Classical theory of growth emphasizes the role of
A Technology
B Capital accumulation
C Population growth
D Natural resources
Classical economists stressed savings and capital accumulation as drivers of growth.
According to Adam Smith, economic growth results mainly from
A Population control
B Division of labour
C Government intervention
D Foreign trade restrictions
Division of labour increases productivity and output.
Ricardo’s theory of growth highlighted the problem of
A Increasing returns
B Technological progress
C Diminishing returns to land
D Capital surplus
Fixed land leads to diminishing returns in agriculture.
Marxian theory views economic development as driven by
A Market forces
B Class struggle
C Population growth
D State planning alone
Marx emphasized conflict between classes as engine of change.
Rostow’s stages of growth theory identifies how many stages?
A Three
B Four
C Five
D Six
Rostow proposed five stages from traditional society to high mass consumption.
The “take-off” stage in Rostow’s model signifies
A Agricultural stagnation
B Rapid industrial growth
C Decline in savings
D Population explosion
Investment and industrialization accelerate during take-off.
Which theory emphasizes “big push” for development?
A Balanced growth theory
B Unbalanced growth theory
C Big Push theory
D Dual sector model
Rosenstein-Rodan argued for large-scale coordinated investment.
Balanced growth theory is associated with
A Hirschman
B Lewis
C Nurkse
D Solow
Nurkse emphasized simultaneous investment in many sectors.
The main criticism of balanced growth theory is that it
A Ignores demand
B Requires huge capital
C Neglects technology
D Promotes inequality
Poor countries lack resources for simultaneous investment.
Unbalanced growth theory was proposed by
A Nurkse
B Hirschman
C Solow
D Keynes
Hirschman argued for strategic investment in key sectors.
Lewis dual sector model focuses on
A Trade expansion
B Transfer of surplus labour
C Capital scarcity
D Population control
Labour moves from traditional agriculture to modern industry.
In Lewis model, wages in modern sector are
A Flexible
B Equal to marginal productivity
C Institutionally fixed
D Lower than subsistence
Wages are fixed above subsistence to attract labour.
Solow’s growth model highlights the role of
A Population alone
B Capital only
C Technology
D Natural resources
Long-run growth depends on technological progress.
Endogenous growth theory emphasizes
A External technology
B Human capital and innovation
C Population growth
D Natural resources
Growth is driven internally by knowledge and skills.
Capital formation contributes to development by
A Reducing employment
B Increasing productive capacity
C Increasing consumption only
D Raising dependency ratio
Investment expands production potential.
Capital formation includes
A Only physical capital
B Only financial capital
C Physical and human capital
D Natural resources only
Investment in machines and people both matter.
Low capital formation in developing countries is due to
A High savings
B Low income levels
C Capital surplus
D High investment
Low income restricts saving and investment.
Human resource development mainly focuses on
A Population growth
B Education, health, and skills
C Capital goods
D Natural resources
Human capital improves productivity.
Investment in education results in
A Lower productivity
B Skill formation
C Capital wastage
D Inflation
Education enhances skills and employability.
Which factor accelerates technological progress?
A Illiteracy
B Research and development
C Population growth
D Inflation
R&D leads to innovation and efficiency.
Technology improves development by
A Reducing output
B Raising productivity
C Increasing unemployment permanently
D Reducing savings
Better technology increases output per unit of input.
Appropriate technology in developing countries should be
A Capital-intensive
B Labour-intensive
C Fully automated
D Imported only
Labour-intensive techniques suit labour-abundant economies.
Planning in India was adopted mainly to
A Promote laissez-faire
B Achieve rapid and balanced growth
C Eliminate private sector
D Increase imports
Planning guided resources toward development goals.
India adopted planned development after
A 1947
B 1950
C 1951
D 1955
First Five-Year Plan began in 1951.
The First Five-Year Plan emphasized
A Heavy industry
B Agriculture and irrigation
C Export promotion
D Service sector
Food security and agriculture were priorities.
