Question 1

Which among the following is a characteristic of underdevelopment?

Accepted Answer

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

Question 2

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

Accepted Answer

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

Question 3

Who has given "Big Push Theory"?

Accepted Answer

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

Question 4

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

Accepted Answer

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

Question 5

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

Accepted Answer

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

Question 6

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

Accepted Answer

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

The concept of economic growth is __________ .

Accepted Answer

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 8

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

Accepted Answer

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

Question 9

Karl Marx ideas about development theory are available in __________ .

Accepted Answer

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

Question 10

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

Accepted Answer

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

Question 11

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

Accepted Answer

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 12

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

Accepted Answer

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

Question 13

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

Accepted Answer

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 14

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

Accepted Answer

A)  Agriculture
B)  Industry
C)  Power

Question 15

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

Accepted Answer

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

Question 16

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

Accepted Answer

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

Question 17

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

Accepted Answer

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

Question 18

Economic growth in India will happen necessarily if there is .

Accepted Answer

A)  Population growth
B)  Capital formation
C)  Technical progress in the global economy
D)  All the above

Question 19

Who fixes the poverty line?

Accepted Answer

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

Question 20

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

Accepted Answer

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

Exam 2: Economic Growth and Development Theory: Part B