Economic Growth Necessity — UPSC Prelims PYQ 2013

Economic growth in country X will necessarily have to occur if

1. there is technical progress in the world economy
2. there is population growth in X
3. there is capital formation in X
4. the volume of trade grows in the world economy

Explanation

Option (c) is correct

• Economic growth in a country is closely linked to capital formation, which involves building physical assets like infrastructure, factories, and machinery. This increases production capacity and efficiency, directly contributing to economic growth. While technical progress, population growth, and global trade can influence growth, they do not guarantee it unless supported by capital formation.

Answer: (c) there is capital formation in X; Difficulty Level: Easy