Economics

Macroeconomic Growth Factors

3,187 Questions

Macroeconomic growth factors include infrastructure, digital economy, inclusive growth, and agricultural productivity. These concepts are vital for economics and general studies papers. Review these questions to understand economic development drivers.

Inclusive growthDigital economyInfrastructure developmentStructural transformationAgricultural productivity

Macroeconomic Growth Factors Questions

Multiple choice geography economic growth and development development and growth need for sustainable development economics of development

Economic growth and economic development are both entirely quantitative concepts.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Economic growth is a quantitative concept (increase in output), whereas economic development is a broader, multidimensional concept that includes qualitative changes in the standard of living and social structures.

Multiple choice geography economic growth and development development and growth need for sustainable development economics of development

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

  1. narrow

  2. comprehensive

  3. inclusive

  4. none of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
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. 
Multiple choice geography economic growth and development development and growth need for sustainable development economics of development

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
Reveal answer Fill a bubble to check yourself
B Correct answer
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. 

Multiple choice geography economic growth and development development and growth need for sustainable development economics of development

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
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Because the traditional approach focuses almost exclusively on income growth, it is considered a narrow definition compared to the modern approach, which includes social and human development factors.

Multiple choice geography economic growth and development development and growth need for sustainable development economics of development

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
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Economic development involves structural changes in both the economic system (e.g., shift from agriculture to industry) and the social system (e.g., education, health, and institutional reforms).

Multiple choice geography economic growth and development development and growth need for sustainable development economics of development

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

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
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. 

Multiple choice geography economic growth and development development and growth need for sustainable development economics of development

_______________, 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
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The modern approach defines economic development as a process that improves the quality of life, which includes rising income alongside reductions in poverty, inequality, and unemployment.

Multiple choice geography economic growth and development development and growth need for sustainable development economics of development

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
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The new or modern approach to economic development emphasizes that growth is insufficient on its own; it must be accompanied by improvements in social welfare, specifically the reduction of poverty, inequality, and unemployment.

Multiple choice geography economic growth and development development and growth need for sustainable development economics of development

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

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
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. 

Multiple choice geography economic growth and development development and growth need for sustainable development economics of development

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
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The modern approach is considered a broad definition because it incorporates multiple dimensions of human well-being, including social, political, and economic factors, rather than just income growth.

Multiple choice geography economic growth and development development and growth need for sustainable development economics of development

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
Reveal answer Fill a bubble to check yourself
A Correct answer
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.
Multiple choice geography economic growth and development development and growth need for sustainable development economics of development

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

  1. rich

  2. developed

  3. developing

  4. underdeveloped
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Economic development is a term primarily used to describe the process of transformation and improvement in developing countries, which face challenges like poverty and low industrialization.

Multiple choice economics economic growth and development development and growth need for sustainable development economics of development

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
Reveal answer Fill a bubble to check yourself
C Correct answer
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.

Multiple choice organisation of commerce and management economics of development and planning fundamental of economic development economics of development economic mechanism

A successful inclusive growth strategy includes which among the following?

  1. Equal opportunities

  2. Financial inclusion

  3. Increasing government spending

  4. All the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
Inclusive growth is a theory that moves forward equitable opportunities for the financial participant during economic growth with benefits incurred by every section of civilization. Sustainable economic growth requires inclusive growth. 
Sometimes, it becomes difficult to maintain this because, economic growth may give rise to negative externalities, such as a rise in corruption, which is a major problem in developing countries especially on equal opportunity in terms of access to markets, resources, and an impartial regulatory environment is an essential ingredient of successful growth. 
The inclusive growth moves towards takes a longer-term point of view, as the focus is on productive service as a means of growing the incomes of poor and excluded groups and raising their standards of living.
Thus, the correct option is D.

Multiple choice organisation of commerce and management economics of development and planning fundamental of economic development economics of development economic mechanism

Which of the following are elements of inclusive growth?

  1. Poverty reduction

  2. Social sector development

  3. Protecting environment

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

There are five interrelated elements of inclusive growth. They are mentioned as below:

  1. Poverty Reduction and increase in quantity and quality of employment
  2. Agricultural Development
  3. Social Sector Development
  4. Reduction in regional disparities
  5. Protecting the environment