MCQS on Economic Planning and Development

Question 1

Economic development differs from economic growth because development includes:

Accepted Answer

Structural, institutional, and qualitative changes

Answer

Increase in GDP only

Answer

Increase in per capita income only

Answer

Increase in industrial output

Question 2

The 'Trickle-Down' theory in economic development implies that:

Accepted Answer

Benefits of economic growth will automatically reach the poorest sections of society

Answer

Wealth must be forcibly redistributed by the state

Answer

Only the poor should pay taxes

Answer

Economic growth hurts the lower classes

Question 3

Which index is widely used to measure human development?

Accepted Answer

Human Development Index (HDI)

Answer

Gross Domestic Product (GDP)

Answer

Consumer Price Index (CPI)

Answer

Wholesale Price Index (WPI)

Question 4

Sustainable development primarily focuses on:

Accepted Answer

Meeting the needs of the present without compromising the ability of future generations to meet their own needs

Answer

Maximizing current economic growth regardless of resource depletion

Answer

Stopping all industrial production

Answer

Focusing solely on environmental protection without economic considerations

Question 5

The concept of 'Inclusive Growth' means:

Accepted Answer

Economic growth that creates opportunities for all segments of the population and distributes dividends fairly

Answer

Growth limited to urban areas

Answer

Growth that primarily benefits the wealthy

Answer

Growth led exclusively by the public sector

Question 6

What does the 'Lorenz Curve' graphically represent?

Accepted Answer

Income or wealth inequality

Answer

Inflation vs Unemployment

Answer

Supply and demand of a commodity

Answer

Tax rates vs Tax revenue

Question 7

Which sector usually absorbs the most labor in the early stages of economic development?

Accepted Answer

Primary (Agriculture)

Answer

Secondary (Manufacturing)

Answer

Tertiary (Services)

Answer

Quaternary (Knowledge)

Question 8

A 'Mixed Economy' refers to an economic system where:

Accepted Answer

Both private and public sectors coexist and operate

Answer

Only private enterprises exist

Answer

Only public (state-owned) enterprises exist

Answer

There is no trade with foreign countries

Question 9

The 'Mahalanobis Model' of economic planning heavily emphasized:

Accepted Answer

Heavy and basic industries

Answer

Agriculture and rural development

Answer

Small scale industries

Answer

Information Technology

Question 10

Capital formation in an economy directly depends on:

Accepted Answer

Level of savings and investment

Answer

Total population

Answer

Amount of currency printed

Answer

Number of banks