MCQOPTIONS
Saved Bookmarks
MCQOPTIONS
This section includes 12 Mcqs, each offering curated multiple-choice questions to sharpen your Bachelor of Commerce (B Com) knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
The classical theory of economic development is of relevance for the less developed countries today because it lays emphasis on . |
| A. | Need for favourable institutional and social initiatives |
| B. | Extension of markets |
| C. | Capital accumulation |
| D. | All of the above |
| Answer» E. | |
| 2. |
Development with unlimited supplies of labour hypothesis was originally formulated by __________. |
| A. | Gustav Ranis |
| B. | W. A. Lewis |
| C. | R. Nurkse |
| D. | J. Schumpeter |
| Answer» C. R. Nurkse | |
| 3. |
According to the Schumpeter's model, the innovating entrepreneurs get the necessary finance from__________. |
| A. | Voluntary Savings |
| B. | Own Resources |
| C. | Bank Credit |
| D. | Government |
| Answer» D. Government | |
| 4. |
Which one of the following, according to Ricardo, would form a bottleneck to economic growth? |
| A. | Shortage of land |
| B. | Rising rent |
| C. | Shortage of gold and silver |
| D. | Rising wage bills |
| Answer» B. Rising rent | |
| 5. |
Which one of the following was given a central place by Schumpeter in his theory of development? |
| A. | Capital accumulation |
| B. | Role of the Government |
| C. | Need for balanced growth |
| D. | Role of innovations |
| Answer» E. | |
| 6. |
Under the big-push strategy of development, large investments are to be directed towards __________. |
| A. | Agriculture |
| B. | Industry |
| C. | Power |
| D. | Tr |
| Answer» B. Industry | |
| 7. |
The synchronized application of capital to a wide range of different industries is called __________ by its advocates. |
| A. | Balanced growth |
| B. | Capitalization |
| C. | Elasticity of capital |
| D. | Indivisibilities |
| Answer» B. Capitalization | |
| 8. |
The Harrod-Domar model is one of the well- known models of growth. Which of the two authors of this model wrote earlier and in which year? |
| A. | Domar in 1940 |
| B. | Harrood in 1939 |
| C. | Domar in 1946 |
| D. | Domar in 1948 |
| Answer» C. Domar in 1946 | |
| 9. |
According to the supply side of the vicious circle theory of development a country is poor because . |
| A. | Technology levels do not allow for self sufficiency |
| B. | It was previously too poor to save and invest |
| C. | Underemployment is too widespread |
| D. | Resource allocation is poor |
| Answer» C. Underemployment is too widespread | |
| 10. |
Two economists have been particularly associated with the formulation of development with surplus labour hypothesis. One is R. Nurkse. Who is the other? |
| A. | W.A. Lewis |
| B. | James S. Duessenberry |
| C. | W.W. Rostow |
| D. | Simon Kuznets |
| Answer» C. W.W. Rostow | |
| 11. |
According to R. Nurkse, the inducement to invest in the context of an underdeveloped economy is limited mainly by the: |
| A. | Lack of savings |
| B. | Size of the market |
| C. | Lack of investment opportunities |
| D. | Low productivity of labour |
| Answer» C. Lack of investment opportunities | |
| 12. |
To achieve full economic growth, Malthus laid special emphasis on the proper combination of__________. |
| A. | Production and distribution |
| B. | Natural resources and capital |
| C. | Labour and technology |
| D. | Production and trade |
| Answer» B. Natural resources and capital | |