macro fundamentals, GDP, investment & growth section 2 Practice Questions Answers Test with Solutions & More Shortcuts

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: (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.

Question : 12 [UPPCS (Mains) 2014]

In relation to Agricultural Finance and Refinance which institution is the biggest?

a) NABARD Institution

b) Regional Rural Bank

c) Land Development Bank

d) Central Cooperative Bank

Answer: (a)

Question : 13 [UP RO (Pre) 2018]

Among the Indian States, Uttar Pradesh is the largest producer of which of the following crops?

a) Wheat, Potato, Sugarcane

b) Wheat, Potato, Groundnut

c) Potato, Sugarcane, Paddy

d) Potato, Sugarcane, Cotton

Answer: (a)

Question : 14 [UPPCS (Mains) 2011]

The registered exporters, whose export performance in several years is of high quality, are known as

a) Trading Houses

b) Export Houses

c) None of the above

d) Star Trading Houses

Answer: (d)

Question : 15 [UPPCS (Pre) 2003]

The ‘Green Revolution’ involved the use of high yielding varieties of seeds which required

a) more fertilizer and less water

b) less fertilizer and less water

c) more fertilizer and more water

d) less fertilizer and more water

Answer: (c)

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1260 macro fundamentals GDP based indian economy MCQ section 2 question answer with explanation pdf

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