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1. What are the importance of the study of economic growth?

The study of economic growth is significant for developing as well as developed countries. It is because it provides proper guidelines. The study is also useful to make better utilization of available resources.

The main points of its significance are stated below:

  • The study is important for underdeveloped and developed countries to get proper guidelines of economic planning.
  • The study provides better guidelines for proper utilization of natural resources and its allocation.
  • The study is important to remove various problem in the way of economic development like unemployment, poverty and population.
  • The study is important to examine the effectiveness of various schemes introduced from time to time.
  • The study is significant to assess the social justice being provided to different sections of the society.
  • The study is crucial for short - run and long-run planning.

2. What do you know about economy?

An economy is a system which provides people with the means of livelihood. People work to earn a living so that they are able to satisfy their wants.

3. Explain economic problem of an economy.

According to Leftwich, "economic problem is concerned with the uses of scarce resources among alternative human wants and using these resources towards the end of satisfying wants as fully as possible.

4. Is the economic problem the problem of choice?

The economic problem is rightly the problem of choice either for individual or for the society. The individual solves under the domain of micro-economics while society as a whole studies it under macro-economics.

5. Describe the causes of economic problem.

The basic causes of economic problem is unlimited wants and scarce means at the disposal of the man.

6. What are the main problems being faced by economy?

The economy faces the basic three problems like (i) what to produce  (ii) how to produce and (iii) for whom to produce.

7. Point out additional problems of an economy.

The economy also faces some additional problems such as maintenance of economic growth, full employment of resources, how to maintain stability, how much to save and how much to invest and problem of foreign exchange.

8.Define economic development.

Prof. Meir and Baldwin defined economic development as a process whereby an economy's real national income increases over a long time.

9.Give the definition of economic development given by U.N.O.

According to UNO, "Development concerns not only man's material needs, but also the improvement of social conditions of his life. Development is, therefore, not only economic growth plus change-social, cultural and institutional as well as economic." All these definitions emphasize different aspects involved in the process of economic development.

10.Define economic growth.

Economic growth can be defined as an increase over time in per capita output of material goods.

11.Distinguish between economic development and growth.

Economic development deals with the problems of the underdeveloped countries whereas economic growth deals with the problems of developed countries.

12.What is economic planning?

The economic planning is a systematic and deliberate control and decision of the control authority to achieve definite goals in an economy.

13.Give any four objectives of economic planning.

(i) rapid economic development (ii) proper utilization of natural resources (iii) provide additional employment opportunities and (iv) social justice.

14.Describe balanced growth.

The balanced growth is a development strategy to break the vicious circle of poverty. It states a circular constellation of forces, tending to act and react upon one another in such way as to keep the country in a state of poverty.

15.Explain unbalanced growth.

Pro.Hirshman explains unbalanced growth as development is a chain of disequilibria that must be kept alive rather than eliminate the disequilibrium of which profits and losses are symptoms in a competitive economy. If economy is to keep moving ahead, the task of development policy is to maintain tension disproportion and disequilibria.

16.What do you know about big push theory of economic growth?

Big push theory of economic growth is based on the principle of big investment for development in an underdeveloped country to make remarkable progress and to overcome obstacles of development.

17.Explain minimum efforts strategy of economic growth.

According to this theory, in order to achieve the transition from the state of backward to a more developed state where we can expect steady secular growth, it is necessary though not always, that it should receive a stimulus to growth that is greater than a certain minimum size.

18.Describe the various stages of economic growth given by Prof.Rostow.

(i) the traditional society (ii) pre-take off, (iii) the take-off (iv) the derive to maturity and (v) high mass consumption.

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