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NARAYAN CHANGDER
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 PRACTICE BOOK» NOT FOR SALE
Contents

1 DEVELOPMENT ECONOMICS . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.1 DEVELOPMENT ECONOMICS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
 1. DEVELOPMENT ECONOMICS

NARAYAN CHANGDER
1.1 DEVELOPMENT ECONOMICS
1. External Economies means creation of Ex- 4. In the model of nutritional status, what
ternal Economies. are the factors affecting energy intake of
A. True an individual?
A. Resting metabolism
B. False
B. Energy expended on physical work
2. Usually, goods that are natural monopolies
C. Energy released from the body
are provided by governments (social plan-
ner) instead of private firms, because: D. All the above
A. Governments can veto the entrance of 5. The discontinuous portion in the Aggregate
private firms by amending the law around Supply Curve of labor represents which
business operating natural monopolies form of unemployment?
B. Private firms would compete on price, A. Involuntary
and therefore induce final prices to be too
high for the final consumers to afford B. Voluntary

C. Private firms would not be able to bear C. Frictional

the high fix costs typical of these markets D. Seasonal
D. Private firms would compete on quanti- 6. Based on the graph, which area is the
ties, bringing the optimal production quan- coolest temperature?
tity to be too low to satisfy all consumers.

3. how many National parks are their in MP

A. 7
B. 10
C. 9
D. 11

1. A 2. C 3. C 4. D 5. A 6. B
1.1 DEVELOPMENT ECONOMICS 3

A. downtown 11. Which organization works with farmers in

India to promote sustainable agricultural
B. rural
practices?

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C. suburban residential
A. Grameen-Danone Food Company
D. park B. Sulabh International Social Service Or-
ganization
7. In this article, authors study the relation-
ship between C. M.S. Swaminathan Research Founda-
tion (MSSRF)
A. Economic Growth and Poverty
D. SKS Microfinance
B. Economic Growth and Inequality
12. In Lee et al. (2019) households’ surveys
C. Poverty and Inequality
responses about accepting credits to con-
D. Economic Growth, Inequality and- nect to the grid are consistent with house-
Poverty holds’ behaviours once the subsidies are
actually offered.
8. The basic of Schumpeter theory of Devel-
A. False
opment
B. True
A. Trade cycle
13. In this urban model, land prices would be
B. Innovation
highest in the area labeled
C. Investment
D. Saving

9. Which of the following graphs illustrate a

weak poverty trap?

A.

B.
A. 1
B. 2
C.
C. 3
D. 4
D.
14. In de Mel et al. (2013) the effect of for-
malization is:
10. Solow built his model as an alternative
which model A. statistically significant for profits,
sales and capital stock
A. kaldor
B. statistically significant only for sales
B. Harrod Judges and profits
C. Frog-Fairy C. statistically significant only for profits
D. Meade’s D. statistically significant only for sales

7. D 8. B 9. B 9. D 10. B 11. C 12. A 13. A 14. C 15. C

1.1 DEVELOPMENT ECONOMICS 4

15. Marshallian inefficiency is based on: 20. y = k.L(1−a)

A. Efficiency of fixed-rent contracts A. The marginal product of capital is con-
B. Inefficiency of share-cropping stant
C. Appropriate provision of incentives B. The marginal product of capital is de-
creasing
D. None of the above
C. The marginal product of capital is in-
16. In this study, the authors employed the creasing
variables of child schooling outcomes.

NARAYAN CHANGDER
D. The marginal product of capital equals
A. 3 the marginal product of labor
B. 4
21. The Essay on the Principle of Population
C. 5 was written by
D. 6 A. The World Bank
17. The source of data for this study is, B. Julian Simon.
A. Pakistan Demographic and Health Sur- C. Thomas Robert Malthus
vey
D. Abraham Lincoln.
B. PakistanSocial and Living Standards
Measurement survey 22. How long has Oxfam been operating in
Vietnam?
18. Which sector do Export Promotion Councils
(EPCs) in India focus on? A. 10 years
A. Textiles B. 30 years
B. Education C. 50 years
C. Technology D. Almost 70 years
D. Healthcare 23. Which historical movements did NGOs
play a significant role in?
19. Name this theory
A. Industrial revolution and labor rights
B. Civil rights and racial equality
C. Anti-slavery and women’s suffrage
D. Environmental conservation and
wildlife protection

24. Which of the following examples does not

fall under unorganized sector?
A. A farmer irrigating his field.
B. A daily wage labourer working for a
contractor.
A. Rent-bid
C. A doctor in a hospital treating a pa-
B. Rent to buy tient.
C. Bid-Rent D. A handloom weaver working on a loom
D. Land value in her house.

16. C 17. B 18. A 19. C 20. A 21. C 22. D 23. C 24. C

1.1 DEVELOPMENT ECONOMICS 5

25. The authors found that children belonging 30. What is the focus of the Mekong Inclusion
to flood-affected districts have school- Project?
ing outcomes.

