Economics
Macroeconomic Growth Factors
3,415 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
Infrastructure is important because ______________________.
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Infrastructure contributes to economic development of a country
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modern agriculture largely depends on it
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efficient working of a modern industrial economy depends on it
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all of these
D
Correct answer
Explanation
Infrastructure plays a direct role in state's development and economical growth. Agriculture is highly dependent on infrastructure. It contains basic essential elements like airport, railways, roads, dams, hospitals, etc.
Hence, infrastructure is very important source of developing a nation.
Therefore, D is the correct option.
Which of the following factor is not directly responsible for slowing down the growth of infrastructure ?
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High level of perceived political risk
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High level of sunk cost
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High probability of time and cost over-run
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Introduction of competition in all sectors
D
Correct answer
Explanation
Competition generally encourages efficiency and growth in infrastructure sectors, whereas risks, sunk costs, and delays are factors that hinder growth.
How does infrastructure contribute to economic development of a country?
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Increasing the productivity of the factors of production
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Improving the quality of life of its people
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Both A and B
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None of these
C
Correct answer
Explanation
The life of people is highly modernized if the infrastructure is well maintained. The productivity will automatically rise because of perfect labour.
Infrastructure plays a direct role in state's development and economical growth. Agriculture is highly dependent on infrastructure.
It contains basic essential elements like airport, railways, roads, dams, hospitals, etc.
Hence, infrastructure is very important source of developing a nation.
Therefore, C is the correct option.
Which statement is false?
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Development of infrastructure and economic development go hand in hand
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Agriculture depends on the adequate expansion and development of irrigation facilities
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Industrial progress depends on the development of power and electricity generation, transport and communications
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None of these
D
Correct answer
Explanation
Infrastructure plays a significant role in the development of country's growth. It contains basic requirements of the state. It includes airport, sewage, roads and various other basic and essential elements. The Government of India is required to put exceptionally in the foundation part, primarily expressways, sustainable power source and urban vehicle. The Government of India is taking each conceivable activity to help the framework division.
Hence, D is the correct option.
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situation where a business grows and expands
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system where employees responsible for workplace operations
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summary of potential for a business idea’s to be successful
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system to determine what/how to produce who will receive it.
D
Correct answer
Explanation
An economy is defined as the system by which a society produces, distributes, and consumes goods and services.
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Employment and taxation revenue
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Economic growth
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Research and development
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Quality of life
D
Correct answer
Explanation
While businesses influence the quality of life, 'Quality of Life' is generally considered an outcome or a measure of societal health, rather than a direct economic contribution mechanism like taxation, growth, or R&D.
Marketing can play a significant role in economic development.
A
Correct answer
Explanation
Marketing is an economy's arbiter between productive capacity and consumer demand. In addition, marketing process is a critical element in the effective utilization of the production resulting from economic growth, and balance between higher production and higher consumption.
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Expand the international trade
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Expand the domestic trade
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Expand profits
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Expand productivity
A
Correct answer
Explanation
The development of railways and lorries significantly reduced transport costs and time, allowing goods to be moved over greater distances and thus facilitating the expansion of international trade.
Economic development would be meaningless unless the growth ultimately reaches the ___________.
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rich strata of the society
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masses
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business firms
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government
B
Correct answer
Explanation
Economic development is considered inclusive only when the benefits of growth reach the masses, particularly the most vulnerable sections of society, rather than being concentrated at the top.
What is the term used to describe the process by which education contributes to economic growth?
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Human capital formation
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Skill development
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Knowledge transfer
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Technology adoption
A
Correct answer
Explanation
Human capital formation is the process by which education and training improve the skills and knowledge of the workforce, leading to increased productivity and economic growth.
Which of the following is NOT a type of education that is particularly important for economic development?
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Primary education
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Secondary education
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Tertiary education
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Vocational education
C
Correct answer
Explanation
While tertiary education is important for economic development, it is not as essential as primary, secondary, and vocational education. Primary and secondary education provide the foundation for further learning and skill development, while vocational education provides specific skills that are directly relevant to the labor market.
What is the term used to describe the relationship between education and economic growth?
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The human capital model
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The endogenous growth model
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The Solow growth model
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The Cobb-Douglas production function
A
Correct answer
Explanation
The human capital model is an economic model that explains the relationship between education and economic growth. It argues that education increases the productivity of workers, which leads to higher output and economic growth.
What is the term used to describe the process by which education contributes to economic growth?
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Human capital formation
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Skill development
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Knowledge transfer
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Technology adoption
A
Correct answer
Explanation
Human capital formation is the process by which education and training improve the skills and knowledge of the workforce, leading to increased productivity and economic growth.
Which of the following is NOT a type of education that is particularly important for economic development?
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Primary education
-
Secondary education
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Tertiary education
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Vocational education
C
Correct answer
Explanation
While tertiary education is important for economic development, it is not as essential as primary, secondary, and vocational education. Primary and secondary education provide the foundation for further learning and skill development, while vocational education provides specific skills that are directly relevant to the labor market.