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 about Economics
Economic viability is when a project proves to be economically feasible, innovative and sustainable in terms of investing financial resources into the project. Funding for the project must be compatible with the demands and constraints that occur during the project's life span.Full Answer >
The economic perspective focuses on how resources are distributed in an organizational setting. Philosophies that stem from the economic perspective concentrate on leveraging or manipulating those resources.Full Answer >
Economic disequilibrium is a state where market equilibrium is unreachable due to internal or external variables. Disequilibrium can also occur when internal or external variables result in a disruption to the balance in the market. It is also a result of long-term structural imbalances or short-term changes in market variables.Full Answer >
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 >