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MSDMG542.MCQ Test 01.02.2023

Total questions: 50

Worksheet time: 54mins

Name
Class
Date
1.

What does matters in case of difference between GDP and GNP?

a)

inflation

b)

custom

c)

tax

d)

border

2.

       The theory which assumes that western civilisation is technically and morally superior to traditional societies is….

a)

   Marxist theory

b)

  Dependency theory

c)

     Stages of economic growth theory

d)

Post development theory

3.

Suppose that Nepal’s GDP in the current fiscal year is US$ 40 Billion. The economic growth is expected to be 8.8 percent in the next fiscal year. What will be the GDP figure in next fiscal year?

a)

 48.05 US$ Billion

b)

40 US$ Billion

c)

  43.52 US$ Billion

d)

   42.52 US$ Billion

4.

The ratio of the share of income by X% of the richest population to the income shared by  y% of the poorest(Generally 20% of richest   to 40% of the poorest) is;

a)

  Gini Coefficient

b)

Kuznets coefficient

c)

Pareto Coefficient

d)

None of above

5.

  According the living standard survey of Nepal (NLSS, 2010/11), the richest 20% of population of Nepal shares ..........….percentage of income.

a)

20.1%

b)

46.2%

c)

56.39%

d)

80%

6.

The agencies for promoting equity are...............

a)

State

b)

market

c)

INGO/NGO/CSOs

d)

All the given options

7.

Suppose that among the 77 districts of Nepal, the life expectancy of Kathmandu is 75 years which is maximum, and 40 is the minimum of Mugu district. If the life expectancy of Kaski is 72. Then what will be the value of  heath index of  Kathmandu

a)

0.94

b)

0.74

c)

0.64

d)

1

8.

Real GDP is ............

a)

inflation adjusted national income

b)

nominal national income

c)

both A and B

d)

None of above

9.

It is said to be an economy is expanding if ..................

(A)   The upward shift of the production possibility frontier 

(B)   Downward shift of  the production possibility frontier

(C)   Both A and B

(D)   None of A and B  

a)

The upward shift of the production possibility frontier

b)

Downward shift of  the production possibility frontier

c)

   Both A and B(given in the question)

d)

   None of A and B (given in the question)

10.

    The government reports GDP figure generally............

a)

Annually

b)

     Quarterly

c)

Biannually

d)

Annually

and      Quarterly

11.

The economists use .................. as an indicator of economic growth.

a)

GDP

b)

GNP

c)

Both GDP and GNP

d)

None of GDP and GNP

12.

In economic literature GDP is abbreviation of ……

a)

Gross Dangerous Product

b)

Gross Decline product

c)

     

    Gross Disposable Product

d)

Gross Domestic Product

13.

Which Indicator of national income gives real trend of national economy?

a)

GDP

b)

GNP

c)

GDI

d)

None of all options

14.

Which Indicator of national income gives real trend of national economy?

a)

GDP

b)

GNP

c)

GDI

d)

None of all options

15.

    Development economists suggest that idea of economic development conceptually differs with economic growth by its definition  is..............

a)

    Economic development is economic growth + technological growth

b)

Economic development is economic growth + cultural development

c)

Economic development is economic growth + standard of living

d)

Economic development is economic growth + strategic arms’ growth

16.

       Development Economists say that economic development is considered as a multidimensional phenomenon, whereas economic growth is considered as....

a)

4 dimensional

b)

3 dimensional

c)

2 dimensional

d)

1 dimensional

17.

     Economic growth is considered as a short term phenomena while economic development is  considered as

a)

Long term phenomena

b)

Medium term phenomena

c)

Short term phenomena

d)

All of given options

18.

Economic growth theories are of types;

a)

   Export-led growth

b)

Consumption-led growth

c)

     Infrastructure development-led growth

d)

All of given options

19.

  Economic growth is related to developed countries where as economic development is related to;

a)

     Developing countries

    

b)

OECD countries

c)

Underdeveloped countries

d)

    Underdeveloped countries &

Developing countries

    

20.

    The effect of economic growth brings a quantitative impact on the economy such as increase in real GDP whereas economic development brings a …… impact on an economy.

a)

Qualitative

b)

   Quantitative

c)

Both qualitative and quantitative

d)

None of qualitative and quantitative

21.

  Process tenor of the economic growth is either quarterly or yearly whereas the process tenor of economic development is;

a)

Quarterly

b)

     Half yearly

c)

     Yearly

d)

    Continuous process

22.

   “There is a trade-off between economic growth and the tax rate.” What does the statement  means?(Recall your memory the graph I drew in the class on the lecture slides)

A)     If we want to achieve high economic growth rate we need increase tax rate

B)      If we want to achieve high economic growth rate we need decrease tax rate

C)      Both A and B

D)     None of above

a)

If we want to achieve high economic growth rate we need increase tax rate

b)

If we want to achieve high economic growth rate we need decrease tax rate

c)

Both A and B options

d)

  None of A and B options

23.

 Nepal has been adopting the export led growth strategy based on;

a)

Comparative advantages theory

b)

Interest rate theory

c)

Exchange rate theory

d)

Absolute advantages theory

24.

      The objective of development is to escape the underdeveloped economies from;

a)

Vicious circle of poverty

b)

Circular causation

c)

Low level equilibrium trap

d)

All the given options

25.

