Economic Growth And Development Flashcards
What is economic growth?
Economic growth is a sustained increase or rise in Apc income or the real GNP per capita. It can also be defined as the sustained increase in the value of the final goods and services in an economy leading to an increase in the number of goods available per person
Growth rate is usually expressed in
It is usually expressed in % and it shows the percentage growth of production of the nation per year
Economic growth is to help raise the living standard of the people
What is economic development ?
Economic development( refers to the changes in the economic and social structure that always accompanies economic growth )
It is the process of bringing about physical transformation of the society which leads to improvement in the standard of living and welfare of the country masses.
Factors that determine economic growth and development
- Resources endowment and utilization
- capital accumulation (increase in capital stock)
- investment in social and economic infrastructure
- technological progression
- political stability
- investment in new facilities
Benefits of economic growth
- it increases standard of living
- it gives man freedom to choose between more work and greater leisure
- it confers higher international status to a country
- it allows more access to goods and services
- it gives more control over his environment which leads to more freedom
What is underdevelopment?
Underdevelopment is an economic situation in which there are persistent low level standard of living
Causes of underdevelopment
- Inadequate capital
- low technology
- manpower problems
- political instability
- low per capital output
- underutilization of national resources
- poor infrastructural development
- poor policy implementation by government
- laziness
Ways of measuring economic development
- volume of per capital income
- rise In productivity
- rise in living standard
- physical quality of life index (pqli)
- human development index
- poverty alleviation
- inequality reduction
Problems facing economic growth and development in Nigeria
- inadequate social and economic infrastructure
- overpopulation
- low level of technology
- low income
- over dependence on oil
- corruption
- over dependence on inputs
- poor exploitation of resources
- deficient education curriculum
- unemployment
- political, tribal and religious crisis
