In the context of Indian planning, the first Five Year Plan was based on which model? MCQ with Answer and Explanation

Question

Share Report Error

In the context of Indian planning, the first Five Year Plan was based on which model?

A. Mahalanobis model

B. Harrod-Domar model

C. Solow model

D. Lewis model

Answer: Option B

Solution (By JKSSB Mock Tests)

The First Five Year Plan (1951-56) was based on the Harrod-Domar model which emphasised the role of savings and investment in economic growth.

This question belongs to: Economy GK Economy Set 1

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Economy Set 1 Questions

Question #1

Share Report

Which of the following is a feature of the 'Wealth Inequality' literature associated with Piketty?

A. Wealth inequality always declines with development

B. When the rate of return on capital exceeds the growth rate of the economy, wealth inequality tends to rise

C. Capital accumulation always reduces inequality

D. Only labour income inequality matters

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option B

Explanation:
Piketty’s central argument is that when the rate of return on capital (r) systematically exceeds the growth rate of the economy (g), the share of capital in national income and the concentration of wealth tend to increase.

This question belongs to: Economy GK Economy Set 1

Question #2

Share Report

Which of the following is a feature of the 'Ricardian Equivalence Theorem'?

A. Only liquidity-constrained agents matter

B. Government debt is always neutral regardless of agents’ behaviour

C. Tax cuts financed by debt do not affect private consumption because agents anticipate future tax liabilities

D. Tax cuts financed by debt increase private consumption

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option C

Explanation:
Ricardian equivalence asserts that, under certain conditions, debt-financed tax cuts do not stimulate consumption because forward-looking agents save the tax cut to pay the future taxes needed to service the debt.

This question belongs to: Economy GK Economy Set 1