According to What Is Economics, economic development occurs when policymakers work to improve the welfare of citizens; economic growth refers to a country's increase in output of products and services. Economic growth is considered by most economists to be a subcategory of economic development.Know More
Economic development and growth are linked to one another, states What is Economics. When a country experiences economic growth, its gross domestic product (GDP) increases. When there is income growth per capita, meaning that income grows in relation to the country's population, it is called intensive growth. Extensive growth occurs when there is an increase in territory or population. Both lead to economic growth. According to the Business Dictionary, economic growth is influenced most by technological advances and policy improvements.
The level of economic development is measured by a country's poverty rates, literacy rates, infant morbidity rates,life expectancy and overall health and safety, as defined by What is Economics. Development takes place when policymakers and communities work together toward economic betterment. Economic growth is one facet of development, but there are others, including improved social welfare, a secure political system and stable government. If a country experiences economic growth, economic development typically follows, according to What is Economics.Learn more in Economics
Economic profit is the total revenue generated by a business minus total opportunity costs. It is a more theoretical way of looking at a company's profitability that differs from the standard accounting profit reflected on the company's income statement, which simply subtracts the cost of producing goods and services from total revenue.Full Answer >
An economic region is an area in which particular types of commerce take place based on administrative or geographical boundaries. These boundaries come in the form of state lines, international borders or natural geographic landmarks. Other factors, including the migration of labor, the consumer’s market and laws regarding trade, shape economic regions. There are several different types of economic regions, most notably large, small, urban and international.Full Answer >
Economic feasibility is the cost and logistical outlook for a business project or endeavor. Prior to embarking on a new venture, most businesses conduct an economic feasibility study, which is a study that analyzes data to determine whether the cost of the prospective new venture will ultimately be profitable to the company. Economic feasibility is sometimes determined within an organization, while other times companies hire an external company that specializes in conducting economic feasibility studies for them.Full Answer >
An economic meltdown occurs when a country experiences a sudden downturn in the state of its economy. During an economic meltdown, many people will be unemployed or underemployed, companies may go out of business, wages and benefits will drop or stagnate, inflation will occur, the nation's gross domestic product (GDP) will decrease and it may be difficult for many prospective borrowers to obtain a loan.Full Answer >