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All questions of Basic Issues in Economic Development for B Com Exam
What impact does technology have on the quality of goods and services?- a)Technology has no effect on the quality of goods and services.
- b)Technology lowers the quality of goods and services.
- c)Technology improves the quality of goods and services.
- d)Technology increases the cost of goods and services.
Correct answer is option 'C'. Can you explain this answer?
a)
Technology has no effect on the quality of goods and services.
b)
Technology lowers the quality of goods and services.
c)
Technology improves the quality of goods and services.
d)
Technology increases the cost of goods and services.
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Universal Academy answered |
Technology has a positive impact on the quality of goods and services. It allows for standardization, better production processes, and improved product design, leading to higher-quality products and services in the market.
What effect does technology have on labor efficiency?- a)Technology decreases labor efficiency.
- b)Technology has no impact on labor efficiency.
- c)Technology improves labor efficiency.
- d)Technology leads to the elimination of labor.
Correct answer is option 'C'. Can you explain this answer?
a)
Technology decreases labor efficiency.
b)
Technology has no impact on labor efficiency.
c)
Technology improves labor efficiency.
d)
Technology leads to the elimination of labor.
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Universal Academy answered |
Technology generally improves labor efficiency by automating tasks, streamlining processes, and enhancing the capabilities of workers. This increased efficiency contributes to higher productivity and better working conditions.
What is a common feature of the demographic pattern in underdeveloped countries?- a)High life expectancy
- b)Low population growth rate
- c)Large proportion of the population in the younger age group
- d)Small fraction of the population in the younger age group
Correct answer is option 'C'. Can you explain this answer?
What is a common feature of the demographic pattern in underdeveloped countries?
a)
High life expectancy
b)
Low population growth rate
c)
Large proportion of the population in the younger age group
d)
Small fraction of the population in the younger age group
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Universal Academy answered |
A common feature of the demographic pattern in underdeveloped countries is a large proportion of the population in the younger age group. In underdeveloped countries like India, a significant percentage of the total population is below 15 years of age. This indicates a higher fertility rate and a younger population compared to developed countries. It is important to note that this demographic pattern can have implications for economic growth, as it may result in a larger dependent population and limited resources for investment and development.
According to Professor Nurkse, how does capital formation contribute to the economic development of underdeveloped countries?- a)Capital formation leads to higher levels of inflation and balance of payments issues.
- b)Capital formation helps break the vicious circle of poverty in underdeveloped countries.
- c)Capital formation results in increased dependence on foreign capital.
- d)Capital formation has no significant impact on economic development.
Correct answer is option 'B'. Can you explain this answer?
a)
Capital formation leads to higher levels of inflation and balance of payments issues.
b)
Capital formation helps break the vicious circle of poverty in underdeveloped countries.
c)
Capital formation results in increased dependence on foreign capital.
d)
Capital formation has no significant impact on economic development.
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Universal Academy answered |
Professor Nurkse suggests that capital formation plays a crucial role in breaking the vicious circle of poverty in underdeveloped countries. It helps these countries accumulate the necessary capital for investments in infrastructure, technology, and other productive assets, which, in turn, accelerates economic development.
What is the primary difference between capital and capital formation?- a)Capital refers to physical assets, while capital formation involves the process of creating financial assets.
- b)Capital includes both physical and financial assets, while capital formation focuses on increasing the stock of physical assets.
- c)Capital refers to money, while capital formation refers to the process of generating income.
- d)Capital and capital formation are synonymous terms.
Correct answer is option 'B'. Can you explain this answer?
a)
Capital refers to physical assets, while capital formation involves the process of creating financial assets.
b)
Capital includes both physical and financial assets, while capital formation focuses on increasing the stock of physical assets.
c)
Capital refers to money, while capital formation refers to the process of generating income.
d)
Capital and capital formation are synonymous terms.
