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Direction: Read the following passage carefully and answer the questions given below:Richard Goodwin, the well-known American economist who taught at Harvard before migrating to Cambridge, England, because of the McCarthyite witch-hunt of the 1950s, and who, although a Marxist, did some simulations on a model of a capitalist economy. The economy in the model experienced a wave of innovations while output was determined by aggregate demand; and the simulation results showed that unless wages increased significantly because of the introduction of innovations, output and employment at the end of the wave would be lower than at the beginning. There is no reason, however, for such a rise in wages despite the rise in labour productivity because the rise in unemployment through which alone such a rise in labour productivity manifests itself would weaken workers’ bargaining strength for enforcing higher wages. The conclusion about technological change causing economic retrogression in such a capitalist economy therefore remains unaffected.Capitalist economies, however, have not actually seen economic retrogression as a consequence of technological change. The question arises: why not? If as technological change is introduced and there is a simultaneous increase in aggregate demand for some independent reason, then there need not be either a decline in employment or output in the economy introducing such a change. But there is no reason why such an increase should occur within the capitalist sector. It will have to come from outside, and not just as a coincidence; the capitalist sector must cause such an independent expansion in aggregate demand to happen. In short, it will need to have a ‘market on tap’ existing outside of it that it can turn to to prevent a decline in output and employment. This idea, originally advanced by Rosa Luxemburg, has been borne out in practice. Capitalism has generally had such a ‘market on tap’ (a phrase of the economic historian, S.B. Saul), which is why technological change under it has been accompanied not by economic retrogression but by economic progress. [Extracted with edits and revision from ‘Flawed Idea Innovation and Retrogression’ by Prabhat Patnaik, Telegraph India]Q.According to the passage, what did the simulations on a model of a capitalist economy by Richard Goodwin reveal about the relationship between innovations and wages?a)Innovations always lead to a significant increase in wages.b)Unless wages increase significantly due to innovations, output and employment decline.c)Innovations have no impact on wages in a capitalist economy.d)Wages decrease when innovations are introduced.Correct answer is option 'C'. Can you explain this answer? for CLAT 2024 is part of CLAT preparation. The Question and answers have been prepared according to the CLAT exam syllabus. Information about Direction: Read the following passage carefully and answer the questions given below:Richard Goodwin, the well-known American economist who taught at Harvard before migrating to Cambridge, England, because of the McCarthyite witch-hunt of the 1950s, and who, although a Marxist, did some simulations on a model of a capitalist economy. The economy in the model experienced a wave of innovations while output was determined by aggregate demand; and the simulation results showed that unless wages increased significantly because of the introduction of innovations, output and employment at the end of the wave would be lower than at the beginning. There is no reason, however, for such a rise in wages despite the rise in labour productivity because the rise in unemployment through which alone such a rise in labour productivity manifests itself would weaken workers’ bargaining strength for enforcing higher wages. The conclusion about technological change causing economic retrogression in such a capitalist economy therefore remains unaffected.Capitalist economies, however, have not actually seen economic retrogression as a consequence of technological change. The question arises: why not? If as technological change is introduced and there is a simultaneous increase in aggregate demand for some independent reason, then there need not be either a decline in employment or output in the economy introducing such a change. But there is no reason why such an increase should occur within the capitalist sector. It will have to come from outside, and not just as a coincidence; the capitalist sector must cause such an independent expansion in aggregate demand to happen. In short, it will need to have a ‘market on tap’ existing outside of it that it can turn to to prevent a decline in output and employment. This idea, originally advanced by Rosa Luxemburg, has been borne out in practice. Capitalism has generally had such a ‘market on tap’ (a phrase of the economic historian, S.B. Saul), which is why technological change under it has been accompanied not by economic retrogression but by economic progress. [Extracted with edits and revision from ‘Flawed Idea Innovation and Retrogression’ by Prabhat Patnaik, Telegraph India]Q.According to the passage, what did the simulations on a model of a capitalist economy by Richard Goodwin reveal about the relationship between innovations and wages?a)Innovations always lead to a significant increase in wages.b)Unless wages increase significantly due to innovations, output and employment decline.c)Innovations have no impact on wages in a capitalist economy.d)Wages decrease when innovations are introduced.