Question: What Is The Main Difference Between Economic Growth And Economic Development?

What are the main causes of economic growth?

Broadly speaking, there are two main sources of economic growth: growth in the size of the workforce and growth in the productivity (output per hour worked) of that workforce.

Either can increase the overall size of the economy but only strong productivity growth can increase per capita GDP and income..

What is the differences between economic growth and economic development?

Economic growth means an increase in real national income / national output. Economic development means an improvement in the quality of life and living standards, e.g. measures of literacy, life-expectancy and health care. Ceteris paribus, we would expect economic growth to enable more economic development.

Do the two terms economic growth and economic development mean the same thing?

‘Do the two terms—’Economic Growth’ and ‘Economic Development’ mean the same thing’. … No, Economic growth and Economic development are distinct and different in terms of their contents and coverage. Economic growth can be defined as a process whereby a country’s real national income increases over a long period of time.

What are examples of economic development?

The following are common types of economic development.Infrastructure. Foundational services that improve the efficiency of an economy such as an internet backbone.Education. … Health & Wellness. … Justice. … Safety. … Human Rights. … Consumer Protection. … Fair Competition.More items…•

What are the 4 principles of growth?

The principles are: 1. Development is Continuous 2. Development is Gradual 3. Development is Sequential 4. Rate of Development Varies Person to Person 5. Development Proceeds from General to Specific 6. Most Traits are Correlated in Development and Others.

What is mean by growth and development?

Definition of growth and development Growth is the progressive increase in the size of a child or parts of a child. Development is progressive acquisition of various skills (abilities) such as head support, speaking, learning, expressing the feelings and relating with other people.

What are the factors that hinder economic development?

The paper finds that public borrowing, trade deficit, military expenditures, population, political instability, corruption, the high dependency on natural resources and the low level of technological innovation, all hinder GDP in the long run.

What are the three economic factors?

Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship. The first factor of production is land, but this includes any natural resource used to produce goods and services.

What is the main difference between growth and development?

Growth is just ‘getting bigger’, whereas development is improvement. Growth can be explained as becoming bigger or larger or having more importance. Growth is termed as a physical change, where as development is said to be physical as well as social or psychological change.

What is the difference between economic growth and economic development quizlet?

Economic growth refers to increases in Y levels, GDP and GDP per capita, measured by the percentage increases in real GDP. … Economic development refers to the process of structural change needed in an economy for economic growth to occur.

What are the factors affecting economic development?

Economists generally agree that economic development and growth are influenced by four factors: human resources, physical capital, natural resources and technology.

What is an example of growth and development?

PHYSICAL DEVELOPMENT: Includes muscle coordination and control, growth in size and in proportion. Examples: a child rolling over, lifting its head, or sitting up. COGNITIVE DEVELOPMENT: The ability of the brain or mind to take in and process information.