Is there any effect of non economic activities on our economic development support your answer with reason
Answers
Answer:
As economic growth we consider the increase in real output (real GDP) over time caused by additional resources (production inputs) and higher productivity of these inputs (more efficient production methods). As economic development we consider not only the increase in output but also the structural, technological and institutional changes in production and distribution of product. The latter term is more general.
The main difference is that development includes a number of structural changes (social, institutional, economic and cultural). This is why we may say that less developed economies (relatively low GDP or GNP per capita) “develop” while the developed (or “mature”) economies (relatively high GDP or GNP per capita) that present no significant structural changes “grow”.
Another way of looking at the problem is by saying that development is related to the increase of output while growth does not necessarily mean development. As an example the increase in oil production may lead to the increase of the economy’s product without implying that this growth will lead to the restructuring of the production, of the technology or the distribution of the final product.
Answer :
It's a necessary condition. very important: economic growth, when a country needs development. Besides, its important the rate. Mexican Economy in the last 30 years has been growing slowly (Gross Domestic product 2 or 3 percent in a year) that´s why It doesn´t have development.