Multiple choice

Which of the following are the reasons for slow growth of per capita income in India?

  1. High capital output ratio
  2. High growth of population
  3. Low capital formation

  1. 2 and 3

  2. 1 and 2

  3. 1 and 3

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

All three factors contribute to slow per capita income growth in India. High capital-output ratio means more investment is needed for each unit of output. High population growth dilutes income gains across more people. Low capital formation limits productive capacity expansion.

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