Question

2
State, giving valid reasons whether the following statements are true or
false.
a. Since independence, the benefits of the increase in economic growth
in India have trickled down to the people at the bottom of population
pyramid. a
b. Human Capital Formation gives birth to innovation, invention and
technological improvements.
c. There exists an inverse correlation between infrastructural growth
2
2
and national income.​

Answer 1

Statements A - False, B - True. C - False

• The correct explanation for the statements is -

• A - False - There have been numerous variables such as increased population growth rate, uneven income distribution, distorted benefits accruing from the green revolution, etc. due to which the benefits of increasing the Gross Domestic Product have not fully trickled down to the citizens at the bottom of the population pyramid.
• B - True - The creation of human capital, which is an investment in education and health, not only increases the efficiency of the human resources available, but also promotes innovation, thereby creating a capacity to implement and adapt to new technologies.
• C - False - A strong link exists between infrastructure growth and national income depicting a direct link. Infrastructure is an economic support mechanism promoting higher productive activities, higher output and income levels, thereby enhancing the life quality in the economy.