Economics is all about making smart choices to achieve growth and development in the
country". In the light of this statement, distinguish between economic growth and economic
development.
Answers
Explanation:
Economic Growth:
Economic growth can be referred to as that increase which is witnessed in the monetary value of all the goods and services that are produced in the economy during a time period. It is one type of quantitative measure which reflects the potential increase of the number of business transactions taking place in the economy.
Economic growth can be measured in terms of the increase in the aggregate market value of additional goods and services produced, using economic concepts such as GDP and GNP.
Economic growth is a much narrower concept when compared to Economic Development.
Economic Development:
Economic development refers to the process by which the overall health, well-being, and academic level of the general population of a nation improve. It also means improved production volume due to the advancements of technology.
It is the qualitative improvement in the life of citizens of a country and is most appropriately determined by the Human Development Index (HDI). The overall development of a country is based on many parameters such as the creation of job opportunities, technological advancements, standard of living, living conditions, per capita income, quality of life, improvement in self-esteem needs, GDP, industrial and infrastructural development, etc.