Top 80+ Solved Economics of Development MCQ Questions Answer
Q. Which of the following is inconsistent with Adam Smith’s theory of development?
a. Development process is cumulative in nature
b. There is no limit to the growth process
c. Capital accumulation and market extension are two prerequisites for output expansion
d. There should be no government interference in the working of the economy
Q. Karl Marx ideas about development theory are available in __________ .
a. Communist Manifesto
b. Das Kapital
c. Capital: A Critique of Political Economy
d. None of these
Q. In Schumpeter’s theory of development maximum stress has been laid on:
a. Capital
b. Interest
c. Land
d. Entrepreneurship
Q. Which sector was emphasised most by Ricardo in the context of economic growth?
a. Trade
b. Industry
c. Agriculture
d. Services
Q. Which one of the following, according to Ricardo, would form a bottleneck to economicgrowth?
a. Shortage of land
b. Rising rent
c. Shortage of gold and silver
d. Rising wage bills
Q. Which of the following is inconsistent with the Schumpeter's theory of development?
a. The course of growth is continuous
b. The output expansion, initiated by the entrepreneur, increases in size with time, making it cumulative
c. Growth takes place on account of entrepreneurs who, with the help of bank credit, invest ininnovative activity
d. Capitalism destroys itself by being successful through the erosion of its institutions, by the hostility of its intellectuals and other elite classes, and also by the weakening of entrepreneurial innovation
Q. According to the Schumpeter's model, the innovating entrepreneurs get the necessary financefrom__________.
a. Voluntary Savings
b. Own Resources
c. Bank Credit
d. Government
Q. Which one of the following was given a central place by Schumpeter in his theory ofdevelopment?
a. Capital accumulation
b. Role of the Government
c. Need for balanced growth
d. Role of innovations
Q. In which year was the first volume of Das Capital be Karl Marx published?
a. 1848
b. 1859
c. 1867
d. 1873
Q. Myrdal builds his theory of economic development around the idea of__________ .
a. Regional inequalities on the national plane
b. Regional inequalities on the international plane
c. Both A and B
d. None of the above
Q. The concept of, Vicious Circle of Poverty’ is related to __________.
a. Karl Marx
b. Nurkse
c. Adam Smith
d. None of the above
Q. Who formulated the theory of circular and cumulative causation which explains the perpetuation of underdevelopment through growing inequalities between developed and the underdeveloped countries?
a. Lewis
b. Gunnar Myrdal
c. Higgins
d. J. H. Boeke
Q. In the context of which region was the 'big push' strategy of development formulated?
a. South Asia
b. South East Asia
c. Eastern Europe
d. East Africa
Q. Which among the following is a characteristic of underdevelopment?
a. Vicious circle of poverty
b. Rising mass consumption
c. Growth of industries
d. High rate of urbanization