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for CLAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction: Read the following passage carefully and answer the questions given below:Richard Goodwin, the well-known American economist who taught at Harvard before migrating to Cambridge, England, because of the McCarthyite witch-hunt of the 1950s, and who, although a Marxist, did some simulations on a model of a capitalist economy. The economy in the model experienced a wave of innovations while output was determined by aggregate demand; and the simulation results showed that unless wages increased significantly because of the introduction of innovations, output and employment at the end of the wave would be lower than at the beginning. There is no reason, however, for such a rise in wages despite the rise in labour productivity because the rise in unemployment through which alone such a rise in labour productivity manifests itself would weaken workers’ bargaining strength for enforcing higher wages. The conclusion about technological change causing economic retrogression in such a capitalist economy therefore remains unaffected.Capitalist economies, however, have not actually seen economic retrogression as a consequence of technological change. The question arises: why not? If as technological change is introduced and there is a simultaneous increase in aggregate demand for some independent reason, then there need not be either a decline in employment or output in the economy introducing such a change. But there is no reason why such an increase should occur within the capitalist sector. It will have to come from outside, and not just as a coincidence; the capitalist sector must cause such an independent expansion in aggregate demand to happen. In short, it will need to have a ‘market on tap’ existing outside of it that it can turn to to prevent a decline in output and employment. This idea, originally advanced by Rosa Luxemburg, has been borne out in practice. Capitalism has generally had such a ‘market on tap’ (a phrase of the economic historian, S.B. Saul), which is why technological change under it has been accompanied not by economic retrogression but by economic progress. [Extracted with edits and revision from ‘Flawed Idea Innovation and Retrogression’ by Prabhat Patnaik, Telegraph India]Q.According to the passage, what did the simulations on a model of a capitalist economy by Richard Goodwin reveal about the relationship between innovations and wages?a)Innovations always lead to a significant increase in wages.b)Unless wages increase significantly due to innovations, output and employment decline.c)Innovations have no impact on wages in a capitalist economy.d)Wages decrease when innovations are introduced.Correct answer is option 'C'. Can you explain this answer?.

Solutions for Direction: Read the following passage carefully and answer the questions given below:Richard Goodwin, the well-known American economist who taught at Harvard before migrating to Cambridge, England, because of the McCarthyite witch-hunt of the 1950s, and who, although a Marxist, did some simulations on a model of a capitalist economy. The economy in the model experienced a wave of innovations while output was determined by aggregate demand; and the simulation results showed that unless wages increased significantly because of the introduction of innovations, output and employment at the end of the wave would be lower than at the beginning. There is no reason, however, for such a rise in wages despite the rise in labour productivity because the rise in unemployment through which alone such a rise in labour productivity manifests itself would weaken workers’ bargaining strength for enforcing higher wages. The conclusion about technological change causing economic retrogression in such a capitalist economy therefore remains unaffected.Capitalist economies, however, have not actually seen economic retrogression as a consequence of technological change. The question arises: why not? If as technological change is introduced and there is a simultaneous increase in aggregate demand for some independent reason, then there need not be either a decline in employment or output in the economy introducing such a change. But there is no reason why such an increase should occur within the capitalist sector. It will have to come from outside, and not just as a coincidence; the capitalist sector must cause such an independent expansion in aggregate demand to happen. In short, it will need to have a ‘market on tap’ existing outside of it that it can turn to to prevent a decline in output and employment. This idea, originally advanced by Rosa Luxemburg, has been borne out in practice. Capitalism has generally had such a ‘market on tap’ (a phrase of the economic historian, S.B. Saul), which is why technological change under it has been accompanied not by economic retrogression but by economic progress. [Extracted with edits and revision from ‘Flawed Idea Innovation and Retrogression’ by Prabhat Patnaik, Telegraph India]Q.According to the passage, what did the simulations on a model of a capitalist economy by Richard Goodwin reveal about the relationship between innovations and wages?a)Innovations always lead to a significant increase in wages.b)Unless wages increase significantly due to innovations, output and employment decline.c)Innovations have no impact on wages in a capitalist economy.d)Wages decrease when innovations are introduced.Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for CLAT. Download more important topics, notes, lectures and mock test series for CLAT Exam by signing up for free.

