Indian Economy - Growth and Development - MCQs with answers - Part 1
1. 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
View Answer / Hide AnswerANSWER: d. all the above are right
There is no single definition that can define the term economic growth. However, there are various indicators that explain the term.
a. Structural change in the economy
b. Change in the occupational structure
c. Both a and b
d. None of the above
View Answer / Hide AnswerANSWER: c. Both a and b
The structural change is the shift from primary sector to secondary and tertiary sectors’ contribution to the GDP. Change in occupational structure involves falling share of agriculture in the total employment.
a. Improvement in the technology involved
b. Improvement in production
c. Improvement in distribution system
d. All the above
View Answer / Hide AnswerANSWER: d. All the above
Economic development is a wider concept than growth. There are various parameters used to define and measure it.
a. High per capita real income
b. Large proportion of labor force in the tertiary sector
c. State of deprivation of large proportion of population
d. All the above
View Answer / Hide AnswerANSWER: c. State of deprivation of large proportion of population
Underdeveloped countries face the problem of deprivation of large section of the population, low per capita real income etc.
a. Developed countries
b. Underdeveloped countries
c. Both
d. None of the above
View Answer / Hide AnswerANSWER: b. Underdeveloped countries
Underdeveloped countries lag behind in various factors like availability of resources, technology etc.
a. High level of inequalities
b. Low level of capital productivity
c. A relatively closed economy
d. All the above
View Answer / Hide AnswerANSWER: d. All the above
Other than the above features, there is High incidence of poverty, rapid population growth and technological backwardness too.
a. Small size of market with no incentive for investment
b. Low level of income
c. Demonstration effect
d. All the above
View Answer / Hide AnswerANSWER: d. All the above
Capital formation refers to investment in tools, machinery, buildings etc. inequalities in the economy is also a reason behind this.
i. Higher level of capital-output ratio indicates efficient use of capital.
ii. It reflects the productivity of capital in the economy
a. I only
b. ii only
c. both
d. none
View Answer / Hide AnswerANSWER: b. ii only
COR refers to the number of units of capital required to produce one unit of output. A higher level of it means inefficient use of capital.
i. COR is relatively low in labour intensive sectors.
ii. COR will be high in capital intensive sectors
iii. Both
iv. None
View Answer / Hide AnswerANSWER: iii. Both
It is high in capital intensive industries because of more use of capital and timelag between investment and production.
a. Simultaneous investment in all sectors
b. All sectors are independent.
c. Both
d. None
View Answer / Hide AnswerANSWER: a. Simultaneous investment in all sectors
The supporters of this theory argue that simultaneous investment in all the sectors will help in faster growth. It is based on the idea that all sectors are interlinked.
