inclusive growth, sustainable development & employment section 3 Practice Questions Answers Test with Solutions & More Shortcuts

Question : 1 [HCS (Pre) 2014]

Trace the mismatch between the policy and its year of announcement in the pairs given below.

a) National Water Policy - 2002

b) New National Mineral Policy - 2008

c) National Population Policy – 2012

d) New National Forest Policy - 1988

Answer: (c)

Question : 2 [RAS (Pre) 2015]

The Mudra Yojana of Government of India is designed to

a) initiate reforms in the currency management

b) supplement the Jan Dhan Yojana

c) provide easy financial assistance to set up small business

d) provide loans to poor farmers

Answer: (c)

Question : 3

Which of the following statements are true regarding “Inclusive growth”?

  1. Inclusive growth is fuelled by market-driven sources of growth
  2. Inclusive growth focuses on productive employment
  3. Inclusive growth focuses on income redistribution
Select the correct answer using the code given below:

a) (ii) & (iii) only

b) (i) & (ii) only

c) (i) & (iii) only

d) All of the above

Answer: (b)

Inclusive growth is typically fuelled by market-driven sources of growth with the government playing a facilitating role. Inclusive growth focuses on both the pace and pattern of growth.

How growth is generated is critical for accelerating poverty reduction, hence it focuses on productive employment rather than income redistribution.

Question : 4

Consider the following statements regarding employment elasticity:

  1. It measures the percentage change in economic growth with respect to a 1% increase in employment
  2. The agriculture sector has more employment elasticity as compared to other sectors of the economy
Select the correct answer using the code given below:

a) Both (i) & (ii)

b) (i) only

c) (ii) only

d) Neither (i) nor (ii)

Answer: (c)

Employment Elasticity (of growth) is a measure of percentage change in employment associated with 1 percentage change in economic growth.

Employment elasticity = % change in employment/ % change in economic growth

Employment elasticity of 0.01 implies that with every 1 percentage point growth in GDP, employment increases by just .01 per cent. Employment elasticity is falling consistently from 0.4 in the 1990s to 0.2 in 2014 and then 0.1 now.

The agriculture sector is highly labour-intensive employing around 47% of the labour force to produce 16% of GDP. So, the employment elasticity of the agriculture sector is more.

Question : 5 [SSC GL 2014]

The hypothesis that rapid growth of per capita income will be associated with a reduction in poverty is called

a) U shaped hypothesis

b) trickle up hypothesis

c) poverty estimation hypothesis

d) trickle down Hypothesis

Answer: (d)

According to the trickle-down hypothesis, the rapid growth of per capita income will be associated with a reduction in poverty.

In India, this hypothesis has been interpreted to suggest that growth in agriculture output without radical institution reform will reduce the incidence of poverty in the context of agricultural development in India.

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