Parameters Of Development — Flashcards

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Economic development is a process of change over a long period of time that makes people better off by increasing their command over goods and services and by increasing the choices open to them. It i…

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Economic development is complex and can be measured in different ways. No single measure captures income, distribution, health, education, and living standards together. Common measures include nation…

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National income means the value of goods and services produced by a country during an accounting year. It is the net result of all economic activities of a country during one year, valued in money ter…

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Simon Kuznets, Meier, and Baldwin supported growth of national income as the most suitable index of economic development.

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Net national income is preferred because it accounts for capital wastage. This gives a better idea of the progress of a nation than gross national income.

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An increase in national income increases the volume of goods and services. This usually leads to more consumption and higher economic welfare. A decrease in national income reduces goods and services …

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The growth rate of national income shows the general health of the economy. A rise is seen as a sign that the economy is doing well, while a fall suggests weakness or contraction.

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National income helps policymakers and the central bank judge whether the economy is contracting or expanding. This helps them take necessary action quickly.