   What are the vicious circles of poverty we discussed in the unit 2 of our course?

a)

Supply side vicious circle of poverty

b)

Demand side vicious circle of poverty

c)

Demand side vicious circle of poverty

d)

All the given options

26.

  Low Income → Low Demand →Low Investment → Low Productivity → Low Income is a vicious circle of poverty of ….

a)

Supply side vicious circle of poverty

b)

Vicious Circle of Market Imperfections

c)

Demand side vicious circle of poverty

d)

None of given options

27.

The third stage of W. W. Rostow’s economic growth model is;

a)

Pre-Take Off

b)

Take Off

c)

Drive to maturity

d)

Stage of High mass consumption

28.

    The last stage of W. W. Rostow’s economic growth model is;

a)

Drive to maturity

b)

Stage of high mass consumption

c)

Traditional society

d)

Pre-take off

29.

Which theory of development is often criticized as fad/carnival by development scholar?

a)

People Centred Development

b)

Modernization Theory

c)

Dependency Theory

d)

Post Development Theory

30.

The annual development report of UNDP is called

a)

World Development Report

b)

Asian Development Outlook

c)

World Development Outlook

d)

Human Development Report

31.

WW Rostow's ‘Stages of Economic Growth’ theory is often known as a.....

a)

Capitalist Manifesto

b)

Election Manifesto

c)

Communist manifesto

d)

a non-communist Manifesto

32.

    What is the impact of economic growth?

a)

 Income grows

b)

Jobs grow

c)

Government revenue grows

d)

All of given options

33.

   What is not a principles of equity?

a)

Equal life chances

b)

Equal concern for people’s needs

c)

Meritocracy

d)

Equal concern for people's greed

34.

     The agencies of economic distribution are….

a)

Government

b)

Market

c)

Interest groups

d)

government and market

35.

     Sustainable Development is defined as “the capacity to meet the needs of the present without compromising the ability of future generations to meet their own needs. Sustainable Development must balance the needs of society, the economy, and the environment” by which commission?

a)

  Human Rights commission

b)

Commission of Latin America

c)

The Brundtland Commission

d)

Commission of Africa

36.

   The sustainable development considers the following aspect

a)

All the given options

b)

The Environment

c)

The need of economy

d)

The need of society

37.

Somewhere in the course, we studied that C+S+G+(X-M) = GDP, where C= consumption, S= Saving, G=Government spending. Now, X-M stands for net export which is ……

a)

Zero-Minimum

b)

Export-Import

c)

Import-Export

d)

None of given options

38.

   There are three dimensions of human development index. The first is a long and healthy life, the second is the access to knowledge, and the last one is

a)

Social Inclusion

b)

Gender equality

c)

A decent standard of living

d)

Environment sustainability

39.

     HDI is …… mean of normalize indices of the three dimensions of human development index

a)

Arithmetic mean

b)

Geometric mean

c)

Algebraic mean

d)

exponential mean

40.

   The development theory propounded by Andre Gunder Frank is known as;

a)

Dependency theory

b)

Modernization theory

c)

Classical development theory

d)

People centred development theory

41.

      Which development theory rejects the notion of “Wealth confers legitimate power over other people?”

a)

Dependency theory

b)

Modernization theory

c)

People centred development theory

d)

Post Development theory

42.

Nepali scholar Nanda Ram Shrestha is one of the famous figure in development theory. His theory belongs to…. School of development theory.

a)

    Classical development theory

   

b)

Functional development theory

   

c)

Dependency theory

  

d)

Post development theory

43.

      The agencies for promoting equity are;

a)

   State

    

b)

  Market

  

c)

NGO/INGOS/Donors

  

d)

All of given options

44.

      What is the Decile data table of income distribution?

a)

The population is grouped in 10 categories from bottom (poorest) to top (richest) having 10 percent of population in each group.

b)

The population is grouped in 5 categories from bottom (poorest) to top (richest) having 20 percent of population in each group.

c)

The population is grouped in 20 categories from bottom (poorest) to top (richest) having 5 percent of population in each group

d)

None of given options

45.

What is not a factor, as we discussed in class, which limits the economic growth?

a)

Poor health and low levels of education of people

b)

Lack of necessary infrastructure such road, rail, ports etc.

c)

Capital flight

d)

internet

46.

   How many principles of equity we discuss in class?

a)

One

b)

Two

c)

Three

d)

Four

47.

    Economic growth means more jobs creation and more money at disposal for ordinary people. What does it mean for the government?

a)

Less tax revenue

b)

More tax revenue

c)

Required more police

d)

Bigger Army

48.

Idea of sustainable development does not consider the following aspect

a)

The need of society

b)

The need of economy

c)

The Environment

d)

The philosophy

49.

Bringing on broad woman, marginalized and backward section of society through affirmative actions such as reservation is based on ..........

a)

Equality considerarion

b)

Equity considerartion

c)

Fairness considerarion

d)

equilibrium considerarion

50.

Public Service Commission gives an equal chance to all the candidates for the government service exam. Which is the principle of equity it is based on?

a)

    Equal life chances

b)

    Equal concern for people’s needs

c)

  Meritocracy

d)

None of given options