Question

Kerala's economy is often considered a 'consumption-led' economy. What does this mean?

• A. The economy heavily depends on remittances from abroad, which primarily fuel investment in real estate.
• B. Economic growth is primarily fueled by a high level of consumer spending.
• C. Economic activity is predominantly driven by its robust service sector, especially tourism and IT.
• D. The state primarily consumes goods and services produced outside its borders due to a low industrial base.

Answer 1

Answer:

B. Economic growth is primarily fueled by a high level of consumer spending.

• High consumer spending, often supported by remittances, is the primary force behind economic growth in a consumption-led economy.