Question

What is economic development ?

• A. Only an increase in national income.
• B. An increase in national income along with improved living conditions for all.
• C. A decrease in the production of goods and services.
• D. A rise in the per capita income only.

Answer 1

Answer:

B. An increase in national income along with improved living conditions for all.

Economic development

• It cannot be claimed that economic growth alone improves the standard of living of the people.

• For an improvement in the standard of living, several other living conditions should be made available along with an increase in national income.

• When improved living conditions are available to all, the standard of living of the people improves.

• Economic development takes place when the standard of living improves with economic growth.

• A country is said to have attained economic development when there is economic growth, and the benefit of which is accessible to all.

• Economic development ensures social welfare along with increased Gross National Product.

• In other words, along with increased production, economic development ensures quality, improvement, efficient distribution and Structural change in the economy.
  

• Economic development = Economic growth + Better standard of living.