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    Basic Indicators of Economic Development

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    Revathi Vadakkedam
    This document outlines several basic indicators of economic development: 1) National income is the total value of goods and services produced in a country in a given period, measured at current or constant prices. 2) Gross domestic product (GDP) is the total value of final goods and services produced domestically in a year, measured at market or factor cost. 3) Per capita income is national income divided by total population and is used to compare living standards between countries. 4) Savings and investments are required for economic development as savings are transferred by financial intermediaries to investors for capital formation and future income generation.

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    Basic Indicators of Economic Development

    Uploaded by

    Revathi Vadakkedam
    180 views10 pages
    This document outlines several basic indicators of economic development: 1) National income is the total value of goods and services produced in a country in a given period, measured at current or constant prices. 2) Gross domestic product (GDP) is the total value of final goods and services produced domestically in a year, measured at market or factor cost. 3) Per capita income is national income divided by total population and is used to compare living standards between countries. 4) Savings and investments are required for economic development as savings are transferred by financial intermediaries to investors for capital formation and future income generation.

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    This document outlines several basic indicators of economic development: 1) National income is the total value of goods and services produced in a country in a given period, measured at current or constant prices. 2) Gross domestic product (GDP) is the total value of final goods and services produced domestically in a year, measured at market or factor cost. 3) Per capita income is national income divided by total population and is used to compare living standards between countries. 4) Savings and investments are required for economic development as savings are transferred by financial intermediaries to investors for capital formation and future income generation.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    180 views10 pages

    Basic Indicators of Economic Development

    Uploaded by

    Revathi Vadakkedam
    This document outlines several basic indicators of economic development: 1) National income is the total value of goods and services produced in a country in a given period, measured at current or constant prices. 2) Gross domestic product (GDP) is the total value of final goods and services produced domestically in a year, measured at market or factor cost. 3) Per capita income is national income divided by total population and is used to compare living standards between countries. 4) Savings and investments are required for economic development as savings are transferred by financial intermediaries to investors for capital formation and future income generation.

    Copyright:

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    Download as PPTX, PDF, TXT or read online from Scribd
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    of 10

    BASIC INDICATORS OF ECONOMIC DEVELOPMENT

    BASIC INDICATORS
     National Income  GDP  Per Capita Income  Infrastructure  Foreign Trade and Balance of Payments  Savings and Investments

    National Income;
    National income is the total money value of all final goods and services in a country during a given period of time. It is estimated at; Current price(quantity produced *current market price) Constant price(quantity produced*base year price)

    Gross domestic product


    GDP can be estimated at Market price Factor Cost. GDP at market price is the total money value of final goods and services produced in the domestic territory of a country in a year.  GDP at factor cost is the sum of all factor payments( wages, Interest, rent,profit and depreciation)  Net Domestic Product(NDP)  =GDP-Depreciation
       

    Per Capita Income


     Per Capita Income is per Head Income  It is obtained by dividing the national income by

    total population.  Per Capita Income of developed countries is 12 times more than that of India.

    Savings and Investments


     Savings and investments are required for the

    development of any economy.  Savings originate from income and the financial intermediaries transfer them to investors.  Investors use them for capital formation in turn generates a stream of income apart of which is saved.

    Infrastructure
     It is the basic physical and organizational

    structures needed for the operation of a society or enterprise or the services and facilities necessary for an economy to function  The term typically refers to the technical structures that support a society such as roads, water supply, power grids, telecommunication, and so forth.

    Foreign Trade and Balance of Payments


     Trade between two or more nations is called foreign

    trade or international trade.  BOP Meaning: A record of all transactions made between one particular country and all other countries during a specified period of time  Balance of payments may be used as an indicator of economic and political stability.  For example, if a country has a consistently positive BOP, this could mean that there is significant foreign investment within that country

    ECONOMIC ENVIRONMENT
    MEANING: It refers to all those economic factors which have a bearing on the functioning of a business unit. Business depends on economic environment for inputs and for selling its finished goods.

            

    ECONOMIC FACTORS INFLUENCING BUSINESS SECTOR Capital Labor price Price Levels Productivity Entrepreneurs and Managers Government Policies Status of consumers Agriculture Economic Trend

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