Page 19 - DECO501_ECONOMICS_OF_GROWTH_AND_DEVELPOMENT_ENGLISH

Unit 1: Economics of Growth and Development: Meaning, Measurement, Difference and Comparisions

Notes

Write the growth theory.
Self-Assessment

2. State whether the following statements are ‘true’ or ‘false’.
(i) The economic growth in different countries has been different and uneven.
(ii) If the growth rate is 10% it will only take 0.2 years for the economy to double.
(iii) A theory can help us to identify some strategic variables involved in the process of growth.

1.10 Summary

• Growth is a way of life. None of us wants to stay at the same level of standard of living. Each
one of us puts best of his effort to grow economically and have a better standard of living.
• Economic Growth : is a narrower concept than economic development.
• Economic development is a normative concept i.e. it applies in the context of people’s sense of
morality (right and wrong, good and bad).
• The most accurate method of measuring development is the Human Development Index
which takes into account the literacy rates & life expectancy which affect productivity and
could lead to Economic Growth.
• Economic Growth does not take into account the size of the informal economy.
• Development alleviates people from low standards of living into proper employment with
suitable shelter.
• If economic growth is 1%, it will take approximately 72 years for the value of the economy to
double.
• If the growth rate is 10% it will only take 7.2 years for the economy to double.

1.11 Key-words

• Normative : Describing or setting standards or rules of behavior.
• Informal : Related and briendly not following strict rules of how to behave

1.12 Review Questions
1. What are difference between economic development and economic growth?
2. Explain the growth performance of the word economy.
3. Describe the process of economic growth.
4. What are the stages of growth?
5. Define growth also describe the measurement of growth.
Answer: Self-Assessment
1. (i) growth (ii) economic (iii) normative (iv) informal
(v) necessary
2. (i) T (ii) F (iii) T

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