INDICATORS OF GROWTH AND DEVELOPMENT — Economics STD 12 Commerce — Question
Gujarat BoardEnglish MediumSTD 12 CommerceEconomicsINDICATORS OF GROWTH AND DEVELOPMENT3 Marks
Question
What do you mean by economic growth? Explain.
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Answer
When we use the term ‘growth’ it means we are talking about ‘economic growth’.
The increase in the total output of an econom, n the long run is known as economic growth.
By total output mean that there is a continuous increase in the real national income and th&real per capita income which we call as economic growth.
Such growth is possible due to the increase in supply of factors of production like, land, capital, labour and entrepreneurial ability of the people and increase in the productivity of these factors.
When the supply of factors of production, their availability, productivity and efficiency increase on a continuous basis it leads to rise n ‘real national income’ and ‘real per capita income’. This rise is known as economic growth. Since, rise in income can be measured numerically and also seen we consider economic growth as a ‘quantitative change’.
One can gauge a country’s economic status by knowing its economic growth. Rate of economic growth also helps to compare the economies of two countries.
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