Multiple choice

Capital formation in an economy depends upon which of the following?

  1. Total income

  2. Total demand

  3. Total production

  4. Total supply

  5. Total population
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A Correct answer
Explanation

Total Income is the sum of all money received by an individual or organisation, including income from employment or providing services, revenue from sales, payments from pension plans, income from dividends, or other sources. Thus, capital formation in an economy depends upon its total income generation.

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