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SSC Combined Graduate Level Exam 2014 held on 19.10.2014

General Awareness (Test Form No - 011 LG2)

Q3. The hypothesis that rapid growth of per capita income will be associated with a reduction in poverty is called:

(a) trickle down hypothesis
(b) trickle up hypothesis
(c) U shaped hypothesis
(d) poverty estimation hypothesis

Answer (a)

Explanation: The trickle-down effect is an economic phenomenon whereby low-income groups benefit indirectly from the accumulation of wealth of those having higher incomes, i.e., the income is said to "trickle down" from the rich to the poor.

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