macro fundamentals, GDP, investment & growth section 2 Practice Questions Answers Test with Solutions & More Shortcuts
Macro fundamentals, GDP, Investment, Growth PRACTICE TEST [4 - EXERCISES]
macro fundamentals, GDP, investment & growth section 1
macro fundamentals, GDP, investment & growth section 2
macro fundamentals, GDP, investment & growth section 3
macro fundamentals, GDP, investment & growth section 4
Question : 11
A country is going through a phase of industrialization. Which of the following statements are correct?
a) Total factor productivity increases
b) Productivity of labour increases
c) Capital to labour ratio increases
d) All of the above
Answer »Answer: (d)
When a country goes through industrialization, it uses more capital and less labour comparatively or we can say labours are replaced by capital (machinery). That means ratio of capital to labour increases sharply. So, statement (a) is true.
Industrialization also leads to an increase in production of goods and services (with the same amount of labour or maybe less labour). So, production per labour also increases which means an increase in labour productivity. So, statement (b) is also true.
Total factor productivity means the productivity of all factors of production i.e. labour, capital, land etc. During industrialization, since overall production increases, production per unit of inputs i.e. labour, capital, land etc also increases. So, statement (c) is also true. Productivity of labour = $\text"Output"/\text"Labour"$
Productivity of land = $\text"Output"/\text"Land"$
We all know that because of industrialization output increased. Now if output increased (with the same land and labour), then as per the above formula, productivity of land and productivity of labour, both will increase.
So, in case of industrialization, productivity of all the factors of production increases.
IMPORTANT indian economy mcq EXERCISES
Macro fundamentals, GDP, Investment, Growth Shortcuts »
Click to Read...macro fundamentals, GDP, investment & growth section 2 Online Quiz
Click to Start..Macro fundamentals, GDP, Investment, Growth Shortcuts and Techniques with Examples
indian economy MCQ CATEGORIES
-
» Introduction to Indian Economy
-
» Planning, Economic Development & Five year Plans
-
» National Income & Human Development Index
-
» Agriculture Sector, Subsidy and Food Processing
-
» Industries, Manufacturing & Service Sectors
-
» Inclusive growth, Sustainable development and employment
-
» Poverty & Unemployment
-
» Introduction to Micro Economics
-
» Introduction to Macro Economics
-
» Macro fundamentals, GDP, Investment, Growth
-
» Demand & Supply, Profit Loss, Inflation & Price Index
-
» Fiscal Policy, Public Finance and Monetary Policy
-
» Money Supply, Banking and Financial Institutions
-
» Taxes Types, Methods & Budgeting Process
-
» Banking, Security Market & Insurance
RECENT BLOGS
Recently Added Subject & Categories For All Competitive Exams
New Time and Distance Aptitude MCQ PDF for IBPS Clerk 2024
Latest Time and Distance multiple choice questions and answers with solution PDF for IBPS Clerk Prelims 2024. Practice Speed Aptitude based Objective Mcq
Continue Reading »
Word Formation Objective Questions MCQs for IBPS Clerk 2024
Current year Important Objective Questions and Answers with Explanation for IBPS Clerk Prelims 2024 exam. English Vocabulary multiple choice practice exercises
Continue Reading »
Time and work Questions with Solution PDF IBPS Clerk 2024
Free Time and Work Quants Aptitude concepts based Multiple Choice Questions and Answers Practice Test, Downloadable Quiz PDF for IBPS Clerk Prelims 2024 Exam
Continue Reading »
Series Completion Questions & Answers PDF IBPS Clerk 2024
Top Alphabet Number Series Completion based Verbal Reasoning Multiple choice questions with answers PDF, & Free IBPS Mock tests For IBPS Clerk Prelims 2024
Continue Reading »