Economic Growth and Development(Correct answers)
Economic Growth correct answersRefers to an overall expansion of the economy, resulting from
a real increase in the GNP after the effects of inflation have been taken into consideration
Economic growth examines quantitative increase in a country's production and therefore it would
be concerned with the numerical increases in the national income.
Growth is usually seen as positive; however, a country can fail to expand its production and thus
this would be referred to as a negative growth.
Economic Development correct answersit looks at the ability of a country to exploit its natural
resources to its fullest advantage.
Therefore it would cover areas ranging from government institutions, educational institutions,
telecommunication facilities to transport and storage. It looks at the labor force- the number of
workers, their skills and abilities.
Dualism correct answersDualism is the division of the economy into two different sectors.- one
being technologically advanced and the other technology backward.
Advanced Sector correct answersBoasts large-scale farming, manufacturing, banking, insurance,
trading and other services that are linked to these industries.
Backward sector correct answersIncludes small peasant farmers , very small manufacturing and
handicraft industries
Features of Underdevelopment correct answers*High levels of unemployment
*Low standard of living
*High growth rate of the population
*Shorter life expectancy due to poor nutrition and medical care
*Poor growth rate of income due to poor economic performance or increasing population
exceeding growth
*Large proportion of community engaged in agriculture and the terms of trade for these primary
products worsen year after year.
*Poor educational opportunities leading to high illiteracy levels and lack of skills
Distinctions between Economic Growth and Development correct answers*Economic growth is
quantitative and refers to an increase in real national income or national product and is usually
expressed as per capita income.
GNP is a quantitative measure of economic welfare that does not take into account important
non-economic aspects such as an increase in leisure time, access to health and education, an
improvement in the environment, freedom or social justice.
*Economic development is qualitative and typically refers to improvements in a variety of
indicators such as literacy rates, life expectancy and doctors and nurses per population. It usually
implies a reduction in poverty.
Economic Growth correct answersRefers to an overall expansion of the economy, resulting from
a real increase in the GNP after the effects of inflation have been taken into consideration
Economic growth examines quantitative increase in a country's production and therefore it would
be concerned with the numerical increases in the national income.
Growth is usually seen as positive; however, a country can fail to expand its production and thus
this would be referred to as a negative growth.
Economic Development correct answersit looks at the ability of a country to exploit its natural
resources to its fullest advantage.
Therefore it would cover areas ranging from government institutions, educational institutions,
telecommunication facilities to transport and storage. It looks at the labor force- the number of
workers, their skills and abilities.
Dualism correct answersDualism is the division of the economy into two different sectors.- one
being technologically advanced and the other technology backward.
Advanced Sector correct answersBoasts large-scale farming, manufacturing, banking, insurance,
trading and other services that are linked to these industries.
Backward sector correct answersIncludes small peasant farmers , very small manufacturing and
handicraft industries
Features of Underdevelopment correct answers*High levels of unemployment
*Low standard of living
*High growth rate of the population
*Shorter life expectancy due to poor nutrition and medical care
*Poor growth rate of income due to poor economic performance or increasing population
exceeding growth
*Large proportion of community engaged in agriculture and the terms of trade for these primary
products worsen year after year.
*Poor educational opportunities leading to high illiteracy levels and lack of skills
Distinctions between Economic Growth and Development correct answers*Economic growth is
quantitative and refers to an increase in real national income or national product and is usually
expressed as per capita income.
GNP is a quantitative measure of economic welfare that does not take into account important
non-economic aspects such as an increase in leisure time, access to health and education, an
improvement in the environment, freedom or social justice.
*Economic development is qualitative and typically refers to improvements in a variety of
indicators such as literacy rates, life expectancy and doctors and nurses per population. It usually
implies a reduction in poverty.
