"Growth refers to increase in the country's capacity to produce the output of goods and services with in the country." Choose the incorrect option from the following in relation to Growth.

Growth implies an equal contribution to GDP by each sectors of the economy

The correct answer is Option 3: Growth implies an equal contribution to GDP by each sectors of the economy

Economic growth refers to an increase in a country’s capacity to produce goods and services over time, which can happen due to a larger stock of production capital, improvement in supporting services such as transport and communication, and better efficiency of productive resources. However, economic growth does not mean that every sector of the economy must contribute equally to GDP. In reality, different sectors like agriculture, industry, and services contribute in unequal proportions, and growth can still occur even if one sector contributes more than the others. Hence, the statement that growth implies an equal contribution to GDP by each sector is incorrect.

Growth: It 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 goods and services produced in the country during a year. You can think of the GDP as a cake and growth is increase in the size of the cake. If the cake is larger, more people can enjoy it. It is necessary to produce more goods and services if the people of India are to enjoy (in the words of the First Five Year Plan) a more rich and varied life.