Which of the following are the assumptions of Joan Robinson’s golden age model? a) Technical neutrality…
Technical neutrality, production using labour and capital, and the division of income into wages and profits are assumptions of the golden age model. Wage earners are…
Choose your answer
Which of the following are the assumptions of Joan Robinson’s golden age model?
a) Technical neutrality
b) Wage earners save their entire income
c) Labour and capital are the only factors of production
d) Total income is divided between wages and profits
Answer and explanation
Correct answer A
Technical neutrality, production using labour and capital, and the division of income into wages and profits are assumptions of the golden age model. Wage earners are assumed to consume their wages, rather than save their entire income.
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Telangana SET (TG SET)