Growth and Development-Online Practice Exam 13
Notes
Growth and Development-Online Practice Exam 13
Notes

Growth and Development-Online Practice Exam 13

NET / SET Online Practice Exams

Test

Multi-choice 13

Question

1. Match List I (Authors) with List II (Theories) and select the correct answer using the codes given below the Lists-

List I List II
a) Solow 1. Neutral technological change, under which despite the change in output, the capital labour ratio remains constant.
b) Hicks 2. Neutral technological change, under which the labour output ratio remains constant, so that the factor proportions are baised in favours of saving capital.
c) Harrod 3. Neutral technological change,
under which, the capital output ratio remains constant, so that the factor proportions are baised in favour of saving labour.

Answers

a)-2, b)-1, c)-3

a)-2, b)-3, c)-1

a)-1, b)-2, c)-3

a)-3, b)-1, c)-2

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Question

2. The two-gap theory as applied to development planning refers to-

Answers

inflationary gap and investment gap

saving gap and deflationary gap

foreign exchange gap

saving constraint and foreign exchange constraint

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Question

3. Demographic transition refers to-

Answers

shift from a stable population at high birth and death rates to one of low birth and death rates

shift from high birth and low death rates to low birth and low death rates

change in the male/female ratio of the population

migration of population from rural to urban areas

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Question

4.  Which one of the following is NOT an assumption of the Harrod-Domar model ?

Answers

Capital is the only factor of production

Closed economy

Fixed capital-output ratio

Variable marginal and average propensity to save

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Question

5. The concept of unbalanced growth has not been advocated by-

Answers

H. W. Singer

A. Lewis

A, O. Hirschman

C.P. Kindleberger

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Question

6. The idea of balanced growth is related to the classical-

Answers

 idea of full employment equilibrium

idea of the nature of economic science

law of markets

school of thought

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Question

7. The difficulties of comparing growth of different countries are-

Answers

Lack of empirical data

Choice of a common denominator

Assigning weights to the various items of output

All of these

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Question

8. Investment projects should be capital intensive because they would lead to greater saving and investment in future advocated by-

Answers

H. Leibenstein

W. Galenson and R. Nurkse

M. Leibenstein and W. Galenson

W. Galenson

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Question

9.  According to Lewis the subsistence sector is that part of the economy which-

Answers

Does not make use of reproducible capital

Employs labour for wages in mines, factories. plantations for earning profits

Makes use of reproducible capital

None of the above

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Question

10. Myrdal builds his theory of economic development around the idea of-

Answers

Regional inequalities on the national plane

Regional inequalities on the international plane

Both of the above

None of the above

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Prepared by www.myeconomics.info

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