5 Questions
What is the focus of economic growth?
Rise in per capita income
How is economic growth defined in real terms?
Incorporating changes in prices
According to the traditional approach, what is considered synonymous with economic development?
Economic growth
What does Michael. P. Todaro define as a multi-dimensional process?
Development
In addition to economic growth, what else does Michael. P. Todaro emphasize for development?
Reduction in income inequality and eradication of absolute poverty
Study Notes
Focus of Economic Growth
- The focus of economic growth is on the increase in the production of goods and services in a country over time.
Definition of Economic Growth
- Economic growth is defined in real terms as an increase in the production of goods and services in an economy over time, typically measured by the increase in Gross Domestic Product (GDP).
Traditional Approach to Economic Development
- According to the traditional approach, economic growth is considered synonymous with economic development.
Michael P. Todaro's Definition of Economic Development
- Michael P. Todaro defines economic development as a multi-dimensional process that encompasses not only economic growth but also social and institutional changes.
Todaro's Emphasis on Development
- Michael P. Todaro emphasizes that in addition to economic growth, social and institutional changes are also necessary for development, including improvements in education, healthcare, and social welfare.
Test your knowledge about the concepts of economic growth, development, and underdevelopment as well as the Human Development Index (HDI). Understand the relationship between per capita income and real terms income changes over time.
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