Which of the following is a characteristic of the 'Learning-by-Doing' models of growth?
A. Only formal R&D matters
B. Experience has no effect on productivity
C. Productivity is completely exogenous
D. Productivity rises as a by-product of cumulative production experience
Answer: Option D
Solution (By JKSSB Mock Tests)
Learning-by-doing models, originating with Arrow, treat increases in productivity as an automatic by-product of the accumulation of production experience (cumulative output).
The concept of 'Degrowth' in ecological economics advocates:
A.Only growth in developing countries
B.The complete abandonment of all economic activity
C.A planned reduction of energy and resource throughput in high-income countries to bring the economy within ecological limits while improving well-being
Explanation:
Degrowth is a school of thought that calls for a democratically planned downscaling of production and consumption in over-consuming countries in order to achieve ecological sustainability and social justice.
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