Question

What is meant by economic development ? What are the two basis of measuring economic development.

Answer 1

Economic development means the rate of production is greater than the rate of increase in population and the rate of growth of GDP is high enough to fulfil the basic needs of the population. Two bases of measuring development of a country are : (i) Average or per capita income.

Answer 2

economic development can be defined as efforts that seek to improve the economic well-being and quality of life for a community by creating and/or retaining jobs and supporting or growing incomes and the tax base.

Gross National Product (GNP) measures the economic output of a given nation. GNP can be used to measure the increase in real national income over a given period of time. Criticisms of GNP. 1. Real national income excludes price changes.

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