Multi-choice 1 Question 1. If the K/O ratio is 5 the population growth rate is 2 per cent and society wants to achieve a per capita growth rate of 3.5 per cent, what is the value of saving ratio? Answers Option 1 10.5 Option 2 3.5 Option 3 5.5 Option 4 27.5 Feedback Correct option Wrong choice Incorrect selection Wrong choice Solution Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Question 2. Underdevelopment has been a result of ____ factors. Answers Option 1 Economic Option 2 Social Option 3 Political Option 4 All of the above Feedback Wrong choice Incorrect selection Wrong choice Correct option Solution Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Question 3. Kuznets found that when compared to the upper 10 per cent of income recipients in developed countries, the upper 10 per cent of income recipients in less developed countries receive- Answers Option 1 A large percentage of national income before taxes Option 2 A smaller percentage of national income before taxes Option 3 The same percentage of national income after taxes Option 4 An insignificant percentage of national income Feedback Correct option Wrong choice Incorrect selection Wrong choice Solution Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Question 4. Investment projects should be capital intensive because they would lead to greater savings and investment in future. This is advocated by- Answers Option 1 H. Leibenstein Option 2 H. Leibenstein and W. Galenson Option 3 W: Galenson Option 4 W. Galenson and R. Nurkse Feedback Wrong choice Incorrect selection Wrong choice Correct option Solution Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Question 5. Which one of the following is not necessarily a characteristic of an underdeveloped economy ? Answers Option 1 Low per capita income Option 2 Insufficiency of natural resources Option 3 Inadequate capital resources Option 4 Widespread unemployment Feedback Wrong choice Correct option Incorrect selection Wrong choice Solution Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Question 6. According to H. Leibenstein- Answers Option 1 The underdeveloped countries are poor because they have a low capital to save and invest Option 2 The population upsurge is the main obstacle to the economic growth of underdeveloped countries Option 3 Due to their subsistence structure the underdeveloped countries are caught in the Malthusian low equilibrium trap Option 4 All of the above Feedback Wrong choice Incorrect selection Wrong choice Correct option Solution Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Question 7. Economists point out several possible sources of untapped private domestic savings in less developed countries. Which of the following is not one of them ? Answers Option 1 There can be voluntary reduction in consumption, thereby freeing additional resources for investment Option 2 Unemployed or underemployed labour can be absorbed in the productive economy, increasing national income and the possibility of savings Option 3 The government can require citizens to purchase long-term, non-negotiable bonds, and finance national investment programmes through private savings Option 4 Establishment of a State Marketing Boar for exports which may enable the govenment to purchase domestic goods Feedback Wrong choice Incorrect selection Wrong choice Correct option Solution Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Question 8. The balanced growth theory sees the primary cause of underdevelopment as the- Answers Option 1 Foreign domination Option 2 Low level of technology Option 3 Small size of the market Option 4 Lack of savings Feedback Wrong choice Incorrect selection Correct option Wrong choice Solution Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Question 9. The basic rationale of the theory of “big push” is based upon the idea of- Answers Option 1 External economics Option 2 Size of population Option 3 Internal economics Option 4 None of these Feedback Correct option Wrong choice Incorrect selection Wrong choice Solution Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Question 10. Classical investment theory advocates normally all of the following except- Answers Option 1 Perfect competition Option 2 Absence of externalities Option 3 A state of general equilibrium Option 4 A living wage Feedback Wrong choice Incorrect selection Wrong choice Correct option Solution Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback)
Multi-choice 1 Question 1. If the K/O ratio is 5 the population growth rate is 2 per cent and society wants to achieve a per capita growth rate of 3.5 per cent, what is the value of saving ratio? Answers Option 1 10.5 Option 2 3.5 Option 3 5.5 Option 4 27.5 Feedback Correct option Wrong choice Incorrect selection Wrong choice Solution Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Question 2. Underdevelopment has been a result of ____ factors. Answers Option 1 Economic Option 2 Social Option 3 Political Option 4 All of the above Feedback Wrong choice Incorrect selection Wrong choice Correct option Solution Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Question 3. Kuznets found that when compared to the upper 10 per cent of income recipients in developed countries, the upper 10 per cent of income recipients in less developed countries receive- Answers Option 1 A large percentage of national income before taxes Option 2 A smaller percentage of national income before taxes Option 3 The same percentage of national income after taxes Option 4 An insignificant percentage of national income Feedback Correct option Wrong choice Incorrect selection Wrong choice Solution Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Question 4. Investment projects should be capital intensive because they would lead to greater savings and investment in future. This is advocated by- Answers Option 1 H. Leibenstein Option 2 H. Leibenstein and W. Galenson Option 3 W: Galenson Option 4 W. Galenson and R. Nurkse Feedback Wrong choice Incorrect selection Wrong choice Correct option Solution Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Question 5. Which one of the following is not necessarily a characteristic of an underdeveloped economy ? Answers Option 1 Low per capita income Option 2 Insufficiency of natural resources Option 3 Inadequate capital resources Option 4 Widespread unemployment Feedback Wrong choice Correct option Incorrect selection Wrong choice Solution Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Question 6. According to H. Leibenstein- Answers Option 1 The underdeveloped countries are poor because they have a low capital to save and invest Option 2 The population upsurge is the main obstacle to the economic growth of underdeveloped countries Option 3 Due to their subsistence structure the underdeveloped countries are caught in the Malthusian low equilibrium trap Option 4 All of the above Feedback Wrong choice Incorrect selection Wrong choice Correct option Solution Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Question 7. Economists point out several possible sources of untapped private domestic savings in less developed countries. Which of the following is not one of them ? Answers Option 1 There can be voluntary reduction in consumption, thereby freeing additional resources for investment Option 2 Unemployed or underemployed labour can be absorbed in the productive economy, increasing national income and the possibility of savings Option 3 The government can require citizens to purchase long-term, non-negotiable bonds, and finance national investment programmes through private savings Option 4 Establishment of a State Marketing Boar for exports which may enable the govenment to purchase domestic goods Feedback Wrong choice Incorrect selection Wrong choice Correct option Solution Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Question 8. The balanced growth theory sees the primary cause of underdevelopment as the- Answers Option 1 Foreign domination Option 2 Low level of technology Option 3 Small size of the market Option 4 Lack of savings Feedback Wrong choice Incorrect selection Correct option Wrong choice Solution Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Question 9. The basic rationale of the theory of “big push” is based upon the idea of- Answers Option 1 External economics Option 2 Size of population Option 3 Internal economics Option 4 None of these Feedback Correct option Wrong choice Incorrect selection Wrong choice Solution Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Question 10. Classical investment theory advocates normally all of the following except- Answers Option 1 Perfect competition Option 2 Absence of externalities Option 3 A state of general equilibrium Option 4 A living wage Feedback Wrong choice Incorrect selection Wrong choice Correct option Solution Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback)
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