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A. Promoting inclusive economic growth
A. Good in the Mekong region
B. Poor B. Enhancing access to healthcare ser-
vices for marginalized communities
26. Harrod Domar growth theory consider
C. Advocating for indigenous rights and
as a key factor in economic growth pro-
land protection
cess?
D. Promoting local community participa-
A. Labour tion in water resource governance
B. Capital Accumulation
31. Which of the following best describes Hu-
C. Growth man Development?
D. Consumption A. Measures high, low and middle income
countries.
27. The Human Development Index does not
contain which of the following measure- B. The environment people grow in.
ments? C. Used to compare countries to see what
A. GDP per Capita life would be like.

B. GNI for Capita D. Is a concept that provides a more ac-

curate picture of well people are living in
C. Indicators of Education their countries.
D. Life Expectancy
32. What is the objective of Oxfam’s “My
28. What is the primary goal of microfinance Rights, My Voice” project in Vietnam?
NGOs? A. Promote access to clean water and
A. Providing healthcare services to disad- sanitation
vantaged individuals B. Empower children and young people to
B. Promoting financial inclusion and eco- claim their rights to quality education
nomic well-being C. Provide emergency aid to vulnerable
C. Advocating for trade policies that ben- communities
efit small businesses D. Advocate for human rights and democ-
racy in Vietnam
D. Constructing infrastructure projects in
underserved areas 33. In this article, the authors used the as
proxy of poverty.
29. If people with higher incomes pay a higher
percentage of income in taxes, the income A. Absolute poverty
tax structure is B. Relative poverty
A. progressive. C. Headcount poverty index
B. regressive D. multidimensional poverty index
C. value-added taxes (VAT) 34. Which of the following economist had not
D. excise taxes. proposed Balanced Growth Theory?

25. B 26. B 27. A 28. B 29. A 30. D 31. D 32. B 33. C 34. D
1.1 DEVELOPMENT ECONOMICS 6

A. Rodan 38. DPA’ means *

B. Lewis A. Directly Productive Action
C. Corners B. Directly Prepared Action
D. Singer C. Directly Productive Activities
D. none of above
35. Which statement is not correct?
A. Corruption effects on country socio- 39. What is NGO?

economic situation.
B. Corruptions promote income inequal-
ity.
C. Corruption contributes to an efficient
allocation of resources
D. Corruption tends to lower the returns
to education
36. According to the video you saw in prepa-
ration of today’s class how many masks
entered the sea in 2021?
NARAYAN CHANGDER
A. No (G)nut N(O)vember
B. Nine Goat Onward
C. NOT your Girl
D. Non Governmental Organization
40. Which of the following are advantages to
the HDI?
A. Provides a more comprehensive in-
sight into a country than just GNI.
B. Collecting data can be complex.

A. 150 million masks C. Makes comparison between countries

easy.
B. 750 million masks
D. Draws attention to significant global
C. 1.5 billion masks differences and raises awareness to im-
D. 7.5 billion masks prove these living standards.
E. Takes into account personal feelings.
37. According to Lewis’ Theory of Develop-
ment, additional workers can be with- 41. According to the Harrod-Domar growth
drawn from the agricultural sector only at: model, what is the size of savings ra-
A. a lower cost of lost food production tio that yields sufficient growth to transit
because the declining labor-to-land ratio from one stage of development to the next
means that the marginal product of rural one?
labor is no longer zero. A. ≥ 2%
B. a higher cost of lost food production B. ≥ 6%
because the declining labor-to-land ratio C. ≥ 30%
means that the marginal product of rural
labor is no longer zero. D. ≥ 15%
C. a lower cost of lost food production 42. As economic development proceeds, in-
because the increasing labor-to-land ratio come inequality tends to follow a(n)
means that the marginal product of rural curve
labor is no longer zero. A. convex.
D. a higher cost of lost food production B. inverted U-shaped
because the increasing labor-to-land ratio
means that the marginal product of rural C. L-shaped
labor is no longer zero. D. S-Shaped.

35. C 36. C 37. B 38. C 39. D 40. A 40. C 40. D 41. D 42. B 43. A
1.1 DEVELOPMENT ECONOMICS 7

43. Which of the following models is not an 49. In this study, the authors examined the
exogenous growth model? production of the region’s three principal
staple crops:

