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
- According to Rostow, any industry can play the role of leading sector in the take-off stage provided following conditions are met.
A. The market for the product is expanding rapidly
B. The leading sector generates secondary expansion
C. The sector has an adequate and continual supply of capital from ploughed-back profits.
D. Introduction of new techniques into the sector to increase productivity
Ε. Changes in industrial structure should be structural ones
Choose the most appropriate answer from the options given below : - The idea of constructing poverty-weighted indices of growth is.
- In the context of neoclassical growth model, the effects of an increase in population growth rate is/are.
A. Reduction in steady-state level of capital per head
B. Increase in per capita output
C. Increase in steady state rate of growth of aggregate output
D. Decrease in capital-output ratio
Ε. An inward shift in production possibility curve.
Choose the most appropriate answer from the options given below: - Arrange the following publications in chronological order starting from the oldest to the latest.
A. "Theory of Economic Growth" by Arthur Lewis
B. "A Contribution to the Theory of Economic Growth" by Robert Solow
C. "The Stages of Economic Growth: A Non Communist Manifesto" by Walt Rostow
D. "Asian Drama: An Inquiry into the Poverty of Nations" by Gunnar Myrdal
Ε. "Strategy of Economic Development" by Albert Hirschman
Choose the correct answer from the options given below : - According to neoclassical growth theory, an increase in saving rate.
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