Q. The vicious circle theory states that __________ .
✅ Correct Answer: (D)
Low per capita income creates low savings that keep incomes low.
Economics of Development MCQs and Notes
Q. According to Lewis’s model, the dual economy grows only when __________ .
✅ Correct Answer: (A)
The modern sector increases its output share relative to the traditional sector.
Q. The basic characteristic of an underdeveloped economy is__________ .
✅ Correct Answer: (A)
Low income and poverty
Q. Economic growth measures the?
✅ Correct Answer: (C)
Increase in output
Q. How much population is living below poverty line in India ?
✅ Correct Answer: (C)
Approx 26%
Q. Gunnar Myrdal was awarded Noble Prize for Economics in 1974. What is his nationality?
✅ Correct Answer: (C)
Swedish
Q. Identify the economist who first advocated a rolling plan for developing countries?
✅ Correct Answer: (C)
G. Myrdal
Q. Development with unlimited supplies of labour hypothesis was originally formulated by __________.
✅ Correct Answer: (B)
W. A. Lewis
Q. Who has given "Big Push Theory"?
✅ Correct Answer: (A)
R. Rodan
Q. The 'big-push' strategy of development was first advocated by:
✅ Correct Answer: (A)
Paul N-Rosenstein-Rodan