Question

Statement (1): Economic development comes after economic growth.

Statement (2): Economic growth is measured by GDP.

Options

• Statement 1 is true, Statement 2 is false.

• Statement 2 is true, Statement 1 is false.

• Both statements are true.

• Both statements are false.

Answer 1

Both statements are true.

Explanation:

• Statement (1): “Economic development comes after economic growth” is true because economic growth refers to the increase in the production of goods and services (quantitative increase), while economic development is a broader concept that includes economic growth plus qualitative improvements such as reduction of poverty, inequality and improvement in living standards. Hence, economic development follows after economic growth.
• Statement (2): “Economic growth is measured by GDP” is true since GDP (Gross Domestic Product) is the standard measure of economic growth, reflecting the total market value of all final goods and services produced within a country over a period of time.

Thus, economic growth is quantitatively measured by GDP and economic development is a subsequent broader concept involving qualitative improvements beyond growth.