inclusive growth, sustainable development & employment section 1 Practice Questions Answers Test with Solutions & More Shortcuts

Answer: (b)

A theory is an established explanation that accounts for known facts or phenomena.

Specifically, economic theories ate statements or propositions about patterns of economic behaviour under certain circumstances.

These theories help us sort out and understand the complexities of economic behaviour (Exploring Economics by Robert L. Sexton, p 9).

Answer: (d)

Human Development Report the HDI combines three dimensions:

• A long and healthy life: Life expectancy at birth,
• Education index: Mean years of schooling and
• Expected years of schooling and A decent standard of living: GNI per capita (PPP US$).

Answer: (c)

Disguised unemployment arises because more labourers work in the factory/land than are required. And hence productivity

i.e. production per unit of labour will be less. So, (ii) statement is correct.

In such a case, if we add more capital then production may increase but if we add more labour then production will not increase.

So, Marginal Productivity of capital = $\text"change in production"/\text"change in capital"$ will be positive

But, Marginal Productivity of labour = $\text"change in production"/\text" change in labour"$ will be zero

Answer: (b)

The origins of the Human Development Index (HDI) are found in the annual Human Development Reports of the United Nations Development Programme (UNDP). These were devised and launched by Pakistani economist Mahbub ul Haq in 1990.

To produce the Human Development Reports, Mahbub ul Haq brought together a group of well-known development economists including:

1. Paul Streeten,
2. Frances Stewart,
3. Gustav Ranis,
4. Keith Griffin,
5. Sudhir Anand and
6. Meghnad Desai.

But it was Nobel laureate Amartya Sen’s work on capabilities and functionings that provided the underlying conceptual framework.

Answer: (d)