Economic growth determinants

Economic growth is determined by capital formation, which includes investment in physical assets, infrastructure, and human capital. Capital formation leads to increased productive capacity and output growth. Option (a) is incorrect because technical progress elsewhere does not guarantee growth in country X unless it is adopted locally. Option (b) is incorrect because population growth alone without corresponding capital investment may only increase labor supply without increasing per capita income. Option (d) is incorrect because global trade growth does not necessarily benefit country X unless it participates effectively. Capital formation within a country is the fundamental driver of its own economic growth. > Capital Formation as Growth Driver: Investment in capital goods and infrastructure within a country necessarily increases production capacity and economic growth. Answer: (c).