Multiple choice

Who among the following is the first to use the term 'Knife-edge' in the theory of economic growth?

  1. Rostow

  2. Solow

  3. Harrod

  4. Kaldor
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Roy Harrod introduced the 'knife-edge' concept in his 1939 growth model, describing the unstable equilibrium where the economy's actual growth rate, warranted growth rate, and natural growth rate must all coincide for balanced growth. Any deviation leads to cumulative divergence - hence the precarious 'knife-edge' metaphor. R. F. Harrod is the correct answer.

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