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A. The Romer model
A. Maize, wheat, and Soybeans
B. The Solow model
B. Maize, Potatoes, and Soybeans
C. The Harrod-Domar model
C. Maize, wheat, and rice
D. The Lewis model
D. Rice, wheat, and Cassava
44. Covid-19 contributed to a recovery of en- 50. In this study, the authors examined the im-
dangered species. pact of on children’s schooling.
A. True A. Earthquake
B. False B. Flood
C. Drought
45. Which document provides detailed infor-
mation to enable tendering for contracts? D. Cold Wave
A. Architects working drawings. 51. Who gave the Big Push Theory
B. Schedule. A. Hicks
C. Bill of quantities. B. Keynes
D. Conditions of contract. C. Rodan
D. Smith
46. Who gave theory of unbalanced growth
52. Select which of the following options could
A. Amatya Sen be identified as “infrastructure” in devel-
B. Rajinikanth opment economics:
C. Manmohan Singh A. .Water management.Dams
D. Hirschman B. . Wifi connection cables. Highways
C. Airports
47. Development of an individual refers to
D. All
A. mental development
53. If China’s GDP increased from $997.5 bil-
B. physical development lion in 1999 to $1, 076.9 billion in 2000.
C. spiritual development What will be the growth rate of China’s
GDP in 2000
D. overall development
A. 8 %
48. The difference between GDP and GNI is B. 10 %
that GNI contains
C. 9 %
A. Life Expectancy D. 5 %
B. Remittances
54. Which field has Oxfam achieved achieve-
C. Education Levels ments in Vietnam?
D. Natural Resources A. Environmental conservation

44. B 45. C 46. D 47. D 48. B 49. C 50. B 51. C 52. D 53. A 54. C 55. A
1.1 DEVELOPMENT ECONOMICS 8

B. Infrastructure development 59. According to estimation results, variations

in seasonal precipitation significantly af-
C. Gender equality and women’s empow-
fect RGDP growth rates.
erment
D. Healthcare and disease prevention A. False
B. True
55. In Asher and Novosad (2019), what do
the authors do to minimise the drawbacks 60. Name the model
associated with multiple hypothesis test-

NARAYAN CHANGDER
ing?
A. The authors group similar individual
outcomes in five big “macro” groups
(transportation, labor market, firms, agri-
culture and asset/consumption index).
B. no answer
A. The Sector Model
56. What is the principle reason for market
B. Concentric Zone Model
failure of the market for animal power?
C. Multiple Nuclei Model
A. Dearth of capital
B. Time bound use of animal power D. British Urban land Use Model

C. Low availability of healthy animals 61. Big push means

D. All the above A. bit by bit investment

57. how may growth acc to harrod B. small investment

A. 1 C. huge investment

B. 2 D. No investment
C. 3 62. Which of the following could not be consid-
D. 4 ered a major economic system?
A. capitalism
58. What have we learned from the experi-
ence of China and India? B. communism
A. That the key for sustainable growth is C. socialism
economic autarky
D. human development index
B. That the key for sustainable growth
is the development of alliances with core 63. According to Rostow, what is the main fac-
partners tor of development?
C. That the key for sustainable growth is A. Political change
to trade only with other developing coun-
B. Imports
tries
C. Investment in capital
D. That the key for sustainable growth is
to hinder capitalism spread D. Education

56. B 57. C 58. B 59. B 60. B 61. C 62. D 63. C 64. A

1.1 DEVELOPMENT ECONOMICS 9

64. Who prepared Human Development Index 69. If the steady state rate of savings is too
low, then the policymaker who success-
A. Mahabub-Ul-Haq
fully raises the saving rate will enact a pol-

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B. Amartya Sen icy that
C. Abhijit Banerjee A. Causes consumers in this economy to
reduce their consumption per worker ini-
D. None Of the above
tially due the higher savings rate.
65. In Lee et al. (2019) the authors do not B. Causes investment spending to fall ini-
take into account negative environmental tially since the level of savings is too low
externalities of electricity grid connection for this economy.
since Kenya has a relatively sustainable C. Alters the marginal product of capital
electricity management. per worker for this economy
A. True D. Alters the steady state level of depre-
B. False ciation schedule for this economy

70. Dividing the total income of country with

66. Per capita income hides
its population, we getI. Per-Capita in-
A. (a) disparities comeII. National incomeIII. Average In-
comeIV. Total Income
B. (b) average income
A. Only III
C. c) total population
B. I and II
D. (d) none of these
C. All of the above
67. In poverty trap models, what is meant by D. None of these
“coordination failure”?
71. The per-capita income of different coun-
A. The incapacity of countries to con-
tries is counted in which currency?
verge because of a lack of political coor-
dination between them. A. (a) Rupees
B. The incapacity of markets to transfer B. b) Pounds
information and knowledge. C. c) US Dollars
C. The incapacity of individuals to work D. (d) Canadian Dollars
hand-in-hand towards development.
72. In this article, authors used the
D. The incapacity of governments to im-
pose their policies. A. Balanced Panel Data of 16 African
Countries
68. Development goal for landless agricultural B. Unbalanced Panel Data of 16 African
labour is Countries
A. high prices for crops
73. Explain how in McKenzie (2017) the au-
B. more days of work thor checks whether the effect of being
assigned to the treatment is driven by a
C. cheap labour
handful of specific firms. Also comment on
D. pollution free environment the results he finds.

