Categories
Economics

Which of the following had the approval of the classical economists (particularly J.S. Mill) as an aid to development?

A. subsidizing the poor
B. imposition of temporary duties on imports to develop particular industries
C. regulation of activities of the rising business class
D. appropriating a part of the national product by the government for unproductive uses

CORRECT ANSWER IS: imposition of temporary duties on imports to develop particular industries

Categories
Economics

In which year, two authors of Harrod-Domar model wrote earlier?

A. 1940
B. 1939
C. 1946
D. 1948

CORRECT ANSWER IS: 1939

Categories
Economics

A strategy of heavy industry is sometimes preferred for a developing economy because it can

A. generate employment opportunities on a large scale
B. provide a strong base for rapid industrialization
C. contain inflationary pressure
D. meet deficits in balance of payments in the short-run

CORRECT ANSWER IS: provide a strong base for rapid industrialization

Categories
Economics

The justification of the ‘big push’ strategy, which involved concentrated efforts in the form of investments on a large scale, is based on

A. indivisibilities of demand
B. complimentary of demand
C. skill formulation
D. all of them

CORRECT ANSWER IS: all of them

Categories
Economics

Which of the following is not a part of the classical theory of economic development?

A. labor supply would increase with rise in wages
B. stationary state
C. government interference
D. capital accumulation is the basic cause of growth

CORRECT ANSWER IS: government interference

Categories
Economics

To achieve full economic growth, Malthus laid special emphasis on the proper combination of

A. production and distribution
B. natural resources and capital
C. labor and technology
D. production and trade

CORRECT ANSWER IS: production and distribution

Categories
Economics

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 labor

CORRECT ANSWER IS: size of the market

Categories
Economics

: J.F. Meade pointed out three principles means of growth. Which of the following is not on the list?

A. growth of working population
B. capital accumulation
C. devaluation
D. technical progress

CORRECT ANSWER IS: devaluation

Categories
Economics

With economic growth, the proportion of labor-force engaged in agriculture:

A. increases
B. decreases
C. remains unaffected
D. changes in an uncertain manner

CORRECT ANSWER IS: decreases

Categories
Economics

The ‘big push’ strategy of development was first advocated by

A. Paul N-Rosenstein-Rodan
B. Simon Kuznets
C. W.A. Lewis
D. A.O. Hirshman

CORRECT ANSWER IS: Paul N-Rosenstein-Rodan