Unit 4: Economic Development & Growth Flashcards
What is Economic Development, and what is Economic Growth?
Economic Development: an upward movement of the entire social system in terms of income, savings and investment along with progressive changes in socioeconomic structure of country (institutional and technological changes).
Economic Growth: an increase over time in a country`s real output of goods and services (GNP) or real output per capita income.
What are the Factors of Economic Development,and Economic Growth?
Economic Development:
Development relates to growth of human capital indexes, a decrease in inequality figures, and structural changes that improve the general population’s quality of life.
Economic Growth: Growth relates to a gradual increase in one of the components of Gross Domestic Product: consumption, government spending, investment, net exports.
How is Economic Development and Economic Growth Measured?
Economic Development: Qualitative. HDI (Human Development Index), Gender- related index (GDI), Human poverty index (HPI), Infant mortality, Literacy rate etc.
Economic Growth: Quantitative.
Increases in real GDP.
What type of Effect does Economic Development and Economic Growth bring?
Economic Development:
Brings qualitative and quantitative changes in the economy
Economic Growth:
Brings quantitative changes in the economy
What is Economic Development, and economic Growth more Relevant for measuring?
Economic Development: more relevant to measure progress and quality of life in developing nations.
Economic Growth: more relevant metric for progress in developed countries. But it’s widely used in all countries because growth is a necessary condition for development.
What is Economic Development and Economic Growth more Concerned about?
Economic Development: Concerned with structural changes in the economy
Economic Growth: Concerned with increase in the economy’s output
