Question

Economic development is characterised by ______.

Options

• Increase in real national income and per capita income.

• Structural change in the economy.

• Both increase in real national income and per capita income and structural change in the economy.

• None of the above.

Answer 1

Both increase in real national income and per capita income and Structural change in the economy.

Explanation:

Economic development involves both an increase in real national income and per capita income and structural changes in the economy such as shifts in sectoral composition, improvement in social and institutional factors, and overall qualitative changes in living standards. Thus, it combines growth with broader improvements in the economy’s structure and people’s welfare.