Question

objective questioIt is not possible for an African country to experience
(a) economic development without economic growth.
(b) economic growth without economic development.
(c) economic growth and economic development simultaneously.
(d) both (a) and (b) are correct.

Answer 1

Answer: (a) economic development without economic growth.

Economic growth means an increase in real national income / national output. Economic development means an improvement in the quality of life and living standards, e.g. measures of literacy, life-expectancy and health care. Ceteris paribus, we would expect economic growth to enable more economic development. Higher real GDP enables more to be spent on health care and education.

It is possible to have economic growth without development. i.e. an increase in GDP, but most people don’t see any actual improvements in living standards. This could occur due to economic growth may only benefit a small % of the population. For example, if a country produces more oil, it will see an increase in GDP. However, it is possible, that this oil is only owned by one firm, and therefore, the average worker doesn’t really benefit.