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. (a)   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 (a)   Model explains rural-urban migration by considering expected income differences rather than actual wage levels.