65. A 66. A 67. B 68. B 69. A 70. A 71. C 72. B

1.1 DEVELOPMENT ECONOMICS 10

A. He estimates a quantile regression
where he checks if the treatment effect
is different at different percentiles of the
firm size distribution. He finds that results
are not driven by outliers neither for the
sample of new firms (where the effect is
similar in magnitude to the main
B. regression estimates between the
77. When studying the reasons for which
small firms don’t grow bigger, it is impor-
tant to focus on a representative sample
of small firms in order to ensure external
validity.
A. True
B. False

NARAYAN CHANGDER
30th and 90th percentiles), nor for ex- 78. Women who bear sons often enjoy high
isting firms (where the effect is similar prestige while those who fail to do so face
in magnitude to the main regression es- social stigma and pressure at home leading
timates between the 20th and 90th per- to domestic violence, divorce.
centiles). A. True
C. Both B. False
D. none of above
79. According to Solow’s growth model
74. The process by which the population of (Q=AKa Lb), what would be the expected
cities grow impact of a growth resulting from capital
accumulation?
A. Counterurbanization
A. Growth will be slow when countries
B. Ghetto first begin to accumulate capital, and will
C. Urbanization increase as the process of accumulation
continues.
D. Slum
B. Countries will tend to converge in out-
75. If a business specialises in fishing then it put per capita and in standard of living.
would be classed as operating in which eco- C. Growth will be continuous and linear.
nomic sector?
D. Countries won’t be able to act upon the
A. Primary multifactor productivity.
B. Secondary
80. According to findings, the association be-
C. Tertiary tween female decision-making and son
D. Quarternary preference is found to be statistically sig-
nificant for three out of four types of intra-
76. Which among the following statement(s) household decisions.
on classical theory of development is/are A. True
correct(A) Surplus accumulation by the cap-
B. False
italists is the source of growth. (B) Ac-
cumulation leads to decreased demand for 81. Workers in the sector do not produce
labour. goods.
A. (A) only A. Primary Sector
B. (B) only B. Secondary Sector
C. Both (A) and (B) C. Tertiary Sector
D. Neither (A) nor (B) D. none of above

73. C 74. C 75. A 76. A 77. B 78. A 79. B 80. A 81. C 82. A
1.1 DEVELOPMENT ECONOMICS 11

82. Meaning of development is different for A. The Sector Model

A. different people B. Concentric Zone Model

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B. alien people C. Multiple Nuclei Model
C. same people
D. British Urban land Use Model
D. none of these
83. Which year Gender Adjusted HDI was in- 87. Human Development Index is used to mea-
troduced sure Human Development in any country.
Which of the following is not a dimension
A. 1990 used?
B. 1995
A. Lead a long and healthy life
C. 2000
B. Knowledge
D. 2005
C. Happiness
84. Consider the Solow model q=100k0.5. If
growth were due exclusively to capital D. Decent standard of living
accumulation, this model would result in
a steady-state output of 3, 000 and a 88. There are three broad categories of coun-
steady-state capital stock of 900. What tries we have discussed in development.
would happen if the model’s multifac- They are:
tor productivity coefficient increased from A. Developing, Secondary, Developed
100 to 200?
B. Developing, Emerging, Developed
A. The growth per capita would beq*’=6,
000 with k*=900. C. Low Income, Emerging, 1st World
B. The growth per capita would beq*’=6, D. Third World, Growing, 1st World
000 with k*’=200.
C. The growth per capita would beq*’=7, 89. Which of the following statements is
000 with k*’=200. TRUE?
D. The growth per capita would beq*=3, A. Share-cropping increases the return to
000 with k*=900. risk averse tenants in good harvest

85. Which of the following was not a classical B. Share-cropping increases the return
economist? to risk averse tenants in bad harvest
A. adam smith C. Fixed rent increases the return to land-
B. malthus lord in bad harvest
C. ricardo D. All the above
D. keynes
90. In this study, the authors examined the im-
86. Name the model pact of floods on children’s schooling.
A. 2008
B. 2009
C. 2010
D. 2011

83. B 84. A 85. D 86. A 87. C 88. B 89. B 90. C 91. A

1.1 DEVELOPMENT ECONOMICS 12

91. Per capita income of Kerala is higher than 95. A situation in which more persons reem-
that of ployed on a job than are optimally required
A. (a) Bihar is

B. (b) Punjab A. Structural unemployment

C. c) Gujarat B. Disguised unemployment

D. (d) none of these C. Cyclical unemployment

D. Seasonal unemployment

92. In the Solow Growth Model holding every-
thing else constant, an increase in the rate
of depreciation will
A. Decrease the level of steady state cap-
ital per worker
B. Increase the level of steady state cap-
ital per worker.
C. Have no effect on the level of steady
state capital per worker.
D. none of above
93. Which of the following figures illustrates
the poverty trap caused by an economic cri-
sis?
A.
NARAYAN CHANGDER
96. Harrod-Domar model of economic growth
is based on the equilibrium between
A. Income generation and productive ca-
pacity creation
B. Equilibrium between income and con-
sumption
C. Equilibrium between savings and in-
vestment
D. Equilibrium between consumption and
investment
97. In Cost/Benefit Analysis, when does
adding an additional unitpays off?

