How much population is living below poverty line in India ?

A)Approx 24%
B)Approx 25%
C)Approx 26%
D)Approx 27%

Question 5

Economic growth measures the?

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

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

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.

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.

Question 9

Who have written the book "Capital and Growth"?

A)R. Rodon
B)Hicks
C)Adam Smith
D)Marshall

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

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

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

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

Question 14

For Rosentein Rodan a major indivisibility is in __________.

A)Supply
B)Infrastructure
C)Agriculture
D)Services

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.

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

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

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

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

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

Question 21

To achieve full economic growth, Malthus laid special emphasis on the proper combination of__________.

A)Production and distribution
B)Natural resources and capital
C)Labour and technology
D)Production and trade

Question 22

According to R. Nurkse, the inducement to invest in the context of an underdeveloped economy is limited mainly by the:

A)Lack of savings
B)Size of the market
C)Lack of investment opportunities
D)Low productivity of labour

Question 23

We can increase rate of economic growth in India if we increase:

A)Taxes
B)Imports
C)Investment
D)Population

Question 24

When an economy produces more output per capital the economy is said to be having:

A)Inflation
B)Economic growth
C)Economic planning
D)Living standard

Question 25

By growth rate of an economy can be speeded up.

A)Investment in share market
B)Investment abroad
C)Investment in human capital formation
D)Investment in primary sector