Read the case/source given and answer the questions that follow by choosing the correct option.

If democracies are expected to produce good governments, then is it not fair to expect that they would also produce development? Evidence shows that in practice many democracies did not fulfil this expectation. If you consider all democracies and all dictatorships for the fifty years between 1950 and 2000, dictatorships have a slightly higher rate of economic growth. The inability of democracy to

achieve higher economic development worries us. But this alone cannot be a reason to reject democracy. As you have already studied economics, economic development depends on several factors: a country’s population size, global situation, cooperation from other countries, economic priorities adopted by the country, etc. However, the difference in the rates of economic development between less developed countries with dictatorships and democracies is negligible. Overall, we cannot say that democracy is a guarantee of economic development. But we can expect democracy not to lag behind dictatorships in this respect. When we find such a significant difference in the rates of economic growth between countries under dictatorship and democracy, it is better to prefer democracy as it has several other positive outcomes.

Why is economic growth essential for a country?

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As it increases state capacity and the supply of public goods.

As it benefits the marginal sections of the society.

Help in the reduction of economic disparities in a country.

All of the above

answer is A.

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Detailed Solution

Economic growth is essential for a country as it increases state capacity and the supply of public goods.
A right momentum in the production possibility range can be used to depict economic growth, which is expressed as an increase in the potential output level of an economy over a while. Many things influence a country's economic growth. One of them is technological advancement. When it comes to technology's productivity, it can have an impact on the country's potential output. The quality and quantity of labour are other crucial considerations. A country gains when raw materials are converted into various high-value supplied goods. Our country's prosperity depends on rapidly diversifying its manufacturing industries.

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