Quick Answer: What Is Economic Development Answer?

What is meant by the economic development?

In the economic study of the public sector, economic and social development is the process by which the economic well-being and quality of life of a nation, region, local community, or an individual are improved according to targeted goals and objectives..

What is the main difference between economic growth and economic development?

Economic growth means an increase in real national income / national output. Economic development means an improvement in the quality of life and living standards, e.g. measures of literacy, life-expectancy and health care. Ceteris paribus, we would expect economic growth to enable more economic development.

What are the major indicators of economic development?

The indicators of economic development are:Growth rate of National Income:Per Capita Income (PCI):Per Capita Consumption (PCC):Physical Quality Life Index (PQLI) and Human Development Index (HDI):Industrial progress: … Capital formation:

What are the 5 stages of economic development?

Unlike the stages of economic growth (which were proposed in 1960 by economist Walt Rostow as five basic stages: traditional society, preconditions for take-off, take-off, drive to maturity, and age of high mass consumption), there exists no clear definition for the stages of economic development.

Why is economic development important to a country?

Economic development is a process of targeted activities and programs that work to improve the economic wellbeing and quality of life of a community by building local wealth, diversifying the economy, creating and retaining jobs, and building the local tax base.

How can our country achieve economic development?

To increase economic growthLower interest rates – reduce the cost of borrowing and increase consumer spending and investment.Increased real wages – if nominal wages grow above inflation then consumers have more disposable to spend.Higher global growth – leading to increased export spending.More items…•

What is economic development Short answer?

Economic development is defined as an increase in a country’s wealth and standard of living. It is usually measured by an increase in the gross domestic product (GDP) or other measure of aggregate income.

What are the examples of economic development?

Economic developmentAverage life expectancy, i.e., how long people people’s lifespans are.Education standards.Literacy rates, i.e., what percentage of the population can read.Environmental standards.Availability of housing, plus the quality of housing.Access to healthcare. … Income per capita.

What is the purpose of economic development?

The main goal of economic development is improving the economic well being of a community through efforts that entail job creation, job retention, tax base enhancements and quality of life.

What are the features of economic development?

These characteristics were: (i) High rates of growth per capita output and population. (ii) High rates of increase in total factor of productivity (TFP) i.e. the output per unit of all inputs. (iii) High rates of structural transformation of the economy.

What is the economic development of a country?

Economic development is the growth of the standard of living of a nations people from a low-income (poor) economy to a high-income (rich) economy. When the local quality of life is improved, there is more economic development. When social scientists study economic development, they look at a lot of things.

What is economic and why is it important?

Economics is the study of how societies use scarce resources to produce valuable commodities and distribute them among different people. … Indeed, economics is an important subject because of the fact of scarcity and the desire for efficiency.