[Mission 2023] Insta–DART (Daily Aptitude and Reasoning Test) 4 April 2023

The underlying “magic” that enables economies to grow from low income to middle income and from there to high income is captured in an economic term called “Total Factor Productivity (TFP)”. TFP is a measure of the total growth in output that is beyond simply the increase in inputs into the system. In arcane economic terms, it is measured by something called the Solow residual—named after the Nobel Prize winning growth economist Robert Solow. In simple English, it is that which allows blood to be squeezed out of (the labour and capital) stone. In an article written six years ago called “Escaping The Middle-Income Trap”, Berkeley economist Barry Eichengreen showed that structural growth pick-ups and slowdowns are almost always because of an increase/decrease in TFP. Eichengreen accurately predicted that the TFP drop in China caused by over-allocation to investments would cause a fall in growth rate, and that this growth would only be rebalanced if the economy were to shift towards consumption and higher value-added manufacturing.

The Author suggests that
1. Structural growth in an economy is reflected through changes in TFP
2. Increasing inputs in economy will aid growth from low income to middle income economy
Which of the above statement is/ are Correct?

Passage 2:
India’s China policy needs a re-structuring based on a fresh perspective that is relevant for the 21^st century. This is because the global power matrix has undergone a paradigm change, from exclusively Atlantic shores-based concerns to emerging Indo-Pacific Ocean strategic issues. Thus India China relations matter as never before.

The passage suggests that

India needs to take a long-term view on developing global brands and attaining international standards in its manufacturing and services. Rather than place small players at a disadvantage, this transition would equip them to straddle the world stage.

With reference to the above passage, following assumptions have been made;
1. So far, we have hardly focussed on developing global brands
2. Policymakers are wary of the competition that small players will face from the big fish in case of excess liberalization
Which one of the following assumption(s) is/are true?

The proposed NMC is expected to bring to an end a farcical system where regulators were elected by the regulated. No wonder, a body that was meant to oversee medical education and practice allowed malpractices to thrive. Marking a break from the MCI, the NMC seeks to create a firewall between regulation of medical education in terms of setting curriculum and standards, and actually monitoring the institutions concerned. It has advocated separate bodies for these aspects. In an effort to correct the domination of doctors in the MCI, the NMC allows for a representation of only five doctors in the 25-member central body, the rest being officials from the Indian Council of Medical Research, the
Directorate General of Health Services and other bodies. This, apart from the suggestion that AYUSH (practitioners of ayurveda, siddha and homoeopathy) will be allowed to practice allopathy after a bridge course, has incensed a section of the medical community.

Consider below Statements:
1. There is a lot of anguish in the medical fraternity against the the proposed NMC
2. There are several advantages of the proposed NMC over MCI
3. Concentration of power in any single institution leads to inefficiencies creeping in.
Which of the following statement(s) has/have been implied in the passage?

Technology will play a major role in helping humanity face increasingly volatile weather, depleted freshwater and scarce soil resources. Unfortunately, there’s a disconnect between the types of companies that are receiving investment capital and those that are dealing head-long with these challenges.

Which among the following is the most logical corollary to the above passage?