The Link Between Economic Growth and Development: Explained

The video explores the distinction between economic growth and development, emphasizing that while growth is a one-dimensional measure of GDP increase, development is multidimensional, focusing on living standards and welfare. It discusses core values like sustenance, self-esteem, and freedom of choice. Traditional economic theory links growth to development, but development economics critiques this, highlighting the need for sustainable and equitable growth. The Lewis dual sector model is introduced, showing how economies can transition from agrarian to more balanced structures, fostering development.

What are the three core values at the forefront of economic development?

• Growth, stability, and security

• Education, health, and technology

• Wealth, power, and influence

• Sustenance, self-esteem, and freedom of choice

How is economic growth primarily measured?

• By changes in GDP over time

• By the level of technological advancement

• By improvements in living standards

• By the number of jobs created

Which of the following is a key distinction between economic growth and development?

• Growth focuses on GDP, development focuses on living standards

• Growth is multidimensional, development is one-dimensional

• Growth is short-term, development is long-term

• Growth is about job creation, development is about technology

What does development economics suggest about the relationship between growth and development?

• Growth always leads to development

• Growth is neither necessary nor sufficient for development

• Growth is necessary but not sufficient for development

• Development can occur without any growth

What is a potential negative externality of economic growth?

• Higher pollutants in the atmosphere

• Greater government revenue

• Increased employment

• Improved living standards

What is the focus of sustainable economic growth?

• Short-term GDP increase

• Long-term full employment output

• Immediate job creation

• Rapid industrialization

According to the Lewis dual sector model, what transition is necessary for development?

• From urban to rural economies

• From services to industrial sectors

• From unskilled to skilled labor sectors

• From manufacturing to agriculture

What is a common pattern observed in fast-growing economies like China and India?

• Focus on short-term economic growth

• Movement towards skills-based manufacturing and services

• Reduction in technological advancements

• Increased reliance on agriculture

What does the conclusion emphasize as necessary for development?

• Neither growth nor structural change

• Both growth and structural change

• Only structural change

• Only economic growth

Which sector is emphasized in the Lewis dual sector model for economic transition?

• Tertiary sector

• Agricultural sector

• Manufacturing sector

• Quaternary sector