Passage: Traditional economic theory viewed capital in physical terms only. Economists during the late 1950s based on the aggregate production function found that standard measures of simple labour and physical capital were incapable of explaining the rapid post-war growth. The residual of unexplained growth was at first ascribed to technology by Solow, but later defined to include improvements in the quality of capital and investment in human beings. Human capital is formed with improvement in skills and education. Improved health and education is a merit as well as a public good. Questions: Q1: Which of the following gives the definition of public goods? A: (b) Non-excludable and non-rivalrous in nature. Q2: Consider two countries — A and B. Country A has invested more in technological progress whereas Country B has invested more in expanding its military network. To Solow, which country would grow faster? A: (a) Country A. Q3: Standard economic theories failed to explain the post-war rapid growth due to? A: (c) Both (a) and (b). Q4: An externality is the good or bad impact which enters the utility or production function of another individual or firm with no choice of their own. The given statement is? A: (a) True. Q5: In the context of the above paragraph, the 'residual' factor includes: A: (d) All of the above.

(b) Non-excludable and non-rivalrous in nature.

Q. q166 — CBSE 12 Commerce Indian Economic Development

Passage

Traditional economic theory viewed capital in physical terms only. Economists during the late 1950s based on the aggregate production function found that standard measures of simple labour and physical capital were incapable of explaining the rapid post-war growth. The residual of unexplained growth was at first ascribed to technology by Solow, but later defined to include improvements in the quality of capital and investment in human beings. Human capital is formed with improvement in skills and education. Improved health and education is a merit as well as a public good.

Question 116 MarksMCQ

Which of the following gives the definition of public goods?

Question 216 MarksMCQ

Consider two countries — A and B. Country A has invested more in technological progress whereas Country B has invested more in expanding its military network. To Solow, which country would grow faster?

Question 316 MarksMCQ

Standard economic theories failed to explain the post-war rapid growth due to?

Question 416 MarksMCQ

An externality is the good or bad impact which enters the utility or production function of another individual or firm with no choice of their own. The given statement is?

Question 516 MarksMCQ

In the context of the above paragraph, the 'residual' factor includes: