ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -There are three main factors that drive economic growth: Accumulation of capital stock. Increases in labor inputs, such as workers or hours worked. Technological advancement.

Detailed explanation-2: -Broadly speaking, there are two main sources of economic growth: growth in the size of the workforce and growth in the productivity (output per hour worked) of that workforce. Either can increase the overall size of the economy but only strong productivity growth can increase per capita GDP and income.

Detailed explanation-3: -The well developed and smoothly operated financial market plays a major important role in the growth and efficiency of a country. It helps in the efficient direct flow of savings and investments in the economy which facilitates the accumulation of capital and contribution in the production of goods and services.

Detailed explanation-4: -It promotes economic growth through capital accumulation and technological progress by increasing the savings rate, mobilizing and pooling savings, producing information about investment, facilitating and encouraging the inflows of foreign capital, as well as optimizing the allocation of capital.