Deck 1: Understanding Economic Development and Growth: Exploring Indicators, Models, and Concepts

Question 1

Economic development refers to

A)economic growth.
B)economic growth plus changes in output distribution and economic structure.
C)improvement in the well-being of the urban population.
D)sustainable increases in gross national product.

Answer 1

sustainable increases in gross national product.

Question 2

The Physical Quality of Life Index (PQLI) combines three indicators. They are

A)infant mortality, life expectancy and adult literacy rate.
B)crime rate, clean environment and quality of housing.
C)air pollution rate, water pollution rate and sanitation.
D)health, education and environment.

Answer 2

air pollution rate, water pollution rate and sanitation.

Question 3

The Human Development Index (HDI) summarizes a great deal of social performance in asingle composite index, combining

A)disparity reduction rate, human resource development rate and the composite index.
B)longevity, education and living standard.
C)minimum schooling, adult literacy and tertiary educational attainment.
D)human resource training, development and r&d.

Answer 3

disparity reduction rate, human resource development rate and the composite index.

Question 4

As economic development proceeds, income inequality tends to follow a(n) __________ curve

A)convex.
B)inverted u-shaped.
C)l-shaped.
D)s-shaped.

Question 5

The Harrod-Domar growth model suggests that growth is

A)directly related to savings and inversely related to the capital/output ratio.
B)directly related to the capital/output ratio and inversely related to savings.
C)indirectly related to savings and the capital/output ratio.
D)directly related to savings and the capital/output ratio

Question 6

Rostow's economic stages are

A)the preconditions for take-off, the take-off, the drive to maturity, and the age of creative destruction.
B)the traditional society, the preconditions for take-off, the take-off, the drive to maturity, and the age of high mass consumption.
C)the preconditions for consumption, the replication, the drive to maturity, and the age of high mass consumption.
D)the learning curve, the age of high mass consumption, post-take-off, and the drive to maturity.

Question 7

A value of 1 in Gini index represents

A)low inequality.
B)maximum inequality.
C)100% inequality.
D)1% inequality.

Question 8

The Lorenz curve shows

A)patterns of poverty between developed and developing countries.
B)the change in gdp per capita over time.
C)the poorest's income shares fall in the early stages of growth.
D)income concentration relative to a 45-degree line.

Question 9

Economic growth can be seen by an outward shift of:

A)the production possibility frontier
B)the gross domestic barrier
C)the marginal consumption frontier
D)the minimum efficient scale

Question 10

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 11

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 12

The stationary state as envisaged by Adam Smith, is marked by:

A)low rate of profit
B)subsistence level wages
C)high rents
D)all of the above

Question 13

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

A)the harrod-domar model
B)solow's model
C)kaldor's model
D)feldman's model

Question 14

With economic growth, the proportion of labour-force engaged in agriculture:

A)increases
B)decreases
C)remains unaffected
D)changes in an uncertain manner

Question 15

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

Question 16

Identify the model which is concerned with the 'golden age' equilibrium:

A)kaldor model
B)joan robinson model
C)keynesian model
D)domar model

Question 17

India's First Five Year Plan was based on:

A)mahalanobis model
B)feldman model
C)harrod-domar model
D)leontief model

Question 18

The Gini coefficient is a technique frequently used to show:

A)variations in life expectancy
B)income inequality
C)differences in infant mortality
D)the education gap

Question 19

A graphical technique that can be used to show the degree of inequality that exists between two variables is the:

A)lorenz curve
B)median-line bar graph
C)kuznets curve
D)semantic differential profile

Question 20

Which of the following explains the term economic growth?

A)increase in per capita production
B)increase in per capita real income
C)structural change in the economy
D)all the above are right

Question 21

Which of the following explains the term economic development?

A)improvement in the technology involved
B)improvement in production
C)improvement in distribution system
D)all the above

Question 22

An underdeveloped economy is characterized by

A)high per capita real income
B)large proportion of labour force in the tertiary sector
C)state of deprivation of large proportion of population
D)all the above