Question
Match List-I with List-II: Choose the correct answer from the options given below :List-I
(Concepts)List-II
(their expression)
(where, gm=manufacturing output growth, gGDP=GDP growth, Pnm=productivity in outside manufacturing,
Pm=Productivity in manufacturing) A. Kaldor's first law of growth I. Pnm = f(gm), f' > 0 B. Kaldor's second law of growth II. ȳ = ε · (u − u*) C. Kaldor's third law of growth III. gGDP = f(gm), f' > 0 D. Okun's law IV. Pm = f(gm), f' > 0
The correct answer is
A-III, B-I, C-IV, D-II
To solve the given problem, we need to match each concept in List-I with the correct expression in List-II according to economic theories. Let's review the concepts:
- Kaldor's First Law of Growth: This law states that there is a positive relationship between the growth of GDP and the growth of the manufacturing sector. Thus, the expression for Kaldor’s First Law is \(g_{GDP} = f(g_m),\ f' > 0\).
- Kaldor's Second Law of Growth: Also known as the "Growth of Labour Productivity," it suggests that productivity outside the manufacturing sector grows positively with manufacturing output. Hence, the expression is \(P_{nm} = f(g_m),\ f' > 0\).
- Kaldor's Third Law of Growth: This law links the growth rate of productivity in manufacturing with the growth rate of its output, so the corresponding expression is \(P_m = f(g_m),\ f' > 0\).
- Okun's Law: It relates the change in unemployment rate to the change in GDP, given by the expression \(\bar{y} = \epsilon \cdot (u - u^*)\), where \(u\) is the actual unemployment rate and \(u^*\) is the natural rate of unemployment.
Now, we can match the given options:
| List-I (Concepts) | List-II (Expression) |
|---|---|
| A. Kaldor's first law of growth | III. \(g_{GDP} = f(g_m),\ f' > 0\) |
| B. Kaldor's second law of growth | I. \(P_{nm} = f(g_m),\ f' > 0\) |
| C. Kaldor's third law of growth | IV. \(P_m = f(g_m),\ f' > 0\) |
| D. Okun's law | II. \(\bar{y} = \epsilon \cdot (u - u^*)\) |
Therefore, the correct matching option is: A-III, B-I, C-IV, D-II.
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Important Questions from Economic Growth & Development
- The following Economics Terms can be arrange in chronological order on the basis of the concept development :
(i) Scarcity definition.
(ii)wealth definition
(iii)Growth definition.
(iv) welfare definition. - What is the key distinction between productive and non-productive work in Classical Economic Theory?
- Which among the following conditions are true for Golden Rule of Accumulation of Edmund Phelps for optimum capital accumulation ? Choose from the code below :
I. Savings rate is unique.
II. Marginal productivity of capital be equal to capital depreciation.
Codes : - Which of the following is the correct assumption for the Lewis two sector model ?
- Which of the following is a major indivisibility of Rosenstein-Rodan Model of development ?
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