Question

Q. With reference to the Economic Growth and Development, consider the following statements:

Which of the above statements is/are correct?

• A.
  1 only
• B.
  2 only
• C.
  Both 1 and 2
• D.
  Neither 1 nor 2

Answer 1

The correct option is A

1 only
Explanation:

During a particular period, Economic Growth means the increase in the money value of goods and services produced by all sectors of the economy. Whereas, Economic Development is the process by which the overall health, well-being, and academic level of the general population of a nation improves.

Statement 1 is correct: Hence if a nation is said to be developed we can say that the country has previously witnessed economic growth. But if a country achieves economic growth, economic developments take place only if there is a productive utilization of that growth. In the absence of such a process development will not take place.

Statement 2 is incorrect: Tangible assets are the assets that can be touched physically. For example, cash, inventory, vehicles, equipment, buildings and investments. Whereas, intangible assets can be felt but can’t be touched physically. For example, health, education levels of citizens etc.

While the Economic growth directly provides only quantitatively measurable goods, the Economic development provides both the quantitative and qualitative assets i.e. intangible goods for a nation.