Economic growth in country X will necessarily have to occur if

Correct Answer: C) There is capital formation in X Explanation: Economic growth fundamentally requires an increase in the productive capacity of an economy. Capital formation – the increase in the stock of physical capital (machinery, infrastructure, etc.) and human capital (skills, education) – directly contributes to this increased capacity. More capital allows for more efficient production, leading to economic growth. Why other options are incorrect: A) There is technical progress in the world economy: While technical progress can contribute to economic growth, it doesn't necessarily mean country X will experience growth. Country X might not adopt or benefit from the global technical advancements. B) There is population growth in X: Population growth alone doesn't guarantee economic growth. It can even hinder growth if not accompanied by sufficient capital and technological advancements (leading to lower per capita income). D) The volume of trade grows in the world economy: Increased world trade can benefit country X, but it's not a necessary condition for its economic growth. Country X could grow through domestic investment and production even with stagnant global trade. Therefore, capital formation within country X is the most direct and necessary condition for its economic growth.