Unit 6: Indian Economic Thought - Practice Quiz

1 Which ancient Indian text is associated with Kautilya's economic ideas?

2 According to Kautilya, which activity was an important source of state revenue?

3 Kautilya viewed the state as having an important role in regulating which of the following?

4 What did Dadabhai Naoroji mean by the term "drain of wealth"?

5 Dadabhai Naoroji presented the Drain Theory mainly to explain India's:

6 Which colonial practice did Naoroji identify as contributing to the economic drain from India?

7 Which principle was central to Gandhi's economic philosophy?

8 What did Gandhi's idea of trusteeship suggest about wealth?

9 Which form of production did Gandhi strongly support?

10 What does the capability approach mainly focus on?

11 In Sen's approach, a person's capability refers to their:

12 Which of the following is an example of a functioning in Sen's capability approach?

13 Clarence Ayres is associated with which economic school?

14 In Ayres's view, technology is mainly a force that promotes:

15 Ayres distinguished technology from institutions by describing technology as mainly:

16 Post-Keynesian economics developed from the ideas of which economist?

17 Post-Keynesian economists generally emphasize the importance of:

18 Which concept is especially important in Post-Keynesian economics?

19 Sraffian economics is closely associated with which economist?

20 Sraffian analysis primarily studies the determination of prices and:

21 A ruler following Kautilya's economic ideas would most likely respond to a severe drought by:

22 Why did Kautilya support state regulation of markets and weights?

23 Which policy best reflects Kautilya's view that economic strength supports political stability?

24 Under Dadabhai Naoroji's Drain Theory, which transaction would most clearly represent an economic drain from India?

25 Why would a persistent colonial drain reduce India's long-term economic growth?

26 Which observation would provide the strongest support for Naoroji's Drain Theory?

27 A village adopts small-scale production, local self-reliance, and labor-intensive technology rather than pursuing maximum mechanization. Which Gandhian principle does this illustrate?

28 In Gandhi's concept of trusteeship, wealthy individuals should:

29 A development project creates high output but displaces workers and weakens village communities. A Gandhian evaluation would most likely:

30 Two people have the same income, but one has a disability that makes essential goods more costly. According to Sen's capability approach, they may differ mainly in their:

31 Which policy best reflects the capability approach to poverty reduction?

32 Why can average income alone be an inadequate measure of development under Sen's approach?

33 According to Clarence Ayres, economic progress is most closely associated with:

34 A society adopts an efficient technology but preserves status-based institutions that block its widespread use. An Ayres-inspired analysis would emphasize the conflict between:

35 Which policy would an Ayres-influenced institutionalist most likely support?

36 A post-Keynesian economist would most likely explain persistent unemployment by emphasizing:

37 If firms postpone investment because future demand is highly uncertain, a post-Keynesian analysis predicts that:

38 Which statement best reflects the post-Keynesian view of money and credit?

39 In Sraffian economics, the distribution of the social surplus between wages and profits is important because it affects:

40 A Sraffian input-output model shows that producing a commodity requires other commodities as inputs. This implies that prices depend partly on:

41 In Kautilya's framework, a ruler raises the tax rate during a fiscal crisis but simultaneously expands irrigation, roads, and protection of trade. Which principle best explains why this policy could remain legitimate?

42 A contemporary analyst describes Kautilya as advocating unrestricted laissez-faire because he supported private property and trade. Which evidence most directly contradicts this interpretation?

43 Why would Kautilya regard prevention of famine as an economic policy rather than merely a charitable duty?

44 Which observation would provide the strongest evidence for Naoroji's Drain Theory rather than merely for unequal domestic distribution?

45 Which combination most accurately represents channels through which Naoroji argued wealth was transferred from India to Britain?

46 A critic argues that India's export surplus disproves exploitation because it generated foreign exchange. What is Naoroji's strongest reply?

47 Which policy package is most consistent with Gandhi's economic philosophy rather than with conventional industrial modernization?

48 How does the doctrine of trusteeship differ most fundamentally from both laissez-faire property rights and complete state ownership?

49 A labor-saving machine increases output but displaces village workers and intensifies dependence on distant markets. Under Gandhi's approach, its evaluation would primarily depend on:

50 Two individuals have identical incomes, but one has a disability requiring costly assistance. Which conclusion follows most directly from Sen's capability approach?

51 Why does Sen criticize relying exclusively on utility for evaluating poverty?

52 A government raises average income but restricts political participation and access to education. From a capability perspective, the reform is best described as:

53 In Clarence Ayres's institutionalist framework, why is technological progress not adequately explained by marginal productivity alone?

54 Which situation best illustrates Ayres's distinction between technology and ceremonial institutions?

55 An institution survives even though it reduces productive efficiency because it reinforces hierarchy and inherited privilege. Ayres would most likely interpret this as:

56 In a Post-Keynesian model, firms respond to stronger expected demand by expanding capacity, while investment creates income that validates demand. This most directly reflects:

57 Why do Post-Keynesians reject the claim that flexible interest rates necessarily equilibrate saving and investment?

58 In Sraffian price theory, why can a change in the wage-profit distribution alter relative prices even when production techniques remain unchanged?

59 What does the possibility of reswitching challenge in capital theory?

60 In the Sraffian system , what does fixing a numeraire accomplish?