Which among the following is NOT a major factors of economic growth?

Question

UnlockIAS · Accepted Answer

Correct — D, Technocrats and Bureaucrats. In standard growth economics the recognised 'factors of economic growth' are the ingredients that raise an economy's productive capacity: capital accumulation, technological progress, growth of the labour force (population/human capital) and the division of labour and specialisation. 'Technocrats and bureaucrats' are categories of personnel who administer policy — they are not themselves a factor of production or an engine of growth. So among the four, option D is the one that does not belong in the list of major growth factors.

Why the other options are wrong — (a) This IS a major factor. Capital formation and technological progress are the two central drivers in growth theory (e.g. the Solow model) — they directly expand output per worker, so this cannot be the 'not a factor' answer.  (b) This IS a factor. Growth of the working-age population enlarges the labour force, a classic input to aggregate output; population/labour supply is a recognised determinant of growth.  (c) This IS a factor. Adam Smith identified the division of labour and specialisation as a fundamental source of rising productivity and growth, so it belongs among the major factors.

Concept: Economic growth is the sustained rise in an economy's real output, and growth theory attributes it to a small set of 'factors': accumulation of physical capital, technological progress, expansion and quality of the labour force, natural resources, and the division of labour/specialisation. Administrators such as technocrats and bureaucrats may shape the policy environment, but they are not counted among the direct factors of production that generate growth.

State PCS 2021 Q67 — Economy PYQ with Answer

State PCS 2021 Q67 — Economy PYQ with Answer