Correct : D. sustainable increases in gross national product.
2. The Physical Quality of Life Index (PQLI) combines three indicators. They are
Correct : C. air pollution rate, water pollution rate and sanitation.
3. The Human Development Index (HDI) summarizes a great deal of social performance in asingle composite index, combining
Correct : A. disparity reduction rate, human resource development rate and the composite index.
4. As economic development proceeds, income inequality tends to follow a(n) __________
curve
Correct : B. inverted u-shaped.
5. The Harrod-Domar growth model suggests that growth is
Correct : D. directly related to savings and the capital/output ratio
6. Rostow’s economic stages are
Correct : B. the traditional society, the preconditions for take-off, the take-off, the drive to maturity, and the age of high mass consumption.
7. A value of 1 in Gini index represents
Correct : B. maximum inequality.
8. The Lorenz curve shows
Correct : D. income concentration relative to a 45-degree line.
9. Progress that meets the needs of the present without compromising the ability of future
generations to meet their own needs is
Correct : B. sustainable development.
10. Economic growth can be measured by:
Correct : C. gdp
11. Economic growth can be seen by an outward shift of:
Correct : A. the production possibility frontier
12. The concept of economic growth is:
Correct : B. narrower than the concept of economic development
13. The rate of growth of an economy mainly depends upon:
Correct : D. all of the above
14. The stationary state as envisaged by Adam Smith, is marked by:
Correct : D. all of the above
15. Which growth model inspired the use of capital-output ratio for development planning?
Correct : A. the harrod-domar model
16. With economic growth, the proportion of labour-force engaged in agriculture:
Correct : B. decreases
17. Which of the following models makes the assumption of constant saving-income ratio?
Correct : C. harrod-domar model
18. Identify the model which is concerned with the ‘golden age’ equilibrium:
Correct : B. joan robinson model
19. India’s First Five Year Plan was based on:
Correct : C. harrod-domar model
20. The number of deaths of children under one year of age per 1000 live births is the:
Correct : B. infant mortality rate
21. The Gini coefficient is a technique frequently used to show:
Correct : B. income inequality
22. A graphical technique that can be used to show the degree of inequality that exists
between two variables is the:
Correct : A. lorenz curve
23. Which of the following explains the term economic growth?
Correct : D. all the above are right
24. Which of the following explains the term economic development?
Correct : D. all the above
25. An underdeveloped economy is characterized by
Correct : C. state of deprivation of large proportion of population
26. Scarcity of capital, technological backwardness and unemployment are generally found in
Correct : B. underdeveloped countries
27. Which of the following denotes an underdeveloped economy?
Correct : D. all the above
28. The concept of PQLI was developed by
Correct : A. morris d morris
29. The parameter/s of the PQLI is/are
Correct : D. a and c
30. The concept of HDI was popularized by
Correct : D. mahbub ul haq
31. The component/s of HDI is/are
Correct : A. life expectancy index
32. The Multidimensional Poverty Index has been developed by
Correct : B. oxford hdi
33. Which of following is not a component of Multidimensional Poverty Index?
Correct : C. occupation
34. Which of the following is not an indicator to measure Multidimensional Poverty Index?
Correct : D. profession
35. Economic growth in India will happen necessarily if there is
Correct : D. all the above
36. The financial year in India is
Correct : A. april 1 to march 31
37. A multi-dimensional measure of poverty include includes which of the following
elements?
Correct : D. all of these answer
38. Which of the following is a goal of economic development?
Correct : D. all of these answers
39. In the Solow model, if capital is in the steady state, output:
Correct : B. is also in the steady state.
40. For Rostow, which of the following constitute pre-conditions for take-off?
Correct : A. investment rate of at least 5% of gnp
41. Which of the following is not an important objective of development?
Correct : D. all of the above are important objectives of d
42. The Harrod-Domar growth model is based on the relationship of what two economic
elements?
Correct : B. savings and investment
43. Rate of growth of an economy is measured in terms of:
Correct : D. national income
44. Sen’s welfare theory relies on
Correct : A. individuals’ accomplishments.
45. How does Sen define poverty?
Correct : B. the deprivation of basic capabilities for an individual
46. Harrod’s definition of rate of growth of an economy do not include
Correct : C. sustainable rate of growth
47. The rate of growth of output which is required to fully employ the entire growing labour
force is the
Correct : D. natural rate of growth
48. The instability of equilibrium in the Harrod model was used by him to explain the
business cycles above and below the trend path of --------
Correct : A. warranted (required) rate of growth
49. Harrod explained the peaks and troughs of the business cycles through the use of
Correct : D. natural rate of growth of output
50. Harrod argues that in an economy with constant capital-labour ratio, the ------------ can
never be more than the natural rate of growth of output.
