Growth and Development-Online Practice Exam 7
Growth and Development-Online Practice Exam 7

Growth and Development-Online Practice Exam 7

NET / SET Online Practice Exams

Growth and Development

Test

Multi-choice 7

Question

1. Which theory emphasises that underdeveloped countries require large amounts of investment to break the shackles of backwardness and launch up economic development?

Answers

Theory of balanced growths

Big push theory

Theory of unbalanced growth

None of the above

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Question

2. According to India’s planning commission an underdeveloped country is one which- 

Answers

Is characterised by the co-existence of unutilised or underutilised manpower on the one hand and of unexploited natural resources on the other

Has low per capita real income when compared with the per capita real income of the USA. Canada, Australia and Western Europe

Has good potential prospects for using more capital or labour, to support its present popula- tion at higher standard of living

Those which compared to the advanced countries are under-equipped with capital in relation to their population and natural resources

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Question

3. Which of the following factors helps human capital formation?

Answers

Promotion of education

Promotion of health services

Health and adequate diet promotion

All of the above

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Question

4. The process of acquiring and increasing the number of persons who have the skills in education and experience which are critical for the economic and the political development of a country is known

Answers

Capital formation

Human capital formation

Both of the above

None of the above

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Question

5. In Rostow’s theory the ‘Drive to maturity’

Answers

Follows the take-off

Comes before the take-off

Completes the development process

Starts the development process

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Question

6. A country can meet its deficiency of capital through-

Answers

Diversion of savings to productive uses

Foreign capital

 Internal savings

All of the above

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Question

7. In which period the forces of economic progress expand and come to dominate the society ?

Answers

The preconditions of take-off period 

The drive to maturity period

The take-off stage

The high mass consumption stage

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Question

8. A backward poor country faces vicious circle in relation to-

Answers

Population growth

Social backwardness

Supply of and demand for capital

All of the above

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Question

9. Besides poverty, developing economies have many other common characteristics like:

Answers

Percentage of their population engaged in agriculture is generally very high

Technological dualism prevails

The capital-labour ratio is low

All of the above

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Question

10. Consider the following statements:

According to Nurkse disguised unemployment is a source of capital formation in an underdeveloped economy, if all unproductive workers are-

  1. Maintained by productive workers
  2. Provided assets through loans
  3. Mobilised on works immediately raising productivity.

Of the above statements–

Answers

Only III

II and III are correct

I and III are correct

Only I

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