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Universal Academy answered |
Capital refers to the total stock of physical and financial assets in an economy. Capital formation, on the other hand, is the process of increasing the stock of physical assets, such as machinery, equipment, and infrastructure, with the aim of boosting production and economic development. Therefore, the primary difference is that capital encompasses both physical and financial assets, while capital formation specifically targets the growth of physical assets.
Which characteristic of an underdeveloped economy is a result of income inequalities?- a)High rate of population growth
- b)Technical backwardness
- c)Low per capita income
- d)Predominance of agriculture
Correct answer is option 'C'. Can you explain this answer?
a)
High rate of population growth
b)
Technical backwardness
c)
Low per capita income
d)
Predominance of agriculture
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Universal Academy answered |
The characteristic of an underdeveloped economy that is a result of income inequalities is a low per capita income. In the given text, it is mentioned that the distribution of income and wealth in India is inequitable, with a concentration of wealth and economic power in the hands of a few. This income inequality leads to a low per capita income for the majority of the population. The low per capita income is reflected in the low standards of living and high levels of poverty in underdeveloped economies.
What is the main occupation of the majority of people in underdeveloped countries?- a)Industry
- b)Services
- c)Agriculture
- d)Technology
Correct answer is option 'C'. Can you explain this answer?
What is the main occupation of the majority of people in underdeveloped countries?
a)
Industry
b)
Services
c)
Agriculture
d)
Technology
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Universal Academy answered |
The main occupation of the majority of people in underdeveloped countries is agriculture. In India, about 65% of the population is dependent on agriculture. This indicates that agriculture plays a significant role in the economy of underdeveloped countries. It is important to note that in developed economies, a smaller proportion of the population is dependent on agriculture, as industrial and service sectors dominate. The heavy concentration in agriculture in underdeveloped countries is often a reflection of poverty and limited opportunities in other sectors.
Which of the following is a characteristic of an underdeveloped economy?- a)High per capita income
- b)Equitable distribution of wealth and income
- c)Predominance of industry over agriculture
- d)High rate of population growth
Correct answer is option 'D'. Can you explain this answer?
Which of the following is a characteristic of an underdeveloped economy?
a)
High per capita income
b)
Equitable distribution of wealth and income
c)
Predominance of industry over agriculture
d)
High rate of population growth
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Universal Academy answered |
An underdeveloped economy is characterized by a high rate of population growth. This means that the population is increasing at a rapid pace, which can put pressure on resources and hinder economic development. India's population has been increasing at an alarmingly high rate, resulting in population explosion. This population growth can lead to a decline in per capita resources and productivity. It is important for underdeveloped economies to address population growth in order to achieve sustainable development.
What is a characteristic of an underdeveloped economy resulting from technical backwardness?- a)High rate of population growth
- b)Predominance of agriculture
- c)Unemployment and underemployment
- d)Deficiency of capital
Correct answer is option 'B'. Can you explain this answer?
What is a characteristic of an underdeveloped economy resulting from technical backwardness?
a)
High rate of population growth
b)
Predominance of agriculture
c)
Unemployment and underemployment
d)
Deficiency of capital
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Universal Academy answered |
A characteristic of an underdeveloped economy resulting from technical backwardness is the predominance of agriculture. Technical backwardness refers to the absence of technological development and the continued use of old, outdated, and primitive methods of production. This hinders agricultural productivity and keeps the majority of the population dependent on agriculture. In underdeveloped countries, agriculture often remains unproductive and carried out in an old-fashioned way. It is important for underdeveloped economies to focus on technological advancement and modernization of methods in agriculture to improve productivity and reduce dependence on the sector.
What is the main characteristic of a dualistic economy in underdeveloped countries?- a)Equitable distribution of wealth and income
- b)Predominance of industry over agriculture
- c)High rate of population growth
- d)Coexistence of modern and traditional sectors
Correct answer is option 'D'. Can you explain this answer?
