Q. With reference to Economic Growth, which of the following statements is/are correct?
1. Indian Economy is an Underdeveloped Economy.
2. Indian Economy is a Mixed Economy.
3. J.M. Keynes is the Father of Economics.
Select the correct answer from the codes given below.
a) Only 1 and 2 are correct.
b) Only 3 is correct.
c) Only 1 is correct.
d) Only 2 and 3 are correct.
Question from UPPSC Prelims 2024
The correct answer is: a) Only 1 and 2 are correct.
Explanation:
1. Indian Economy is an Underdeveloped Economy.
– Evaluation: Correct. India is classified as a developing (or underdeveloped) economy based on various economic indicators such as GDP per capita, industrialization levels, and Human Development Index (HDI) rankings. While India has made significant progress in several sectors, it still faces challenges typical of developing economies, such as poverty, inadequate infrastructure, and unequal income distribution.
2. Indian Economy is a Mixed Economy.
– Evaluation: Correct. India operates under a mixed economic system, where both the private sector and the government play significant roles. This system combines elements of free-market capitalism with government intervention and regulation, allowing for a balance between public and private enterprise to facilitate economic growth and development.
3. J.M. Keynes is the Father of Economics.
– Evaluation: Incorrect. While John Maynard Keynes is a highly influential economist known for Keynesian Economics, the title “Father of Economics” is typically attributed to Adam Smith. Adam Smith laid the foundational principles of modern economics with his seminal work, “The Wealth of Nations.”
Correct Answer: a) Only 1 and 2 are correct.
