Q31. In the capability approach to development, "capabilities" are best understood as:
Economic Growth, Development and Sustainable Development: RAS Prelims MCQs
99 RAS Prelims MCQs on economic growth, development and sustainable development test the national income aggregates and the difference between growth and development. Nominal and real GDP, GDP and GNP, NDP, national income, per capita income and the factors that raise growth are asked as definitions and relationships, and each explanation shows how the aggregates are linked.
Practice questions based on the RPSC RAS Prelims syllabus. They follow the exam pattern but are not past-paper questions.
Showing 31–40 of 99 questions
Q32. The capability approach shifts the focus of development economics from:
Explanation
The capability approach fundamentally redefines development by shifting the focus away from purely monetary measures like income. Instead, it prioritizes the expansion of substantive freedoms that allow people to lead the lives they value. This perspective argues that income is only a means to an end. True development is achieved when individuals have the capability to function effectively in society.
Q33. Consider the following elements concerning the Capability Approach to development:
I. It views income as merely a means to an end, not an end in itself.
II. It argues that development should be assessed by the expansion of human freedoms.
III. It completely ignores the role of physical health and education in development.
IV. It provided the theoretical foundation for the Human Development Index (HDI).
V. It emphasizes agency, allowing individuals to act and bring about change.
Which of the above statement(s) is/are correct?
I. It views income as merely a means to an end, not an end in itself.
II. It argues that development should be assessed by the expansion of human freedoms.
III. It completely ignores the role of physical health and education in development.
IV. It provided the theoretical foundation for the Human Development Index (HDI).
V. It emphasizes agency, allowing individuals to act and bring about change.
Which of the above statement(s) is/are correct?
Explanation
The capability approach views income as a tool for development rather than the goal itself. It asserts that development should be measured by human freedoms and individual agency. This framework was instrumental in creating the Human Development Index. However, it does not ignore health and education; rather, it views them as essential capabilities for achieving various valued states of being.
Q34. Match List I with List II and select the correct answer using the codes given below:
| Concepts | Descriptions |
|---|---|
| A. Functionings | i. Lack of access to basic necessities like healthcare or political liberty. |
| B. Capability Set | ii. The alternative combinations of beings and doings a person can achieve. |
| C. Agency | iii. A person’s ability to pursue and realize goals they value. |
| D. Unfreedom | iv. The achieved states of being and doing, such as being adequately nourished. |
Explanation
Functionings are the achieved states of being, such as staying healthy. The capability set represents the range of choices available to an individual. Agency refers to the ability to pursue goals one values. Finally, unfreedoms are obstacles like poverty or lack of healthcare that prevent people from reaching their potential. These terms form the core of a holistic human development framework.
Q35. Inclusive growth, in the context of economic development, fundamentally refers to:
Explanation
Inclusive growth refers to economic expansion that is broad-based across sectors and provides equitable opportunities for all segments of society. It ensures that the benefits of growth are shared by marginalized groups and rural populations. By focusing on both the pace and pattern of growth, this approach aims to reduce poverty and income inequality while fostering long-term social stability.
Q36. Which of the following is considered a primary mechanism for achieving inclusive growth in a developing economy?
Explanation
Promoting financial inclusion is a key strategy for achieving inclusive growth. By providing marginalized individuals and small businesses with access to banking services and microcredit, the government empowers them to participate in economic activities. This access allows for self-employment, investment in skills, and protection against shocks. Consequently, it helps bridge the gap between different social classes and promotes widespread economic participation.
Q37. The concept of inclusive growth implies a direct assault on which of the following twin economic challenges?
Explanation
Inclusive growth is designed to simultaneously address the dual challenges of poverty and rising economic inequality. While traditional growth might only benefit the wealthy, inclusive growth ensures that marginalized populations have the tools to improve their living standards. By integrating these groups into the productive process, the economy can achieve a more stable and fair distribution of collective wealth.
Q38. The following question consists of two statements, Assertion (A) and Reason (R). Choose the correct option.
Assertion (A): Inclusive growth is considered essential for the long-term political and social stability of a country.
Reason (R): High economic inequality often leads to social unrest, reducing investment and disrupting sustained economic expansion.
Assertion (A): Inclusive growth is considered essential for the long-term political and social stability of a country.
Reason (R): High economic inequality often leads to social unrest, reducing investment and disrupting sustained economic expansion.
Explanation
Long-term political and social stability depends heavily on inclusive growth. When large portions of the population feel excluded from economic progress, it often results in social unrest and conflict. Such instability discourages investment and disrupts the production of goods and services. Therefore, ensuring that growth benefits everyone is not just an ethical choice but a practical necessity for sustained prosperity.
Q39. Which of the following is NOT typically a focus area for promoting inclusive growth?
Explanation
Inclusive growth strategies typically focus on areas that empower the population, such as skill development, universal healthcare, and the empowerment of women. These initiatives provide the foundation for equitable participation in the economy. Conversely, privatizing core judicial functions is not a standard component of this framework. Protecting the rule of law through accessible public institutions is actually vital for fair growth.
Q40. The Environmental Kuznets Curve hypothesizes that as an economy develops, market forces first:
Explanation
The Environmental Kuznets Curve suggests an inverted U-shaped relationship between economic development and environmental quality. It hypothesizes that in the early stages of industrialization, pollution and resource depletion increase rapidly. However, as an economy matures and income levels rise, society begins to prioritize environmental protection. Better technology and stricter regulations eventually lead to a decline in degradation, improving overall environmental health.Answer key for these questions
| Q | Correct answer |
|---|---|
| 31 | (b) Freedom to achieve functionings. |
| 32 | (b) Income to substantive freedoms. |
| 33 | (b) I, II, IV and V only |
| 34 | (a) A-iv, B-ii, C-iii, D-i |
| 35 | (d) Broad-based growth with equity. |
| 36 | (c) Promoting financial inclusion and access to microcredit. |
| 37 | (b) Poverty and widening economic inequality |
| 38 | (a) Both A and R are true and R is the correct explanation of A. |
| 39 | (c) Privatizing core judicial functions |
| 40 | (c) Increase and then decrease environmental degradation. |
Key facts from Economic Growth, Development and Sustainable Development
- Real GDP differs from nominal GDP because it is adjusted for price level changes (inflation).
- In the value-added method, the value of intermediate consumption is deducted from the value of output.
- GNP differs from GDP by the inclusion of net factor income from abroad.
- Net Domestic Product is obtained by deducting depreciation from Gross Domestic Product.
- National Income is equivalent to Net National Product at factor cost.
- Per capita income is national income divided by total population, and it masks welfare because it leaves out unpaid domestic work and leisure.
Frequently asked questions
How many RAS Prelims practice MCQs are there on Economic Growth, Development and Sustainable Development?
This page has 99 practice MCQs on Economic Growth, Development and Sustainable Development (Indian Economy). Each has the correct answer, and most have an explanation.
What is the difference between nominal and real GDP?
Nominal GDP is measured at current prices, and real GDP is adjusted for price level changes (inflation) by using the prices of a base year. Real GDP therefore shows the actual growth in the volume of output.
How does GNP differ from GDP?
GNP includes net factor income from abroad, that is income earned by a country’s residents abroad minus income earned by foreigners in the country. GDP counts only the output produced within the domestic territory.
What is National Income?
National Income is the Net National Product at factor cost. It is obtained from GDP by adding net factor income from abroad, deducting depreciation and subtracting indirect taxes net of subsidies.