The Solow growth model identifies which of the following as a source of long-run per capita income growth? MCQ with Answer and Explanation

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The Solow growth model identifies which of the following as a source of long-run per capita income growth?

A. Capital accumulation

B. Increase in savings only

C. Technological progress

D. Population growth

Answer: Option C

Solution (By JKSSB Mock Tests)

In the Solow model, sustained long-run per capita income growth comes from technological progress.

This question belongs to: Economy GK Economy Set 1

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Question #1

The paradox of thrift suggests that:

A. thrift always increases investment

B. saving is always beneficial for the economy

C. saving is impossible in a recession

D. increased saving by all households may reduce aggregate demand and output

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Correct Answer: Option D

Explanation:
The paradox of thrift states that if everyone saves more during a recession, total demand and output may fall.

This question belongs to: Economy GK Economy Set 1

Question #2

In the context of competition policy for digital markets, 'Killer Acquisitions' refer to:

A. Only conglomerate mergers without any competitive effect

B. Acquisitions of innovative start-ups by dominant incumbents with the aim of discontinuing the target’s innovation to protect the incumbent’s market position

C. Acquisitions that always increase innovation

D. Only horizontal mergers among equals

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Correct Answer: Option B

Explanation:
Killer acquisitions occur when a dominant firm acquires a potential competitor primarily to eliminate the competitive threat posed by the target’s product or technology rather than to develop it.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'National Manufacturing Policy' aims to create National Investment and Manufacturing Zones that are basically:

A. agricultural zones

B. residential colonies

C. special economic zones only

D. industrial parks with world-class infrastructure

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Correct Answer: Option D

Explanation:
NIMZs are integrated industrial parks with advanced infrastructure.

This question belongs to: Economy GK Economy Set 1

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