What is meant by economic development? What are the two bases of measuring economic development of a country?
(Board Term-I, 2015-16)
Answer:
Points to Remember
- Economic development is the growth led by implementing technological and institutional changes in a nation's economy.
- Two bases to measure economic development-
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- National or the Total Income
- Average or the Per Capita Income
Answer to be written
- 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.
- 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:
- National Income- Means the total income earned by the residents of a country during a particular year.
- 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.