Here you can find the meaning of Direction: Read the following passage carefully and answer the questions given below:Richard Goodwin, the well-known American economist who taught at Harvard before migrating to Cambridge, England, because of the McCarthyite witch-hunt of the 1950s, and who, although a Marxist, did some simulations on a model of a capitalist economy. The economy in the model experienced a wave of innovations while output was determined by aggregate demand; and the simulation results showed that unless wages increased significantly because of the introduction of innovations, output and employment at the end of the wave would be lower than at the beginning. There is no reason, however, for such a rise in wages despite the rise in labour productivity because the rise in unemployment through which alone such a rise in labour productivity manifests itself would weaken workers’ bargaining strength for enforcing higher wages. The conclusion about technological change causing economic retrogression in such a capitalist economy therefore remains unaffected.Capitalist economies, however, have not actually seen economic retrogression as a consequence of technological change. The question arises: why not? If as technological change is introduced and there is a simultaneous increase in aggregate demand for some independent reason, then there need not be either a decline in employment or output in the economy introducing such a change. But there is no reason why such an increase should occur within the capitalist sector. It will have to come from outside, and not just as a coincidence; the capitalist sector must cause such an independent expansion in aggregate demand to happen. In short, it will need to have a ‘market on tap’ existing outside of it that it can turn to to prevent a decline in output and employment. This idea, originally advanced by Rosa Luxemburg, has been borne out in practice. Capitalism has generally had such a ‘market on tap’ (a phrase of the economic historian, S.B. Saul), which is why technological change under it has been accompanied not by economic retrogression but by economic progress. [Extracted with edits and revision from ‘Flawed Idea Innovation and Retrogression’ by Prabhat Patnaik, Telegraph India]Q.According to the passage, what did the simulations on a model of a capitalist economy by Richard Goodwin reveal about the relationship between innovations and wages?a)Innovations always lead to a significant increase in wages.b)Unless wages increase significantly due to innovations, output and employment decline.c)Innovations have no impact on wages in a capitalist economy.d)Wages decrease when innovations are introduced.Correct answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Direction: Read the following passage carefully and answer the questions given below:Richard Goodwin, the well-known American economist who taught at Harvard before migrating to Cambridge, England, because of the McCarthyite witch-hunt of the 1950s, and who, although a Marxist, did some simulations on a model of a capitalist economy. The economy in the model experienced a wave of innovations while output was determined by aggregate demand; and the simulation results showed that unless wages increased significantly because of the introduction of innovations, output and employment at the end of the wave would be lower than at the beginning. There is no reason, however, for such a rise in wages despite the rise in labour productivity because the rise in unemployment through which alone such a rise in labour productivity manifests itself would weaken workers’ bargaining strength for enforcing higher wages. The conclusion about technological change causing economic retrogression in such a capitalist economy therefore remains unaffected.Capitalist economies, however, have not actually seen economic retrogression as a consequence of technological change. The question arises: why not? If as technological change is introduced and there is a simultaneous increase in aggregate demand for some independent reason, then there need not be either a decline in employment or output in the economy introducing such a change. But there is no reason why such an increase should occur within the capitalist sector. It will have to come from outside, and not just as a coincidence; the capitalist sector must cause such an independent expansion in aggregate demand to happen. In short, it will need to have a ‘market on tap’ existing outside of it that it can turn to to prevent a decline in output and employment. This idea, originally advanced by Rosa Luxemburg, has been borne out in practice. Capitalism has generally had such a ‘market on tap’ (a phrase of the economic historian, S.B. Saul), which is why technological change under it has been accompanied not by economic retrogression but by economic progress. [Extracted with edits and revision from ‘Flawed Idea Innovation and Retrogression’ by Prabhat Patnaik, Telegraph India]Q.According to the passage, what did the simulations on a model of a capitalist economy by Richard Goodwin reveal about the relationship between innovations and wages?a)Innovations always lead to a significant increase in wages.b)Unless wages increase significantly due to innovations, output and employment decline.c)Innovations have no impact on wages in a capitalist economy.d)Wages decrease when innovations are introduced.Correct answer is option 'C'. Can you explain this answer?, a detailed solution for Direction: Read the following passage carefully and answer the questions given below:Richard Goodwin, the well-known American economist who taught at Harvard before migrating to Cambridge, England, because of the McCarthyite witch-hunt of the 1950s, and who, although a Marxist, did some simulations on a model of a capitalist economy. The economy in the model experienced a wave of innovations while output was determined by aggregate demand; and the simulation results showed that unless wages increased significantly because of the introduction of innovations, output and employment at the end of the wave would be lower than at the beginning. There is no reason, however, for such a rise in wages despite the rise in labour productivity because the rise in unemployment through which alone such a rise in labour productivity manifests itself would weaken workers’ bargaining strength for enforcing higher wages. The conclusion about technological change causing economic retrogression in such a capitalist economy therefore remains unaffected.Capitalist economies, however, have not actually seen economic retrogression as a consequence of technological change. The question arises: why not? If as technological change is introduced and there is a simultaneous increase in aggregate demand for some independent reason, then