Development economics is primarily concerned with
A Price determination
B Growth of national income only
C Economic development of poor countries
D Monetary policy formulation
Development economics focuses on issues faced by developing and underdeveloped economies, such as poverty, inequality, and growth.
The scope of development economics includes the study of
A Stock markets only
B Problems of developed economies
C Structural changes in an economy
D Foreign exchange markets only
It examines transformation in economic structure, institutions, and social conditions.
Economic development is a
A Quantitative process only
B Short-term phenomenon
C Qualitative and quantitative process
D Cyclical movement
Development includes growth in income along with improvements in living standards and institutions.
Economic growth differs from economic development because growth refers to
A Reduction in inequality
B Structural transformation
C Increase in real national income
D Improvement in human welfare
Growth is measured by increase in output or income, while development is broader.
Which of the following best reflects economic development?
A Rise in GDP
B Increase in exports
C Improvement in health and education
D Increase in population
Development emphasizes human welfare, not income alone.
Per capita income is an indicator of
A Income distribution
B Standard of living
C Economic growth only
D Poverty line
It shows average income per person and reflects living standards.
Which indicator is most comprehensive for measuring development?
A National income
B Per capita income
C Human Development Index
D Population growth rate
HDI combines income, health, and education indicators.
The Human Development Index is published by
A World Bank
B IMF
C UNDP
D WTO
UNDP publishes HDI in its Human Development Report.
HDI includes indicators of
A Income, literacy, and life expectancy
B GDP, inflation, and exports
C Poverty, unemployment, and inequality
D Trade balance and reserves
HDI measures health, education, and standard of living.
Life expectancy as an indicator reflects
A Economic growth
B Quality of healthcare
C Income inequality
D Population density
Higher life expectancy indicates better health and living conditions.
Literacy rate is used in HDI because it reflects
A Employment level
B Skill formation and awareness
C Population growth
D Capital formation
Education improves productivity and quality of life.
A developing economy is typically characterized by
A High per capita income
B Advanced technology
C Low standard of living
D Capital abundance
Developing countries generally face poverty and low human development.
Which of the following is a social indicator of development?
A GDP growth rate
B Balance of payments
C Infant mortality rate
D Savings rate
Infant mortality reflects healthcare and social conditions.
Economic development aims at
A Maximizing output only
B Removing poverty and inequality
C Increasing imports
D Controlling population only
Development focuses on improving overall human welfare.
Which factor converts economic growth into economic development?
A Capital accumulation alone
B Population growth
C Equitable distribution of income
D Export expansion
Fair distribution ensures growth benefits reach all sections.
Developing economies generally suffer from
A Capital surplus
B Underutilization of resources
C Skilled labour abundance
D High savings
Resources exist but are not efficiently utilized.
Poverty in developing countries is mainly due to
A Excess savings
B Low productivity
C High exports
D Capital abundance
Low productivity limits income generation.
Vicious circle of poverty implies that
A Poverty leads to higher savings
B Low income leads to low savings and investment
C Capital formation is automatic
D Growth is self-sustaining
Low income → low savings → low investment → low income.
Which of the following best indicates inequality?
A HDI
B Gini coefficient
C Per capita income
D Life expectancy
Gini coefficient measures income inequality.
High population growth affects development by
A Increasing per capita income
B Reducing pressure on resources
C Diluting capital formation
D Increasing savings
More people share limited capital, lowering per capita availability.
Unemployment in developing economies is often
A Cyclical
B Seasonal and disguised
C Technological only
D Voluntary
Agriculture-based economies show seasonal and disguised unemployment.
Which sector employs maximum labour in developing countries?
A Industry
B Services
C Agriculture
D Mining
Agriculture absorbs most of the workforce in developing economies.
Low level of technology in developing countries results in
A High productivity
B Efficient resource use
C Low output per worker
D Capital surplus
Outdated technology reduces labour productivity.
