INDICATORS OF GROWTH AND DEVELOPMENT — Economics STD 12 Commerce — Question
Gujarat BoardEnglish MediumSTD 12 CommerceEconomicsINDICATORS OF GROWTH AND DEVELOPMENT5 Marks
Question
State and explain the characteristics of economic development.
✓
Answer
Characteristics of economic development:
$1.$ Economic development is a continuous process:
Economic development is a slow but strong process in a predetermined order and direction.
It is easy for any country to start development but, difficult to maintain it.
In the initial period one can see a quick rise in development but once a country reaches a specific level of development it then shows slower development.
$2.$ Quantitative and qualitative change takes place:
In economic development, output which is a quantitative change increases. Due to research and innovation, the quality of the products which is a qualitative aspect also improves. But, it should be noted that there is more of qualitative improvement rather than quantitative.
$3.$ Demand changes:
Development tends to increase the income of the people. This changes their tastes and preferences.
For example, in the initial stages of development, people demand more of basic or primary goods but, later they start demanding goods of comfort and luxury.
$4.$ Labour become more dynamic:
Development leads to increase in education of labour which makes it more dynamic.
$5.$ Increases capital formation:
Development leads to increase in demand for different commodities.
This gives rise to new enterprises who produce such commodities. As a result, the rate of investment and capital formation increases manifolds in the country.
$6.$ Change in technology:
There is a shift in dependence from fire and water based i.e. traditional technology to coal and iron based i.e. modern technology. This results in faster development.
$7.$ Self-motivated development:
After a particular stage, development becomes habit of people and hence it is self-motivating.
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