Difference Between Growth And Development In Economics

Difference Between Growth And Development In Economics

Economic Development

It is a narrower concept than economic growth and its quantity. It is a measure of the increase in goods and services produced in a country (per capita of the entire population) for a specified period. Therefore, this quantitative term refers to the increase in the market value of a product or a commodity in a particular area. It is usually measured in terms of GNP (Gross National Product) and GDP (Gross Domestic Product).

choose the correct answer Difference Between Growth And Development In Economics

Q1. Select the appropriate option/s that explains economic development.

1.increase in real income per capita

2.structural changes in the economy

3.increase in per capita production

4.all of the above

Answer: D

Economic Development
Economic development is a qualitative concept and it is the process that helps in improving the overall progress of a nation. A country’s overall health, standard of living, literacy status, per capita income, improvement needs, technological progress, etc. are responsible for determining its economic development.

Therefore, a country with better overall health and education for the entire population is likely to have better economic growth than other countries lacking these factors. Technological progress also contributes to industrial development contributing to the overall development of the country. Simply put, this economic growth refers to the quality of life of the entire population.

choose the correct answer

Question 2. Choose a suitable alternative by which economic development is characterized.

1.change in business structure

2.structural changes in the economy

3.BOTH A AND B

4.none of these

Answer: C

difference between economic growth and economic development

While both economic growth and economic development are important determinants for a country’s economic condition, there are specific differences between the two. Going through these differences will help the students to differentiate between them.

Meaning

1.Meaning

One of the key differences between economic growth and economic development is in terms of its definition. Economic growth is the measure of the increase in the production of goods and commodities for the entire population in a financial year and is represented as a quantity.

Difference Between Growth And Development In Economics talks about the overall development of the nation in terms of health improvement of citizens, progress of educational level, per capita income, technological progress, etc.

2.Span

Period Economic development is a broader concept than economic development. Furthermore, economic growth can be considered as a small part of economic development.

3.scope

The scope of economic development is unidirectional as it refers only to the economic development of the nation. It simply refers to the increase in the market value of goods and commodities produced in the country. Economic development in this aspect has more scope because they are multidimensional, and they take into account both quality and quantity. The standard of living of the citizens of a country and their overall development form its basis. Period Difference Between Growth And Development In Economics

4.Term 

Economic development is considered to be a long-term process, whereas economic development is considered to be a short-term process.

5.measurement

measurement Economic growth is a quantitative approach and is measured in terms of GNP (Gross National Product) and GDP (Gross Domestic Product). Economic development can be both quantitative and qualitative and is determined by taking into account the literacy rate, HDI (Human Development Index), gender-related index, infant mortality rate, human poverty index, etc.

6.Related

related to Economic development applies to underdeveloped and developing countries, whereas the concept of economic development is more applicable to developed countries. Underdeveloped or developing countries are continuously assessed for literacy rate, gender index, HDI etc.

7.Effect 

Effect Along with economic growth, quantitative growth can be expected in the economy with indicators like per capita income, GNP, GDP, etc. But, in economic development, there can be both quantitative and qualitative growth in the economy as it improves with the improvement in life expectancy rate, literacy rate, decrease in the poverty rate, death rate, etc.

8.Government aid Support 

government aid The difference between economic growth and development in terms of government support may be that economic development does not require government intervention as it is an automatic process. But, economic development is deeply affected by the policies made by the government for development in various sectors.

9. process duration

process duration To differentiate between economic growth and economic growth, is determined for a particular period of time, usually for a fiscal year. But, economic development is a continuous process.

multiple-choice questions

Q1. Lack of capital, unemployment and technological backwardness are found in countries which are

A.developed

B.underdeveloped

C.Both

D.none of these

Answer: B

Question 2. which are Characteristics of an underdeveloped economy?

1.low level of capital productivity

2.high level of inequality

3.a relatively closed economy

4.all of the above

Answer: C

Q3. What are/are the components of HDI?

1.infant mortality rate

2.life expectancy index

3.population growth rate

4.all of the above

With such definitions and concepts, students will be able to understand the topic better and write Economic Growth Vs Economic Development Signs. They can go through more in-depth explanations and improve their learning by visiting our websites.

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