Economic growth in country X will necessarily have to occur if
This questions was previously asked in
UPSC CSP Previous Year Paper (2013)
there is technical progress in the world economy
Incorrect Answerthere is population growth in X
Incorrect Answerthere is capital formation in X
Correct Answerthe volume of trade grows in the world economy
Incorrect AnswerExplanation:
Technical progress in the world economy may not have any effect on a particular country. The population growth does not help in economic growth unless it has the skill to harness the demographic dividend. The volume of trade growth in the world economy may not directly effect the economy of country X if it is not participant in the trade.
C is the most appropriate option, as whenever there is capital formation in country it will lead to growth. Capital formation helps in capacity building and hences technolgy therefore increase in growth oppurtunities.
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By: Abhipedia