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Economic growth and development - class-XI

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If the total income of the country is divided by the total population, then the obtained total average income of an individual is known as _______.

  1. Annual income

  2. Per capita income

  3. Daily income

  4. Family income


Correct Option: B
Explanation:

Per capita income is a measure of the amount of money earned per person in a certain area. It helps us address issues like the quality of life and the living conditions we can expect for specific areas.It can be calculated for a country by dividing the country's national income by its population.

Due to which report did the concept of sustainable development gain importance?

  1. World Environmental Report, 1995

  2. World Commission of Envrionment and Development Report, 1987

  3. World Environmental Concern Association Report, 1976

  4. None of the above


Correct Option: B
Explanation:
Sustainable development basically refers to the development in a strategic way where the needs of the present generation are met without compromising the ability of future generations to meet their own need. The concept of sustainable development gained high importance in the world commission of environment and development report of 1987 in Rio De Janeiro.  

______________ refers to meeting the needs of the present generation without compromising the needs of future generations.

  1. Sustainable growth

  2. Efficient growth

  3. Sustainable development

  4. Welfare


Correct Option: C
Explanation:

Sustainable development basically refers the development in a strategic way where the needs of the present generation are met withot compromising the ability of the future generations to meet their own needs. 

What is the India's GDP growth forecast for $2018$, as per latest Moody's Investors Service report "Global Macro Outlook: $2018-19$"?

  1. $7.5\%$

  2. $7.3\%$

  3. $7.4\%$

  4. $7.2\%$


Correct Option: B
Explanation:

The latest report of Moodys Investors Service has cut Indias GDP growth forecast to $7.3\%$ in 2018 from the previous estimate of $7.5\%$ due to higher oil prices and tighter financial conditions. However, Moodys maintained its 2019 growth forecast at $7.5\%$. 

The report Global Macro Outlook: 2018-19 stated that the Indian economy is in cyclical recovery led by both investment and consumption. However, higher oil prices and tighter financial conditions will weigh on the pace of acceleration. The private investment cycle will continue to make a gradual recovery, as twin balance-sheet issues impaired assets at banks and corporates slowly get addressed through deleveraging and the application of the Insolvency and Bankruptcy Code.

Sustainable development looks at the issue of _____________ in a broader perspective.

  1. economic welfare

  2. economic development

  3. social welfare

  4. social growth


Correct Option: B
Explanation:

Sustainable development basically refers to the development in a strategic way where the needs of the present generation are met with compromising the ability of the future generations to meet their own need. It basically aims at the issue of economic development with a broader perspective. 

Per Capita consumption shows the standard of living.

  1. True

  2. False


Correct Option: A
Explanation:

The increase in consumption of goods and services by the people is measured in PCC. Example clothing, food, education, health etc. An increase in PCC shows  better standard of living,better quality of life of people and higher economic development of the country.

______________ involves equality of potentiality of development between the present and the future generations.

  1. Economic growth

  2. Social development

  3. Sustainable development

  4. Cultural changes


Correct Option: C
Explanation:

Sustainable development basically refers the development in a strategic way where the needs of the present generation are met without compromising the ability of the future generations to meet their own need. 

Industrialised countries have been rapidly causing depletion of the stock of natural resources.

  1. True

  2. False


Correct Option: A
Explanation:

True

Industrialization refers to the process of using natural resources for the development of the economy. But in industrialized countries the resources are exploited in a very large quantity that leads to the depletion of these stock of natural resources. 

Identify the strategies for sustainable development.

  1. Equitable use of resources

  2. Conservation of biological diversity

  3. Development of organic farming

  4. All of the above


Correct Option: D

Sustainable development is useful for improving the ___________ of the present generations by ensuring sufficient availability of resources and clean environment.

  1. income level

  2. working conditions

  3. quality of life

  4. none of the above


Correct Option: C
Explanation:

Sustainable development basically refers the development in a strategic way where the needs of the present generation are met without compromising the ability of the future generations to meet their own need. Therefore, sustainable development aims at sustaining the present level of resources and providing the present generation with good quality life.

Article 48A was added to the Directive Principles of State Policy so as to put the responsibility on the __________ to protect and improve the environment.

  1. public

  2. government

  3. private enterprises

  4. NGOs


Correct Option: B
Explanation:

According to the article 48A in the directive principles of state policy, the government is made responsible to protect and improve the environment to establish a better standard of life for us. 

Economic development is sustainable only when the stock of ____________ remains constant or rises over time.

  1. capital assets

  2. human resources

  3. both A & B

  4. neither A nor B


Correct Option: A
Explanation:

Economic development aims in sustainable development when there is an abundance of capital assets in present as well as future generations. Therefore, capital assets must rise over time for sustainable development. 

