Q. With reference to the concept of Economic Growth in the Indian Economy, which of the following statements is/are correct?
1.Economic growth can be measured in absolute terms, such as tonnes for food production or kilometers for road networks, as observed over a decade.
2.The growth rate of a dairy farm producing 100 liters of milk last month and 105 liters this month is calculated as a 5% increase.
Select the correct answer using the code given below:
Answer: C
Notes:
Statement 1 is correct. Economic growth is quantifiable in absolute terms, with examples including food production in tonnes and road networks in kilometers over a decade.
Statement 2 is correct. The growth rate is calculated as the percentage difference between periods; here, (105 – 100) / 100 × 100 = 5%.