B.

C.

A. Marginal benefits exceed marginal

D. costs.
B. Marginal costs exceed marginal bene-
94. What is one way NGOs advocate for the fits.
poor and influence government policies?
C. Marginal costs equal marginal bene-
A. Providing financial aid directly to indi- fits.
viduals
D. None of the above.
B. Organizing public protests and demon-
strations 98. McKenzie (2017) both males and females
could participate to the YouWIN! Business
C. Establishing social enterprises and co-
Plan Competition.
operatives
D. Conducting research studies on A. True
poverty B. False

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1.1 DEVELOPMENT ECONOMICS
99. Name the model
A. The Sector Model
B. Concentric Zone Model
C. Multiple Nuclei Model
D. British Urban land Use Model
100. Overall, authors see the effect of eco-
nomic growth on poverty?
A. Negative
B. Positive
101. According to Lewis’ Theory of Develop-
ment, at constant urban wage:
A. The supply curve of rural labor to the
modern sector is considered to be per-
fectly elastic
B. The supply curve of rural labor to the
modern sector is considered to be per-
fectly inelastic
C. The demand curve of rural labor to the
modern sector is considered to be per-
fectly elastic
D. The demand curve of rural labor to the
modern sector is considered to be per-
fectly inelastic
102. In the Solow Growth Model, the steady
state level of capitalper worker occurs
when
A. Output per worker is maximized and
constant
B. Consumption per worker is maximized
and constant
C. The level of investment per worker
equals the amount ofcapital per worker
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13
that depreciates during the particular
time period.
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D. All of the above statements are true
for the steady state level of capital per
worker in the Solow Growth Model
103. The total number of children attending
school as a percentage of total number of
children in the same age group is called
A. net attendance ratio
B. literacy rate
C. gross enrolment ratio
D. level of education
104. The flying geese pattern of industrial de-
velopment illustrates:
A. α -convergence
B. β -convergence
C. No convergence
D. Divergence
105. Which funding agency supports Oxfam’s
Mekong Inclusion Project?
A. United Nations Development Pro-
gramme (UNDP)
B. Swedish International Development
Cooperation Agency (SIDA)
C. Australian Department of Foreign Af-
fairs and Trade
D. World Bank
106. When conducting a cost-benefit analy-
sis, people analyze where to spend their
money to see what will give them the
most
A. Answers
B. Taxes
C. Benefits
D. Consequences
1.1 DEVELOPMENT ECONOMICS 14

107. When we produce a good by exploiting B. Inter-linked contracts

natural resources, it is an activity of the: C. Rationing
A. Secondary sector D. All the above
B. Tertiary sector
113. How did the concentration of nitrogen
C. Primary sector dioxide in Delhi change during the first
D. Organised sector lockdown?
A. decreased by 15%
108. Why would land be more expensive in

NARAYAN CHANGDER
the CBD (Central Business District) of an B. decreased by 30%
urban area? C. decreased by 50%
A. the lack of skyscrapers. D. decreased by 70%
B. the lack of residential space. 114. How will energy demand increase until
C. high threshold and range. 2050?
D. competition for limited space. A. By 30%
B. By 50%
109. Who created Human Development In-
dex? C. By 70%
A. Mahabub ul Haq D. By 90%
B. Amartya Sen 115. Adam Smith advocated I laissez-faire. II
C. Abhijit Banerjee the invisible hand. III free-trade policy. IV
competitive markets.
D. Joseph Stiglitz
A. I & II
E. Pranab Bardhan
B. ONLY I
110. What is India’s rank in HDR 2020 C. I, II & III
A. 10 D. I, II, III AND IV
B. 59
116. By how much will the food production
C. 151 need to increase to meet the demands of
D. 131 the global population in 2050?
A. By 20%
111. The total number of children attending
school as a percentage of total number of B. By 40%
children in the same age group is called C. By 60%
A. net attendance ratio D. By 80%
B. literacy rate 117. In regards to Sustainable Development
C. gross enrolment ratio the environment acts as/provides
D. level of education A. Resources
B. Externalities
112. Why is it that the informal lenders have
an edge over the formal lenders in the agri- C. Amenities
cultural credit market? D. Public Goods
A. Informational constraint E. An absorber of waste

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1.1 DEVELOPMENT ECONOMICS 15

118. In this study, the authors have used they rationally compare costs and bene-
data of rain. fits of being informal and the benefits out-
weigh the costs. Following the exclusion