Which of the following is correct with regards to the concept of sustainable development?

  1. It involves sharing of development opportunities between generations.

  2. It involves sharing of development opportunities between all social classes.

  3. It involves sharing of development opportunities between rural and urban areas.

  4. All of the above.


Correct Option: A
Explanation:

Sustainable development basically refers the development in a strategic way where the needs of the present generation are met without compromising the ability of the future generations to meet their own needs. 

What has been established in the field of climate finance?

  1. Greenhouse control fund

  2. Climate change fund

  3. Green climate fund

  4. None of the above


Correct Option: C

Sustainable development doesn't refer to sustaining which of the following?

  1. Present level of standard of living

  2. Present level of production

  3. Present level of technology

  4. Present level of poverty


Correct Option: D
Explanation:

Sustainable development basically refers to the development in a strategic way where the needs of the present generation are met without compromising the ability of future generations to meet their own need. Therefore, sustainable development aims at sustaining the present level of resources and providing the present generation with a good quality life. So it does not refer to sustaining the present level of poverty.

__________ is one of the few developing countries where forest cover has increased over the last 20 years.

  1. Africa

  2. India

  3. Brazil

  4. China


Correct Option: B
Explanation:

India is regarded as one of the most diversified countries in terms of flora and fauna. In most of the developing countries, India is regarded as one where the forest cover has been increased in the past 20 years. 

Sustainable development improves quality of life of the present generations. Quality of life, in this case, is dependent on which of the following?

  1. Safe drinking water

  2. Hygienic environment

  3. Clean air

  4. All of the above


Correct Option: D
Explanation:

Sustainable development basically refers to the development in a strategic way where the needs of the present generation were met with compromising the ability of the future generations to meet their own need. Therefore, sustainable development aims at sustaining the present level of resources and providing the present generation with a good quality life. Here the good quality of life refers to good standard living with all necessary and basic needs like safe drinking water, Hygienic environment, Clean air, etc.

The use ___________ instead of petrol, as fuel for vehicles, can significantly lower air pollution.

  1. LPG

  2. CNG

  3. diesel

  4. none of the above


Correct Option: B
Explanation:

CNG is a substitute of petrol which is an eco-friendly mode of fuel due to which air pollution can be lowered in few years. 

Identify the strategies for sustainable development from the following.

  1. Use of eco-friendly technologies

  2. Setting air-quality and emission standards

  3. Environment protection

  4. All of the above


Correct Option: D

Developed countries focused on economic development because they realised it to be a tool to avoid ____________.

  1. high economic growth

  2. sustainable growth

  3. cyclical fluctuations

  4. none of the above


Correct Option: C
Explanation:

Economic development refers to the development and growth of the economy in all terms which includes all aspects and has become a main and central theme of economic thought throughout the years. 

The developed economies deals with other under developed economies. Therefore, these developed countries demand development of all the poor countries so that these countries can achieve a higher prosperity. Moreover, these developed countries have understood that poverty anywhere in the world is a thread to prosperity everywhere.

 Therefore, the developed economies mainly focus on economic development to avoid cyclic fluctuation of their economy.

Economic development has become the central theme of economic thought in recent years.

  1. True

  2. False


Correct Option: A
Explanation:

Economic development refers to the development and growth of the economy in all terms which includes all aspects and has become a main and central theme of economic thought throughout the years.

Organic farming is the form of agriculture that uses ___________ as manure, and implements biological pest control.

  1. biocompose

  2. chemical fertilizer

  3. both A & B

  4. neither A nor B


Correct Option: A
Explanation:

Organic farming refers to the farming where biocomposite known as death matter is used as manure and implements of biological pest control in agriculture to reduce soil and land pollution.

The self-interest of the developed economies itself demands ___________ of the poor countries.

  1. exploitation

  2. development

  3. slow growth

  4. none of the above


Correct Option: B

Natural resources and quality of environment, i.e, quality of air, water, and land, are common heritage for all generations.

  1. True

  2. False


Correct Option: A

Developed nations have realised that __________ anywhere is a threat to prosperity everywhere.

  1. poverty

  2. prosperity

  3. unemployment

  4. none of the above


Correct Option: A
Explanation:

Economic development refers to the development and growth of the economy in all terms which includes all aspects and has become a main and central theme of economic thought throughout the years. The developed economies deal with other underdeveloped economies. Therefore, these developed countries demand development of all the poor countries so that these countries can achieve higher prosperity. Moreover, these developed countries have understood that poverty anywhere in the world is a threat to prosperity everywhere. 

