What are the basic prerequisites of economic growth?

What are the basic prerequisites of economic growth?

Three factors can create economic growth: more capital, more labor, and better use of existing capital or labor.

Is economic growth a necessary condition for economic development?

Economic growth is a necessary condition for development. This is because economic growth is essential for development.

What are the three main sources of economic growth in any economy?

three basic sources of economic growth: increases in labor, increases in capital, and increases in the efficiency with which these two factors are used.

Which is better economic development or economic growth?

Economic growth is necessary but not enough to achieve economic development. Economic Growth can be measured through an increase in the GDP, per capita income, etc. However, Economic Development can be measured through improvement in the life expectancy rate, infant mortality rate, literacy rate, and poverty rates.

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How is economic growth necessary but not sufficient condition for development?

Economic growth is essential for a country, but it cannot alone serve for economic development. Further economic growth can be easily measured from country’s GDP, but GDP does not defines economic development because it does not provides individual living condition details or purchasing power capacity of an individual.

What is the ideal concept of economic growth?

In simplest terms, economic growth refers to an increase in aggregate production in an economy. Adding capital to the economy tends to increase productivity of labor. Newer, better, and more tools mean that workers can produce more output per time period.

Is economic development one of the social prerequisites for Democracy?

Furthermore, many scholars, notably Lipset Seymour Martin (1959), Sirowy Larry & Inkeles Alex (1990) have maintained that economic development is one of the social prerequisites for democracy.

What does economic development mean to you?

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This means that economic development (high level of income per capita, industrialization, urbanization, high levels of literacy, long and healthy lives of the people) must be achieved to support a successful establishment of democracy.

What is the conflict perspective on economic growth?

Fundamental to the conflict perspective is the claim that economic growth is hindered by democratic organization of the polity. In other word, democracy and economic growth are seen as competing concerns; hence tradeoffs in the political realm are considered necessary.