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A. Annual
view businesses exit the formal sector be-
B. Bi annual cause of the burdensome costs of regula-
C. Monthly tion.
D. Weekly B. De Mel et al. (2013) points towards
exit view; the exclusion view can’t be right
119. Which of the following graphs illustrate for this case because small businesses of-
a strong poverty trap? fered with ‘only’ information about regis-
tration process with tax authority + reim-
A.
bursement of direct registration fees (T1)
did not register significantly more than
B. the control group.
C. both
C. D. none of above
123. All of the following are examples of why
large cities are so accessible EXCEPT
D.
A. Transportation systems
120. Average income and per capita income B. Highways
both are the same concepts. C. Technology
A. true D. Industry
B. false
124. Which intuition did Cardoso, Faletto and
121. Which is the demerit of classical’s descrip- Wallerstein share about development?
tion of labour market? A. The necessity to adopt a three-
A. Distinction between labour power and level structure of analysis:core/semi-
labourer periphery/periphery
B. State of rest or stationarity at the equi- B. The acceptance of an inertia of the
librium level countries’ status
C. Prevalence of two wage rates:W(H) & C. The attribution of the sole responsibil-
W(L) ity of underdevelopment to the policies of
the industrial capitalist countries
D. All the above
D. The necessity to adopt a historical-
122. Summarise in a few words the two hy- structural approach
potheses that explain why small busi-
nesses in developing countries remain 125. The association of undernourishment-
largely informal. Also elaborate on which prevalence with cereal production, per
of the two theories seems to be at work in capita production and yield, and all the
the context of one of the papers we saw three productionindicators is found to be
together, and why. statistically
A. Following the exit view, small busi- A. Insignificant
nesses exit the formal sector because B. Significant

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1.1 DEVELOPMENT ECONOMICS 16

126. Who is responsible for rural development 131. According to the linear-stages approach,
planning in Malaysia? in the absence of government intervention,
A. Town and Country Planning Depart- how will the growth rate of national in-
ment (Plan Malaysia) come be related to the savings ratio?

B. Ministry of Housing and Local Gover- A. Inversely or positively related

nance B. Inversely or negatively related
C. Directly or positively related
127. Which of the following words BEST de-

NARAYAN CHANGDER
scribes the characteristics of a city? D. Directly or negatively related
A. Rural 132. Which age group of children is included
B. Suburban for calculating Net Attendance Ratio?
C. Urban A. 6-10
D. none of above B. 7-11
C. 5-9
128. Which country has the highest total
greenhouse gas emissions? D. 14-15
A. Russia 133. The HDI calculates the 4 indicators to give
B. USA a score between what?

C. China A. 0-100

D. India
129. Which of the following is not an impact of
the neo-classic counter-revolution on eco-
nomic theory and policy in developing coun-
tries?
A. Freer markets
B. Reinforcement of public ownership
C. Statist planning
D. Government regulation of economic
activities
130. What are the 2 indicators used to mea-
sure knowledge?
A. Mean years of schooling completed by
25 years and over
B. Number of students completing Year
12
C. Average ATAR/equivalent scores each
year
B. 0-1
C. 0-10
D. 1-2
134. Rostow’s economic stages are
A. the preconditions for takeoff, the take-
off, the drive to maturity, and the age of
creative destruction.
B. the traditional society, the precondi-
tions for takeoff, the takeoff, the drive to
maturity, and the age of high mass con-
sumption.
C. the preconditions for consumption, the
replication, the drive to maturity, and the
age of high mass consumption
D. NONE OF THESE
135. all investment should be in all sectors
A. balanced
B. unbalanced

D. Expected years of schooling at school C. harrod

entrance age. D. Judges

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1.1 DEVELOPMENT ECONOMICS 17

136. NREGA (National Rural Employment 139. The effect of floods on children’s school-
Guarantee Act of 2005) has guaranteed ing outcomes is
days of employment in a year in many

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A. Significant
districts of India. What are the correct
number of days? B. Insignificant
A. 200 days
140. In this study, the authors examined the
B. 100 days impact of the 2010 floods on children’s
C. 30 days schooling by taking the level data.
D. 60 days A. Region

137. According to Lewis’ Theory of Develop- B. Province

ment: C. Analyst
A. Rural wages would have to be at least D. District
30% higher than average urban income
to induce workers to migrate from their 141. What is the share of the global popula-
home areas. tion that is breathing unhealthy air?
B. Rural wages would have to be at most A. 30%
30% higher than average urban income to
induce workers to migrate back to their B. 50%
home areas. C. 75%
C. Urban wages would have to be equal D. 95%
to the average rural income to induce
workers to migrate from their home ar- 142. HDI is compared on the basis of education
eas. only.
D. Urban wages would have to be at least A. true
30% higher than average rural income
to induce workers to migrate from their B. false
home areas.
143. Which year National Food Security Act in
138. In McKenzie (2017) the treatment and India Implemented
control groups are: A. 2001
A. Balanced alongside baseline charac-
B. 2017
teristics for the group of new firms, but
unbalanced for the group of existing firms C. 2013
B. Balanced alongside baseline charac- D. 2015
teristics for the group of existing firms,
but unbalanced for the group of new firms 144. In which province did Oxfam provide non-
emergency aid to 550 poor households?
C. Balanced alongside baseline charac-
teristics for the group of new firms and A. An Giang
for the group of existing firms
B. Ha Tinh
D. Not balanced alongside baseline char-
C. Lao CAI
acteristics neither for the group of new
firms nor for the group of existing firms D. Ninh Thuan

