EconGlow Institute

Answer:C

According to the Ricardian model, the reason for lower priced services in the LDC's is  a. Labor -productivity in commodities is the same in rich and poor countries, b. Labor-productivity in commodities is lower in poor countries, c. Labor-productivity in services is lower in poor countries, d. None of the above a b c d

Suppose migrants are risks averse, then in the Harris-Todaro model, in equilibrium, the expected urban wages will be _____ the rural wage rate  a. Greater than, b. Equal to, c. Less than, d. None of the above a b c d

In the Harris-Todaro model, in equilibrium, the expected urban wage rate will be _____ the rural wage rate  a. Greater than, b. Equal to, c. Less than, d. None of the above a b c d

According to A. Sen, famines are most likely to occur on account of a. Fall in production of agricultural goods, b. Breakdown in distribution of agricultural goods, c. Adverse weather conditions, d. Fall in money supply a b c d

In a perfectly competitive economy, if the demand curve for labor is infinitely elastic then all of the national income will accrue to  a. Workers, b. Capitalists, c. Landlords, d. None of the above a b c d

According to Malthus, examples of preventive checks are  a. Abortion, b. Deferred marriage, c. Famine, d. Both a and b a b c d

According to Malthus, the fixed factor of production is  a. Labor, b. Capital, c. Land, d. Entrepreneurship a b c d

In the theory of demographic transition, the rate of growth of population is likely to increase in  a. Period I, b. Period II c. Period III d. Period I & II a b c d

In the Harrod-Domar model, it is assumed that the elasticity of substitution between capital and labor is  a. Infinite, b. One, c. Between zero and one, d. Zero a b c d

According to the Harrod-Domar model, an increase in growth rates depends on  a. Increase in capital-output ratio b. Decrease in capital-output ratio, c. Increase in marginal propensity to consume, d. None of the above a b c d

Which of the following is not a weakness of the import substitution strategy of growth  a. Reduces production of modern sector, b. Leads to an inappropriate domestic K/L ratio, c. Leads to a balance of payments problem, d. Reduces exports of agricultural goods a b c d

Which of the following is not true about agriculture's role in economic development  a. Provides labor for non-agricultural sector, b. Provides a market for non-agricultural commodities, c. Source of industrial raw materials, d. None of the above a b c d

An unbalanced growth strategy may be desirable if  a. Indivisibilities are important, b. Expansion costs are important, c. Both of the above, d. None of the above a b c d

If a situation exists where it is not profitable for any single producer to expand production because of market limitation, then the best strategy for the country to adopt would be  a. Balanced growth strategy, b. Unbalanced growth strategy, c. Employment growth strategy, d. None of the above a b c d

According to W.W.Rostow, which of the following does not belong to the "precondition for take off":  a. Increased agricultural productivity, b. Political stability, c. Development of social overhead capital, d. Growth of the durable consumer goods industry a b c d

The extraction of iron ore has increased on account of increased demand for steel. The above is an example of  a. Forward linkages, b. Backward linkages, c. Backward and forward linkages, d. None of the above a b c d