A level Economic Growth and Development Quiz 1

16 Questions

Quiz Description

Here in this exciting quiz, we shall be studying economic growth and development. According to the A level syllabus, we will get to look at the concept of per capita income, gross domestic product, the economic growth rate, economic development, among others. You will get to learn a lot by answering these questions.

Economic growth refers to an increase in the production of goods and services in an economy, and usually, it is compared from one period of time to another. Some factors leading to the contribution to economic growth are increase in capital, labor force, and technology. Economic growth is often measured in terms of the increase in aggregate market value of additional goods and services produced, making use of estimates such as the GDP. On the other hand, economic development refers to the process whereby low-income national economies are being transformed into modern industrial economies.

It is important to take note that growth is an essential condition to achieve development.

Due to the broad nature of A level economics, the gcequiz platform has made available several economics quizzes to aid students in their studies. What are you waiting for? Go ahead and answer the quiz. Good luck. 

1:

An increase in national income because of an increase in prices only is called


Correct
  • 1:
    Increase in real income
  • 2:
    Increase in national income at constant prices
  • 3:
    Increase in nominal national income
  • 4:
    Increase in national income at base year prices
2:

  The national income of a country for a given period is equal to the 


Correct
  • 1:
    Consumption and investment expenditure incurred by the government
  • 2:
    Consumption and investment expenditure incurred by Indians abroad
  • 3:
    Consumption and investment expenditure incurred by private sector
  • 4:
    Consumption and investment expenditure incurred by all the above
3:

  In an open economy, the national income (Y) of the economy is (C,I,G,X,M stand for consumption, investment, government expenditure, total exports, and total imports, respectively.) 


Correct
  • 1:
    Y = C + I + G + X
  • 2:
    Y = C + I + G – X + M
  • 3:
    Y = C + I + G + (X – M)
  • 4:
    Y = C + I – G + X – M
4:

 The growth rate in per capita income at current prices is higher than that of per capita income at constant prices, because the former takes into account the rate of 


Correct
  • 1:
    Growth of population
  • 2:
    Increase in price level
  • 3:
    Growth of money supply
  • 4:
    Increase in the wage rate
5:

The value of all final goods and services produced by the normal residents of a country and their property, whether operating within the domestic territory of the country or outside, in a year is termed 


Correct
  • 1:
    Gross national income
  • 2:
    Net national income
  • 3:
    Gross domestic product
  • 4:
    Net domestic product
6:

 National income in context of India is the collective income of all the Indians. Which of the following is equivalent to national income? 


Correct
  • 1:
    Gross domestic product at market price
  • 2:
    Net domestic product at factor prices
  • 3:
    Net national product at market prices
  • 4:
    Net national product at factor cost
7:

Gross domestic product is more than the net domestic product. Gross domestic product (GDP) is called “gross” because its computation does not exclude 


Correct
  • 1:
    Consumption of capital in production process
  • 2:
    Subsidies on consumption of goods
  • 3:
    Earnings of foreign exchange in domestic country
  • 4:
    Informal economy
8:

 Which one of the following is responsible for bringing out the report on national and per capital income in India? 


Correct
  • 1:
    Ministry of Planning
  • 2:
    Ministry of Human Resource Development
  • 3:
    Ministry of Home Affairs
  • 4:
    Ministry of Statistics and Programme Implementation
9:

 The main reason for the low growth rate in India in spite of high rates of savings and capital formation is 


Correct
  • 1:
    Low rate of investment rate
  • 2:
    Low level of foreign investment
  • 3:
    Low capital/output ratio
  • 4:
    High capital/output ratio
10:

 Inclusive growth is the agenda of economic development in the future. The strategy of inclusive growth does not focus on 


Correct
  • 1:
    Enhancement of education opportunities
  • 2:
    Reduction of poverty among backward castes
  • 3:
    Diversifying livelihood for tribal population
  • 4:
    Promotion of ancillary industry in industrial regions
11:

 Disguised unemployment typically leads to low level of income levels despite creating perception of high levels of employment. Disguised unemployment generally exists in 


Correct
  • 1:
    Manufacturing sector
  • 2:
    Agriculture
  • 3:
    Small-scale industries
  • 4:
    Urban societies
12:

 When large number of workers lose employment due to automaton of industrial processes, it is called 


Correct
  • 1:
    Seasonal unemployment
  • 2:
    Structural unemployment
  • 3:
    Disguised unemployment
  • 4:
    Cyclical unemployment
13:

 The mechanization and automation of economy is leading to high unemployment rate in the economy. Which one of the following is the unemployment rate? 


Correct
  • 1:
    Percentage of unemployment to total population
  • 2:
    Percentage of employed to total labour force
  • 3:
    Percentage of unemployed to total work force
  • 4:
    Percentage of unemployed to total persons not in labour force
14:

 If the net national product at market price is higher that the net national product at factor cost, then which of the following is the correct description of relationship between indirect taxes and government subsidies: 


Correct
  • 1:
    Government subsidies > Indirect taxes
  • 2:
    Government subsidies < Indirect taxes
  • 3:
    Government subsidies = Indirect taxes
  • 4:
    Government subsidies >= Indirect taxes
15:

  Human Development Index comprises literacy rates, life expectancy at birth, and 


Correct
  • 1:
    Gross domestic product per head in US dollar
  • 2:
    Gross domestic product per head at real purchasing power
  • 3:
    Gross national product in US dollars
  • 4:
    National income per head in US dollars
16:

 Which one of the following is shown by the Phillips curve? 


Correct
  • 1:
    Inverse relationship between real and nominal wages
  • 2:
    Inverse relationship between the rate of inflation and rate of unemployment
  • 3:
    Positive relationship between nominal wages and rate of employment
  • 4:
    Positive relationship between rate of inflation and nominal wages

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A level Economic Growth and Development Quiz 1
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