Identify any two indicators of economic growth and three indicators of economic development
Answers
Explanation:
DEVELOPMENT - DEFINITION
To know the level of economic development of a country there are a different indicators which are used.
These indicators help in understanding the level of development,comparisons with other countries, or different time periods.
These indicators help in better planning towards achieving economic development.
The indicators of economic development are:
Growth rate of National Income:
In this indicator real income is calculated on constant prices
If there is rise in national income, this indicates economic development.
When there is high rate of national income, development rate is high and vice versa
Per Capita Income (PCI):
The average income of the people living in the country is the per capita income.
A rise in PCI is an important indicator of economic development
The rise in PCI indicates economic welfare of the country
Per Capita Consumption (PCC):
The increase in consumption of goods and services by the people is measured in PCC.
Example clothing, food, education, health etc
An increase in PCC shows better quality of life of people and higher economic development of the country.
Physical Quality Life Index (PQLI) and Human
Development Index (HDI):
PQLI is the overall welfare of the people in life expectancy, infant mortality rate, standard of living.
HDI measures life expectancy, education and standard of living.
A rise in PQLI and HDI shows an improvement in quality of life of people and therefore economic development.
Industrial progress:
Industrial progress is an important indicator of the economic development of a country. It helps to increase per capita income and the national output of the country.
Capital formation:
It means investing in transport, irrigation, roads, electricity, technology etc. higher capital formation will lead to higher economic development.
The indicators under economic development are more towards the qualitative improvement of people in the country.
A higher rate of these indicators shows a higher level of economic development.