Growth and Development-Online Practice Exam 5
Growth and Development-Online Practice Exam 5

Growth and Development-Online Practice Exam 5

NET / SET Online Practice Exams

Growth and Development

Test

Multi-choice 5

Question

1. A country’s rate of growth is determined by-

Answers

The average propensity to save

The marginal propensity to save and capital-output ratio

The interaction of supply and demand

The law of comparative costs

Feedback

Question

2. Economic development can be defined simply as- 

Answers

An increase in real per capita income over an extended period of time

National income keeping up with population increases

Increase in the real investment over many years

An increase in the national income from one year to another

Feedback

Question

3. The economy will face depression if the-

Answers

The actual rate of growth is higher than the natural rate of growth

Actual rate of growth is higher than the warranted rate of growth

Natural rate of growth is higher than warranted rate of growth

Warranted rate of growth is higher than the natural rate of growth

Feedback

Question

4. Economic development may be defined as a process whereby the real per capita income of a country increases

Answers

Subject to the condition that the number below an absolute poverty line does not increase

Over a long period of time

Subject to the condition that the distribution of income does not become more unequal 

All of the above

Feedback

Question

5. Capital-output ratio-

Answers

Is an active agent of growth

Is one of the important determinants of growth

Is not at all relevant for growth

Is the most important determinant of growth rate

Feedback

Question

6. The important feature of modern economic growth has been-

Answers

Increasing use of modern scientific Knowledge

Increased productivity per unit of labour Input

Substantial rise in product per capita

All of the above

Feedback

Question

7. A country’s rate of growth is determined by-

Answers

The interaction of supply and demand 

The rate of capital accumulation

The law of comparative costs

The average propensity to save

Feedback

Question

8. Joan Robinson’s growth model deals with-

  1. Desired growth rate
  2. Possible growth rate III. Natural growth rate
  3. Warranted growth rate

Answers

I, and IV

I, II, and IV

II and III

I and II

Feedback

Question

9. ‘Trickle-down’ strategy implies-

Answers

Reduction in the income of the upper class by deliberate distribution

Higher GNP taking care of poverty

Direct achievement of better nourishment.

None of the above

Feedback

Question

10. Social dualism implies-

Answers

Fatalism. resignation and superstition traditional societies, adventure and rationality in the small western sector

Low wages in eastern and high wages in western countries

Existence of an advanced imported western system and indigenous precapitalist agricultural system

All of the above

Feedback

Prepared by www.myeconomics.info

"There is no joy in possession without sharing". Share this page.

Loading

Leave a Reply

Your email address will not be published. Required fields are marked *