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UPSC 2013: 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
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Not attemptedCorrect Answer: (c) there is capital formation in X
Capital formation adds to the physical stock of productive assets (plant, machinery, infrastructure), raising an economy’s productive capacity and therefore ensuring positive growth in output. Population growth, world trade expansion or global technical progress may influence but do not guarantee domestic growth; only domestic investment (capital formation) makes growth in country X necessary in the economic sense. ([edukemy.com](https://edukemy.com/blog/upsc-prelims-2013-question-42/?utm_source=openai))
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Frequently Asked Questions
What is the correct answer to this UPSC 2013 Indian Economy question?▼
The correct answer is option (c): there is capital formation in X. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this National Income & Economic Growth question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 2013, GS Paper 1, as Question 92. It falls under Indian Economy > National Income & Economic Growth.
What is the difficulty level of this UPSC question?▼
This question is rated "moderate". It requires sound conceptual understanding of the topic.
How many UPSC Prelims questions have been asked from National Income & Economic Growth?▼
UPSC has asked 37 questions from National Income & Economic Growth (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.