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B Com Exam  >  B Com Test  >  Indian Economy  >  Test: Basic Issues in Economic Development- 1 - B Com MCQ

Basic Issues in Economic Development- 1 - Free MCQ Practice Test with solutions,


MCQ Practice Test & Solutions: Test: Basic Issues in Economic Development- 1 (10 Questions)

You can prepare effectively for B Com Indian Economy with this dedicated MCQ Practice Test (available with solutions) on the important topic of "Test: Basic Issues in Economic Development- 1". These 10 questions have been designed by the experts with the latest curriculum of B Com 2026, to help you master the concept.

Test Highlights:

  • - Format: Multiple Choice Questions (MCQ)
  • - Duration: 10 minutes
  • - Number of Questions: 10

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Test: Basic Issues in Economic Development- 1 - Question 1
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According to Professor Nurkse, how does capital formation contribute to the economic development of underdeveloped countries?

Detailed Solution: Question 1

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.

Test: Basic Issues in Economic Development- 1 - Question 2
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What is the primary difference between capital and capital formation?

Detailed Solution: Question 2

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.

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Test: Basic Issues in Economic Development- 1 - Question 3
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What is the significance of technology in economic growth?

Detailed Solution: Question 3

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.

Test: Basic Issues in Economic Development- 1 - Question 4
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How does technology improve the utilization of natural resources?

Detailed Solution: Question 4

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.

Test: Basic Issues in Economic Development- 1 - Question 5
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What impact does technology have on the quality of goods and services?

Detailed Solution: Question 5

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.

Test: Basic Issues in Economic Development- 1 - Question 6
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How does technology contribute to the expansion of industries?

Detailed Solution: Question 6

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.

Test: Basic Issues in Economic Development- 1 - Question 7
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What effect does technology have on labor efficiency?

Detailed Solution: Question 7

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.

Test: Basic Issues in Economic Development- 1 - Question 8
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How does technology impact the saving of labor?

Detailed Solution: Question 8

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.

Test: Basic Issues in Economic Development- 1 - Question 9
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How does technology impact international trade?

Detailed Solution: Question 9

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.

Test: Basic Issues in Economic Development- 1 - Question 10
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Why is technology important for research?

Detailed Solution: Question 10

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.

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About this B Com Practice Test

This test contains 10 MCQs on Basic Issues in Economic Development- 1 with detailed solutions for each question. It is part of the Indian Economy course on EduRev, designed to align with the current B Com syllabus. Each solution explains not just the correct answer but also gives you an understanding of the topic — not just to attempt the question but also help you prepare for the exam with practice.

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If you found this Basic Issues in Economic Development- 1 MCQ Test helpful, you can further enhance your B Com preparation with in-depth courses on EduRev, for all the subjects and topics available in Indian Economy course. The course offers:
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