What is the main characteristic of a dualistic economy in underdeveloped countries?
a)
Equitable distribution of wealth and income
b)
Predominance of industry over agriculture
c)
High rate of population growth
d)
Coexistence of modern and traditional sectors
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Universal Academy answered |
The main characteristic of a dualistic economy in underdeveloped countries is the coexistence of modern and traditional sectors. The modern sector comprises large-scale industry, mines, and plantations, which are well-organized, highly monetized, and use modern techniques of production. On the other hand, the traditional sector mainly comprises agriculture and is confined to rural areas. It is characterized by self-sufficiency, limited use of money, and outdated methods of production. This dualism in the economy reflects the disparity between the developed and undeveloped parts of the country.
How does technology contribute to the expansion of industries?- a)Technology increases the cost of production, limiting industry expansion.
- b)Technology has no influence on the expansion of industries.
- c)Technology reduces the cost of production, facilitating industry expansion.
- d)Technology leads to the shutdown of industries.
Correct answer is option 'C'. Can you explain this answer?
a)
Technology increases the cost of production, limiting industry expansion.
b)
Technology has no influence on the expansion of industries.
c)
Technology reduces the cost of production, facilitating industry expansion.
d)
Technology leads to the shutdown of industries.
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Universal Academy answered |
Technology often reduces the cost of production by increasing efficiency and productivity. This cost reduction can lead to the expansion of industries as it becomes more economically viable to produce goods and services on a larger scale.
What is the significance of technology in economic growth?- a)Technology has no impact on economic growth.
- b)Technology complements capital but is not essential for economic growth.
- c)Technology is a basic tool for economic development and complements capital.
- d)Technology can replace the need for capital in economic development.
Correct answer is option 'C'. Can you explain this answer?
a)
Technology has no impact on economic growth.
b)
Technology complements capital but is not essential for economic growth.
c)
Technology is a basic tool for economic development and complements capital.
d)
Technology can replace the need for capital in economic development.
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Universal Academy answered |
Technology is considered a fundamental driver of economic growth. It complements capital by making it more productive and efficient. In the modern age, technology is viewed as a basic tool for economic development, and it works in conjunction with capital to boost the rate of economic growth.
How does technology impact the saving of labor?- a)Technology increases the burden of work on labor.
- b)Technology has no effect on the labor workload.
- c)Technology reduces the burden of work on labor by saving time.
- d)Technology eliminates the need for labor.
Correct answer is option 'C'. Can you explain this answer?
a)
Technology increases the burden of work on labor.
b)
Technology has no effect on the labor workload.
c)
Technology reduces the burden of work on labor by saving time.
d)
Technology eliminates the need for labor.
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Universal Academy answered |
Technology generally reduces the burden of work on labor by automating tasks and processes, thus saving time and effort. This can lead to improved working conditions and better rewards for labor.
Why is technology important for research?- a)Technology has no relevance in research.
- b)Technology increases the cost of research.
- c)Technology enables significant investments in scientific research.
- d)Technology hinders the progress of research.
Correct answer is option 'C'. Can you explain this answer?
a)
Technology has no relevance in research.
b)
Technology increases the cost of research.
c)
Technology enables significant investments in scientific research.
d)
Technology hinders the progress of research.
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Universal Academy answered |
Technology plays a crucial role in research by enabling significant investments in scientific research across various fields. It provides tools and resources that enhance the capabilities of researchers and contribute to advancements in knowledge.
What is the main reason for unemployment in India?- a)Lack of effective demand
- b)Lack of skilled labor
- c)Lack of capital
- d)Lack of education
Correct answer is option 'C'. Can you explain this answer?
a)
Lack of effective demand
b)
Lack of skilled labor
c)
Lack of capital
d)
Lack of education
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Universal Academy answered |
The main reason for unemployment in India mentioned in the given text is the lack of capital. Due to a shortage of capital, industries in India are not able to expand at a fast enough rate to absorb the entire labor force. This leads to widespread unemployment and underemployment. It is important to note that the nature of unemployment in underdeveloped countries like India is different from that in developed countries. In developed economies, unemployment is often cyclical and occurs due to a lack of effective demand. However, in underdeveloped countries, structural unemployment arises due to a lack of capital and limited opportunities for employment.
