INDICATORS OF GROWTH AND DEVELOPMENT — Economics STD 12 Commerce — Question
Gujarat BoardEnglish MediumSTD 12 CommerceEconomicsINDICATORS OF GROWTH AND DEVELOPMENT5 Marks
Question
Explain briefly economic development.
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Answer
$1.$ When there is continuous rise in total output by the means of real national income and real per capita income of the economy i.e. quantitative aspects along with rise in qualitative aspects it is called economic development.
$2.$ Economic development is a much wider concept as compared to ‘economic growth’. It is a continuous and multidimensional process which includes economic growth, economic welfare and economic progress.
Changes experienced in a country under economic development:
$3.$ When we say that economic development is taking place it means that apart from monetary aspect the country is also showing progress in economic and social structure.
Thus, during economic development, along with economic progress, progress takes place in the society too.
$4.$ Change is seen even in the structure of national income. The contribution of agriculture as percentage of the total national income decreases whereas the contribution of industry and service sector increases.
The disguised unemployed of agricultural sector get employed in other sectors.
$5.$ The country starts using modern technology which saves time and money and hence productivity increases.
The country also innovate various new seeds for agriculture. This changes institutional structure which then changes the methods of production and distribution.
$6.$ Slowly and gradually there is reduction in poverty, unemployment and inequalities.
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