Which of the following has been a major driver of service sector growth in India? MCQ with Answer and Explanation

Which of the following has been a major driver of service sector growth in India?
A. IT and IT-enabled services, liberalisation and rising incomes
B. Decline in domestic and global demand
C. Complete restriction on foreign investment in services
D. Only growth in agricultural productivity
Answer: Option A
Solution (By JKSSB Mock Tests)
The expansion of IT and ITES, financial services, trade and tourism, supported by liberalisation and rising incomes, has driven the rapid growth of India's service sector.

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Practice More Economy Set 1 Questions

Question #1
The 'dependency ratio' in demography is defined as:
A. working-age population divided by dependent population
B. elderly population divided by children
C. rural population divided by urban population
D. dependent population divided by working-age population

Correct Answer: Option D


Explanation:
Dependency ratio = dependent population / working-age population.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'National Industrial Corridor Development Programme' aims to:
A. develop industrial corridors and smart cities
B. expand railway passenger services
C. promote agriculture
D. build residential colonies

Correct Answer: Option A


Explanation:
National Industrial Corridor Development Programme develops industrial corridors and smart industrial cities.

This question belongs to: Economy GK Economy Set 1
Question #3
Which of the following is a feature of the 'Random Walk Hypothesis' of stock prices?
A. Stock prices are predictable based on past patterns
B. Technical analysis can systematically generate excess returns
C. Only fundamental analysis is irrelevant
D. Successive price changes are independent and stock prices fully reflect available information

Correct Answer: Option D


Explanation:
The random walk hypothesis, closely related to the efficient market hypothesis, asserts that successive price changes are independent and that prices incorporate information so rapidly that future changes are unpredictable.

This question belongs to: Economy GK Economy Set 1