Second Five-Year Plan was based on
A Harrod-Domar model
B Mahalanobis model
C Lewis model
D Rostow model
It focused on heavy industrialization.
The objective of Five-Year Plans was to
A Maximize profits
B Achieve social justice and growth
C Reduce exports
D Increase dependence on imports
Plans aimed at growth with equity.
Planning Commission was replaced by
A Finance Commission
B NITI Aayog
C RBI
D SEBI
NITI Aayog replaced Planning Commission in 2015.
NITI Aayog stands for
A National Institute for Trade and Industry
B National Institution for Transforming India
C National Initiative for Technology and Innovation
D National Investment and Trade Organization
It reflects a new approach to development.
NITI Aayog differs from Planning Commission because it
A Imposes targets
B Adopts top-down approach
C Acts as a think tank
D Controls state finances
NITI Aayog provides policy guidance, not allocation.
Cooperative federalism is promoted by
A RBI
B WTO
C NITI Aayog
D IMF
NITI Aayog encourages Centre–State cooperation.
Planning in India aimed at reducing
A Trade deficit
B Regional imbalance
C Exports
D Technology use
Balanced development across regions was a key goal.
Which plan focused on self-reliance?
A First Plan
B Second Plan
C Third Plan
D Fourth Plan
Third Plan emphasized self-reliance and growth.
Rolling plans were introduced in
A First Plan period
B Emergency period
C 1978–80
D 1991 reforms
Rolling plans replaced fixed plans briefly.
Planning helped India by
A Eliminating private sector
B Building basic infrastructure
C Reducing population growth directly
D Increasing imports
Infrastructure was created through planned investment.
Which sector benefited most from planning?
A Speculative sector
B Infrastructure and heavy industry
C Luxury goods
D Informal trade
Planning focused on core sectors.
A major criticism of planning was
A Lack of targets
B Excessive controls and inefficiency
C Too much competition
D Low public investment
License-permit raj reduced efficiency.
Market-oriented reforms reduced the role of
A Private sector
B Government controls
C Foreign trade
D Technology
Reforms dismantled excessive regulation.
Which factor ensures sustainable development?
A Resource depletion
B Technological progress with conservation
C Population explosion
D Import dependence
Sustainability balances growth and environment.
Development planning in India aimed at
A Growth without equity
B Equity without growth
C Growth with social justice
D Trade surplus only
Plans sought inclusive growth.
Capital-output ratio reflects
A Labour efficiency
B Capital productivity
C Savings rate
D Population growth
Lower ratio means higher productivity.
Harrod-Domar model links growth to
A Technology only
B Savings and capital-output ratio
C Population growth
D Trade balance
Growth depends on savings and investment efficiency.
Which plan marked shift towards liberalization?
A Seventh Plan
B Eighth Plan
C Ninth Plan
D Tenth Plan
Eighth Plan followed 1991 reforms.
NITI Aayog promotes development through
A Centralized control
B Competitive federalism
C Import substitution
D Price controls
States compete for better performance.
Technological progress affects growth by
A Reducing productivity
B Increasing output with same inputs
C Increasing unemployment permanently
D Lowering efficiency
Innovation raises efficiency.
Which theory highlights knowledge spillovers?
A Classical theory
B Endogenous growth theory
C Malthusian theory
D Ricardo’s theory
Knowledge creates positive externalities.
A major goal of human development is to
A Increase exports
B Expand human capabilities
C Control inflation only
D Increase capital imports
Development enhances choices and capabilities.
Which sector’s growth is essential for capital formation?
A Primary
B Secondary
C Tertiary
D Informal
Industry produces capital goods.
Development planning requires coordination between
A Public and private sectors
B Domestic and foreign sectors only
C Agriculture only
D Services only
Mixed economy needs coordination.
The ultimate aim of growth theories is to explain
A Inflation
B Long-term economic development
C Trade cycles
D Exchange rate movements
Growth theories explain sustained development.