PYQ 2013 Q42 · RaahUPSC PYQ

2013 · EconomyPrevious Year Question

Q42.

Economic growth in country X will necessarily have to occur if

A. there is technical progress in the world economy

B. there is population growth in X

C. there is capital formation in X

D. the volume of trade grows in the world economy

Answer

C

Explanation

Options a and d do not necessarily contribute to the growth of country X specifically from the general world economy. Population growth without avenues for the economy to absorb it will have a deteriorating effect. Capital formation in a country necessarily leads to economic growth whenever there is capital formation in a country.