Question
GSMediumPrelims 2013Economy

Economic growth in country X will necessarily have to occur if

Explanation

  • Internally capital formation takes place when a country does not spend all its current income on consumption, but saves a part of it and uses it for investment to increase further production. This act of saving and investment is described as capital accumulation or capital formation.

  • Capital formation refers to investments in physical and human capital, such as building new factories, improving infrastructure, and educating the workforce. Increased capital allows for greater production and innovation.

Trusted by 2L aspirants

Practice UPSC Prelims PYQs Smarter

Practice Now
  • Track accuracy & weak areas
  • See past trends & repeated themes
Start Practicing Now

PYQs by Papers

Most repeated Topics from Economy in Last 5 years

Repeated Topics
Questions in Last 5 Years
Finance and Financial Markets27 (34%)
Money, Banking and Monetary Policy16 (20%)
Public Finance in India11 (14%)
Infrastructure and Investment Models in India9 (11%)
Services and Digital Economy9 (11%)

Crack UPSC with your
Personal AI Mentor

An AI-powered ecosystem to learn, practice, and evaluate with discipline

SuperKalam
SuperKalam is your personal mentor for UPSC preparation, guiding you at every step of the exam journey.

Download the App

Get it on Google PlayDownload on the App Store
Follow us

ⓒ Snapstack Technologies Private Limited