Growth and Development Economics Questions and Answers

Answer: A

The correct code is a-(i), b-(ii), c-(iii), d-(iv).

• J. H. Boeke: Economics and Economic Policy of Dual Societies (1953), the source of social dualism.
• Benjamin Higgins: Economic Development (1959), where he discussed technological dualism.
• H. Myint: The Economics of the Developing Countries (1964).
• Simon Kuznets: Modern Economic Growth (1966).

Each author matches the book listed beside him, so the code is in straight order; the other codes swap at least two titles.

Answer: C

The key's answer is planning for increased productivity in rural sector.

Benjamin Higgins's technological dualism describes an advanced, capital-intensive modern sector alongside a traditional rural sector using labour-intensive techniques with very low productivity. The gap persists because the modern sector absorbs little labour. Higgins's remedy was to raise productivity in the rural sector through planned development of agriculture and small-scale industry, so that the traditional sector is modernised rather than left behind.

A gradualist approach would let the dualism persist, family planning addresses population rather than technology, and focusing on information technology would widen the gap.

Answer: D

The theme was for 2023.

UN Women's theme for International Women's Day 2023 was 'DigitALL: Innovation and technology for gender equality', linked to that year's session of the Commission on the Status of Women, which focused on technology, innovation and education in the digital age.

The themes of the earlier years were different: 2021 was 'Women in leadership: achieving an equal future in a COVID-19 world', and 2022 was 'Gender equality today for a sustainable tomorrow'.

Answer: B

The Lorenz curve is a measure of income inequalities.

It plots the cumulative share of income (or wealth) received against the cumulative share of the population, ranked from poorest to richest. If income were shared equally the curve would be the 45-degree line of equality; the further it sags below that line, the greater the inequality. The Gini coefficient is derived from the area between the two.

Poverty is measured by poverty lines and head-count ratios, inflation by price indices such as the WPI and CPI, and a tax structure is described by rates and incidence. None of them is what a Lorenz curve shows.

Answer: D

The birth rate is not included in the Human Development Index, which is estimated from life expectancy, education and per capita income, so option D is the one not included.

The three other options are components of the index.

The Human Development Index of the UNDP combines three dimensions: a long and healthy life measured by life expectancy at birth, knowledge measured by years of schooling, and a decent standard of living measured by per capita income. The birth rate is a demographic indicator and is not a component of the index.

Answer: B

According to Ragnar Nurkse, the starting point and continuation of development lie in increasing the rate of capital formation, which breaks the vicious circle of poverty on both the demand and supply sides.

An organised money market, technological growth and removal of the dualistic economy are discussed by other theorists and are not Nurkse's starting point.

Nurkse's thesis is the vicious circle of poverty: low income leads to low saving and so low capital, which keeps productivity and income low, and only more capital formation breaks the circle.

Answer: D

All three statements are true. The Child Development Index was developed by the Save the Children campaign, it is conventionally measured by the three indicators health, nutrition and education, and it is calculated in the same way as the HDI.

The options that omit any of the three statements are incomplete, so (i), (ii) and (iii) is the answer.

The Child Development Index was published by Save the Children in 2008 as a measure of child well-being built on health, nutrition and education indicators.

Answer: A

Both statements are true and [R] explains [A]. The poverty line is the minimum income needed to meet basic needs, including food, clothing and shelter, and because the food (calorie) requirement is the main part of that need, the line is determined on the basis of calorie requirements.

Option (D), denying the explanation, is not the key.

In India the poverty line was first set from the calorie norm of 2,400 kcal per day in rural and 2,100 kcal in urban areas.

Answer: B

Inclusive growth aims at growth with social justice.

The idea, made the central theme of India's Eleventh Five Year Plan (2007-12) under the slogan 'faster and more inclusive growth', is that economic growth should be broad-based: its benefits should reach the poor, the backward regions, women, Scheduled Castes and Tribes, and other groups left out, through jobs, health, education and social protection.

'High GDP growth only', 'industrial growth alone' and 'export-led growth' each describe growth without regard to who gains, which is exactly what inclusive growth was meant to correct.

Answer: C

Inclusive growth in the Eleventh Plan did not include strengthening of capital market.

The Eleventh Five Year Plan (2007-12), titled 'Towards Faster and More Inclusive Growth', defined inclusiveness through outcomes that reach the whole population: reducing poverty, expanding employment opportunities, improving access to health and education, and reducing inequality, including between men and women.

Reduction of poverty, extension of employment and reduction of gender inequality are all among those goals. Deepening the capital market is a financial-sector reform, not a measure of whether growth is shared, so it is the odd one out.