Practicing Success
"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 a large stock of production capital Growth implies a large stock of supporting services Growth implies an equal contribution to GDP by each sectors of the economy Growth implies an increase in efficiency of productive capital and services |
Growth implies an equal contribution to GDP by each sectors of the economy |
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. |