PPSC Economics Chapter 8 Development Economics With Answers

PPSC Economics Chapter 8 Development Economics

Sr. # Questions Answers Choice
1 Which of the following is NOT characteristics of underdeveloped nations. Low per capita income Low growth rate of GNP General needs for substantive investment in the infrastructure Low population growth rates
2 The largest lenders to less developed countries are Western government Multi lateral agencies Private banks Invidia investors who purchase government bonds
3 An Invention is set to be neutral when it raises the marginal productivities of labor and capital in the same proportion is said by Rostow Todoro Solow Haicks
4 R.M. Solow in his model assumes that the prices and wages are. Flexible Non flexible Rigid None of these
5 According to solo growth model capital and labor are. Not substitution of each other Substation of each other Substation in a way All of these
6 The main assumption of Kaldor model is that the economy operates at the level of . Full employment Above than full employment Less than full emplyment None of above
7 In Kaldor model saving income ratio in the growth process is considered. Constant Positive Variable Negative
8 The Harrod -Domar models are based on the restrictive assumption of. Increasing saving income ratio Decreasing saving income ratio Low saving income ratio Constant saving income ratio
9 Economic growth rate of a country is determined by the Capital formation rate Employment rate Saving rate Investment rate
10 More trade and more and is the demand made by the Developing countries Developed countries More developed countries Non developing countries
11 in UDCs a potential resource of saving is Structural unemployment Over employment Domestic saving Disguised unemployment
12 Following is the major source for a country to meet the deficiency of capital Domestic saving Foreign aid Domestic barrowing All of these
13 Hirschman along with other ebonists consider that for economic development. Balance growth is necessary Unbalance growth is necessary Big push in investment is necessary Industrial development is necessary
14 According to Nurkse a balance growth a ncessary to. Develop resources Develop capital Break vicious circle of poverty Develop infrastructure.
15 A circular constellation of force tending to act and react upon each other in such away to keep a poor country in a state of poverty is termed as. Vicious circle of poverty Low capital formation Low development disguised unemployment
16 One of the following is not a necessary characteristics of UDCs Low saving ratio Low capital formation Disguised unemployment Insufficient human resources.
17 All the UDCs of the world are homogeneous is broad sense and. Heterogeneous in narrow sense Homogenous in narrow sense also Homogenous in human resources Homogenous in natural resources
18 Rule of innovation in economic growth is very important according to. Adam smith Richardo Schumpter Rostow
19 Small size of market is the primary cause of under development according to. Balance growth theory Unbalance growth theory. Big push theory Dualistic theories
20 According to Keynes the exogenous factors like technology increase in population and discovery of new markets are the reasons. of. Underemployment Structural dualism Low capital formation Secular stagnation
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