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Questions and Answers
What is the primary goal of economic development programs?
What is the primary goal of economic development programs?
Which of the following is NOT considered a common positive result of economic development strategies?
Which of the following is NOT considered a common positive result of economic development strategies?
According to R.G. Lipsey, which of these is a potential measure of a country's economic development?
According to R.G. Lipsey, which of these is a potential measure of a country's economic development?
Which of the following is NOT a commonly used criterion for measuring economic development?
Which of the following is NOT a commonly used criterion for measuring economic development?
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Who among the following economists argues that the growth of national income is the most suitable index of economic development?
Who among the following economists argues that the growth of national income is the most suitable index of economic development?
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According to Prof. Meier and Baldwin, economic development is characterized by:
According to Prof. Meier and Baldwin, economic development is characterized by:
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Which of the following economists supports the use of per capita output as an index of economic development?
Which of the following economists supports the use of per capita output as an index of economic development?
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Why is 'increase in national income' considered a relevant measure of economic development?
Why is 'increase in national income' considered a relevant measure of economic development?
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How is the 'comparative concept' used in measuring economic development?
How is the 'comparative concept' used in measuring economic development?
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What is considered a key advantage of focusing on 'economic welfare' as a measure of development?
What is considered a key advantage of focusing on 'economic welfare' as a measure of development?
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What are the two ways in which economic welfare can be understood?
What are the two ways in which economic welfare can be understood?
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According to Colin Clark, what is the relationship between occupational structure and economic development?
According to Colin Clark, what is the relationship between occupational structure and economic development?
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Which of these is NOT considered a component of the Physical Quality of Life Index (PQLI)?
Which of these is NOT considered a component of the Physical Quality of Life Index (PQLI)?
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What is the primary purpose of using a comparative concept when analyzing economic development?
What is the primary purpose of using a comparative concept when analyzing economic development?
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How does price stability impact the level of economic welfare?
How does price stability impact the level of economic welfare?
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Which of these is a measure of economic development?
Which of these is a measure of economic development?
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What is the main purpose of the Human Development Index (HDI)?
What is the main purpose of the Human Development Index (HDI)?
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What is the relationship between economic welfare and economic development?
What is the relationship between economic welfare and economic development?
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How is the Human Development Index (HDI) measured?
How is the Human Development Index (HDI) measured?
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Which of the following statements about the relationship between economic welfare and price stability is true?
Which of the following statements about the relationship between economic welfare and price stability is true?
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Flashcards
Economic Development
Economic Development
Programs and policies to improve economic well-being and life quality in a community.
Measures of Economic Development
Measures of Economic Development
Various ways to assess a country's level of development, including income and resource use.
National Income
National Income
Total income generated within a country, often used as an index of economic development.
Per Capita Real Income
Per Capita Real Income
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Basic Needs Attainment
Basic Needs Attainment
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Classification of Rich and Poor Countries
Classification of Rich and Poor Countries
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Economic Welfare
Economic Welfare
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Saving per Head
Saving per Head
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Social Capital
Social Capital
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Growth and Basic Needs
Growth and Basic Needs
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Colin Clark's Theory
Colin Clark's Theory
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Primary Sector
Primary Sector
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Secondary Sector
Secondary Sector
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Tertiary Sector
Tertiary Sector
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Human Development Index (HDI)
Human Development Index (HDI)
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Physical Quality of Life Index (PQLI)
Physical Quality of Life Index (PQLI)
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Distribution of National Income
Distribution of National Income
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Purchasing Power
Purchasing Power
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Comparative Concept of Development
Comparative Concept of Development
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Study Notes
Principles and Concepts of Development
- Economic development is defined as programs, policies, or activities that improve the economic well-being and quality of life in a community.
- It's a process of targeted activities and programs that build local wealth, diversify the economy, create and retain jobs, and bolster the local tax base.
- Economic development strategies often focus on creating more jobs, improving the quality of life, encouraging more businesses to pay taxes, and promoting community assets.
Topic Highlights
- The study covers various aspects like Economic Development, Measures of Economic Development, Classification of Rich and Poor Countries, Basic Needs Attainment, Growth and Basic Needs, Basic Needs as a Human Right, and Cost and Benefit of Economic Development.
Measures of Economic Development
- R. G. Lipsey emphasizes multiple possible measures of a country's development level, including income per capita, the percentage of unexploited resources, capital per capita, savings per capita, and the amount of social capital.
- More common criteria include increases in national income, per capita real income, comparative standards of living, and overall community economic welfare.
National Income as an Index of Development
- Certain economists believe national income growth is the most suitable indicator of economic development.
- Simon Kuznets, Meier and Baldwin, Hicks D. Samuelson, and Pigon and Kuznets are mentioned in this context.
- Prof. Meier and Baldwin suggest per capita income increase as the measure of economic development.
Per Capita Real Income
- Economic development is often measured by increases in real per capita income over a long period.
- Harvey Leibenstein, Rostow, Baran, Buchanan, and others use per capita output as an index of economic development.
- Charles P. Kindleberger proposes similar metrics with careful computations for national income data.
Economic Welfare as an Index of Development
- Suggested as a measure of economic development, various economists propose this idea, including Coline Clark, Kindleberger, D. Bright Singh, and Hersick.
Economic Welfare Considerations
- Economic welfare can be understood in two ways:
- Equal distribution of national income across all societal sections.
- Increased purchasing power of money, even with rising prices. This suggests that price stability alongside income growth is important.
- Economic welfare directly correlates with the extent of economic development.
Comparative Concept
- The comparative concept helps assess the level of economic development in a country.
- Comparisons are made within the country and with other countries.
Measurement Through Occupational Pattern
- Changes in occupational structure are crucial for evaluating economic development.
- Colin Clark highlights a strong relationship between occupational structure and economic development.
Occupational Structure
- The occupational structure includes distinct sectors:
- Primary sector: Agriculture, fisheries, forestry, and mining.
- Secondary sector: Manufacturing, trade, and construction.
- Tertiary sector: Services, banking, and transportation.
- In underdeveloped countries, the primary sector usually employs most of the workforce.
Standard of Living
- A criterion of economic development is an increase in average consumption levels among individuals.
- Another measure is the Human Development Index (HDI).
Human Development Index (HDI)
- The Physical Quality of Life Index (PQLI) combines infant mortality, life expectancy at age one, and basic literacy at age 15 to assess basic needs fulfillment.
- The Human Development Index (HDI), developed by the United Nations Development Programme (UNDP), assesses a broader range of factors.
- The HDI uses a scale of zero to 100 for each component, and averages the values for the overall rating.
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Description
This quiz explores the principles and concepts of economic development, highlighting measures, strategies, and the classification of countries based on their wealth. It delves into the importance of improving quality of life and local economic health through targeted programs. Test your understanding of the factors that impact economic growth and community development.
