Match the following: List IList II (a) Diminishing marginal rate of substitution (i) Dual economy…
Diminishing marginal substitution belongs to indifference-curve analysis. A traditional sector with zero or negligible marginal labour productivity is central to…
Choose your answer
Match the following:
| List I | List II |
|---|---|
| (a) Diminishing marginal rate of substitution | (i) Dual economy models |
| (b) Marginal productivity of Labour ≤ 0 | (ii) Marxian theory of capitalistic crisis |
| (c) Disproportionality and under consumption | (iii) Ricardian stationary state |
| (d) Universal diminishing marginal returns | (iv) Indifference curves analysis |
| (v) Circular flow |
Code order: (a), (b), (c), (d).
Answer and explanation
Correct answer C
Diminishing marginal substitution belongs to indifference-curve analysis. A traditional sector with zero or negligible marginal labour productivity is central to dual-economy surplus-labour models; the source permits non-positive productivity. Disproportionality and underconsumption are Marxian crisis explanations, and diminishing returns drive the Ricardian stationary state. Thus (iv), (i), (ii), (iii).
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UGC NET Economics