Higher growth rate of real national income of a country does not necessarily imply its development'. Explain.
Real National income is the total value a country’s final output of all new goods and services produced in one year. Development in economy is determined by well-being of individuals and quality of life for a community by creating and/or retaining jobs, adequate tax base, high per-capita income, higher life expectancy better education system etc.
Real national income can be high even due to larger population of the economy contributing low individually or few numbers of new mechanized industries contributing higher production of goods, but less accommodation of workforce. So, such methods may lead towards economic growth, but do not necessarily provide for economic development.
Higher growth rate of real national income of a country does not necessarily imply its development’. Explain.
Published: February 7, 2016 | Modified:June 27, 2019