Question

Give reasons or explain

1. Economic growth is a quantitative concept.

2. Industrial progress is an important indicator of economic development.

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. It is a quantitative concept, as it takes into account only the increase in real national income of the country while ignoring the qualitative factors (such as improvement in health, education, etc.) that actually imply an improvement in the welfare and standard of living in the country.

2. Industrial progress implies growth in the industrial sector that primarily deals with the processing of raw materials into finished products. It is an important determinant of economic development, as it positively contributes to the national income and per capita income of a country, thus facilitating economic growth and development. It is mainly associated with the processes of modernisation, urbanisation and technological upgrade.