What is meant by economic development?  What are the two bases of measuring economic  development of a country?  

 (Board Term-I, 2015-16) 



Points to Remember 

  1. Economic development is the growth led by implementing technological and institutional changes in a nation's economy.
  2. Two bases to measure economic development-
    • National or the Total Income
    • Average or the Per Capita Income

Answer to be written

Calculation of income per capita - Teachoo.png

  1. When a country transitions from a low-income (poor) economy to a high-income (rich) one, it has experienced economic progress. Greater economic development results from higher living standards.
  2. Adoption of new technology , the shift from an agricultural to an industrial economy , and improvements in way of life are all examples of economic development.

Two bases of measuring development of a country are: 

  1. National Income- Means the total income earned by the residents of a country during a particular year.
  2. Per Capita Income- It is the average income of people of a country during a particular year. It is obtained by dividing the total income of a country by its population.
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Davneet Singh

Davneet Singh has done his B.Tech from Indian Institute of Technology, Kanpur. He has been teaching from the past 14 years. He provides courses for Maths, Science, Social Science, Physics, Chemistry, Computer Science at Teachoo.