Which characteristic of an underdeveloped economy is a result of deficiency of capital?- a)High rate of population growth
- b)Technical backwardness
- c)Predominance of agriculture
- d)Unemployment and underemployment
Correct answer is option 'D'. Can you explain this answer?
Which characteristic of an underdeveloped economy is a result of deficiency of capital?
a)
High rate of population growth
b)
Technical backwardness
c)
Predominance of agriculture
d)
Unemployment and underemployment
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Universal Academy answered |
The characteristic of an underdeveloped economy that is a result of deficiency of capital is unemployment and underemployment.Due to a shortage of capital, there is a tendency to invest available capital in labor-intensive consumer goods industries rather than in capital-intensive capital goods industries. This shortage of capital hinders the expansion of industries and the absorption of the entire labor force, leading to widespread unemployment and underemployment. It is important for underdeveloped economies to address the deficiency of capital in order to create more employment opportunities.
How does technology impact international trade?- a)Technology has no influence on international trade.
- b)Technology limits the expansion of international trade.
- c)Technology has revolutionized international trade by expanding markets through the internet.
- d)Technology increases trade barriers.
Correct answer is option 'C'. Can you explain this answer?
a)
Technology has no influence on international trade.
b)
Technology limits the expansion of international trade.
c)
Technology has revolutionized international trade by expanding markets through the internet.
d)
Technology increases trade barriers.
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Universal Academy answered |
Technology, especially through the internet and information technology, has revolutionized international trade. It has expanded markets, facilitated global communication, and made it easier for businesses to engage in cross-border trade.
How does technology improve the utilization of natural resources?- a)Technology depletes natural resources faster.
- b)Technology has no impact on the utilization of natural resources.
- c)Technology helps utilize natural resources more effectively.
- d)Technology has no relation to natural resource utilization.
Correct answer is option 'C'. Can you explain this answer?
a)
Technology depletes natural resources faster.
b)
Technology has no impact on the utilization of natural resources.
c)
Technology helps utilize natural resources more effectively.
d)
Technology has no relation to natural resource utilization.
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Universal Academy answered |
Technology plays a significant role in enhancing the efficient utilization of natural resources. It enables better extraction, processing, and management of resources, ultimately leading to more effective and sustainable use of these resources.
What is the main reason for the predominance of agriculture in underdeveloped countries?- a)Lack of technological development
- b)Lack of skilled labor
- c)Lack of capital
- d)Lack of demand for industrial goods
Correct answer is option 'C'. Can you explain this answer?
What is the main reason for the predominance of agriculture in underdeveloped countries?
a)
Lack of technological development
b)
Lack of skilled labor
c)
Lack of capital
d)
Lack of demand for industrial goods
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Universal Academy answered |
The main reason for the predominance of agriculture in underdeveloped countries is the lack of capital. Due to a shortage of capital, industries in underdeveloped countries are not able to expand at a fast enough rate, leading to a heavy concentration in agriculture. This concentration is often a reflection of poverty and limited opportunities in other sectors. It is important to note that the lack of capital also hinders technological development and the adoption of modern methods of production in agriculture, contributing to low agricultural productivity in underdeveloped economies.
What is the main reason for the low per capita income in underdeveloped countries?- a)Inequitable distribution of wealth and income
- b)High rate of population growth
- c)Predominance of agriculture
- d)Deficiency of capital
Correct answer is option 'A'. Can you explain this answer?
What is the main reason for the low per capita income in underdeveloped countries?
a)
Inequitable distribution of wealth and income
b)
High rate of population growth
c)
Predominance of agriculture
d)
Deficiency of capital
|
|
Universal Academy answered |
The main reason for the low per capita income in underdeveloped countries is the inequitable distribution of wealth and income. In underdeveloped countries like India, there is a concentration of wealth and economic power in the hands of a few, leading to income inequalities. This results in a low per capita income for the majority of the population. The low per capita income is reflected in the low standards of living and high levels of poverty. Addressing income inequalities is crucial for improving the per capita income and overall development in underdeveloped economies.
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