Q.411. The supply of labour in the market depends on
(a) the proportion of the population in the labour force
(b) the number of person hours put in by each person
(c) the size of population
(d) All the above
Ans: (D)
Notes: Supply of labour in an economy depends upon both economic as well as non-economic factors. It depends upon the size of population, the number of workers available for work out of a given population, the number of hours worked, the intensity of work, the skills of workers, their willingness to work and the mobility of labour.
Part–III : Growth & Development
Q.412. The first computer made available for commercial use was :
(a) MANIAC
(b) ENIAC
(c) UNIVAC
(d) EDSAC
Ans: (C)
Notes: The UNIVAC computer was the first commercially available computer invented by John Presper Eckert and John Mauchly. As well as being the first American commercial computer, the UNIVAC I was the first American computer designed at the outset for business and administrative use (i.e., for the fast execution of large numbers of relatively simple arithmetic and data transport operations, as opposed to the complex numerical calculations required by scientific computers). As such the UNIVAC competed directly against punch-card machines (mainly made by IBM).
Q.413. Malthusian theory of population explored the relationship between
(a) food supply and techno-logy
(b) food supply and popula-tion growth
(c) population growth and development
(d) optimum growth and resources
Ans: (B)
Notes: According to Malthusian theory of population, population increases in a geometrical ratio, whereas food supply increases in an arithmetic ratio. This disharmony would lead to widespread poverty and starvation, which would only be checked by natural occurrences such as disease, high infant mortality, famine, war or moral restraint.
Q.414. Economic development depends on :
(a) Natural resources
(b) Capital formation
(c) Size of the market
(d) All of the above
Ans: (D)
Notes: Economic development generally refers to the sustained, concerted actions of policymakers and communities that promote the standard of living and economic health of a specific area. Economic development can also be referred to as the quantitative and qualitative changes in the economy. Such actions can involve multiple areas including development of human capital, critical infrastructure, regional competitiveness, environmental sustainability, social inclusion, health, safety, literacy, and other initiatives.
Q.415. Human Development Index was developed by :
(a) Amartya Sen
(c) Friedman
(b) Mahbub-ul-Haq
(d) Montek Singh
Ans: (B)
Notes: The origins of the Human Development Index (HDI) are found in the annual Human Development Reports of the United Nations Development Programme (UNDP). These were devised and launched by Pakistani economist Mahbub ul Haq in 1990. To produce the Human Development Reports, Mahbub ul Haq brought together a group of well-known development economists including: Paul Streeten, Frances Stewart, Gustav Ranis, Keith Griffin, Sudhir Anand and Meghnad Desai. But it was Nobel laureate Amartya Sen’s work on capabilities and functionings that provided the underlying conceptual framework.
Q.416. The Great Depression occurred during
(a) 1914-18
(b) 1929-34
(c) 1939-45
(d) 1922-26
Ans: (B)
Notes: Depression is referred to a period of time during which economic activity is so low for such a long period of time that large numbers of people are permanently unemployed. The great Depression originated in the United States, after the fall in stock prices that began around September 4, 1929 and became worldwide news with the stock market crash of October 29, 1929 (known as Black Tuesday).
Q.417. The worldwide Great Depression took place in
(a) 1936
(b) 1929
(c) 1928
(d) 1930
Ans: (B)
Notes: Depression is referred to a period of time during which economic activity is so low for such a long period of time that large numbers of people are permanently unemployed. The great Depression originated in the United States, after the fall in stock prices that began around September 4, 1929 and became worldwide news with the stock market crash of October 29, 1929 (known as Black Tuesday).
Q.418. An economic theory is a/an
(a) Axion
(b) Proposition
(c) Hypothesis
(d) Tested hypothesis
Ans: (B)
Notes: A theory is an established explanation that accounts for known facts or phenomenon. Specifically, economic theories ate statements or propositions about patterns of economic behavior under certain circumstances. These theories help us sort out and understand the complexities of economic behavior (Exploring Economics by Robert L. Sexton, p 9).
Q.419. The hypothesis that rapid growth of per capita income will be associated with a reduction in poverty is called
(a) trickle down Hypothesis
(b) trickle up hypothesis
(c) U shaped hypothesis
(d) poverty estimation hypothesis
Ans: (A)
Notes: According to the trickle down hypothesis the rapid growth of per capita income will be associated with a reduction in poverty. In India, this hypothesis has been interpreted to suggest that with growth in agriculture output without radical institution reform will reduce the incidence of poverty in the context of agricultural development in India.
Q.420. ‘Take-off stage’ in an economy means
(a) Steady growth begins.
Q.
(b) Economy is stagnant.
(c) Economy is about to collapse.
Q.
(d) All controls are removed.
Ans: (A)
Notes: Rostow’s ‘Stages of Economic Growth’ (1960) presented five stages through which all countries must pass to become developed: 1) traditional society, 2) preconditions to take-off, 3) take-off, 4) drive to maturity, and 5) age of high mass consumption. Take-off is the short period of intensive growth, in which industrialization begins to occur, and workers and institutions become concentrated around a new industry.