Podcast
Questions and Answers
What is the primary goal of economic development programs?
What is the primary goal of economic development programs?
- To improve the quality of life and economic well-being of a community. (correct)
- To reduce unemployment rates.
- To increase the government's tax revenue.
- To incentivize businesses to relocate to a specific area.
Which of the following is NOT listed as a common positive outcome of economic development strategies?
Which of the following is NOT listed as a common positive outcome of economic development strategies?
- Creating more jobs and job variety.
- Reducing the national debt. (correct)
- Promoting a community's assets.
- Increasing the number of skilled workers in a community.
What is the significance of using net national product (NNP) over gross national product (GNP) as a measure of economic development?
What is the significance of using net national product (NNP) over gross national product (GNP) as a measure of economic development?
- NNP considers the depreciation of capital goods, which is a fairer measure of economic progress. (correct)
- NNP focuses on the income of individual citizens instead of national income.
- NNP is easier to calculate than GNP, making it more accessible for policymakers.
- NNP only includes income from domestic sources, excluding foreign investments.
Which of the following is NOT considered a commonly used criterion for measuring economic development?
Which of the following is NOT considered a commonly used criterion for measuring economic development?
What is the complexity of measuring economic development?
What is the complexity of measuring economic development?
Which of the following is NOT a key factor in improving economic development?
Which of the following is NOT a key factor in improving economic development?
What is the main point of the statement "There is a group of certain economists which maintains the growth of national income should be considered most suitable index of economic development"?
What is the main point of the statement "There is a group of certain economists which maintains the growth of national income should be considered most suitable index of economic development"?
According to the passage, what is R.G. Lipsey's perspective on measuring a country's economic development?
According to the passage, what is R.G. Lipsey's perspective on measuring a country's economic development?
From the information provided, what is an example of a strategy that contributes to a community's economic development?
From the information provided, what is an example of a strategy that contributes to a community's economic development?
The text mentions national income and per capita real income. What is the key difference between these two measures?
The text mentions national income and per capita real income. What is the key difference between these two measures?
Which of the following is NOT considered a drawback of using real national income as a measure of economic development?
Which of the following is NOT considered a drawback of using real national income as a measure of economic development?
Which economist(s) advocated for using per capita output as a key indicator of economic development?
Which economist(s) advocated for using per capita output as a key indicator of economic development?
What are the two key components of economic welfare that contribute to higher levels of economic development?
What are the two key components of economic welfare that contribute to higher levels of economic development?
What is a significant drawback of using the standard of living as a criterion for measuring economic development?
What is a significant drawback of using the standard of living as a criterion for measuring economic development?
How does the occupational structure change as a country progresses towards economic development?
How does the occupational structure change as a country progresses towards economic development?
Which of the following is NOT a criterion discussed in the text for measuring economic development?
Which of the following is NOT a criterion discussed in the text for measuring economic development?
What is the primary objective of economic development?
What is the primary objective of economic development?
Which of these is NOT considered a factor influencing the purchasing power of money, as discussed in the text?
Which of these is NOT considered a factor influencing the purchasing power of money, as discussed in the text?
What is the central argument of the text about the relationship between economic development and per capita income?
What is the central argument of the text about the relationship between economic development and per capita income?
Which of the following statements accurately reflects the authors' perspective on measuring economic development?
Which of the following statements accurately reflects the authors' perspective on measuring economic development?
Flashcards
Economic Development
Economic Development
Programs and policies aimed at improving a community's economic well-being and quality of life.
Goals of Economic Development
Goals of Economic Development
Common aims include job creation, business retention, and improved quality of life.
National Income
National Income
Total income earned by a country's residents, often used to measure economic development.
Net National Product (NNP)
Net National Product (NNP)
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Per Capita Real Income
Per Capita Real Income
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Social Capital
Social Capital
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Economic Welfare
Economic Welfare
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Standard of Living
Standard of Living
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Unexploited Resources
Unexploited Resources
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Economic Diversity
Economic Diversity
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Per Capita Income
Per Capita Income
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Aggregate Output
Aggregate Output
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Comparative Concept of Development
Comparative Concept of Development
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Occupational Structure
Occupational Structure
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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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Real National Income
Real National Income
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Study Notes
Economic Development: Meaning and Measurement
- Economic development encompasses programs, policies, and activities aiming to enhance a community's economic well-being and quality of life. This involves building wealth, diversifying the economy, creating jobs, and strengthening the tax base.
- Key objectives of economic development strategies often include job creation and variety, attracting and retaining businesses, improved quality of life, increased tax revenue, more productive property use, and leveraging community assets.
- Economic development is a long-term process of change.
Measuring Economic Development
- Measuring economic development lacks a universally accepted, single index.
- Commonly used measures include national income, per capita real income, comparative analysis, standard of living, economic welfare, and occupational patterns.
National Income as an Index
- Some economists believe national income growth is a suitable measure of economic development.
- Net National Product (NNP) is preferred over Gross National Product (GNP) to gauge progress.
- Per capita income alone doesn't adequately reflect development; population growth needs consideration.
Per Capita Real Income
- Economic development should improve living standards, meaning increased aggregate output.
- A key indicator is the rise in real per capita income over time.
- Various scholars (e.g., Leibenstein, Rostow) highlight the significance of per capita output.
Economic Welfare as an Index
- Recognizing limitations of national income-based measures, some economists advocate for economic welfare as a development indicator.
- Economic welfare involves equitable income distribution and price stability.
- Higher economic welfare typically correlates with greater economic development.
Comparative Concept
- Economic development is analyzed comparatively; comparison with other countries or within the country over time (across periods) provides insights.
Occupational Pattern Measurement
- The distribution of the workforce across sectors (primary, secondary, and tertiary) signals economic progress.
- Transition from primary to secondary/tertiary sectors indicates development.
- A declining primary sector and growing secondary/tertiary sectors denote economic advancement.
Standard of Living Criterion
- Standard of living, not just per capita income, reflects economic success.
- An improved standard of living signifies provision of a better life for people.
- Average consumption level is key.
- However, this method has limitations due to subjective nature and potential manipulation by taxation.
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