TutorOn by Sanath Withanage

Question:

Economic development refers to
(1) economic growth.
(2) economic growth with changes in output distribution and economic structure.
(3) improvement in the well-being of the urban population.
(4) sustainable increase in Gross National Income.
(5) removal of income disparity of population.

Correct Answer:

(2)

Answer Explanation:

Economic development is a broader concept than mere economic growth (which is just an increase in real GDP). True economic development requires growth combined with qualitative, structural, and institutional changes that reduce poverty, lower inequality, and structurally transform the economy.

Topic: Economic Development Year: 2019