Economic Growth, Development, Inclusive GK MCQs With Answer & Explanation in English explores key concepts of economic progress, sustainable development, and inclusivity in policymaking. This comprehensive collection of multiple-choice questions is designed to enhance your understanding of economic theories, growth patterns, and inclusive development strategies.
Each question is paired with detailed answers and explanations, providing valuable insights for competitive exams and academic learning. Dive into this informative guide to strengthen your knowledge of economic fundamentals and their application in real-world scenarios.
1. A person is counted as literate for the purpose of Census in India if he/she is___:
- Above 5 years of age and can read in any language
- Above 7 years of age and can read as well as write in any language
- Above 7 years of age and can read in any language
- Above 6 years of age and can write in mother tongue
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Answer: Above 7 years of age and can read as well as write in any language
For the purpose of the census in 2011, a person aged seven and above, who can both read and write with understanding in any language, is treated as literate. This definition helps identify and classify individuals who possess the ability to read and write, which is an important aspect of literacy.
2. Which of the following is the most suitable measure of economic development of the country?
- Net Domestic Product
- Gross Domestic Product
- Per Capita Income
- Net National Product
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Answer: Per Capita Income
Per capita income is considered a better indicator of economic growth as it measures the average income earned per capita in a country in a specified year. It provides a useful measure of the economic well-being of the population, indicating the average income available to each individual.
3. What is the best indicator of economic development of any country?
- Per capita income
- Per person expense
- Calorie consumption
- Women empowerment
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Answer: Per capita income
Per capita income is considered as a better indicator of economic growth since it measures the average income earned per person in a country in a specified year.
4. What is economic development usually associated with?
- Deflation
- Inflation
- Stagflation
- Hyperinflation
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Answer: Inflation
Economic growth is usually associated with inflation, as an increase in the money supply in the market can lead to increased purchasing power of consumers, creating higher demand for goods and services. This increased demand can, in turn, lead to price increases (inflation) if the economy does not produce enough to meet this demand.
5. Starting from the financial year 2017-18, NITI Aayog has planned to replace the following 5-year plans?
- 5-year Vision Document
- 10-year Vision Document
- 15-year Vision Document
- 20-year Vision Document
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Answer: 15-year Vision Document
Starting from the financial year 2017-18, NITI Aayog planned to replace the 5-year plans with a 15-year Vision Document in sync with global trends and economic growth. This change reflects a shift in India’s planning approach to align with long-term development goals and adapt to evolving economic dynamics.
6. What is the best way to measure the economic growth of a country?
- Per capita income at constant prices
- Per capita income at current prices
- Gross domestic product
- Gross national product at current prices
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Answer: Gross domestic product
GDP is the best method to measure any country’s economic growth.
7. An increase in per capita income would indicate a better welfare if it coincides with which of the following?
- Unchanged income distribution overall
- Changed income distribution in favor of the rich
- Changed income distribution in favor of the poor
- Changed income distribution in favor of Industrial Labour
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Answer: Changed income distribution in favor of the poor
Per capita income has been viewed as a better determinant of economic development and welfare, but high inequality can diminish economic growth. Therefore, a more rational distribution of income in favor of the poor ensures holistic welfare and leaves no quarter deprived. This highlights the importance of income distribution and reducing income inequality in promoting overall economic development and well-being.
8. What is meant by the ‘take-off stage’ in an economy?
- Steady growth begins
- Economy is stagnant
- Economy is about to collapse
- All controls are removed
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Answer: Steady growth begins
Rostow’s ‘Stages of Economic Growth’ presented five stages through which all countries must pass in order to develop. The take-off stage is a short period of intensive growth in which industrialization begins to occur, and workers and institutions become centered around a new industry. Rostow’s model outlines the stages of economic development and the transitions economies go through.
9. Which one best indicates the economic development of the country?
- Agriculture income
- Per capita income
- Gross industrial production
- Inflation
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Answer: Per capita income
Per capita income is considered a better indicator of economic growth since it measures the average income earned per person in a country in a specified year. It reflects a country’s living standards and income distribution, making it a valuable metric for assessing economic well-being.
10. What does the regional distribution of GDP index measure?
- Agriculture development of a country
- Economic development of a country
- Social development of a country
- Socio-Economic development of a country
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Answer: Economic development of a country
The regional distribution of GDP index measures the economic development of a country across different regions and economic activities. It assesses the disparities in economic growth and wealth among regions, helping to understand the distribution of economic resources and opportunities within a country.
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