Previous Year Question

Economic Growth refers to an increase in the real production of goods and services in an economy over a specified period. Its major determinants include Capital Accumulation, Technological Progress, labour force, demographic changes, and division of labour and specialisation.

Option (a): Accumulation of Capital and Technological Improvements. Capital Accumulation includes an increase in productive assets such as machinery, equipment, factories, and infrastructure. This expands the productive capacity of an economy. Technological improvements enable more efficient utilisation of resources, which can increase Labour Productivity and Total Factor Productivity (TFP).

Option (b): Changes in Population. Population size, age structure, and labour force participation influence economic growth. An increase in the proportion of the working-age population creates the possibility of a Demographic Dividend. However, its economic benefits depend on education, skills, health, employment opportunities, and the availability of productive investment. Population growth alone does not automatically ensure economic development.

Option (c): Division of Labour in Specialised Activities. Division of Labour refers to dividing the production process into different specialised tasks. This can improve workers' specialisation, efficiency, and productivity. Economist Adam Smith, in his book The Wealth of Nations (1776), explained the increase in productivity resulting from division of labour through the example of the Pin Factory.

Option (d): Technocrats and Bureaucrats. Technocrats are individuals possessing specialised technical knowledge and expertise, while Bureaucrats are associated with the implementation of administrative and policy-related functions. They can play important roles in economic activities, institutional efficiency, and effective policy implementation, but they are not classified as a separate factor of production among the standard major determinants of economic growth.

In the standard analysis of economic growth, physical capital, Human Capital, labour, technological progress, and productivity occupy central positions. Technocrats and Bureaucrats may contribute through these factors and institutional arrangements, but their occupational classification is not itself an independent major determinant of economic growth.