Mock Test of Economic Unit II 1 for STGT
Marks-100 Time-50 Minute
Chung Sajak
1. What is economic development?
A) Only increase in income
B) Only industrial growth
C) Improvement in living standards, income, and social well-being
D) Increase in exports
2. Economic growth differs from development because growth—
A) Includes welfare
B) Is qualitative
C) Is only an increase in income/output
D) Includes equality
3. Who defined economic development as reducing poverty, unemployment, and inequality?
A) Adam Smith
B) Amartya Sen
C) Prof. Dudley Seers
D) Karl Marx
4. The main objective of economic development is—
A) Industrial expansion
B) Population control
C) Improvement in quality of life
D) Increase in exports
5. The primary focus of economic development is—
A) Economic growth
B) Human well-being and equitable growth
C) Profit maximization
D) Political stability
6. Economic development is—
A) Qualitative only
B) Quantitative only
C) Both qualitative and quantitative
D) None of these
7. Which index measures human welfare?
A) GDP
B) HDI
C) CPI
D) GNP
8. Technology helps in economic development by—
A) Reducing employment
B) Increasing productivity
C) Increasing pollution
D) Lowering education
9. Structural transformation refers to—
A) Population decline
B) Shift from agriculture to industry and services
C) Rise in imports
D) Fall in education level
10. In developed economies, which sector dominates?
A) Agriculture
B) Industry
C) Services
D) Mining
11. Which of the following is a feature of economic development?
A) Low productivity
B) Rise in per capita income
C) High unemployment
D) Population explosion
12. Development ideally aims to—
A) Increase inequality
B) Reduce inequality
C) Maintain inequality
D) Ignore inequality
13. A sign of underdevelopment is—
A) Low unemployment
B) High poverty
C) High per capita income
D) Balanced growth
14. Sustainable development means—
A) Growth ignoring the environment
B) Development with resource wastage
C) Development without harming future needs
D) Rapid industrialization
15. Human capital formation means—
A) Building roads
B) Developing human skills and education
C) Collecting taxes
D) Buying machinery
16. A developing economy is characterized by—
A) High income and low population
B) Low income and high population growth
C) High exports
D) Full employment
17. Urbanization in development indicates—
A) Economic and social modernization
B) Decline of industry
C) Agricultural backwardness
D) Rural isolation
18. Inclusive growth means—
A) Growth benefiting all sections of society
B) Growth for the rich only
C) Growth without employment
D) Growth ignoring rural areas
19. Which factor ensures economic stability?
A) Corruption
B) Political unrest
C) Good governance
D) Overpopulation
20. Developed countries are characterized by—
A) High literacy and industrialization
B) Agricultural dependence
C) Population pressure
D) Low income
21. GDP stands for—
A) Gross Domestic Product
B) Global Development Plan
C) Government Domestic Policy
D) Gross Domestic Progress
22. GNP is—
A) GDP plus net income from abroad
B) GDP minus taxes
C) GDP plus exports
D) GDP divided by population
23. Per capita income is—
A) Total income divided by area
B) National income divided by population
C) GDP multiplied by population
D) Total expenditure divided by imports
24. Who introduced HDI?
A) World Bank
B) UNDP
C) IMF
D) WTO
25. HDI measures—
A) Inflation and GDP
B) Health, education, and income
C) Exports and imports
D) National savings
26. Which index measures poverty beyond income?
A) MPI
B) CPI
C) GDP
D) WPI
27. The Gini Coefficient measures—
A) GDP growth
B) Income inequality
C) Life expectancy
D) Industrialization
28. Green GDP accounts for—
A) Only industrial output
B) Environmental damage in economic growth
C) Tax evasion
D) Global trade
29. A qualitative indicator of development is—
A) Literacy rate
B) GDP
C) Export value
D) Industrial output
30. Gender equality is measured by—
A) HDI
B) GDI
C) GDP
D) CPI
31. Which is broader in scope?
A) Growth
B) Development
C) Profit
D) Trade
32. Does growth ensure equity?
A) Yes
B) No
C) Always
D) Sometimes
33. A quantitative measure of development is—
A) Literacy rate
B) Per capita income
C) Life expectancy
D) Gender equality
34. A qualitative measure of development is—
A) GDP
B) Life expectancy
C) National income
D) GNP
35. Which is more sustainable?
A) Growth
B) Development
C) Profit
D) Consumption
36. Which focuses more on welfare?
A) Growth
B) Development
C) Investment
D) Production
