The difference between economic growth and economic development is that the latter deals with;
The difference between economic growth and economic development is that the latter deals with;
- A) economic growth and structural change
- B) economic growth and output change
- C) economic growth and GDP change
- D) economic growth and income change
Correct Answer: A) economic growth and structural change
Explanation
This question is asking about the difference between economic growth and economic development. Economic growth refers to an increase in the production of goods and services in a country, while economic development refers to a broader concept that includes social and economic progress.
The correct option is Option A, which states that economic development deals with economic growth and structural change. Structural change refers to a shift in the composition of an economy, such as a move from agriculture to manufacturing or services. Economic development also includes improvements in living standards, human development, and social welfare.
Option B, economic growth, and output change, is not a comprehensive enough definition of economic development as it only focuses on the increase in output. Option C, economic growth, and GDP change, is similar to Option B and does not include the broader concept of social and economic progress. Option D, economic growth, and income change, is also too narrow as it only focuses on changes in income without considering other factors such as structural change and social welfare.
In summary, economic development is a broader concept than economic growth, encompassing improvements in social welfare, human development, and structural change, while economic growth refers to an increase in the production of goods and services in a country.