theories of economic development MCQs – Page 2

Practise focused theories of economic development questions with marked answers for exam preparation and subject revision.

theories of economic development Mcqs
21. A theory ?
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A. provides an explanation of all factors influencing economic growth.

B. #NAME?

C. explains causal relationships among variables

D. is a systematic explanation of relationships between economic variables

22. The Ultimate effect of the invisible hand of Adam Smith is that in a competitive economy everyone ?
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A. benefits if each acts in his/her own interest

B. should act to maximize economic growth

C. should act to promote the public interest

D. will increase their profits in a free market

23. The Harrod Domar growth model suggests that growth is ?
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A. directly related to the capital/output ratio and inversely related to savings

B. indirectly related to savings and the capital/output ratio

C. directly related to savings and the capital/output ratio

D. directly related to savings and inversely related to the capital/output ratio