Economics · Class 12 Commerce
Ch 2Indicators of Growth and Development — Class 12 Economics, concept-first.
Economic growth refers to a sustained increase in a country's real Gross Domestic Product (GDP) or real per capita income over a period of time. It is a quantitative concept — it tells us how much more is being produced, not how well that extra output actually improves people's lives.
Key concepts
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Economic Growth and Economic Development
Economic growth is a quantitative rise in a country's real GDP/GNP or per capita real income — it measures how much more is produced.
Most relevant Q&A
- Define economic growth. How is it usually measured?Free
- Define economic development. In what way is it broader than economic growth?Free
- Distinguish between economic growth and economic development.Free
- Development is a multidimensional process. Who has given this statement? (a) Todaro (b) Kindle Berger (c) Marshall (d) MachlupPreview
- When economic development takes place in a country, contribution of which sector as percentage of the total national income decreases? (a) (…Preview
Chapter contents
The NCERT structure, section by section. Open a section to see its questions, then read the concept-first solution.
Economic Growth and Economic Development: Meaning
Economic growth refers to a sustained increase in a country's real Gross Domestic Product (GDP) or real per capita income over a period of time.
Growth vs Development: Key Differences
Basis Economic Growth Economic Development --------- Nature Quantitative — rise in real GDP/GNP or PCI Qualitative — rise in living standards, welfare, capabilities Scope Narrower — output and income…
Per Capita Income (PCI) as an Indicator
Per capita income is calculated as:
Human Development Index (HDI)
The Human Development Index was introduced by the UNDP in 1990 (associated with the economists Mahbub ul Haq and Amartya Sen) as a composite measure of development built on three dimensions:
Physical Quality of Life Index (PQLI)
The Physical Quality of Life Index was developed in the 1970s by the American economist Morris D. Morris for the Overseas Development Council, well before the HDI existed.
Gender Development Index (GDI)
The Gender Development Index measures the same three HDI dimensions — health, education, and standard of living — but computes them separately for females and males, and then expresses the GDI as the…
Developed vs Developing Economies: Classification Criteria
Countries are broadly classified as developed or developing using several complementary criteria — none of them is sufficient by itself:
Exercises
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- Q1Define economic growth. How is it usually measured?Free
- Q2Define economic development. In what way is it broader than economic growth?Free
- Q3Distinguish between economic growth and economic development.Free
- Q4Why is per capita income considered an inadequate measure of a nation's development?Preview
- Q5What is the Human Development Index (HDI)? Name the three dimensions it measures.Preview
- Q7What is the Physical Quality of Life Index (PQLI)? Who developed it?Preview
- Q9What is the Gender Development Index (GDI)? How does it differ from the HDI?Preview
- Q10State the main criteria used to classify a country as 'developed' or 'developing'.Preview
- Q12Distinguish between HDI and PQLI as measures of development.Preview
Sample & Board Papers
Sample papers and previous-year board questions for this subject.
+−Show 24 questionsHide questions24 questions
- Q1Development is a multidimensional process. Who has given this statement? (a) Todaro (b) Kindle Berger (c) Marshall (d) MachlupPreview
- Q2What is per capita income?Preview
- Q3Discuss the three determinants of physical quality of life Index.Preview
- Q4When economic development takes place in a country, contribution of which sector as percentage of the total national income decreases? (a) (…Preview
- Q5What is the maximum value of Human Development Index (HDI)? (a) (A) more than 100 (b) (B) 100 (c) (C) 1 (d) (D) less than 100Preview
- Q6Who presented the concept of Physical Quality of Life Index?Preview
- Q7Explain any two limitations of per capita income as an indicator.Preview
- Q8State importance of Human Development Index. (Any four points)Preview
- Q9Write the difference between economic growth and development. (Any six)Preview
- Q10Whose experts have recommended per capita income as an indicator of economic development? (a) World Bank (b) United Nations Organization (c)…Preview
- Q11Which change does economic growth take into consideration? (a) Quantitative change (b) Qualitative change (c) Long term change (d) Seasonal…Preview
- Q12As per order of Indian Constitution, who has the responsibility to provide free and compulsory primary education? (a) Central Government (b)…Preview
- Q13What is the value of Human Development Index?Preview
- Q14Give the definitions of economic development and economic growth.Preview
- Q15Write any two limitations of per capita income as an indicator of economic development.Preview
- Q16State the aspects included in Physical Quality of Life.Preview
- Q17Development is a multi dimensional process. Who has given this statement? (a) Todaro (b) Kindleberger (c) Marshall (d) MachlupPreview
- Q18Which country was first in Human Development Index according to 2014 report? (a) Japan (b) Norway (c) America (d) IndiaPreview
- Q19What is meant by infant mortality rate?Preview
- Q20In which year was planning started in India?Preview
- Q21Explain any two limitations of National Income as an indicator in brief.Preview
- Q22Between growth and development, which one is difficult to measure? Why?Preview
- Q23Explain per capita income as an indicator of economic development.Preview
- Q24Explain the limitations of Physical Quality of Life Index.Preview