MCQOPTIONS
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MCQOPTIONS
This section includes 266 Mcqs, each offering curated multiple-choice questions to sharpen your Master of Arts in Economics (M.A. Economics) knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Complementarityof demand is called |
| A. | indivisibilities in the production function |
| B. | indivisibility of demand |
| C. | indivisibility of savings |
| D. | indivisibility of investment |
| Answer» C. indivisibility of savings | |
| 2. |
Lumpinessof capital, especially in the creation of social overhead capital is called |
| A. | indivisibilities in the production function |
| B. | indivisibility of demand |
| C. | indivisibility of savings |
| D. | indivisibility of investment |
| Answer» B. indivisibility of demand | |
| 3. |
Which of the following about strategy of unbalanced growth is right? |
| A. | deliberate imbalance in favour of some sectors |
| B. | simultaneous investment in all sectors |
| C. | both |
| D. | none |
| Answer» B. simultaneous investment in all sectors | |
| 4. |
Which of the following about strategy of balanced growth is right? |
| A. | simultaneous investment in all sectors |
| B. | all sectors are independent. |
| C. | both |
| D. | none |
| Answer» B. all sectors are independent. | |
| 5. |
Balanced growth implies: |
| A. | simultaneous development of a variety of activities, which support one another |
| B. | equal allocation of resources to different sectors |
| C. | different sectors growing at their natural rates of growth |
| D. | uniform rate of growth of output over time |
| Answer» D. uniform rate of growth of output over time | |
| 6. |
Zero-Sum incentives and Positive Sum incentives are introduced by |
| A. | nelson |
| B. | harvey leibenstein |
| C. | hirschman |
| D. | rosenstein-rodan |
| Answer» C. hirschman | |
| 7. |
Who distinguishes three kinds of indivisibilities and externalities with a view to specifythe areas where big push needs to be applied? |
| A. | nelson |
| B. | harvey leibenstein |
| C. | hirschman |
| D. | rosenstein-rodan |
| Answer» B. harvey leibenstein | |
| 8. |
Those incentives which result in expansion of national income is called |
| A. | zero-sum incentives |
| B. | positive sum incentives |
| C. | negative incentives |
| D. | none of the above |
| Answer» C. negative incentives | |
| 9. |
Those incentives which do not increase national income, but they bring a change in thedistribution of income is called |
| A. | zero-sum incentives |
| B. | positive sum incentives |
| C. | negative incentives |
| D. | none of the above |
| Answer» B. positive sum incentives | |
| 10. |
Who put forward the view that UDCs are characterized by vicious circle of poverty whichkeeps them around a low-income per capita equilibrium state? |
| A. | nelson |
| B. | harvey leibenstein |
| C. | hirschman |
| D. | rosenstein-rodan |
| Answer» C. hirschman | |
| 11. |
The growth in progressive regions affects the growth in lagging regions through Spreadeffects and Backwash effects is the analysis put forward by |
| A. | gunnar myrdal |
| B. | prof. boeke |
| C. | prof. myint |
| D. | a.o. hirshman |
| Answer» B. prof. boeke | |
| 12. |
The theory of Low-Level Equilibrium Trap has been developed by |
| A. | gunnar myrdal |
| B. | prof. boeke |
| C. | prof. myint |
| D. | r.r. nelson |
| Answer» E. | |
| 13. |
The coexistence of organised and unorganised money market in the LDCs is called |
| A. | financial exclusion |
| B. | financial dualism |
| C. | financial institution |
| D. | financial inclusion |
| Answer» C. financial institution | |
| 14. |
Circular cumulative causation theory is developed by Swedish economist |
| A. | gunnar myrdal |
| B. | prof. boeke |
| C. | prof. myint |
| D. | a.o. hirshman |
| Answer» B. prof. boeke | |
| 15. |
Utmost secrecy in maintaining accounts and lending procedures is the characteristics of |
| A. | organised money market |
| B. | unorganised money market |
| C. | organised capital market |
| D. | un organised capital market |
| Answer» C. organised capital market | |
| 16. |
Defective system of maintaining accounts at receipts are not issued for interest chargedand the principal repaid is the characteristics of |
| A. | organised money market |
| B. | unorganised money market |
| C. | organised capital market |
| D. | un organised capital market |
