Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Indian Economy:1950-1990

Question:

What does the term 'growth' refers to in the context of an economy?

Options:

larger stock of productive capital

an increase in the efficiency of productive capital and services

a larger size of supporting services like transport and banking

any of the above

Correct Answer:

any of the above

Explanation:

Growth refers to increase in the country’s capacity to produce the output of goods and services within the country. It implies either a larger stock of productive capital, or a larger size of supporting services like transport and banking, or an increase in the efficiency of productive capital and services. A good indicator of economic growth, in the language of economics, is steady increase in the Gross Domestic Product (GDP). The GDP is the market value of all the final goods and services produced in the country during a year.