Economics · Nelson's Low-Level Equilibrium Trap
Consider the following statements regarding Nelson's Low-Level Equilibrium Trap: Statement 1: It formalises a condition where a poor economy remains trapped because rapid population growth quickly absorbs any marginal increase in per capita income. Statement 2: The theory posits that this absorption of income by population growth occurs only after sustained capital accumulation has successfully taken root in the economy. Which of the following options is correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Statement 1 is false, but Statement 2 is true.
- 2Both statements are false.
- 3Both statements are true.
- 4Statement 1 is true, but Statement 2 is false.✓
Correct answer
Statement 1 is true, but Statement 2 is false.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Nelson's Low-Level Equilibrium Trap MCQs →Want more practice questions on Nelson's Low-Level Equilibrium Trap?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Nelson's Low-Level Equilibrium Trap