| Answer» C. organised capital market | |
| 17. |
Multiplicity of interest rates at the interest rate varying with the need of the borrower, theamount of loan, the time for which it is needed, and the nature of security is the characteristics of |
| A. | organised money market |
| B. | unorganised money market |
| C. | organised capital market |
| D. | un organised capital market |
| Answer» C. organised capital market | |
| 18. |
Multiplicity of lending activities, i.e., combining moneylending with other economicactivities such as trading is the characteristics of |
| A. | organised money market |
| B. | unorganised money market |
| C. | organised capital market |
| D. | un organised capital market |
| Answer» C. organised capital market | |
| 19. |
Flexibility in loan transactions is the characteristics of |
| A. | organised money market |
| B. | unorganised money market |
| C. | organised capital market |
| D. | un organised capital market |
| Answer» C. organised capital market | |
| 20. |
Informality in dealing with borrowers by the moneylenders is the characteristics of |
| A. | organised money market |
| B. | unorganised money market |
| C. | organised capital market |
| D. | un organised capital market |
| Answer» C. organised capital market | |
| 21. |
Personal touch between the moneylenders and borrowers is the characteristics of |
| A. | organised money market |
| B. | unorganised money market |
| C. | organised capital market |
| D. | un organised capital market |
| Answer» C. organised capital market | |
| 22. |
Differences in Production Function is fundamental bases of |
| A. | technical dualism |
| B. | social dualism |
| C. | geographical dualism |
| D. | financial dualism |
| Answer» B. social dualism | |
| 23. |
Who explains the theory of social dualism? |
| A. | prof. b. higgins |
| B. | prof. boeke |
| C. | prof. myint |
| D. | a.o. hirshman |
| Answer» C. prof. myint | |
| 24. |
Differences in Factor Endowment is fundamental bases of |
| A. | technical dualism |
| B. | social dualism |
| C. | geographical dualism |
| D. | financial dualism |
| Answer» B. social dualism | |
| 25. |
The Entrepreneurial Leadership and Boredom are non-economic factors of the Rostow’sstages of growth of |
| A. | the traditional society |
| B. | pre-conditions for take off |
| C. | the take off stage |
| D. | drive to maturity |
| Answer» E. | |
| 26. |
Who explains the theory of technological dualism? |
| A. | prof. b. higgins |
| B. | prof. boeke |
| C. | prof. myint |
| D. | a.o. hirshman |
| Answer» B. prof. boeke | |
| 27. |
Rostow had advocated his theory as an alternative to |
| A. | smith’s theory |
| B. | marx’s theory |
| C. | malthusian theory |
| D. | none of these |
| Answer» C. malthusian theory | |
| 28. |
Shift in Consumption of Leading Sector is a feature of Rostow’s stages of growth |
| A. | the traditional society |
| B. | pre-conditions for take off |
| C. | the take off stage |
| D. | drive to maturity |
| Answer» E. | |
| 29. |
Shift in Consumption Pattern is a feature of Rostow’s stage of growth of |
| A. | the traditional society |
| B. | pre-conditions for take off |
| C. | the take off stage |
| D. | drive to maturity |
| Answer» E. | |
| 30. |
Shift in Occupational Distribution is a feature of Rostow’s stage of growth of |
| A. | the traditional society |
| B. | pre-conditions for take off |
| C. | the take off stage |
| D. | drive to maturity |
| Answer» E. | |
| 31. |
The existence of Different Frameworks in the Society is a feature of Rostow’s stage ofgrowth of |
| A. | the traditional society |
| B. | pre-conditions for take off |
| C. | the take off stage |
| D. | drive to maturity |
| Answer» D. drive to maturity | |
| 32. |
Development of one leading sector is a feature of Rostow’s stage of growth of |
| A. | the traditional society |
| B. | pre-conditions for take off |
| C. | the take off stage |
| D. | drive to maturity |
| Answer» D. drive to maturity | |
| 33. |
Dualism and dichotomies in geography do not include |
| A. | general geography versus regional geography |
| B. | physical geography versus human geography |
| C. | quantitative versus behavioural geography |
| D. | hard geography versus soft geography |
| Answer» E. | |
| 34. |
The prior savings approach is based on classical economics which emphasizes that priorsaving determines |
| A. | investment |