37. Can growth occur without development?
A) Yes
B) No
C) Only in poor countries
D) Only in rich countries
38. Can development occur without growth?
A) Often
B) Rarely
C) Always
D) Never
39. Which is short-term in nature?
A) Growth
B) Development
C) Both
D) None
40. Which is long-term in nature?
A) Development
B) Growth
C) Inflation
D) Industrialization
41. What is the role of planning in development?
A) To increase inflation
B) To control imports
C) To set priorities and allocate resources effectively
D) To reduce exports
42. Structural transformation means—
A) Growth of only agriculture
B) Shift of workforce and resources to modern sectors
C) Decline in industry
D) Population increase
43. The main aim of industrialization is—
A) To diversify and strengthen the economy
B) To increase imports
C) To promote unemployment
D) To depend on agriculture
44. What does globalization mean in development?
A) Economic isolation
B) Integration with global markets
C) Restricting trade
D) Ending foreign relations
45. Why is infrastructure important?
A) It supports economic activities and productivity
B) It increases population
C) It raises prices
D) It causes unemployment
46. The main focus of Sustainable Development Goals (SDGs) is—
A) Military power
B) Balanced social, economic, and environmental development
C) Only industrial growth
D) Political competition
47. What is human capital?
A) Buildings and machines
B) Skills, knowledge, and health of people
C) Money and savings
D) Raw materials
48. Why is education vital in development?
A) It reduces employment
B) It improves productivity and innovation
C) It lowers skills
D) It decreases wages
49. Why is healthcare essential in development?
A) It increases disease
B) It raises poverty
C) Healthy citizens contribute more effectively to growth
D) It lowers life expectancy
50. What is inclusive policy-making?
A) Involving only rich people
B) Involving all communities in decision-making
C) Ignoring rural areas
D) Reducing participation
51. Why is development economically important?
A) It increases income and employment
B) It decreases production
C) It promotes inequality
D) It reduces trade
52. Why is development socially important?
A) It increases poverty
B) It reduces inequality and poverty
C) It decreases literacy
D) It increases corruption
53. Why is development politically important?
A) It promotes instability
B) It leads to dictatorship
C) It promotes stability and governance
D) It reduces accountability
54. Why is environmental development necessary?
A) To increase pollution
B) To protect natural resources for future generations
C) To cut down forests
D) To increase carbon use
55. Why is global cooperation needed for development?
A) To share resources and technology
B) To reduce trade
C) To isolate countries
D) To promote conflict
56. Welfare economics focuses on—
A) Market profits
B) Human well-being and fairness
C) Government control
D) Industrial monopoly
57. Which sector helps achieve rural development?
A) IT industry
B) Banking
C) Agriculture and allied industries
D) Tourism
58. The main role of NGOs in development is—
A) To promote war
B) To support education, healthcare, and social justice
C) To replace government
D) To stop global trade
59. Why do developing countries need foreign investment?
A) To fund projects and modernize industries
B) To increase inflation
C) To reduce exports
D) To cut jobs
60. Why is innovation important in development?
A) It decreases productivity
B) It improves productivity and competitiveness
C) It stops industrial growth
D) It reduces efficiency
61. Who proposed the “Stages of Growth” theory?
A) Adam Smith
B) W.W. Rostow
C) Karl Marx
D) John Keynes
62. What is the final stage in Rostow’s model?
A) Take-off
B) Pre-condition to take-off
C) Age of high mass consumption
D) Transitional stage
63. Who introduced the concept of balanced growth?
A) Gunnar Myrdal
B) Ragnar Nurkse
C) Arthur Lewis
D) Paul Samuelson
64. Lewis’s model focuses on—
A) Agricultural stagnation
B) Labor surplus and industrial growth
C) Declining population
D) Balanced trade
65. “Trickle-down effects” were emphasized by—
A) Marxist economists
B) Classical economists
C) Keynesian economists
D) Welfare economists
66. Dependency theory highlights that—
A) Poor countries exploit rich countries
B) Developed nations exploit developing countries
C) Trade is unnecessary
D) All nations grow equally
67. The concept of sustainable development was introduced by—
A) UNDP
B) Brundtland Commission (1987)
