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Characteristics and Institutions of Developing Countries MCQs

Free 24+ Characteristics and Institutions of Developing Countries MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Practise below with answers and explanations.

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24 questions in this list. Select an option to practice, or open a question for the full page with explanation.

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Characteristics and Institutions of Developing Countries

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1.What characteristic sets a dual economy apart from other types of economies?

It consists of both industrial and manufacturing divisions.It features a traditional farming sector alongside a contemporary industrial sector.It involves government ownership of production resources.It has an industrial sector focused mainly on manufacturing and building.It is defined by a service sector and a technology sector.

2.What defines a dual economy in a country?

A nation possessing twice the amount of capital and laborA country that has both a developed industrial sector and a traditional agricultural sectorA country focusing more on labor-intensive goods rather than capital-intensive goodsA nation with a mix of foreign and domestic capital ownership

3.What is the ratio between the population density of developing nations and the total population of developed nations?

Ten timesTwice as muchAt most equalTwenty timesNot applicable

4.In low-income nations, how much surplus does the typical farming household generate?

Sufficient to support only a small non-farming populationNo surplus at allEnough to provide for five additional familiesAdequate to feed twenty-five other families

5.If the real income of Developing Island rises from $120,000 in 2005 to $160,000 in 2006, and its population grows from 1,000 to 1,100 during that time, approximately how much did the real income per person increase?

$145$40,000$25$100

6.Identify the country from the list below that is classified as a middle-income nation rather than a high-income one.

GermanyUnited KingdomCanadaMexicoNone of the above

7.Which statements correctly describe clientelism?

Only statements I and II are correctOnly statements II and III are accurateStatements I, II, and III are all trueOnly statement IV is correctNone of the above

8.Which of the following statements is NOT true about the informal sector?

It does not rely on mechanical equipment.It can include businesses with fewer than 10 employees.Its production process depends heavily on capital investment.It often involves family members as workers.

9.In Lewis’s dual-sector model, under what condition does the dual economy experience growth?

When the modern sector's proportion of total output rises compared to the traditional sectorWhen the agricultural sector adopts advanced machineryWhen the agricultural sector employs labor efficientlyWhen the modern manufacturing sector relies heavily on labor

10.Which statement accurately describes the agricultural sector in low-income countries?

Fewer than 10% of workers are employed in farming.Typically, farming families generate just enough surplus to support a small non-farming population.Approximately one-third of the workforce is engaged in food production.The agricultural workforce accounts for around 30% of total employment.

11.What term describes a family structure consisting of multiple nuclear families, including parents and their children?

paired familyformal familyextended familytwo-level family tree

12.When does real GNP per capita experience an increase?

When government initiatives shift resources from capital goods to consumer goods.When trade barriers like tariffs and quotas stop currency from flowing abroad.When the growth rate of real GNP surpasses the population growth rate.When consumption spending grows faster than savings.

13.Which of the following characteristics is NOT typically associated with low-income economies?

Inadequate infrastructureShorter average life spansLimited savings ratesPer capita GNP exceeding $900High levels of industrialization

14.How does industrialization relate to economic development?

Leads directly to developmentHas a positive correlation with developmentIs negatively associated with developmentPrevents developmentHas no impact on development

15.How is gross domestic product (GDP) defined?

The total income generated from foreign exchange transactionsThe total revenue produced by industrial sectorsThe earnings made within the geographical limits of a countryThe value of goods obtained from the country's inhabitants

16.Under what condition does the real GNP per capita increase?

When government initiatives shift resources from capital goods to consumer goods.When trade restrictions like tariffs and quotas stop international trade and keep currency within each nation.When the growth rate of real GNP exceeds the population growth rate.When consumption spending grows faster than savings.

17.What does the export commodity concentration ratio of a country represent?

The average yearly investment allocated to producing export goodsThe share of the main export product within the total exportsThe proportion of the top four export commodities relative to the entire merchandise exportsThe total annual funds invested in the production of export commodities

18.Which of the following is not essential for economic development?

A moderate climateAvailability of natural resourcesSufficient capital investmentTechnological progressSkilled labor force

19.Which of the following groups are considered part of the informal sector?

Groups I and II exclusivelyOnly groups III and IVExclusively group IVAll groups I, II, III, and IVNone of the above

20.What does the term 'economic rent' refer to?

Gains earned through productive efforts utilizing public resources and actionsPayments made exceeding the minimum amount required to bring resources into the marketCompensation given to unskilled laborersProfits that exclude earnings from monopolistic practices

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