Chapter 1: Economic Growth and Economic Development — Online MCQ Test
ECONOMICS · CLASS 12 INTERMEDIATE 2 YEAR · Telangana State Board
Practice Chapter 1: Economic Growth and Economic Development with a free chapter-wise online MCQ test.
This chapter covers: This chapter covers economic growth versus development definitions characteristics of developing economies inclusive growth human development index HDI and factors influencing econ....
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Chapter 1: Economic Growth and Economic Development — Important Questions & Answers
What is meant by economic growth?
- A. Increase in real national income over time
- B. Reduction in population growth
- C. Increase in money supply
- D. Decrease in prices of goods
Answer: A. Increase in real national income over time
Economic growth refers to a rise in the real output or real national income of an economy over time. It focuses mainly on quantitative increase.
Economic growth refers to a rise in the real output or real national income of an economy over time. It focuses mainly on quantitative increase.
Which of the following is a key indicator of economic development?
- A. Only increase in GDP
- B. Improvement in living standards and quality of life
- C. Increase in population only
- D. Rise in exports only
Answer: B. Improvement in living standards and quality of life
Economic development is broader than growth and includes improvements in living standards, health, education, and overall welfare.
Economic development is broader than growth and includes improvements in living standards, health, education, and overall welfare.
Economic growth is mainly a __________ concept.
- A. Qualitative
- B. Quantitative
- C. Emotional
- D. Seasonal
Answer: B. Quantitative
Economic growth is measured in quantitative terms such as increase in income, output, or GDP over a period of time.
Economic growth is measured in quantitative terms such as increase in income, output, or GDP over a period of time.
Which statement correctly distinguishes economic growth from economic development?
- A. Growth is broader than development
- B. Development is only an increase in GDP
- C. Growth focuses on quantity; development includes quality of life
- D. Both mean the same in all respects
Answer: C. Growth focuses on quantity; development includes quality of life
Economic growth is mainly about quantitative increase in output, while economic development includes qualitative improvements in welfare and living standards.
Economic growth is mainly about quantitative increase in output, while economic development includes qualitative improvements in welfare and living standards.
In comparing two countries, Country X has higher GDP growth, while Country Y has higher HDI. Which conclusion is most accurate?
- A. Country X must be more developed than Country Y
- B. Country Y may have better human development even if growth is lower
- C. HDI is unrelated to development
- D. GDP growth and HDI measure the same thing exactly
Answer: B. Country Y may have better human development even if growth is lower
GDP growth measures increase in output, while HDI measures broader human development. A country with lower growth can still have better health, education, and income distribution.
GDP growth measures increase in output, while HDI measures broader human development. A country with lower growth can still have better health, education, and income distribution.