Tag: economics of development and planning

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Questions Related to economics of development and planning

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

Quantitative Methods aim at influencing _______________________.

  1. The end-use of credit in specific areas

  2. The total volume of credit in the banking system

  3. Both (a) and (b)

  4. Neither (a) nor (b)
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Quantitative Methods aim at influencing the total volume of credit in the banking system.Quantitative measures to control credit are also known as general measures. Quantitative instruments of control credit are those instruments which focus on overall supply of money in the economy. These measures are used in a manner such that overall supply of money in the economy is reduced during inflation and increased during deflation.

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

Our economy is characterized by __________.

  1. unlimited wants and needs

  2. unlimited material resources

  3. no energy resources

  4. abundant productive labour
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
Our economy is characterized by unlimited wants and needs.Every economy in the world is characterized by needs and wants which are unlimited as it is a very well known fact that human needs are never ending.
Economics deals with the management of this scarce resources to its alternative uses in order to gain maximum satisfaction and profit.
Multiple choice organisation of commerce and management economics of development and planning fundamental of economic development economics of development economic mechanism

____is the top traffic handler in coastal & overseas shipping.

  1. Kochi

  2. Kandla

  3. Thiruvanandpuram

  4. Vishakhapatnam
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Kandla, also known as the Kandla Port Trust or Deendayal Port is a seaport in Kutch District of Gujarat state in western India, near the city of Gandhidham. Located on the Gulf of Kutch, it is one of major ports on west coast as it is one of the top traffic handler off all the merchandise that is imported and exported to the west countries. 

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

Who first raised the fears of a world food shortage?

  1. David Ricardo

  2. T.R. Malthus

  3. J.S. Mill

  4. J.B. Say
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Thomas Robert Malthus was an English cleric and scholar, influential in the fields of political economy and demography who for the first time proposed the condition of food shortage on the grounds of scarce resources and unlimited wants after studying the world demographics. 

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

Of the major $12$ ports, _________ has been the top traffic handler for last five years.

  1. Paradip

  2. Cochin

  3. Kandla

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

Kandla, also known as the Kandla Port Trust or Deendayal Port is a seaport in the Kutch district of Gujarat state in western India, near the city of Gandhidham. Located on the Gulf of Kutch, it is one of the major ports on the west coast as it is one of the top traffic handlers of all the merchandise that is imported and exported to the western countries.

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

The economic reforms have failed to ______________.

  1. keep fiscal deficits to the targeted levels

  2. fully implement industrial deregulation

  3. fully open the economy to trade

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

The economic reforms have failed to keep fiscal deficits to the targeted levels, fully implement industrial deregulation and fully open the economy to trade.

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

Which one of the following is NOT a feature of developing economy?

  1. High rate of unemployment.

  2. High rate of population growth.

  3. High rate of capital formation.

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

The capital formations really signify a very significant part of economic development. This earnings manufacture and growth of more capital goods, such as machines, tools, factories, buildings, raw materials, fuels, etc., which are to be additionally used in producing more goods. 

Resources creation does not mean enlarge in money capital, but it actually refers to increase in physical capital, i.e., machinery, factories, transport equipment, bridges, power projects, dams, irrigation systems, etc. 

To sum up, capital formation implies the making of real assets. Low per capita real profits is one of the most defining qualities of developing economies. 

The correct answer is C.

Multiple choice organisation of commerce and management economics of development and planning fundamental of economic development economics of development economic mechanism
Who controls economic activities under centrally planned economies?

  1. Industrialists

  2. Private firms

  3. Government 

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

The government controls economic activities under centrally planned economies A centrally planned economy, also known as a command economy, is an economic system in which a central authority, such as a government, makes economic decisions regarding the manufacturing and the distribution of products. Centrally planned economies are different from market economies in which such decisions are traditionally made by businesses and consumers.

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

In which of the following cases does output double with the doubling of all inputs?

  1. Constant Returns to Scale

  2. Decreasing Returns to Scale

  3. Increasing Returns to Scale

  4. Increasing as well as decreasing returns to Scale
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

In economic terms, constant returns to scale is when a firm changes its inputs with the results being exactly the same change in outputs (production). In other words, if a firm increases its inputs they will see a proportional increase in production (or outputs). 

The similar can be true if a firm decreases its inputs and that results in a proportional decrease in outputs. Constant returns to scale take place when increasing the number of inputs leads to an equivalent increase in the output.

Thus, the correct option is A.

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

If one unit of labour and one unit of capital give 200 units of output, two units of labour and two units of capital give 400 units of output and 5 units of labour and five units of capital give 1000 units of output then this is a case of _____________________.

  1. Constant Returns to Scale.

  2. Increasing Returns to Scale.

  3. Decreasing Returns to Scale.

  4. All of these.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

If one unit of labour and one unit of capital give 200 units of output, two units of labour and two units of capital give 400 units of output and 5 units of labour and five units of capital give 1000 units of output then this is a case of Constant Returns to Scale.Constant Returns to Scale can be defined as a situation when an increase in inputs cause proportional increase in output.