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1.1 DEVELOPMENT ECONOMICS 18

145. A value of 1 in Gini index represents 150. Out of 200 million children in the school
A. low inequality going age group, how many are attending
schools?
B. maximum inequality.
C. 1% inequality. A. One-fourth
D. I & III B. Two-thirds
146. In a Solow Growth Model with no popu- C. One-fifth
lation growth and no technological change,

NARAYAN CHANGDER
D. Half
consumption per worker will be maxi-
mized in the steady state when
151. According to estimation results, varia-
A. Output per worker is maximized.
tions in yearly precipitation levels do not
B. Investment per worker is maximized. significantly affect RGDP growth rates.
C. The marginal product of capital per
A. True
worker is equal to thedepreciation rate.
D. The marginal product of labor is equal B. False
to the depreciation rate
152. Who developed the concept of interna-
147. Expand ‘SOC’ tional division of labor?
A. Service Overhead Capital
A. Marx
B. Social Operating Capital
C. Special Operating Capital B. Lenin

D. Social Overhead Capital C. Frank

148. How has PRADAN enhanced the produc- D. Wallerstein

tivity of participating farmers?
A. By providing access to modern mar- 153. Central government in India made a law,
kets implementing the Right to Work in how
many districts of India?
B. By offering educational programs on
crop selection A. 150 districts
C. By implementing sustainable farming B. 200 districts
practices
D. By organizing public forums for farm- C. 250 districts
ers D. 625 districts
149. if the share of savings s is 6% and the
capital-output ratio k is 4/1, according to 154. When comparing GNI across countries we
the linear-stages approach, what will be adjust it by using
the GNP growth?
A. Powerful Purchasing Parity
A. +1%
B. Purchasing Power Parity
B. +1.5%
C. +2% C. Purchasing Potential Parity
D. +2.5% D. Particular Purchasing Parity

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1.1 DEVELOPMENT ECONOMICS
155. Asher and Novosad (2019)’s results are:
A. a. In line with what has been found in
similar research
B. b. Completely different with what has
been found in similar research
C. Not comparable with other research
as there is no similar papers to confront
the results with
D. none of above
156. To which stream of dependence theorists
can we associate the claim that interre-
lations between the core and the periph-
ery serve to “develop its underdevelop-
ment”?
A. Neocolonial dependence model
B. False-paradigm model
C. Dualistic-development thesis
D. World systems theory
157. Sons are supposed to be the households’
economic asset in societies.
A. Patrilocal
B. Patricide
C. Patrilineal
D. Primogeniture
E. Matrilineal
158. In this study, the authors take the
variables of interest.
A. 2
B. 3
C. 4
D. 5
159. Which growth model inspired the use of
capital-output ratio for development plan-
ning?
A. The Harrod-Domar model
B. Solow’s model
C. Kaldor’s model
D. Feldman’s model
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19
160. In Asher and Novosad (2019) all villages
above the cut-off thresholds (of 1, 000
and 500 inhabitants) received a paved
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road at the latest by 2007.
A. True
B. Fold
161. According to the Kuznets curve:
A. Income inequalities will increase after
50% of the shift force switches over to the
higher paying sector.
B. Countries should develop their econ-
omy without increasing income per capita
inequalities.
C. The income gap depicted by the Lewis
model is justified in the transition phase
from rural to modern economy.
D. Development necessarily goes hand in
hand with anti-pollution measures.
162. Which among the following is not a public
facility?
A. Transport and electricity
B. Roads and bridges
C. Private School
D. Government hospitals
163. How do NGOs contribute to infrastruc-
ture development in India?
A. By providing small loans and savings
accounts
B. By organizing public forums and en-
gagement
C. By constructing roads, bridges, and ir-
rigation systems
D. By promoting sustainable agricultural
practice
164. In the Solow growth model, the demand
for goods equals investment:
A. Minus depreciation
B. Plus saving
1.1 DEVELOPMENT ECONOMICS 20

C. Plus consumption B. Investment and average growth rate

D. Plus depreciation of income
C. Actual, warranted and natural growth
165. Which parameters does the structural rate.
change approach add to the Harrod-Domar
D. Productivity growth and investment
model?
growth
A. Domestic savings
170. Meaning of development is different for
B. Government expenditure

