MCQs on Economic Growth and Development

Economic growth and development are essential for the well being of any country. It is measured in terms of improvement in the production of goods and services along with enhancement in quality of life within a country compared to previous years.

Below is a list of multiple-choice questions and answers on Economic Growth and Development to help students understand the topic better.

1. The value of goods and services produced by residents of a country and the value of their property is called_________.
   1. Gross domestic product
   2. Net domestic product
   3. Gross national income
   4. Net national income

Answer: c

2. Gross domestic product of a country is the total of its net domestic product and ________.
   1. Informal economy
   2. Earnings on foreign exchange in the domestic country
   3. Subsidies on the consumption of goods and services
   4. Consumption of capital in the production process

Answer: d

3. Which of the following ministries is responsible for the report on India’s national and per capita income?
   1. Ministry of Home Affairs
   2. Ministry of Planning
   3. Ministry of Statistics and Programme Implementation
   4. Ministry of Human Resource Development

Answer: c

4. Which of the following agencies is responsible for computing the National Income Statistics in India?
   1. Reserve Bank of India
   2. Central Statistical Office
   3. Ministry of Finance
   4. Planning Commission

Answer: c

5. Disguised unemployment exists primarily in the ________ sector in our country.
   1. Defence
   2. Agriculture
   3. Manufacturing
   4. None of the above

Answer: b

6. When a large number of workers get unemployed due to automation of industrial processes, this phenomenon is called _________.
   1. Cyclical unemployment
   2. Disguised unemployment
   3. Structural unemployment
   4. Seasonal unemployment

Answer: c

7. The meaning of disguised unemployment is _________.
   1. Zero marginal productivity of labour
   2. Zero total productivity of labour
   3. Zero average productivity of labour
   4. None of the above

Answer: a

8. The term economic growth is explained by ___________.
   1. Structural changes in the economy
   2. Increase in the per capita production
   3. Increase in the per capita income
   4. All of the above

Answer: d

9. Which of the following scenarios explain economic development?
   1. Improvement in the distribution system
   2. Improvement in the technology
   3. Improvement in the production
   4. All of the above

Answer: d

10. The main characteristic of an underdeveloped economy is that it has a ________.
    1. State of deprivation among large proportions of the population
    2. High per capita income
    3. A large proportion of the about force is in the tertiary sector
    4. None of the above

Answer: a

11. Scarcity of capital, unemployment and technological backwardness are generally found in ________ economies.
    1. Underdeveloped
    2. Developed
    3. Partly developed
    4. None of the above

Answer: a

12. Which of the following is not an indicator of an economically developed nation?
    1. High levels of literacy
    2. Low death rate
    3. High per capita income
    4. A high proportion of labour in the primary sector

Answer: d

13. Which of the following determinants of growth is a non-economic factor?
    1. Capital
    2. Natural resources
    3. Favourable legislation
    4. None of the above

Answer: b

14. The division of labour, according to Adam Smith, is limited by ________.
    1. Size of the labour force
    2. Quantity of capital available in the market
    3. The extent of the market
    4. Both b and c

Answer: d

15. An increase in the national income of a country due to an increase in prices is known as ________.
    1. Increase in the national income at base year prices
    2. Increase in the nominal national income
    3. Increase in the national income at constant prices
    4. Increase in the real income

Answer: b

Also See:

• Differences between Capitalist and Socialist Economy
• Fiscal Deficit