As economic development progresses, what shape of curve does income inequality tend to follow?
Correct answer D. Inverted U-shaped
Topic / 24 questions
Characteristics and Institutions of Developing Countries MCQs
Characteristics and Institutions of Developing Countries MCQs cover the economic features that distinguish low-income economies, such as dual economies, informal sectors, primary export dependence and low per capita income. They help development economics students and CSS, PMS and lecturer test candidates. Each question shows its correct answer instantly, so you can check concepts as you revise.
- Miscellaneous Economics 737
- Basic of Economics 430
- Markets, Efficiency And The Public Interest 167
- Agriculture & Irrigation System of Pakistan 126
- Market 87
- Macroeconomic Issues and Analysis 75
- Money, Interest Rates And Output 73
- Introduction To Economics 70
- Population And Development 62
- Profit Maximizing Under Perfect Competition And Monopoly 56
- Income Inequality 52
- Non-Tariff Trade Barriers 48
- Aggregate Supply, Unemployment And Inflation 45
- Natural Resources and the Environment Toward Sustainable Development 44
- Costs , Supply And Perfect Competition 44
- Human Capital 42
- Labour Market 39
- Monopoly 35
- Long Term Economic Growth 30
- Inflation & Productivity 30
- Regional Trading Arrangements 29
- Characteristics and Institutions of Developing Countries 24
- Oligopoly 23
- Consumer Theory vs. Real Consumers 20
- Applied Microeconomics 20
- Alternative Theories Of The Firm 20
- Public Goods 20
- Balance of Payments, Aid and Foreign Investment 19
- Prices, Wages & Taxes 19
- Comparative GDP 19
- Budget Deficits And The Trade Balance 18
- Macroeconomic Policy Tools 18
- Asymmetric Information 17
- Application of Economics 16
- Production Factors 16
- Monopoly & Competition 15
- Capital Formation, Investment Choice, Information Technology, And Technical Progress 15
- Monetary, Fiscal And Incomes Policy, And Inflation 15
- Average And Total Cost 14
- Poverty, Malnutrition, And Income Inequality 12
- Monetary Union 10
Who are peasants?
Correct answer D. Rural cultivators
What is a country’s capital stock?
Correct answer C. Sum of previous gross investment minus depreciation
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What are export primary commodity concentration ratios?
Correct answer A. Food, raw materials, minerals and organic oils and fats as a percentage of total merchandise exports
What is economic rent?
Correct answer C. Is the payment above the minimum essential to attract the resources to the market
The informal sector includes which of the following: I. artisans, cottage industrialists, petty traders; II. garbage pickers, unauthorised taxis, repair persons; III. the self-employed; IV. activities with little capital, skill or entry barriers?
Correct answer C. All of I, II, III and IV
Which one of the following is not needed for economic development?
Correct answer A. A temperate climate
What is a country’s export commodity concentration ratio?
Correct answer B. Ratio of four leading commodities to total merchandise exports
Under what condition does real GNP per capita rise?
Correct answer D. The rate of growth in real GNP is greater than the rate of growth in the population
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How is gross domestic product (GDP) defined?
Correct answer D. Income earned within a country's boundaries
How is industrialisation related to development?
Correct answer B. Is positively related to development
Low-income economies generally have all of the following except which one?
Correct answer B. A per capita GNP of more than $900
When does real GNP per capita increase?
Correct answer C. The rate of growth of real GNP is greater than the rate of growth of population
What is a family made up of two or more nuclear families of parents and children called?
Correct answer D. Extended family
Which statement about low-income countries is true?
Correct answer D. The average agricultural family produces a surplus large enough only to supply a small non-agricultural population
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According to Lewis’s model, when does a dual economy grow?
Correct answer B. The modern sector increases its output share relative to the traditional sector
All of the following statements about the informal sector are true except which one?
Correct answer B. Production is capital intensive
Consider these statements on clientelism: I. it is also known as patrimonialism; II. it is the dominant pattern in many LDCs; III. it is a personalised relationship between patrons and clients; IV. it rests on unconditional loyalties with no mutual benefit. Which are correct?
Correct answer B. I, II and III only
Which of the following countries is not a high-income country?
Correct answer C. Mexico
Between 2005 and 2006 the real income of a developing island rises from $120,000 to $160,000, while its population grows from 1,000 to 1,100. By about how much has real income per capita increased?
Correct answer B. $25
About Characteristics and Institutions of Developing Countries MCQs
This topic comes from development economics. Questions explain when real GNP per capita rises, what makes a dual economy, with a modern sector alongside a traditional one, and the role of industrialisation in growth. You will also find items on the informal sector, which includes small unregistered businesses and self-employed workers, export commodity concentration ratios that show dependence on a few primary products, and the limited agricultural surplus of farming families in low-income countries. These ideas are central to development economics papers in civil service and lecturer exams.
Exams that include Characteristics and Institutions of Developing Countries MCQs
Pakistan
- CSS
- PMS
- PPSC Lecturer tests
- FPSC
India
- UPSC CSE
- UGC NET
- State PSC exams
Bangladesh
- BCS
- University admission tests (DU, RU, JU)
Frequently asked questions
What is a dual economy?
A dual economy has two distinct sectors side by side: a modern, often urban and industrial sector with higher productivity and wages, and a traditional, often rural and agricultural sector with low productivity. The idea is linked with W. Arthur Lewis's model of development through labour transfer.
What is the informal sector?
The informal sector consists of economic activities that are not registered, regulated or taxed by the state, such as street vendors, small workshops and casual labourers. It provides many jobs in developing countries but usually offers low earnings, little security and limited access to credit.
How many Characteristics and Institutions of Developing Countries MCQs are on MCQs360?
MCQs360 has 24 MCQs on the characteristics and institutions of developing countries, free with no sign-up and with instant answers. They are useful for revising development economics before CSS, PMS or economics lecturer tests. Many items reward knowing the dual economy model well.
Last reviewed October 2026