Which of the following is a major factor contributing to the growth of India's service sector?
A. Decline in global demand for services
B. Complete isolation from global markets
C. Only agricultural productivity growth
D. IT revolution, liberalisation and rising domestic demand
Answer: Option D
Solution (By JKSSB Mock Tests)
The rapid growth of India's services sector has been driven by the information technology boom, economic liberalisation, and expanding domestic and global demand for services.
Explanation:
Habit-formation models allow current utility to depend on the deviation of current consumption from a habit level determined by past consumption, generating persistence in consumption growth.
Explanation:
The Modigliani-Miller theorem asserts that, under perfect capital markets (no taxes, no bankruptcy costs, no asymmetric information), the total value of a firm is independent of whether it is financed by debt or equity.
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