Economics MCQs

Page No. 386

A theory ?


a is a systematic explanation of relationships between economic variables


b explains causal relationships among variables


c provides a basis for policy


d I , II and III only



The Harrod Domar growth model suggests that growth is ?


adirectly related to savings and inversely related to the capital/output ratio


bdirectly related to the capital/output ratio and inversely related to savings


c indirectly related to savings and the capital/output ratio


d directly related to savings and the capital/output ratio



Baran’s Neo-Marxist thesis has been criticized for ignoring the probability that power is frequently ?


a based on an alliance between landowners and peasants


bbased on an alliance between peasants and the foreign bourgeoisie


ctransferred from one elite to another when revolution occurs


d derived from domestic opponents of nationalism



Criticisms of Rostow’s stages of development include ?


athe difficulty of testing the stages scientifically


b conditions for takeoff are contradicted by historical evidence


ccharacteristics of one stage are not unique to that stage


d All of the above are correct



The Ultimate effect of the invisible hand of Adam Smith is that in a competitive economy everyone ?


abenefits if each acts in his/her own interest


b will increase their profits in a free market


c should act to maximize economic growth


d should act to promote the public interest



The Lawis model explains how growth gets started in a less developed economy ?


awith an average product of labor in agriculture that is negative


bwith a downward-sloping supply curve of labor


c with a marginal productivity of labor zero or negligible in industry


dwith a traditional agricultural sector and an industrial capitalist sector



A major dependency theorist Andre Gunder Frank Suggests that the following economic activities have contributed to underdevelopment:


a Workers migrating from villages to foreign-dominated urban complexes


b Forming an unskilled labor force to work in factories and mines and on plantations


c- Replacing indigenous enterprises with technologically more advanced global subsidiary companies


d I, II and III only


View Answer I, II and III only

The synchronized application of capital to a wide range of different industries is called __________ by its advocates?


abalanced growth


bcapitalization


celasticity of capital


d indivisibilities


View Answer balanced growth

Rostow’s economics stages are ?


aThe preconditions for takeoff, the takeoff, the drive to maturity and the age of creative destruction


bThe traditional society the preconditions for takeoff, the takeoff, the drive to maturity and the age of high mass consumption


cthe preconditions for consumption the replication the drive to maturity and the age of high mass consumption


dthe learning curve the age of high mass consumption post takeoff, and the drive to maturity



Karl Marx’s historical materialism views were shaped by all of the following EXCEPT ?


a The French Revolution


bThe rise of industrial and capitalist production


c Political and labor revolts


d a growing spiritual rationalism



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