Underdeveloped countries have undertaken policies for their economic development for which of the following purposes?

  1. Poverty eradication

  2. Achievement of economic power

  3. Global political standing

  4. All of the above


Correct Option: D

Efficient techniques should be used to make optimum use of resources so as to achieve sustainable development.

  1. True

  2. False


Correct Option: A

Economic growth stresses on _________ period of time, whereby the rise in per capita income must be sustained or prolonged.

  1. short

  2. long

  3. very short

  4. either A or C


Correct Option: B

An increase in national income does not represent improvement in the standard of living, since, if increase in ___________ surpasses the growth in national income, the per capita income will fall.

  1. employment level

  2. population

  3. income level

  4. number of industries


Correct Option: B

______________ is the process whereby the real per capita income of a country increases over a long period of time.

  1. Sustainable development

  2. Stable development

  3. Economic growth

  4. None of the above


Correct Option: C

Economic growth is an increase in the national income which is corrected for _____________, i.e, per capital income.

  1. population change

  2. employment level

  3. inflation

  4. poverty


Correct Option: A

The measure of economic growth is not limited to increase in the national income, rather it focuses on increase in ____________.

  1. per capita income

  2. employment level

  3. poverty

  4. both A & C


Correct Option: A
Explanation:

Economic growth refers to the process of using natural resources for the development of the economy in order to increase the per capita income of the economy. The growth mainly measures the per capita income rather than the overall income of the economy. 

___________ was one of the earliest writers on development economics.

  1. Simon Kuznets

  2. Adam Smith

  3. A.C. Pigou

  4. None of the above


Correct Option: A
Explanation:

Simon Kuznets was one of the earliest writers on the development of the economies where economic development refers to the development and growth of the economy in all terms which includes all aspects and has become a main and central theme of economic thought throughout the years. 

A mere increase in ____________ is not considered economic growth.

  1. per capita income

  2. GDP

  3. GNP

  4. both B & C


Correct Option: D

What does the concept of economic growth focus on?

  1. Rise in employment level.

  2. Increase in social wealth of the nation.

  3. Increase in per capita income.

  4. Increase in production output.


Correct Option: C

Economic growth is measured in terms of ____________ of the economy.

  1. employment aggregates

  2. national income aggregates

  3. both A & B

  4. none of the above


Correct Option: B
Explanation:

National Income refers to the income of the whole economy including all the sectors at a given point of time. It only estimates the income of all the sectors and does not say the exact figure as it is impossible to tell the exact income figure of an economy. Therefore, national income is only the imputed figure of the income of the economy. Economic growth of any nation is measured in national income aggregates of that nation.

Prior to __________, the traditional view of economic development prevailed, under which economic development was defined in terms of economic indicators.

  1. 1970s

  2. 1950s

  3. 1990s

  4. 1980s


Correct Option: A

Economic development is _____________ in nature.

  1. static

  2. multidimensional

  3. one-dimensional

  4. both A & C


Correct Option: B

'Redistribution with growth' is the slogan that defined economic development under the ___________ approach.

  1. traditional

  2. quantitative

  3. classical

  4. modern


Correct Option: D

Economic development, under __________ approach, implies a sustained increase in real per capita income.

  1. quantitative

  2. modern

  3. traditional

  4. qualitative


Correct Option: C

Increased efficiency of inputs due to technology advancements provide the basis for __________ economic growth.

  1. sustained

  2. volatile

  3. intermittent

  4. none of the above


Correct Option: A

Modern view of economic development presumed that the increase in per capita income would trickle down to the masses, thus, reducing income inequalities and poverty.

  1. True

  2. False


Correct Option: B

The experience of many developing countries showed that the 'trickle down strategy' of economic development did not work.

  1. True

  2. False


Correct Option: A

Which view of economic development presumed that the increase in per capita income would trickle down to the masses, thus, reducing income inequalities and poverty?

  1. Modern view

  2. Classical view

  3. Traditional view

  4. Keynesian view


Correct Option: C

Traditional approach strictly defines economic development in terms of ____________.

  1. sustainable development

  2. economic indicators

  3. economic efficiency

  4. none of the above


Correct Option: B

Economic growth involves quantitative changes in output along with qualitative changes in the form of ______________.

  1. decreased social discrimination

  2. decreased gender discrimination

  3. higher efficiency of inputs

  4. none of the above


Correct Option: C

Economic growth and economic development are both entirely quantitative concepts.

  1. True

  2. False


Correct Option: B

Economic development is a more ___________ term as compared to economic growth.

  1. narrow

  2. comprehensive

  3. inclusive

  4. none of the above


Correct Option: B
Explanation:
Economic development refers to the economic growth of the economy in all terms which includes all aspects and has become a main and central theme of economic thought throughout the years.
Economic growth refers to the process of using natural resources for the development of the economy in other to increase the per capita income of the economy.
Therefore, economic development is a broader as well as more comprehensive term as compared to economic growth. 

Economic development refers to ______________ accompanied by changes in the socio-economic structure of the economy.

  1. economic stability

  2. economic growth

  3. sustainable development

  4. all of the above


Correct Option: B
Explanation:

Economic development refers to the economic growth of the economy in all terms which includes all aspects and has become a main and central theme of economic thought throughout the years. 

Traditional approach to economic development gave a __________ definition of economic development.

  1. broad

  2. narrow

  3. either A or B

  4. none of the above


Correct Option: B

Economic development refers to economic growth accompanied by changes in the ____________ structure of the economy.

  1. social

  2. economic

  3. both A & B

  4. neither A nor B


Correct Option: C

Economic growth provides a broader outlook on economic changes as compared to economic development.

  1. True

  2. False


Correct Option: B
Explanation:

False. 

Economic development refers to the economic growth of the economy in all terms which includes all aspects and has become a main and central theme of economic thought throughout the years.
Economic growth refers to the process of using natural resources for the development of the economy in order to increase the per capita income of the economy. 

_______________, under the modern approach, is interpreted as the increase in real per capita income accompanied with reduction in poverty, inequality and unemployment.

  1. Sustainable development

  2. Economic growth

  3. Growth with stability

  4. Economic development


Correct Option: D

The new approach to economic development states that, economic development is not only increase in real per capita income, but also reduction in _____________.

  1. poverty

  2. income inequality

  3. unemployment

  4. all of the above


Correct Option: D

Economic growth requires higher degree of government intervention as compared to economic development.

  1. True

  2. False


Correct Option: B
Explanation:

False. 

Economic growth refers to the process of using natural resources for the development of the economy in other to increase the per capita income of the economy. The growth mainly measures the per capita income rather than overall income of the economy.

Economic development refers to the economic growth of the economy in all terms which includes all aspects and has become a main and central theme of economic thought throughout the years. It includes reduction in poverty, income inequality as well as unemployment.  

Therefore, economic development requires a high degree of government intervention. 

Modern approach to economic development gave a __________ definition of economic development.

  1. broad

  2. narrow

  3. either A or B

  4. none of the above


Correct Option: A

Economic growth is an entirely __________ concept, while economic development deals with both qualitatively and quantitative aspects of the economy.

  1. quantitative

  2. qualitative

  3. theoretical

  4. both B & C


Correct Option: A
Explanation:

Economic growth refers to a quantitative process of using natural resources for the development of the economy in other to increase the per capita income of the economy. The growth mainly measures the per capita income rather than overall income of the economy.

Economic development refers to the economic growth of the economy in both quantitative as well as qualitative terms which includes all aspects and has become a main and central theme of economic thought throughout the years. It includes reduction in poverty, income inequality as well as unemployment.  
Therefore, economic development is a broader as well as more comprehensive term as compared to economic growth.

Economic growth is fully measurable because it is measured using qualitative indicators.

  1. True

  2. False


Correct Option: B

Economic development relates to the problems faced by the present day's __________ countries.

  1. rich

  2. developed

  3. developing

  4. underdeveloped


Correct Option: C

Which among the following is a limitation of per capita income?

  1. Neglects composition of national output.

  2. Ignores distribution of income.

  3. Social costs are not accounted for.

  4. All of the above


Correct Option: D

Economic growth relates to the problems faced by __________ countries.

  1. poor

  2. developed

  3. developing

  4. underdeveloped


Correct Option: B

Per capita income fails to measure development in various aspects such as the ___________ dimensions of the country.

  1. social

  2. human

  3. institutional

  4. all of the above


Correct Option: D

Economic development is not fully measurable because it is measured based on both quantitative as well as qualitative variables.

  1. True

  2. False


Correct Option: A
Explanation:

True. 

Economic development refers to the economic growth of the economy in both quantitative as well as qualitative terms which includes all aspects and has become a main and central theme of economic thought throughout the years. It includes reduction in poverty, income inequality as well as unemployment.  

_____________ is the measure of output per head of population.

  1. Head-count ratio

  2. Per capita income (PCI)

  3. GNP

  4. Human development index (HDI)


Correct Option: B

Real per capita income is a partial index of economic development and economic welfare.

  1. True

  2. False


Correct Option: A

India's per capita Income is _______.

