What is the impact on the “Social overhead capital requirements” of an economy, if the population increases ?
[amp_mcq option1=”Social overhead capital requirements fall.” option2=”Social overhead capital requirements remain unchanged.” option3=”Social overhead capital requirements increase.” option4=”Social overhead capital requirements fall drastically.” correct=”option3″]
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UPSC Combined Section Officer – 2024
Social overhead capital refers to the basic infrastructure and services necessary for economic development and social well-being, such as roads, railways, ports, communication systems, power grids, water supply, sanitation, schools, and hospitals. An increase in population directly leads to a greater demand for these facilities and services, thereby increasing the requirement for social overhead capital to maintain or improve living standards and support economic activity.