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Economic Impact of Urbanization on India: Theoretical Perspectives

Description: This quiz is designed to assess your understanding of the theoretical perspectives on the economic impact of urbanization in India.
Number of Questions: 15
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Tags: indian economics economic impact of urbanization theoretical perspectives
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Which of the following is NOT a positive economic impact of urbanization?

  1. Increased productivity

  2. Improved infrastructure

  3. Reduced poverty

  4. Increased environmental pollution


Correct Option: D
Explanation:

Increased environmental pollution is a negative economic impact of urbanization, as it can lead to health problems and other negative externalities.

According to the 'new economic geography' theory, what is the main driver of urbanization?

  1. Agglomeration economies

  2. Transportation costs

  3. Government policies

  4. Natural resources


Correct Option: A
Explanation:

According to the 'new economic geography' theory, agglomeration economies, which are the benefits that firms derive from being located near other firms, are the main driver of urbanization.

What is the main argument of the 'urban primacy' theory?

  1. Primate cities are more productive than other cities.

  2. Primate cities are more likely to experience economic growth.

  3. Primate cities are more likely to be politically stable.

  4. Primate cities are more likely to have a diverse economy.


Correct Option: A
Explanation:

The main argument of the 'urban primacy' theory is that primate cities, which are the largest cities in a country, are more productive than other cities due to their concentration of economic activity and resources.

Which of the following is NOT a negative economic impact of urbanization?

  1. Increased income inequality

  2. Increased traffic congestion

  3. Improved public transportation

  4. Increased crime


Correct Option: C
Explanation:

Improved public transportation is a positive economic impact of urbanization, as it can reduce traffic congestion and improve air quality.

According to the 'dual economy' theory, what is the relationship between the urban and rural sectors?

  1. The urban sector is more productive than the rural sector.

  2. The rural sector is more productive than the urban sector.

  3. The urban and rural sectors are equally productive.

  4. The relationship between the urban and rural sectors is complex and varies depending on the country.


Correct Option: A
Explanation:

According to the 'dual economy' theory, the urban sector is more productive than the rural sector due to its concentration of capital, labor, and technology.

What is the main argument of the 'informal sector' theory?

  1. The informal sector is a major source of employment in developing countries.

  2. The informal sector is a source of innovation and entrepreneurship.

  3. The informal sector is a drain on the economy.

  4. The informal sector is a source of social instability.


Correct Option: A
Explanation:

The main argument of the 'informal sector' theory is that the informal sector, which consists of businesses that operate outside of the formal economy, is a major source of employment in developing countries.

Which of the following is NOT a policy that can be used to address the negative economic impacts of urbanization?

  1. Investing in infrastructure

  2. Providing social safety nets

  3. Promoting rural development

  4. Restricting urban growth


Correct Option: D
Explanation:

Restricting urban growth is not a policy that can be used to address the negative economic impacts of urbanization, as it can lead to a number of problems, such as increased housing costs and traffic congestion.

What is the main argument of the 'urbanization economies' theory?

  1. Urbanization leads to increased productivity.

  2. Urbanization leads to improved infrastructure.

  3. Urbanization leads to reduced poverty.

  4. Urbanization leads to increased environmental pollution.


Correct Option: A
Explanation:

The main argument of the 'urbanization economies' theory is that urbanization leads to increased productivity due to the concentration of economic activity and resources in urban areas.

Which of the following is NOT a factor that can contribute to the economic growth of a city?

  1. A large and skilled labor force

  2. A well-developed infrastructure

  3. A favorable business environment

  4. A large number of natural resources


Correct Option: D
Explanation:

A large number of natural resources is not a factor that can contribute to the economic growth of a city, as it is not a source of sustainable economic development.

What is the main argument of the 'urbanization and poverty' theory?

  1. Urbanization leads to increased poverty.

  2. Urbanization leads to reduced poverty.

  3. Urbanization has no impact on poverty.

  4. The relationship between urbanization and poverty is complex and varies depending on the country.


Correct Option: B
Explanation:

The main argument of the 'urbanization and poverty' theory is that urbanization leads to reduced poverty due to the increased opportunities for employment and income generation in urban areas.

Which of the following is NOT a challenge that cities in India face?

  1. Air pollution

  2. Water pollution

  3. Traffic congestion

  4. Rural-urban migration


Correct Option: D
Explanation:

Rural-urban migration is not a challenge that cities in India face, as it is a natural process that occurs as people move from rural areas to urban areas in search of better economic opportunities.

What is the main argument of the 'urbanization and health' theory?

  1. Urbanization leads to improved health.

  2. Urbanization leads to worse health.

  3. Urbanization has no impact on health.

  4. The relationship between urbanization and health is complex and varies depending on the country.


Correct Option: A
Explanation:

The main argument of the 'urbanization and health' theory is that urbanization leads to improved health due to the increased access to healthcare, education, and other social services in urban areas.

Which of the following is NOT a policy that can be used to promote sustainable urbanization?

  1. Investing in public transportation

  2. Promoting mixed-use development

  3. Encouraging urban sprawl

  4. Protecting green spaces


Correct Option: C
Explanation:

Encouraging urban sprawl is not a policy that can be used to promote sustainable urbanization, as it can lead to a number of problems, such as increased traffic congestion, air pollution, and environmental degradation.

What is the main argument of the 'urbanization and crime' theory?

  1. Urbanization leads to increased crime.

  2. Urbanization leads to reduced crime.

  3. Urbanization has no impact on crime.

  4. The relationship between urbanization and crime is complex and varies depending on the country.


Correct Option: A
Explanation:

The main argument of the 'urbanization and crime' theory is that urbanization leads to increased crime due to the concentration of people and economic activity in urban areas, which can create opportunities for crime.

Which of the following is NOT a benefit of urbanization?

  1. Increased productivity

  2. Improved infrastructure

  3. Reduced poverty

  4. Increased social isolation


Correct Option: D
Explanation:

Increased social isolation is not a benefit of urbanization, as it can lead to a number of problems, such as mental health issues and social unrest.

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