Question

Match List-I with List-II.

List-I	List-II
A. Harrod-Domar Model	I. \(g=\frac{s}{v}\)
B. Solow Model	II. \(MRK=\delta\)
C. Golden rule of capital stock	III. \(k\) constant, \(y\) constant
D. Steady state	IV. convergence

• A. A-I, B-IV, C-II, D-III
• B. A-I, B-II, C-III, D-IV
• C. A-IV, B-III, C-II, D-I
• D. A-IV, B-III, C-I, D-II

Hint:

Harrod-Domar growth formula is \(g=\frac{s}{v}\), while Solow model is strongly associated with steady state and convergence.

Answer 1

The Correct Option is A

Concept: Growth models explain how saving, capital accumulation, productivity and steady state affect economic growth.

Step 1: Match Harrod-Domar Model.
Harrod-Domar growth model gives the growth rate as: \[ g=\frac{s}{v} \] So, \[ A \rightarrow I \]

Step 2: Match Solow Model.
Solow model is associated with convergence, meaning poorer economies may catch up with richer economies under certain conditions. \[ B \rightarrow IV \]

Step 3: Match Golden Rule of Capital Stock.
Golden rule capital stock occurs where marginal return on capital equals depreciation. \[ MRK=\delta \] So, \[ C \rightarrow II \]

Step 4: Match Steady State.
Steady state means capital per worker and output per worker remain constant. \[ k=\text{constant},\quad y=\text{constant} \] So, \[ D \rightarrow III \] Therefore, the correct matching is: \[ A-I,\ B-IV,\ C-II,\ D-III \]