2013 GS Paper I, all questions
UPSC Prelims 2013 · GS Paper I
Question 92: Economy and Social Development
Economic growth in country X will necessarily have to occur if
athere is technical progress in the world economy
bthere is population growth in X
cthere is capital formation in X
dthe volume of trade grows in the world economy
AnswerUPSC’s answer is (c).
Economic growth is a rise in a country's output. It occurs when the country's productive capacity expands, and capital formation, the addition of machines, factories and infrastructure to the capital stock, does that directly within the country. Technical progress or growth of trade in the world economy need not lift country X unless it adopts them, and population growth by itself can lower output per person.
Why each option is right or wrong
- (a) Wrong. World technical progress does not guarantee growth in X.
- (b) Wrong. Population growth alone can lower output per person.
- (c) Correct. Capital formation expands X's productive capacity.
- (d) Wrong. World trade growth need not benefit X.
Answer: UPSC’s key. Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 2013, General Studies Paper I, Series A. The paper on upsc.gov.in.