C. Domestic investment capacity
D. International financial support
166. According to estimation results, varia-
tions in seasonal precipitation significant
impacts on states’ RGDP growth
rates.
A. Negative
B. Positive
167. Which program of PRADAN aims to im-
pact the lives and livelihoods of small-
holder women farmers?
A. TASAR Development Foundation
B. National Smallholder Poultry Develop-
ment Trust (NSPDT)
C. LEAP-Livelihoods Enhancement
through Market Access and Women Em-
powerment
D. Farmer Producers Organization (FPO)
Initiative
NARAYAN CHANGDER
A. different people
B. alien people
C. same people
D. none of these
171. The Solow’s growth model is defined us-
ing a Cobb-Douglas function Q=AKa Lb.
Which hypothesis does this imply on the
behavior of K and L?
A. K and L have independent linear re-
turns to scale
B. K and L have independent decreasing
returns to scale
C. K and L have combined increasing re-
turns to scale
D. K and L have combined decreasing re-
turns to scale
172. Women with at least one son have more
say in everyday household decisions in-
volving their healthcare, social, economic
affairs, and financial matters.

168. According to World Bank (2015), climate A. True

change will likely have the strongest B. False
impacts on the world’s poorest nations
and regions. 173. Workers in the sector do not produce
goods.
A. none
B. Positive A.
C. Negative
D. none of above Primary Sector

169. Harrod-Domar model of growth is based B.

on the concepts of and their equality
A. Population and productivity growth Secondary Sector

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1.1 DEVELOPMENT ECONOMICS 21

178. The clearing of a forest and its replace-

C. ment by another land use is called

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Tertiary Sector A. forestry
D. none of above B. clear-cutting
C. timber harvesting
174. How much more medical waste was pro-
duced by the Wuhan hospitals after the D. deforestation
outbreak of Covid-19 179. The effect of corruption on both migra-
A. the hospitals produced 50% more tions (By Pooled OLS)
waste A. Positive and insignificant
B. the hospitals produced double the B. Negative and significant
waste C. Positive and significant
C. the hospitals produced 200% more D. Negative and significant
waste
E. None
D. the hospitals produced 400% more
waste 180. According to the multiple nuclei model, an
airport is likely to attract nearby
175. According to the classic bid-rent curve,
what happens to the value of land as one
gets closer to the Central Business District
(CBD)?
A. Land gets used more extensively.
B. Land gets more expensive.
C. Land gets used less intensively.
D. Land gets more affordable along busy
streets.

176. How many randomization cells are there

in De Mel et al. (2013)?
A. hotels and warehouses
A. 2 B. retail and wholesale shops
B. 3 C. residences and highways
C. 4 D. universities and colleges
D. 5 181. In this study, the authors examined the
impact of the 2010 floods on children’s
177. For calculating Body Mass Index (BMI),
schooling by taking the district-level data
weight of the person is divided by the:
of years.
A. Square of the weight A. 2
B. Square of the height B. 3
C. Square root of the height C. 4
D. Square root of the height D. 5

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1.1 DEVELOPMENT ECONOMICS 22

182. When was PRADAN (Professional Assis- B. Inversely correlated

tance for Development Action) created? C. Not related
A. 1978 D. None of the above
B. 1983
188. Which urban land model uses two CBDs?
C. 1990
A. Latin American
D. 1995
B. Multiple Nuclei

183. What is the primary focus of PRADAN?
A. Promoting education in rural areas
B. Providing healthcare services to
marginalized communities
C. Alleviating poverty in Indian rural ar-
eas, with a special focus on women
D. Advocating for environmental conser-
vation in rural regions
184. Take up rates of the treatments offered
in De Mel et al. (2013) are very low.
A. True
B. False
185. According to the linear-stages approach,
how can poor countries compensate for
their low level of new capital formation?
A. By increasing foreign aid and FDI
B. By increasing their capital-output ra-
tio, k
C. By decreasing their capital-output ra-
tio, k
D. By decreasing their export/import ra-
tio
186. Tertiary Sector is also known as
A. Service sector
B. trade
C. hotel and restaurant
D. none of these
NARAYAN CHANGDER
C. Sector
D. Concentric
189. Who’s the most important person in a
construction team?
A. Site manager
B. Client
C. Surveyor
D. Foreman
190. What did Evans show about Brazil that
confirmed the views of Frank?
A. Development is not inconceivable in
the periphery under conditions of depen-
dency
B. Development is inconceivable in the
periphery under conditions of dependency
C. Development is conceivable in the pe-
riphery under conditions of capitalism
spread
D. Development is conceivable in the pe-
riphery under conditions of exchange of
primary products for manufactured goods
from the core
191. A common characteristic of all three mod-
els of urbanization

187. According to the classical theory wage

level and population growth are A. CBD is always in the middle
A. Positively correlated B. none of them include a suburb

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1.1 DEVELOPMENT ECONOMICS 23

C. immigrants live in single-family A. 30 June

dwellings
B. 30 April
D. working class homes located farthest

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from the CBD C. 30 July
192. ITR filing deadline for FY19 extended till D. 30 May

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