there need not be either a decline in employment or output in the economy introducing such a change. But there is no reason why such an increase should occur within the capitalist sector. It will have to come from outside, and not just as a coincidence; the capitalist sector must cause such an independent expansion in aggregate demand to happen. In short, it will need to have a ‘market on tap’ existing outside of it that it can turn to to prevent a decline in output and employment. This idea, originally advanced by Rosa Luxemburg, has been borne out in practice. Capitalism has generally had such a ‘market on tap’ (a phrase of the economic historian, S.B. Saul), which is why technological change under it has been accompanied not by economic retrogression but by economic progress. [Extracted with edits and revision from ‘Flawed Idea Innovation and Retrogression’ by Prabhat Patnaik, Telegraph India]Q.According to the passage, what did the simulations on a model of a capitalist economy by Richard Goodwin reveal about the relationship between innovations and wages?a)Innovations always lead to a significant increase in wages.b)Unless wages increase significantly due to innovations, output and employment decline.c)Innovations have no impact on wages in a capitalist economy.d)Wages decrease when innovations are introduced.Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of Direction: Read the following passage carefully and answer the questions given below:Richard Goodwin, the well-known American economist who taught at Harvard before migrating to Cambridge, England, because of the McCarthyite witch-hunt of the 1950s, and who, although a Marxist, did some simulations on a model of a capitalist economy. The economy in the model experienced a wave of innovations while output was determined by aggregate demand; and the simulation results showed that unless wages increased significantly because of the introduction of innovations, output and employment at the end of the wave would be lower than at the beginning. There is no reason, however, for such a rise in wages despite the rise in labour productivity because the rise in unemployment through which alone such a rise in labour productivity manifests itself would weaken workers’ bargaining strength for enforcing higher wages. The conclusion about technological change causing economic retrogression in such a capitalist economy therefore remains unaffected.Capitalist economies, however, have not actually seen economic retrogression as a consequence of technological change. The question arises: why not? If as technological change is introduced and there is a simultaneous increase in aggregate demand for some independent reason, then there need not be either a decline in employment or output in the economy introducing such a change. But there is no reason why such an increase should occur within the capitalist sector. It will have to come from outside, and not just as a coincidence; the capitalist sector must cause such an independent expansion in aggregate demand to happen. In short, it will need to have a ‘market on tap’ existing outside of it that it can turn to to prevent a decline in output and employment. This idea, originally advanced by Rosa Luxemburg, has been borne out in practice. Capitalism has generally had such a ‘market on tap’ (a phrase of the economic historian, S.B. Saul), which is why technological change under it has been accompanied not by economic retrogression but by economic progress. [Extracted with edits and revision from ‘Flawed Idea Innovation and Retrogression’ by Prabhat Patnaik, Telegraph India]Q.According to the passage, what did the simulations on a model of a capitalist economy by Richard Goodwin reveal about the relationship between innovations and wages?a)Innovations always lead to a significant increase in wages.b)Unless wages increase significantly due to innovations, output and employment decline.c)Innovations have no impact on wages in a capitalist economy.d)Wages decrease when innovations are introduced.Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Direction: Read the following passage carefully and answer the questions given below:Richard Goodwin, the well-known American economist who taught at Harvard before migrating to Cambridge, England, because of the McCarthyite witch-hunt of the 1950s, and who, although a Marxist, did some simulations on a model of a capitalist economy. The economy in the model experienced a wave of innovations while output was determined by aggregate demand; and the simulation results showed that unless wages increased significantly because of the introduction of innovations, output and employment at the end of the wave would be lower than at the beginning. There is no reason, however, for such a rise in wages despite the rise in labour productivity because the rise in unemployment through which alone such a rise in labour productivity manifests itself would weaken workers’ bargaining strength for enforcing higher wages. The conclusion about technological change causing economic retrogression in such a capitalist economy therefore remains unaffected.Capitalist economies, however, have not actually seen economic retrogression as a consequence of technological change. The question arises: why not? If as technological change is introduced and there is a simultaneous increase in aggregate demand for some independent reason, then there need not be either a decline in employment or output in the economy introducing such a change. But there is no reason why such an increase should occur within the capitalist sector. It will have to come from outside, and not just as a coincidence; the capitalist sector must cause such an independent expansion in aggregate demand to happen. In short, it will need to have a ‘market on tap’ existing outside of it that it can turn to to prevent a decline in output and employment. This idea, originally advanced by Rosa Luxemburg, has been borne out in practice. Capitalism has generally had such a ‘market on tap’ (a phrase of the economic historian, S.B. Saul), which is why technological change under it has been accompanied not by economic retrogression but by economic progress. [Extracted with edits and revision from ‘Flawed Idea Innovation and Retrogression’ by Prabhat Patnaik, Telegraph India]Q.According to the passage, what did the simulations on a model of a capitalist economy by Richard Goodwin reveal about the relationship between innovations and wages?a)Innovations always lead to a significant increase in wages.b)Unless wages increase significantly due to innovations, output and employment decline.c)Innovations have no impact on wages in a capitalist economy.d)Wages decrease when innovations are introduced.Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice CLAT tests.