21. Which of the following is the primary indicator of economic growth?
a) Growth in exports
b) Increase in employment rate
c) Increase in Gross Domestic Product (GDP)
d) Reduction in inflation
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Answer: c) Increase in Gross Domestic Product (GDP) Explanation: Economic growth is typically measured by the rise in real GDP, which reflects an increase in the total value of goods and services produced in an economy, adjusted for inflation. It does not directly measure well-being or equitable distribution, but it shows the economy’s expansion over time.
22. What is the main difference between ‘growth’ and ‘development’?
a) Growth focuses on services, development on industry
b) Growth is qualitative, development is quantitative
c) Growth is short-term, development is a political concept
d) Growth is quantitative, development is qualitative
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Answer: d) Growth is quantitative, development is qualitative Explanation: Growth refers to the increase in economic indicators such as income, output, or GDP, and is quantitative. In contrast, development includes qualitative improvements in health, education, equity, and standard of living. Development encompasses growth but goes beyond it.
23. Which of the following is not a component of the Human Development Index (HDI)?
a) Life expectancy
b) Expected years of schooling
c) Gross national income per capita
d) Foreign direct investment inflow
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Answer: d) Foreign direct investment inflow Explanation:
The HDI is a composite index including life expectancy (health), education (mean and expected years of schooling), and GNI per capita (standard of living). FDI inflow is an economic indicator but not part of HDI.
24. Which of the following best explains the concept of Sustainable Development?
a) Focus on technology and automation
b) Development with environment conservation
c) Maximizing GDP without population growth
d) State-led industrial expansion
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Answer: b) Development with environment conservation Explanation: Sustainable development refers to meeting current needs without compromising future generations. It emphasizes economic progress, social inclusion, and environmental protection, ensuring long-term stability and intergenerational equity.
25. The concept of ‘Gross National Happiness’ (GNH) was introduced by:
a) World Bank
b) Bhutan
c) United Nations
d) Norway
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Answer: b) Bhutan Explanation: Bhutan pioneered the idea of Gross National Happiness (GNH), placing well-being and happiness above economic indicators like GDP. It includes dimensions like psychological well-being, time use, education, health, culture, and good governance.
26. Which of the following is not a pillar of Gross National Happiness (GNH)?
a) Ecological diversity and resilience
b) Cultural preservation
c) Political freedom
d) Good governance
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Answer: c) Political freedom Explanation:
The four pillars of GNH are:
Sustainable & equitable socio-economic development
Preservation and promotion of culture
Conservation of environment
Good governance Political freedom, though important, is not listed as a formal pillar.
27. Which of the following is not true regarding GDP as an indicator of human well-being?
a) It ignores income inequality
b) It includes environmental degradation
c) It captures the informal sector accurately
d) It does not account for unpaid domestic work
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Answer: c) It captures the informal sector accurately Explanation: GDP often fails to fully capture the informal or unorganized sector, especially in developing economies. It also does not consider income inequality, ecological costs, or unpaid household labor, making it a limited measure of well-being.
28. Which of the following is a limitation of using per capita income as a measure of development?
a) It shows national output
b) It is easy to calculate
c) It ignores distribution of income
d) It includes foreign investment
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Answer: c) It ignores distribution of income Explanation: Per capita income is an average and does not reflect income inequality. A high per capita income may still hide widespread poverty if a small elite holds most of the wealth. It also ignores social and human development indicators.
29. Which of the following pairs is correctly matched?
a) GNH – World Economic Forum
b) HDI – UNDP
c) SDG Goals – WTO
d) GDP – World Health Organization
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Answer: b) HDI – UNDP Explanation:
The Human Development Index (HDI) is released by the United Nations Development Programme (UNDP).
GNH is linked to Bhutan
Sustainable Development Goals (SDGs) are UN-led
GDP data is compiled nationally by statistical agencies
30. The term ‘development gap’ refers to:
a) Gender disparity in rural areas
b) Gap in budgetary targets
c) Inequality between rich and poor nations
d) Urban-rural health difference
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Answer: c) Inequality between rich and poor nations Explanation:
The development gap is the economic and quality-of-life difference between developed and developing countries. It highlights disparities in income, health, education, infrastructure, and technology access.
