In the context of economic growth models, the Harrod-Domar model emphasises:
A. Only technological progress
B. Only labour force growth
C. The role of savings rate and capital-output ratio in determining growth
D. Only natural resource endowment
Answer: Option C
Solution (By JKSSB Mock Tests)
The Harrod-Domar model states that the growth rate of output depends on the savings rate and the capital-output ratio (or the productivity of capital).
Explanation:
Indian agriculture faces structural challenges including predominance of small and fragmented holdings, monsoon dependence, and low productivity in many regions.
No comments yet. Be the first to start the discussion!