Question 7 - Past Year Questions - 3 Marks - Chapter 1 Class 10 Economics - Development - Economics

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 

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

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.