UPSC 1995 › Indian Economy › National Income & Economic Growth

2 questions · 1995 · answers as per the UPSC key

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All years of National Income & Economic Growth · Full UPSC 1995 paper

The main reason for low growth rate in India, in spite of high rate of savings and capital formation is

(a) high birth rate
(b) low level of foreign aid
(c) low capital / output ratio
(d) high capital / output ratio
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Answer: (d) high capital / output ratio

Consider the diagram given below: (Pie-chart showing family expenditure with segments labelled T: Transport, Ec: Education of children, H: Housing, C: Clothing, F: Food, S: Savings, O: Others.) From the diagram shown it would be right to conclude that

(a) the family spent more than half the income on food and clothing
(b) the amount saved by the family was too little
(c) the family had no health problems
(d) the family managed to meet all the essential expenses out of the income earned
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Answer: (d) the family managed to meet all the essential expenses out of the income earned
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