C) World Bank
D) IMF
68. Amartya Sen is known for—
A) Dependency theory
B) Capability approach to development
C) Classical theory
D) Keynesian theory
69. The Harrod-Domar model explains growth through—
A) Exports
B) Savings and investment
C) Population increase
D) Taxation
70. Who developed the Human Development Index (HDI)?
A) Amartya Sen
B) Mahbub ul Haq
C) W.W. Rostow
D) Paul Samuelson
71. Which of the following best defines a green economy?
A) Economy based on fossil fuels
B) Economy that ignores the environment
C) Economy that is environmentally sustainable
D) Economy based only on exports
72. Which of the following is a renewable energy source?
A) Coal
B) Petroleum
C) Solar energy
D) Natural gas
73. Why is environmental protection important?
A) For short-term profit
B) To ensure future resources
C) To increase pollution
D) To destroy biodiversity
74. The term carbon footprint refers to —
A) Number of cars owned
B) Total greenhouse gases emitted
C) Amount of trees planted
D) Weight of carbon in soil
75. What does carbon neutrality mean?
A) Zero use of energy
B) Balancing carbon emissions with removal
C) Banning carbon products
D) Increasing industrial activity
76. What is climate-resilient development?
A) Growth that ignores climate change
B) Growth adapted to climate risks
C) Stopping all development
D) Rapid industrialization
77. Which of the following is a global initiative for sustainability?
A) Paris Climate Agreement
B) Kyoto Industrial Pact
C) Geneva Trade Act
D) Berlin Energy Accord
78. What is biodiversity conservation?
A) Protecting only plants
B) Protecting all living species
C) Protecting human population only
D) Protecting minerals
79. What is afforestation?
A) Cutting down trees
B) Growing crops
C) Planting trees to restore forests
D) Building industries
80. What is eco-tourism?
A) Tourism that harms the environment
B) Tourism that preserves nature and culture
C) Tourism only for luxury
D) Tourism for industrial growth
81. What does UNDP stand for?
A) United Nations Development Programme
B) United Nations Defence Plan
C) Universal National Development Project
D) United Nations Disaster Programme
82. What is the main focus of the World Bank?
A) Global health
B) Funding development projects
C) Controlling currency exchange
D) Conducting elections
83. The IMF mainly works for —
A) Global trade promotion
B) Financial stability and economic assistance
C) Protecting wildlife
D) Agricultural growth
84. The World Trade Organization (WTO) deals with —
A) Global health
B) Education
C) Trade rules between nations
D) Environment
85. What is India’s current planning body?
A) Planning Commission
B) Finance Commission
C) NITI Aayog
D) Central Planning Board
86. The Planning Commission was replaced by —
A) SEBI
B) RBI
C) NITI Aayog
D) NABARD
87. Which is a flagship program for rural employment in India?
A) PM-KISAN
B) MGNREGA
C) Digital India
D) Startup India
88. What does MSME stand for?
A) Medium, Small, and Major Enterprises
B) Micro, Small, and Medium Enterprises
C) Multi-State Manufacturing Enterprises
D) Mega Small Market Enterprises
89. What is Digital India?
A) Program for rural employment
B) Program for digital infrastructure and literacy
C) Scheme for foreign investment
D) Agricultural subsidy plan
90. What is the Make in India campaign?
A) To increase imports
B) To promote foreign tourism
C) To boost manufacturing in India
D) To stop foreign investment
91. What is economic planning?
A) Random policy-making
B) Government strategy to achieve development goals
C) Private business planning
D) Market competition
92. Which country pioneered Five-Year Plans?
A) USA
B) Japan
C) Soviet Union
D) India
93. When did India start planning?
A) 1947
B) 1951
C) 1960
D) 1975
94. What is rural development?
A) Urban area improvement
B) Industrial growth
C) Improvement of living standards in villages
D) City expansion
95. What is globalization?
A) Separation of economies
B) Integration of economies worldwide
C) Limiting foreign trade
D) Local-only trade system
96. What is microfinance?
A) Large corporate loans
B) Small loans for poor entrepreneurs
C) Government subsidies
D) Export incentives
97. What is Foreign Direct Investment (FDI)?
A) Investment by citizens abroad
B) Investment from foreign entities in domestic firms
C) Government subsidy to farmers
D) Import tax policy
98. What is economic liberalization?
A) Increasing government control
B) Reducing government control over the economy
C) Banning private trade
D) Nationalizing industries
99. What is privatization?
A) Transferring state-owned enterprises to private ownership
B) Creating public enterprises
C) Increasing government subsidies
D) Nationalizing industries
100. What is economic empowerment?
A) Restricting access to jobs
B) Giving people access to resources and opportunities
C) Increasing government control
D) Reducing education