Capital formation is low in developing countries mainly because of
A High savings
B Low income levels
C High interest rates
D Excess investment
Low income restricts saving and investment capacity.
Human capital formation refers to
A Physical capital accumulation
B Investment in education and health
C Population growth
D Infrastructure development
Education and health improve labour productivity.
Which problem is common to most developing economies?
A Inflation only
B Dualism
C Capital abundance
D Ageing population
Coexistence of modern and traditional sectors is common.
Economic dualism refers to
A Two political systems
B Two currencies
C Modern and traditional sectors existing together
D Export–import imbalance
Development is uneven across sectors.
Which indicator reflects nutritional status of population?
A Literacy rate
B Infant mortality rate
C Calorie intake
D GDP
Calorie intake shows adequacy of nutrition.
Which of the following is an economic indicator of development?
A Life expectancy
B Literacy rate
C Per capita income
D Infant mortality
Income per person reflects economic capacity.
A major objective of development planning is
A Laissez-faire growth
B Balanced regional development
C Complete privatization
D Trade surplus only
Planning aims to reduce regional disparities.
Underdevelopment is characterized by
A Excess demand
B Underemployment of labour
C High capital-output ratio
D Technological leadership
Labour is not fully utilized productively.
Which measure directly improves human development?
A Import liberalization
B Increase in military spending
C Investment in health and education
D Export subsidies
Social sector investment improves HDI components.
Economic development without growth is
A Impossible
B Easily achievable
C Temporary
D Desirable
Growth in output is necessary for development.
Growth without development may occur when
A Income is evenly distributed
B Benefits of growth are concentrated
C HDI improves
D Poverty declines
Unequal distribution prevents welfare improvement.
Which of the following is a demographic indicator?
A GDP
B Birth rate
C Savings rate
D Export growth
Birth rate reflects population trends.
High dependency ratio implies
A More earners
B Fewer dependents
C Greater burden on working population
D High savings
More non-working people depend on earners.
Which factor most strongly supports long-term development?
A Natural resources alone
B Human capital
C Population growth
D Inflation
Skilled and healthy people sustain growth.
Development economics emerged mainly after
A Industrial Revolution
B World War I
C World War II
D Global financial crisis
Newly independent countries required development strategies.
Which indicator shows quality of life best?
A GDP growth
B Per capita income
C HDI
D Export share
HDI includes social and economic dimensions.
Developing economies often rely heavily on
A Manufacturing exports
B Primary sector activities
C High-tech services
D Capital-intensive industries
Agriculture and raw materials dominate.
A major constraint on development is
A Abundant labour
B Low savings rate
C High population
D All of the above
These factors jointly restrict development.
Which concept emphasizes removal of poverty and inequality?
A Economic growth
B Inclusive development
C Trade expansion
D Capital deepening
Inclusive development ensures benefits reach all.
The primary goal of development economics is to
A Maximize exports
B Increase stock market returns
C Improve human welfare
D Control inflation only
Human welfare is the central concern.
Which indicator reflects access to basic services?
A GDP
B HDI
C Export ratio
D Trade balance
HDI includes health and education access.
Developing countries often face balance between
A Growth and inflation
B Equity and efficiency
C Trade and capital
D Population and resources only
Rapid growth may conflict with equity goals.
Which measure improves productivity of labour?
A Population control
B Capital formation only
C Education and training
D Export promotion
Skills enhance labour efficiency.
Structural change is a feature of
A Economic stagnation
B Economic development
C Business cycles
D Inflation
Development transforms economic structure.
Which of the following best reflects underdevelopment?
A High HDI
B Low infant mortality
C High poverty rate
D High literacy
Persistent poverty signals underdevelopment.
Economic development requires
A Growth without planning
B Institutional and social reforms
C Free trade only
D Capital imports alone
Institutions and social change support development.
Development economics differs from traditional economics because it
A Ignores growth
B Focuses on welfare and structural change
C Studies only prices
D Excludes policy analysis
It integrates economic, social, and institutional aspects.