"Growth refers to an increase in the country's capacity to modulate the output of goods and services within the country." Choose the incorrect option from the following in relation to Growth:
Growth implies an equal contribution to GDP by each sector of the economy
The correct answer is Growth implies an equal contribution to GDP by each sector of the economy, which is incorrect.
Economic growth does not require **equal contribution from all sectors**. In most economies:
- Some sectors (e.g., IT, Manufacturing) grow faster than others.
- Sectoral shifts occur as economies develop (e.g., shift from agriculture to services).
- **(a) Growth requires capital accumulation.**
- **(b) Supporting services like transport and finance aid growth.**
- **(d) Efficiency improvements are key to sustained growth.**
Thus, **(c) is incorrect as economic growth is uneven across sectors.**
Important Questions from Economics and Central Problems of Economy
If the value of Investment Multiplier is 5 and the increased income is ₹ 800 crore in an economy, then find the value of change in the investment in the economy.
Which of the following statements are true?
(A) Quantitative tools control the extent of money supply by changing the CRR.
(B) There are two types of open market operations – outright and upright.
(C) A fall in the bank rate can decrease the money supply.
(D) Selling of a bond by RBI leads to reduction in quantity of reserves.
(E) The RBI can influence money supply by changing the rate at which it gives loan to the commercial banks.
Choose the correct answer from the options given below:
Paradox of Thrift means :
Match List-I with List-II:
List-I List-II (A) Bank Rate (I) Securities are pledged in order to repurchase (B) Marginal Standing Facility (II) Minimum rate at which funds are provided for long term (C) Repo Rate (III) Also known as Penal Interest Rate (D) Reverse Repo Rate (IV) Central Bank borrows funds from commercial banks Choose the correct answer from the options given below:
Which of the following is not a function of Central Bank ?
