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Theories of Economic Developmenteconomics-mcqs › theories-of-economic-development
Published
27 May 2019
Last updated
28 May 2026

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Which of the following best describes the characteristics of a theory?

Multiple choice question for Theories of Economic Development. Select an option, then review the explanation below.

Choose the correct answer

Explanation

Statement I defines a theory as a systematic explanation of the relationships among economic variables. Statements II and III extend beyond the basic definition, while IV is broader than what a theory typically covers. Therefore, only statement I accurately describes a theory.

Practice related questions from the same subject.

  1. 1.What is the fundamental distinction between capitalism and socialism?
  2. 2.According to Baran, what factors contribute to the underdevelopment of Asia, Africa, and Latin America?
  3. 3.What does the acronym OECD represent?
  4. 4.According to Rosenstein-Rodan, where does a significant indivisibility primarily exist?
  5. 5.What does the Vicious Circle theory suggest about poverty?

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