Which of the following is a characteristic of the 'Learning-by-Doing' models of growth?
A. Experience has no effect on productivity
B. Productivity is completely exogenous
C. Productivity rises as a by-product of cumulative production experience
D. Only formal R&D matters
Answer: Option C
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).
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