Explanation
- A
weak administrative machinery
(a) Weak administrative machinery. Administration can waste investment, but the precise efficiency link in the stem is the capital–output ratio, not bureaucracy as such. This is not the key.
- B
illiteracy
(b) Illiteracy. Human-capital gaps matter for growth, yet they are not the definitional reason high saving fails to raise output here. This is not the key.
- C
high population density
(c) High population density. Density is not the capital-efficiency statistic in the question. This is not the key.
- D
high capital-output ratio
(d) High capital-output ratio. (d) Official key: Capital–output ratio is capital required per unit of extra output. If it is high, even a large saving–investment effort yields little additional output. That is the stored key.
Summary. Official key is (d) high capital-output ratio. Saving finances investment, but output response depends on how much capital each extra unit of GDP needs. A high ratio means weak productivity of capital. Administration, literacy and density are other constraints, not this identity. Honour the stored letter (d).
Same topic · past papers
UPSC has asked this before
These previous-year questions sit on the same topic. Open one to practise the earlier ask.
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2018 · Q49 · General Studies · 2 marks
Consider the following statements: Human capital formation as a concept is better explained in terms of a process which enables 1. individuals of a country to accumulate more capital. 2. increasing the knowledge, skill levels and capacities of the people of the country. 3. accumulation of tangible wealth. 4. accumulation of intangible wealth. Which of the statements given above is/are correct? -
2026 · Q16 · General Studies · 2 marks
Which of the following factors contributed to the formation of the Forward Bloc by Subhas Chandra Bose in 1939? 1. Bose failed to win the confidence of Mahatma Gandhi. 2. The Congress Left was disunited and failed to support Bose. 3. The Communists did not support Bose in his endeavours. 4. The supporters of M.N. Roy and socialist leaders like Jayaprakash Narayan preferred Congress unity to supporting Bose. Select the answer using the code given below: