Q.Explain any two limitations of National Income as an indicator in brief.

The statement 'Development is a multi-dimensional process' is given by Todaro — option (a).

A key distinction in this chapter of the GSEB Class-12 Commerce Economics course is between economic growth (a quantitative rise in real national/per-capita income) and economic development (a wider, qualitative improvement in living standards, institutions and welfare).

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Economic planning in India began in 1951 with the First Five Year Plan.

After independence, India adopted planned economic development. The Planning Commission was set up in 1950, and the First Five Year Plan was launched on 1 April 1951 (covering 1951-56). This marked the formal beginning of economic planning in India, aimed at r …

Economic growth takes into consideration quantitative change — option (a). It measures the increase in real national income/output, not the qualitative side.

Economic growth means a sustained increase in a country's real national income and per capita output over a period. It is a quantitative concept — we count how much production or income has risen. In contrast, economic development is a broader, qualitative concept that includes im …

The correct option is (A) Agriculture — its share in national income falls as an economy develops.

A well-known feature of economic development (the structural-change or sectoral-shift pattern) is that in a poor, underdeveloped economy agriculture dominates national income and employment. As development proceeds, productivity rises, industrialisation spreads and the service sector expands, so the share of the agriculture / primary sector in total national income steadily decreases while the shares of the industrial and service sector …

The statement "development is a multidimensional process" was given by Todaro — option (a).

Michael P. Todaro defined economic development not simply as growth in national or per-capita income, but as a multidimensional process involving major changes in social structures, popular attitudes and national institutions, together with the acceleration of economic growth, the reduction of inequality and the eradication of poverty. This broader view distinguishes development (a qualitative, all-round i …