Economic Growth and Development-Theories of Growth (IEcoS (Economic Services) Economics Paper-2): Questions 1 - 9 of 11

Access detailed explanations (illustrated with images and videos) to 82 questions. Access all new questions we will add tracking exam-pattern and syllabus changes. Subscription can be renewed yearly absolutely FREE! View Sample Explanation or View Features.

Rs. 300.00 or

How to register?

Question number: 1

» Economic Growth and Development » Theories of Growth » Classical Approach Adam Smith, Marx and Schumpeter

Edit

Appeared in Year: 2018

Essay Question▾

Describe in Detail

Explain the basic features of Kaldor’s model of growth and distribution.

Explanation

  • The Kaldor model follows the Harrodian dynamic model and Keynesian techniques of analysis. The other neo-classical economists treat the technology as exogenous but he provides a framework for relating the genesis of technical progress to capital accumulation.

  • The short-period supply of aggregate goods and services is inelastic and irrespons

… (166 more words) …

Question number: 2

» Economic Growth and Development » Theories of Growth » Classical Approach Adam Smith, Marx and Schumpeter

Edit

Appeared in Year: 2010

Essay Question▾

Describe in Detail

The Physical Quality of Life Index is an instrument to measure development. Elaborate the statement.

Explanation

  • PQLI: David Morris tried to look for those indicators, which were the results of the development efforts.

    • Out of hundred and odd indicators, he could find only three which could have universal appeal as ends in themselves and meet the criteria laid down.

    • These are: Life Expectancy (LE), Infant Mortality (IM) and Basic literacy (BL). He

… (132 more words) …

Question number: 3

» Economic Growth and Development » Theories of Growth » Neo Classical Approach Robinson, Solow, Kaldor and Harrod Domar

Edit

Appeared in Year: 2015

Essay Question▾

Describe in Detail

Analyze the Harrod-Domar Model of Growth with reference to Knife Edge Balance.

Explanation

  • Both of them developed their theories in reaction to Keynesian theory.

    • Keynes neglected twin effect of investment which means an increase in income and hence, effective demand and increase in productive capacity.

    • The classical economists emphasized productivity aspect of investment which took for granted the demand side whereas Keynes a

… (542 more words) …

Question number: 4

» Economic Growth and Development » Theories of Growth » Classical Approach Adam Smith, Marx and Schumpeter

Edit

Appeared in Year: 2016

Essay Question▾

Describe in Detail

Explain the inevitability of the stationary state in classical theory of growth.

Explanation

The main features of the classical theory of growth are:

  • Laissez faire policy: The classical economists believe in the existence of and automatic free market and perfectly competitive economy which is free from any government interference. It is the “invisible hand” which maximizes the national income.

  • Capital Accumulation, the key to prog

… (304 more words) …

Question number: 5

» Economic Growth and Development » Theories of Growth » Classical Approach Adam Smith, Marx and Schumpeter

Edit

Appeared in Year: 2015

Essay Question▾

Describe in Detail

How is innovation different from invention? Examine Schumpeter’s theory of innovation in the present times.

Explanation

  • Invention refers to the creation of a brand new product or device. Conversely, innovation is an act of making changes to the existing product or the process by introducing new ways or ideas.

  • Schumpeter assumes a perfectly competitive economy which is in stationary equilibrium. In such a stationary state, there is perfect competitive equilib

… (440 more words) …

Question number: 6

» Economic Growth and Development » Theories of Growth » Neo Classical Approach Robinson, Solow, Kaldor and Harrod Domar

Edit

Appeared in Year: 2017

Essay Question▾

Describe in Detail

Discuss the knife edge instability problem in Harrod Domar model.

Explanation

  • Both of them developed their theories in reaction to Keynesian theory. Keynes neglected twin effect of investment which means an increase in income and hence, effective demand and increase in productive capacity.

    • The classical economists emphasized productivity aspect of investment, which took for, granted the demand side whereas Keynes att

… (560 more words) …

Question number: 7

» Economic Growth and Development » Theories of Growth » Neo Classical Approach Robinson, Solow, Kaldor and Harrod Domar

Edit

Appeared in Year: 2016

Essay Question▾

Describe in Detail

What is a well behaved production function? Explain its role in the neo classical growth theory.

Explanation

  • According to Solow, the Harrod Domar model is based on unrealistic assumptions.

    • This model gives knife edge equilibrium problem because its key parameters like saving ratio, capital output ratio and capital labour ratio, if slide slightly either on either side, the result would be either growing unemployment or chronic inflation.

    • Accord

… (648 more words) …

Question number: 8

» Economic Growth and Development » Theories of Growth » Neo Classical Approach Robinson, Solow, Kaldor and Harrod Domar

Edit

Appeared in Year: 2016

Essay Question▾

Describe in Detail

Explain Caldor’s technical progress function.

Explanation

  • The technical progress function presents the functional relationship between growth rate of output per worker and growth rate of capital per worker. According to Kaldor, most technical innovations which result in increased labour productivity require more elaborate equipment or more mechanical power or both involving use of more capital per worke

… (158 more words) …

Question number: 9

» Economic Growth and Development » Theories of Growth » Neo Classical Approach Robinson, Solow, Kaldor and Harrod Domar

Edit

Appeared in Year: 2010

Essay Question▾

Describe in Detail

“Domar assigned a key role to Investment in the process of Economic Growth. ” Explain Domar’s model of economic growth.

Explanation

Domar Model

According to Domar, investment has Turin effects:

a) Income generating effect through multiplier.

b) Productivity effect by creating productive capacity.

This model further stresses that long utilization of capital inhabits investment and reduces income. Reduction of income brings about deficiency of demand and this results in unem

… (104 more words) …

Developed by: