The 'balanced growth theory' emphasizes simultaneous investment in: MCQ with Answer and Explanation

The 'balanced growth theory' emphasizes simultaneous investment in:
A. multiple sectors to create demand
B. one sector only
C. agriculture only
D. banking only
Answer: Option A
Solution (By JKSSB Mock Tests)
Balanced growth advocates simultaneous investment in mutually supporting sectors.

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Practice More Economy Set 1 Questions

Question #1
The 'Pradhan Mantri Matru Vandana Yojana' provides maternity benefits to:
A. only adolescent girls
B. only working women
C. all women
D. pregnant and lactating mothers

Correct Answer: Option D


Explanation:
PMMVY provides maternity benefits to pregnant and lactating mothers.

This question belongs to: Economy GK Economy Set 1
Question #2
In the context of economic growth, the Solow residual measures:
A. Contribution of natural resources only
B. Contribution of technological progress (total factor productivity)
C. Contribution of labour force growth only
D. Contribution of capital accumulation only

Correct Answer: Option B


Explanation:
The Solow residual is the portion of output growth that cannot be explained by the growth of capital and labour inputs; it is attributed to technological progress or total factor productivity.

This question belongs to: Economy GK Economy Set 1
Question #3
In the context of demand, a Giffen good is one for which:
A. Demand is perfectly elastic
B. Demand decreases as price increases
C. Demand increases as price increases
D. Demand is independent of price

Correct Answer: Option C


Explanation:
A Giffen good is an inferior good for which the income effect outweighs the substitution effect, leading to an upward-sloping demand curve (demand rises when price rises).

This question belongs to: Economy GK Economy Set 1