Inverted 'U'-hypothesis is based on the relationship of (i) poverty and inequality (ii) inequality and inflation (iii) development and inequality (iv) growth and unemployment. A te... Inverted 'U'-hypothesis is based on the relationship of (i) poverty and inequality (ii) inequality and inflation (iii) development and inequality (iv) growth and unemployment. A technique of production is explained by (i) capital-labour ratio (ii) capital-output ratio (iii) Both (i) and (ii) (iv) None of the above. The International Monetary Fund was the outcome of (i) Bretton Woods Conference (ii) United Nations Conference (iii) Commonwealth Conference (iv) World Bank.
Understand the Problem
The question contains multiple-choice items regarding economic theories and historical events, particularly the Inverted 'U'-hypothesis, techniques of production, and the International Monetary Fund.
Answer
["development and inequality","Both (i) and (ii)","Bretton Woods Conference"]
[{"question":"Inverted 'U'-hypothesis is based on the relationship of","correct_option":"(iii) development and inequality"},{"question":"A technique of production is explained by","correct_option":"(iii) Both (i) and (ii)"},{"question":"The International Monetary Fund was the outcome of","correct_option":"(i) Bretton Woods Conference"}]
Answer for screen readers
[{"question":"Inverted 'U'-hypothesis is based on the relationship of","correct_option":"(iii) development and inequality"},{"question":"A technique of production is explained by","correct_option":"(iii) Both (i) and (ii)"},{"question":"The International Monetary Fund was the outcome of","correct_option":"(i) Bretton Woods Conference"}]
More Information
The inverted 'U' hypothesis, also known as the Kuznets Curve, describes the relationship between economic development and income inequality. Technique of production typically considers both capital-labour ratio and capital-output ratio metrics. The IMF was established during the Bretton Woods Conference in 1944.
Tips
When studying hypothesis models like the inverted 'U' hypothesis, ensure to understand the underlying variables and their historical context.
Sources
- A n inverted-U relationship between inequality and long-run growth - econ.sinica.edu.tw
- Capital-Labour and Capital-Output Ratios - economicsdiscussion.net
- History of IMF - imf.org
