The following lists I and II show the names of Economists/Authors and their books respectively. Match List-I with List-II and choose the correct answer using the codes given below the lists :
List-I (

Question

The following lists I and II show the names of Economists/Authors and their books respectively. Match List-I with List-II and choose the correct answer using the codes given below the lists :
List-I (Economist/Author)
A. Myrdal
B. Hirschman
C. Kaldor
D. Adam Smith
List-II (Book)
1. Economic Theory and Under-developed Regions
2. The Strategy of Economic Development
3. Strategic Factors in Economic Development
4. The Wealth of Nations
Codes :

UnlockIAS · Accepted Answer

Correct — A, A-1, B-2, C-3, D-4. Gunnar Myrdal (Swedish, 1898–1987; shared the 1974 Nobel Memorial Prize in Economics) wrote Economic Theory and Under-developed Regions (1957) — the book in which he set out circular and cumulative causation, arguing that market forces left alone widen regional inequality through 'backwash' effects that drain capital, skills and labour from poor regions to rich ones, only partly offset by 'spread' effects. Albert O. Hirschman (1915–2012) wrote The Strategy of Economic Development (1958), the classic statement of unbalanced growth: a poor country should deliberately create disequilibria by investing in industries with strong backward and forward linkages, letting the pressure they generate pull the rest of the economy along. Nicholas Kaldor (1908–1986, Hungarian-born British economist, of Kaldor–Hicks efficiency and Kaldor's growth laws) wrote Strategic Factors in Economic Development (1967, Ithaca/Cornell). Adam Smith's An Inquiry into the Nature and Causes of the Wealth of Nations (1776) is the founding text of classical political economy. So A-1, B-2, C-3, D-4 — option (a).

Why the other options are wrong — (b) This rotates three of the four pairs and gets only Adam Smith right. It hands Myrdal Hirschman's The Strategy of Economic Development, hands Hirschman Kaldor's Strategic Factors in Economic Development, and hands Kaldor Myrdal's Economic Theory and Under-developed Regions.  (c) Gets Hirschman and Smith right but swaps Myrdal and Kaldor — it credits Myrdal with Kaldor's Strategic Factors in Economic Development and credits Kaldor with Myrdal's Economic Theory and Under-developed Regions. This is the most tempting wrong option precisely because the two titles sound alike; the discriminator is that 'Under-developed Regions' is Myrdal's regional-inequality argument.  (d) Gets Kaldor and Smith right but swaps Myrdal and Hirschman — it gives Myrdal The Strategy of Economic Development (Hirschman's 1958 book on unbalanced growth) and gives Hirschman Economic Theory and Under-developed Regions (Myrdal's 1957 book).

Concept: This question sits in development economics — the post-1945 literature asking why poor countries stay poor and what a state should do about it. Three of the four names belong to that debate. Myrdal rejected the idea that markets automatically equalise regions and argued for cumulative divergence, so the state must intervene. Hirschman argued the opposite of the then-fashionable 'balanced growth' school: deliberately induce imbalance, because linkage effects, not tidy proportionality, are what actually mobilise entrepreneurship in a poor economy. Kaldor worked on growth regularities, taxation and the role of manufacturing as the engine of growth. Adam Smith is the odd one out — an eighteenth-century classical economist, and the giveaway pair in every option.

State PCS 2024 Q8 — Economy PYQ with Answer

State PCS 2024 Q8 — Economy PYQ with Answer