Growth and Development-Online Practice Exam 2
Growth and Development-Online Practice Exam 2

Growth and Development-Online Practice Exam 2

NET / SET Online Practice Exams

Growth and Development

Test

Multi-choice 2

Question

1. The vicious circle argument points out the connection between-

Answers

Income and population

Productivity and income

Saving and capital

Investment and technology

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Question

2. How can the nation close a saving gap ?

Answers

By reducing its incremental capital

By reducing domestic consumption

By obtaining more foreign aid

All of the above

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Question

3. Which type of indivisibilities did Rosenstein Rodan distinguishes in his theory of economic development ?

  1. Lumpiness of capital, especially in the creation of social overhead capital.

  2. Complementarity of demand.

  3. Indivisibility of savings

Answers

Only I

Only II

I and II

All the three

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Question

4. Social marginal productivity theory–

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Is subjective and does not supplant the need for linear programming and input-output analysis

Accounts for all the interconnections in the economies including externalities

Overcomes all of the weaknesses of marginal productivity theory

Is not different from marginal productivity theory

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Question

5. Which one of the following is not consistent with Rosenstein-Rodan’s theory of ‘big push”?

Answers

It highlights the efficiency of the price system to signal out the desirable direction of investment

International trade cannot itself obviate the need for ‘big-push’ altogether

It is concerned with imported market in under- developed countries

It is primarily a theory of investment

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Question

6. Galenson and Leibenstein advocate investment projects that are-

Answers

Capital-intensive because they will lead to greater saving and investment in the future

Labour-intensive because they will stimulate consumer demand 

Capital-intensive because this is the only way the economy can become competitive internationally

Labour-intensive because they will help the working class

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Question

7. The economist who stressed the role of the entrepreneur in development was-

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Schumpeter 

Rosenstein-Rodan

Nurkse

Hirschman

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Question

8. The ‘critical minimum effort’ theory is due to

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Rosenstein-Rodan

W.A. Lewis

H. Leibenstein

JH. Boeke

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Question

9. Khan was among the first to include in his model

Answers

The importance of exports for a developing country

An estimate of the difference between private and social costs and benefits

The marginal per capita reinvestment quota

None of the above

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Question

10. Developing countries rely on industry

Answers

To grow rapidly

To train labour and absorb it into high paying jobs

For reasons of security and national pride

All of the above

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