Q. In Joan Robinson’s growth model, capital accumulation depends on
✅ Correct Answer: (B)
profit-wage relation and labour productivity
Growth and Development MCQs and Notes
Q. In Domar’s Model National Income (output) is determined by investment through the
✅ Correct Answer: (B)
multiplier
Q. Harrod argues that in an economy with constant capital-labour ratio, the ------------ can never be more than the natural rate of growth of output.
✅ Correct Answer: (B)
actual rate of growth of output
Q. Harrod explained the peaks and troughs of the business cycles through the use of
✅ Correct Answer: (D)
natural rate of growth of output
Q. The instability of equilibrium in the Harrod model was used by him to explain the business cycles above and below the trend path of --------
✅ Correct Answer: (A)
warranted (required) rate of growth
Q. The rate of growth of output which is required to fully employ the entire growing labour force is the
✅ Correct Answer: (D)
natural rate of growth
Q. Harrod’s definition of rate of growth of an economy do not include
✅ Correct Answer: (C)
sustainable rate of growth
Q. How does Sen define poverty?
✅ Correct Answer: (B)
the deprivation of basic capabilities for an individual
Q. Sen’s welfare theory relies on
✅ Correct Answer: (A)
individuals’ accomplishments.
Q. Rate of growth of an economy is measured in terms of:
✅ Correct Answer: (D)
national income