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RDS 4202 Study Questions

Economic growth is defined as an increase in the value of goods and services produced in an economy, typically measured by GDP. Factors influencing economic growth include human resources, infrastructure development, natural resource utilization, population growth, and technological advancements. Economic development, on the other hand, focuses on improving the quality of life and well-being of a population, with key indicators such as education, capital increase, and infrastructure improvements.

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3 views

RDS 4202 Study Questions

Economic growth is defined as an increase in the value of goods and services produced in an economy, typically measured by GDP. Factors influencing economic growth include human resources, infrastructure development, natural resource utilization, population growth, and technological advancements. Economic development, on the other hand, focuses on improving the quality of life and well-being of a population, with key indicators such as education, capital increase, and infrastructure improvements.

Uploaded by

Emmanuel Kolleh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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1. What is Economic Growth?


Economic Growth refer to
Economic growth can be defined as an increase in the value of goods and services
produced in an economy over a period of time. This value calculation is done in terms of
% increase in GDP or Gross Domestic Product.

2. What are those Factors influencing Economic Growth?


1. Human resources – this is a major factor that is responsible for boosting the economic
growth of a country. The rate of increase in the skills and capabilities of a workforce
ultimately increases the economic growth of a country.
2. Infrastructure development- Improvements and increased investment in physical capital
such as roadways, machinery, and factories will increase the efficiency of economic
output by reducing the cost.
3. Planned utilization of natural resources – Proper use of available natural resources like
mineral deposits helps boost the productivity of the economy.
4. Population growth – An increase in the growth of the population will result in the
availability of more human resources which in turn will increase the output in terms of
quantity. This is also an important factor that influences economic growth.
5. Advancement in technology – Improvement in technology will affect the economic
growth of a country positively. The application of advanced technology will result in
increased productivity of labor and economic growth will advance at a lower cost.

3. What is Economic Development?


The term economic development can be explained as the process by which the
economic well-being and quality of life of a nation, community, or particular region are
improved according to predefined goals and objectives.
Economic development is a combination of market productivity and the welfare values
of the nation.

4. What are those Factors Affecting Economic Development?


1. Infrastructural improvement – Development in the infrastructure improves the
quality of life of people. Therefore, an increase in the rate of infrastructural
development will result in the economic development of a nation.
2. Education – Improvement in literacy and technical knowledge will result in a
better understanding of the usage of different equipment. This will increase labor
productivity and in turn, will result in the economic development of a nation.
3. Increase in the capital – Increase in capital formation will result in more
productive output in an economy and this will affect the economic development
positively.
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4. What are the difference between Economic Growth & Development?


Economic growth Economic development

Increase in market output results in Economic development can be measured in terms of


economic growth welfare values and market output

It is a quantitative concept It is a qualitative concept

Economic growth is unit-dimensional Economic development is multidimensional

This is one of the major concern of This is a major concern of developing countries
developed countries

Economic growth is independent of Economic development can only happen if economic


the development growth takes place.

Indicators of Economic growth Indicators of economic development


 Real GDP  Human Development Index
 Real per capita income  Physical Quality of Life Index
 Net Economic Welfare (NEW)

5. How is development related to economic growth?

Ans. If the economy of the country progresses, it will automatically reflect in human
development. Similarly, if the people of a country are progressing, they will contribute
to the overall development. Thus, development and economic growth are interrelated.

6. What is meant by economic growth and development?


Ans. Economic growth brings quantitative changes in the economy and reflects in the
per capita income of the country. This further improves the facilities and opportunities
provided to the people of the country, resulting in overall development of the nation.

7. How to Measure Economic Growth


The most common measure of economic growth is the real GDP.
This is the total value of everything, both goods and services, produced in an economy,
with that value adjusted to remove the effects of inflation.
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 Quarterly growth at an annual rate – This looks at the change in the GDP from
quarter to quarter, which is then compounded into an annual rate. For example,
if one quarter’s change is 0.3%, then the annual rate would be extrapolated to be
1.2%.
 Four-quarter or year-over-year growth rate – This compares a single quarter’s
GDP from two successive years as a percentage. It is often used by businesses to
offset the effects of seasonal variations.
 Annual average growth rate – This is the average of changes in each of the four
quarters. For example, if in 2022 there were four-quarter rates of 2%, 3%, 1.5%,
and 1%, the annual average growth rate for the year would be 7.5% ÷ 4 = 1.875%.

8. Why Does Economic Growth Matter?


In the simplest terms, economic growth means that more will be available to more
people, which is why governments try to generate it. However, it’s not just about
money, goods, and services. Politics also enter into the equation. How economic growth
is used to fuel social progress matters

9. What are the major key indicator that are used to measure economic
development.
A. Life Expectancy at birth
B. Adult Literacy Rate
C. Real GDP
D. Human Development Index
E. Infant mortality Rate

10. What are the major key indicator that are used to measure economic Growth?
a. Domestic Product GDP
b. Gross National Product GNP
c. Consumers Price Index CPI
11. what are the four main Types of economic development
The four different types of economic development are:
1. A traditional economy.
2. A command economy.
3. A market economy.
4. A mixed economy.

12. Why developing countries raise their out between1955 and 1965
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1. They raised their agricultural out in order to sustain a notable increase in


both exports and domestic consumptions.

2. The availabilities of knowledge, the state of the economics infrastructures,


the distributions of wealth and of income.

3. It increased the efficiency of administration, the equity and productivities


of the tax system and capacity to used economic policies instrument.

4. The appropriateness of the land tenure system for the introduction of


productivity, raising innovations in cultivating techniques and effectiveness
of financial institution to mobile and analyze the economy. s

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