Correct : B. actual rate of growth of output
51. In Domar’s Model National Income (output) is determined by investment through the
Correct : B. multiplier
52. In Joan Robinson’s growth model, capital accumulation depends on
Correct : B. profit-wage relation and labour productivity
53. In dual gap model, the gap can be filled up by
Correct : D. foreign aid
54. Harrod-Domar model of growth is based on the concepts of and their equality
Correct : C. actual, warranted and natural growth rate
55. The characteristics of Rostow’s Traditional society include
Correct : A. enlarged production function
56. The Prior Saving Theory regards saving as a prerequisite of --------
Correct : A. investment
57. In the Keynesian model, investment is not constrained by prior savings but by ------------
acceptable to the workers.
Correct : D. inflation rate
58. The extension of Harrod-Domar model was made by adding the term for foreign trade
balance as per cent of
Correct : B. national income
59. The prior savings approach is based on classical economics which emphasizes that prior
saving determines
Correct : A. investment
60. The assumptions of Technological dualism not include
Correct : D. there are two modes of production
61. Dualism and dichotomies in geography do not include
Correct : D. hard geography versus soft geography
62. Development of one leading sector is a feature of Rostow’s stage of growth of
Correct : C. the take off stage
63. The existence of Different Frameworks in the Society is a feature of Rostow’s stage of
growth of
Correct : C. the take off stage
64. Shift in Occupational Distribution is a feature of Rostow’s stage of growth of
Correct : D. drive to maturity
65. Shift in Consumption Pattern is a feature of Rostow’s stage of growth of
Correct : D. drive to maturity
66. Shift in Consumption of Leading Sector is a feature of Rostow’s stages of growth
Correct : D. drive to maturity
67. The Entrepreneurial Leadership and Boredom are non-economic factors of the Rostow’s
stages of growth of
Correct : D. drive to maturity
68. Rostow had advocated his theory as an alternative to
Correct : B. marx’s theory
69. Who explains the theory of technological dualism?
Correct : A. prof. b. higgins
70. Who explains the theory of social dualism?
Correct : B. prof. boeke
71. Differences in Factor Endowment is fundamental bases of
Correct : A. technical dualism
72. Differences in Production Function is fundamental bases of
Correct : A. technical dualism
73. Personal touch between the moneylenders and borrowers is the characteristics of
Correct : B. unorganised money market
74. Informality in dealing with borrowers by the moneylenders is the characteristics of
Correct : B. unorganised money market
75. Flexibility in loan transactions is the characteristics of
Correct : B. unorganised money market
76. Multiplicity of lending activities, i.e., combining moneylending with other economic
activities such as trading is the characteristics of
Correct : B. unorganised money market
77. 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
Correct : B. unorganised money market
78. Defective system of maintaining accounts at receipts are not issued for interest charged
and the principal repaid is the characteristics of
Correct : B. unorganised money market
79. Utmost secrecy in maintaining accounts and lending procedures is the characteristics of
Correct : B. unorganised money market
80. The coexistence of organised and unorganised money market in the LDCs is called
Correct : B. financial dualism
81. Circular cumulative causation theory is developed by Swedish economist
Correct : A. gunnar myrdal
82. The growth in progressive regions affects the growth in lagging regions through Spread
effects and Backwash effects is the analysis put forward by
Correct : A. gunnar myrdal
83. The theory of Low-Level Equilibrium Trap has been developed by
Correct : D. r.r. nelson
84. 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?
Correct : B. harvey leibenstein
85. Those incentives which do not increase national income, but they bring a change in the
distribution of income is called
Correct : A. zero-sum incentives
86. Those incentives which result in expansion of national income is called
Correct : B. positive sum incentives
87. Zero-Sum incentives and Positive Sum incentives are introduced by
Correct : B. harvey leibenstein
88. Which of the following is not correctly matched?
Correct : C. development with unlimited supplies of labour: a-0. hirschman
89. Who distinguishes three kinds of indivisibilities and externalities with a view to specify
the areas where big push needs to be applied?
Correct : A. nelson
90. Balanced growth implies:
Correct : C. different sectors growing at their natural rates of growth
91. Which of the following about strategy of balanced growth is right?
Correct : A. simultaneous investment in all sectors
92. Which of the following about strategy of unbalanced growth is right?
Correct : A. deliberate imbalance in favour of some sectors
93. Lumpinessof capital, especially in the creation of social overhead capital is called
Correct : A. indivisibilities in the production function