  1. 220 dollars

  2. 1670 dollars

  3. 2930 dollars

  4. 600 dollars


Correct Option: B
Explanation:

Per capita income is an important criterion used to measure the development of countries. It is also known as average income. It is calculated to know what an average purpose is likely to earn. 

On the basis of per capita income, the countries are classified as rich and low-income countries. This is calculated in dollars for all countries so that the comparison can be made. 

In this context, India’s per capita income is 1670 dollars.

Thus, the correct answer is B.

The main problem of Indian economy is ________.

  1. population growth

  2. rampant corruption

  3. acute shortage of water

  4. inflation


Correct Option: A

Drought prone Area Programe was launched in ________.

  1. $1970-71$

  2. $1973-74$

  3. $1980-81$

  4. $1991-92$


Correct Option: B
Explanation:

Drought prone Area Program was launched in 1973-74. This program is launched by the Central Government of India. This program is launched with the objective of tackling hardships faced by the people living in drought-prone areas.

Name the Indian body/company that signed an agreement with China Tea Marketing Association to work jointly towards sustainable development of the tea sector_______.

  1. Godrej Tea

  2. Gujarat Tea Processors & Packers Ltd

  3. Tata Tea Limited

  4. United Planters' Association of Southern India


Correct Option: D
Explanation:

United Planters' Association of Southern India is an Indian body/company that signed an agreement with China Tea Marketing Association to work jointly towards sustainable development of the tea sector. This organization is the apex body of planters in South India.The Association’s operations cover economic research, market intelligence, industrial relations, liaison, public relations, scientific research and publication.

Which of these is an indicator of economic growth?

  1. Sensex

  2. Hardening of currency

  3. GDP growth

  4. Population growth


Correct Option: C
Explanation:

GDP growth is an indicator of economic growth. GDP growth can be defined as the net increase in the market value of all goods and services produced in an economy. GDP growth helps to analyze the economic growth and economic development of a nation.

Per Capita income is obtained by dividing National Income by _________________.

  1. Total population of the country

  2. Total working population

  3. Area of the country

  4. Volume of the capital used


Correct Option: A
Explanation:

Per capita income is obtained by dividing national income by total population of the country per capita income by total population of the country. Per capita income, also known as income per person, is the mean income of the people in a country. 

It is calculated by taking a measure of all sources of income in the aggregate (such as GDP or Gross national income) and dividing it by the total population.

Choose the correct answers from the alternatives given.
Which Five Year Plan is not correct among the following?

  1. First 1951-56

  2. Second 1956-61

  3. Third 1961-66

  4. Fourth 1966-71


Correct Option: D
Explanation:

Despite big investments during the first three Plans, the Living standards of the poor could not be raised and poverty and inequity in distribution of state resources remained stark. Consequently, the period between 1966 and 1969 marked the shift from a 'growth approach' to a 'distribution from growth approach'. Looking at the failures and pitfalls the planners suspended the impending Fourth Plan, which was due in 1966, until 1969 for a revision of objectives and targets. This came to be called as the 'Plan Holiday' extending from 1 April 1966 to 31 March 1969.

Identify the problems related with the use of per capita income index to compare the standard of living, economic growth and welfare between different countries.

  1. Problem of expression of national income of different countries in one currency.

  2. Different concepts of national income measurement are used in different countries.

  3. Difficulty in measuring standard of living of different countries due to differing price levels.

  4. All of the above


Correct Option: D

Indian Economy is a __________.

  1. capitalist economy

  2. socialist economy

  3. mixed economy

  4. not an economy at all


Correct Option: C
Explanation:

Indian economy is a mixed economy.  A mixed economy can be defined as a market system which entails features from both the capitalist economy as well as socialist economy. Decisions in a mixed economy are jointly taken by both the private as well as public sector.

The ____________ in December 2011 has taken steps to reduce greenhouse gas emissions and set up a Green Climate Fund for this purpose.

  1. Durban Meet

  2. Climate Change Convention

  3. Rio Convention

  4. Paris Agreement


Correct Option: A
Explanation:

In the field of climate finance, green climate fund has been set up to provide fund for a healthy climate for the people. For this purpose, the Durban Meet in December 2011 was set up. 

The Earth Summit was held in __________ in June, 1992.

  1. Paris, France

  2. Washington, US

  3. Stockholm, Sweden

  4. Rio, Brazil


Correct Option: D

Economic growth in country X will necessarily have to occur if ___________________.

  1. there is a technical progress in the world economy

  2. there is population growth in X

  3. there is a capital formation in X

  4. the volume of trade grows in the world economy


Correct Option: C
Explanation:

Capital formation (investment) brings additional income/production in the economy which enhances growth. Other of the given choices do not lead to 'necessay' growth.

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