Development Economics - II CIA 2025

Which of the following is considered a traditional economic indicator of development?

• A) Human Development Index (HDI)

• B) Gross National Product (GNP)

• C) Gender Inequality Index (GII)

• D) Multidimensional Poverty Index (MPI)

Amartya Sen’s capabilities approach focuses on:

• A) Increasing GDP per capita

• B) Expanding people's freedoms and opportunities

• C) Reducing fiscal deficits

• D) Enhancing trade liberalization

The Human Development Index (HDI) includes which of the following components?

• A) Economic growth, inflation, and employment

• B) Life expectancy, education, and per capita income

• C) Trade balance, government spending, and savings rate

• D) Agricultural productivity, industrial output, and energy consumption

Which of the following is NOT a structural characteristic of developing economies?

• A) High dependency on the agricultural sector

• B) Low levels of industrialization

• C) High levels of income equality

• D) Rapid population growth

Which of the following is a key factor in economic development that facilitates innovation and efficiency?

• A) Capital accumulation

• B) Labour migration

• C) Technological progress

• D) Agricultural subsidies

Natural resources contribute to economic development when:

• A) They are extracted without regulation

• B) They are efficiently managed and used sustainably

• C) They are heavily taxed without reinvestment

• D) They are exported without domestic utilization

What role do social institutions play in economic development?

• A) They ensure equal distribution of wealth

• B) They shape economic policies and influence market behavior

• C) They reduce the need for foreign trade

• D) They control all economic activities directly

Which factor of development is closely linked to entrepreneurship and innovation?

• A) Labour force participation

• B) Capital accumulation

• C) Social institutions

• D) Cultural values

1. ___________ taxation refers to the system of imposing taxes on agricultural income, land, or produce to generate revenue and influence economic activities in the sector.

1. The ______ Model explains rural-urban migration by considering expected income differences rather than actual wage levels.