| B. | income |
| C. | consumption |
| D. | inflation rate |
| Answer» B. income | |
| 35. |
The assumptions of Technological dualism not include |
| A. | there are two sectors of the economy |
| B. | there are two factors of production |
| C. | two commodities are produced |
| D. | there are two modes of production |
| Answer» E. | |
| 36. |
The extension of Harrod-Domar model was made by adding the term for foreign tradebalance as per cent of |
| A. | investment |
| B. | national income |
| C. | export |
| D. | import |
| Answer» C. export | |
| 37. |
In the Keynesian model, investment is not constrained by prior savings but by ------------acceptable to the workers. |
| A. | investment |
| B. | income |
| C. | consumption |
| D. | inflation rate |
| Answer» E. | |
| 38. |
The Prior Saving Theory regards saving as a prerequisite of -------- |
| A. | investment |
| B. | income |
| C. | consumption |
| D. | inflation rate |
| Answer» B. income | |
| 39. |
The characteristics of Rostow’s Traditional society include |
| A. | enlarged production function |
| B. | employment in agriculture |
| C. | social mobility |
| D. | political power |
| Answer» B. employment in agriculture | |
| 40. |
Harrod-Domar model of growth is based on the concepts of and their equality |
| A. | population and productivity growth. |
| B. | investment and average growth rate of income. |
| C. | actual, warranted and natural growth rate |
| D. | productivity growth and investment growth |
| Answer» D. productivity growth and investment growth | |
| 41. |
In dual gap model, the gap can be filled up by |
| A. | raising the level of saving |
| B. | export promotion |
| C. | steady rate of growth |
| D. | foreign aid |
| Answer» E. | |
| 42. |
In Joan Robinson’s growth model, capital accumulation depends on |
| A. | saving-income ratio |
| B. | profit-wage relation and labour productivity |
| C. | profit-income ratio and capital productivity |
| D. | saving-investment ratio |
| Answer» C. profit-income ratio and capital productivity | |
| 43. |
In Domar’s Model National Income (output) is determined by investment through the |
| A. | accelerator |
| B. | multiplier |
| C. | saving |
| D. | none of the above |
| Answer» C. saving | |
| 44. |
Harrod argues that in an economy with constant capital-labour ratio, the ------------ cannever be more than the natural rate of growth of output. |
| A. | warranted (required) rate of growth of output |
| B. | actual rate of growth of output |
| C. | sustainable rate of growth of output |
| D. | natural rate of growth of output |
| Answer» C. sustainable rate of growth of output | |
| 45. |
Harrod explained the peaks and troughs of the business cycles through the use of |
| A. | warranted (required) rate of growth of output |
| B. | actual rate of growth of output |
| C. | sustainable rate of growth of output |
| D. | natural rate of growth of output |
| Answer» E. | |
| 46. |
The instability of equilibrium in the Harrod model was used by him to explain thebusiness cycles above and below the trend path of -------- |
| A. | warranted (required) rate of growth |
| B. | actual rate of growth |
| C. | sustainable rate of growth |
| D. | natural rate of growth |
| Answer» B. actual rate of growth | |
| 47. |
The rate of growth of output which is required to fully employ the entire growing labourforce is the |
| A. | warranted (required) rate of growth |
| B. | actual rate of growth |
| C. | sustainable rate of growth |
| D. | natural rate of growth |
| Answer» E. | |
| 48. |
Harrod’s definition of rate of growth of an economy do not include |
| A. | warranted (required) rate of growth |
| B. | actual rate of growth |
| C. | sustainable rate of growth |
| D. | natural rate of growth |
| Answer» D. natural rate of growth | |
| 49. |
How does Sen define poverty? |
| A. | the lack of material well-being |
| B. | the deprivation of basic capabilities for an individual |
| C. | the lack of supportive social institutions to ensure one’s basic livelihood |
| D. | the lack of a cultural or religious identity |
| Answer» C. the lack of supportive social institutions to ensure one’s basic livelihood | |
| 50. |
Sen’s welfare theory relies on |
| A. | individuals’ accomplishments. |
| B. | individuals’ capabilities. |
| C. | individuals’ wealth. |
| D. | individuals’ education. |
| Answer» B. individuals’ capabilities. | |