Question

Define or explain the concepts.

1. Economic growth

2. Industrial progress

3. Per capita income.

Answer 1

1. Economic growth refers to a consistent and considerable rise in the amount of goods and services produced by an economy over a period of time. In simple words it comprises of increase in the real income of a nation over a period of time. In this regard, we can say that economic growth is a quantitative concept.

2. Industrial progress implies growth in the industrial sector that basically deals with the processing of raw materials into finished products. It is associated with the processes of modernisation, urbanisation and technological upgradation. In this regard, industrial progress with a reduced dependence on the agriculture sector is viewed as an important determinant of economic development.

3. Per capita income, also termed as average income, refers to the mean income of the people of a country. It is calculated by dividing national income by the total population of a country. Algebraically,

$\mathrm{Per}\mathrm{capita}\mathrm{income}=\frac{\mathrm{National}\mathrm{Income}}{\mathrm{Total}\mathrm{Population}}$

Per capita income is viewed as an indicator of standard of living in a country.